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Information Technology Service Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The information technology service management market was valued at USD 5,916. 25 Million in 2021 and is expected to reach USD 6,674. 43 Million by 2027 at a 2. 02% CAGR over the forecast period 2022-2027.
New York, June 07, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Information Technology Service Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06283194/?utm_source=GNW
Key Highlights
Information Technology Service Management, henceforth referred to as (ITSM), defines all IT-related activities that include creating, delivering, supporting, and managing the customized solutions which are executed to achieve the business goal of the IT organizations.
Further, being an end-to-end service, ITSM is not limited only to designing and delivering appropriate IT Systems, applications, or resources; in fact, ITSM focuses mainly on adopting a specific process approach to a company or a project. The final objective of ITSM is always set up individually regarding the customers’ unique needs and values. Additionally, ITSM clearly defines the roles and permissions of people involved in the project, partners, and third-party providers of services, products, and new technologies.
The IT organization tends to focus more on the management of IT services and application for their short-term and long-term strategic goals. ITSM offers many advantages such as cost reduction, automation of repetitive tasks, and data gathering in one place, among others, that have a strong impact on the overall performance of the organization, helping them to achieve their short-term and long-term strategic objectives. Therefore, with the evolving IT industry dynamics, the ITSM market is expected to witness prolific growth in the forecasted period.
Though ITSM tools provide excellent benefits, specific challenges, like implementation, reliability concerns, and lack of quality standards in service-level agreements (SLA), are expected to obstruct the market growth studied during the forecast period. The process of procuring an ITSM tool, primarily for managing critical IT services, involves the belief that the provider’s business would endure and the relationship with them. In case of any failure by the provider, the enterprises relying upon them are significantly impacted and are expected to find a to replace the tool. This, in turn, is expected to disrupt their process and, ultimately, their efficiency.
COVID-19 pandemic had a beneficial impact on the market, owing to the rise in remote working and the expanding digital transformation of enterprises. Businesses are looking for business processes that are seamless, efficient, and accessible from any location. Further, many businesses completed their digital transformation, and a number of them have decided to remain fully remote or operate on a digital and in-office hybrid model. Thus, IT teams can expect a sharp rise in the need for internal IT support and ITSM software, thereby boosting the studied market growth.
Key Market Trends
IT and Telecommunication Sector is expected to Hold the Largest Market Share
Modernizing IT service management for the IT &and telecom sector is an evolved approach. This is bridging the gap between traditional, on-premise, and cloud-based IT systems. It increases operational efficiency and effectiveness. Thus, consolidating how data is captured, analyzed, and shared across the enterprises provides an improved experience for internal IT employees and external constituents.
With rapid technological advancements, telecom businesses are continually focusing on innovation. Thus, they are focusing on upgrading their infrastructure while developing state-of-the-art solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources.
Moreover, ITSM solutions’ implementation helps telecom enterprises gain unified visibility into invoices, expenses, usage, and assets across their entire communications, cloud, and software license portfolio. Thus, reducing the overall costs and enhancing productivity, mainly by improving visibility, while providing a finely tuned set of processes to manage existing IT infrastructure. Moreover, IT companies are focusing on adopting ITSM with the increasing demand across the cloud-based models. With this growing adoption of cloud-based ecosystems, companies have expanded their partnership through new offerings across the cloud platform.
In November 2021, Tata Communications announced the launch of Tata Communications GlobalRapide; an end-to-end managed unified communications as a service (UCaaS) to enable enterprises to deliver digitally advanced, sophisticated, and intelligent collaboration experiences for employees. Tata Communications becomes a one-stop-shop to address all global businesses’ digital-first, cloud-first unified communications requirements with this new ITSM.
According to 5G Americas, growth in 5G subscriptions is expected to continue into the foreseeable future, reaching 3 billion subscriptions by 2025. That includes 600 million subscriptions from 2023 to 2024 and from 2024 to 2025.
North America to Account for the Most Significant Share
North America is a prominent market for ITSM, owing to the high adoption of cloud technology and the growing need for improving IT services by the end-user industries in the region. According to a survey report on IT Management by Site24*7, 62% of respondents reported ease of management as the top factor in cloud shift, closely followed by business continuity (60%) and scalability (59%).
Further, a report published in March 2022 with a survey named "A hybrid cloud adoption survey"with 900+ IT professionals suggested that most businesses (93%) are adopting a hybrid of cloud and on-premise solutions or migrating fully to the cloud within five years. The survey was majorly done in North America and Europe, where 43.8% of respondents were from North America. Thus, the growing transition toward cloud platforms is expected to drive the demand for IT service management solutions in the coming years.
Additionally, the region has a strong foothold on the ITSM vendors, which contributes to the market’s growth. Some of them include IBM Corporation, ServiceNow Inc., BMC Software Inc., and LogMein, among others.
Owing to remote working practices post the pandemic, most organizations are also taking preventive measures to secure their mobile devices and equipment provided to the employees. The Canadian Centre for Cyber Security encourages the Canadian cybersecurity community, especially critical infrastructure network defenders, to bolster their awareness of and protection against Russian state-sponsored cyber threats. The cyber center joins the United States and United Kingdom partners in recommending proactive network monitoring and mitigations.
The market is witnessing the growth of cloud-based ITSM, owing to the rapid adoption of BYOD policies for improved productivity, employee satisfaction, and cost-effectiveness. These policies require remote accessibility of information, which is facilitated by cloud-based ITSM solutions.
Competitive Landscape
The managed services market is dominated by the major players, such as IBM Corporation and Atlassian Corporation PLC, who have a strong client base in the market. These players are constantly providing increased and enhanced offerings. In order to sustain in the market and retain their clients, the companies are employing powerful competitive strategies. This factor intensifies the competitive rivalry in the market.
Overall, the degree of competition is high and expected to remain the same throughout the forecasted period as players are offering various services depending on the customer’s needs.
January 2022 - Atlassian Corporation PLC acquired Percept. AI to improve the AI engine for natural language understanding in Jira service Management. The company aims to create an integrated experience for the customers in the market. Through the Percept.AI, the company aims to deflect the vast majority of tier-1 support questions, provide users a great experience and free up IT teams to focus on more complex tasks.
October 2021 - BMC announced the acquisition of StramWeaver, a company that helps enterprises achieve their end-to-end observability, AI operations (AIOps), cloud migration, and cost reduction goals with data integration capabilities. The acquisitions are expected to enhance AIOps capabilities with a broad set of out-of-the-box data integrations built on a complementary, modern microservices-based architecture.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06283194/?utm_source=GNW
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