IT Operations and Service Management (ITOSM) Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The IT operations and service management (ITOSM) market size is expected to reach US$ 69.21 billion by 2031 from US$ 27.74 billion in 2023. The market is estimated to record a CAGR of 12.1% during 2023–2031. The shift toward cloud-based solutions is likely to remain a key future trend in the market.

IT Operations and Service Management (ITOSM) Market Analysis

The global IT operations and service management market is experiencing significant growth in terms of revenues pertaining to an increasing focus on data-driven decision-making. One of the most significant developments in the market is the incorporation of artificial intelligence (AI) with IT operations and service management solutions. These technologies are transforming the way IT services are managed and provided, allowing enterprises to solve complex issues with remarkable efficiency. AI-powered technologies can now diagnose and resolve IT issues autonomously, drastically lowering downtime and increasing service uptime. These systems use machine learning algorithms to detect possible problems before they occur, allowing for proactive management of IT infrastructure.

IT Operations and Service Management (ITOSM) Market Overview

IT operations and service management refer to the management and maintenance of IT infrastructure, operations, and services in an organization. In the digital age, where technology plays a crucial role in driving business operations, having effective IT operations and service management is essential for businesses to thrive. IT operations involve the day-to-day activities required to maintain a stable and efficient IT environment. This includes monitoring system performance, troubleshooting issues, managing network infrastructure, and ensuring data security, among other tasks. The goal of IT operations is to ensure that all IT systems are running smoothly, as well as minimizing downtime and maximizing productivity. In addition, IT service management focuses on delivering IT services to meet the requirements of the business and its users. It involves planning, designing, and implementing processes and procedures to deliver and support IT services effectively. Service management ensures that IT services are aligned with the organization's goals and that they are delivered in a way that adds value to the business.

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IT Operations and Service Management (ITOSM) Market: Strategic Insights

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IT Operations and Service Management (ITOSM) Market Drivers and Opportunities

Growing Adoption of Remote Work Culture to Favor Market

Remote work has become the new normal for many organizations in recent years, especially after the COVID-19 pandemic, to maintain flexibility in working conditions. Various teams and departments in an organization successfully manage to work together in remote and hybrid workspaces. According to Gallup, Inc. report of June 2022, ~65% of full-time employees are ready to work remotely. Working in a remote environment helps employees reduce traveling time as well as maintain a work-life balance. A study conducted by the National Bureau of Economic Research in January 2023 showed that remote work saved an average of 72 minutes spent by employees on their daily travel to and from their on-site jobs during 2021–2022. As organizations adapt to remote work culture, they need robust IT infrastructure, enhanced cloud services, and strict cybersecurity measures. This shift necessitates more advanced remote IT support, automated IT operations and service management (ITOSM) tools, and enhanced monitoring systems to maintain smooth operations across distributed teams. ITOSM provides employees the capabilities to enhance service requests and manual business operations 24/7 while streamlining regular and often mundane tasks for all organizational departments. Furthermore, ITSM, when implemented across multiple business domains, can enhance interdepartmental cooperation and can integrate internal services such as payroll, HR, and finance into a single platform. Thus, many businesses have shifted to WFH (Work from Home) and WFA (Work from Anywhere) workforce models, boosting the demand for customer-grade IT service management, which drives the IT operations and service management (ITOSM) market.Incorporation of AI in ITOSM

AI is revolutionizing the way companies manage IT services. By leveraging AI technology, organizations can automate repetitive tasks, gain valuable insights from data, and bolster security. The incorporation of AI in IT operations and service management is a relatively new development; it is expected to continue gaining traction due to the ITOSM solution’s ability to automate many mundane tasks, streamline network operations, and predict equipment failures. AI empowers IT professionals to focus on implementing strategic initiatives to optimize operational efficiency. This results in cost savings, improved uptime, and a proactive approach to IT management. Furthermore, the integration of AI into ITSM offers many benefits for companies by enabling more efficient support services, faster problem-solving, and a better user experience. AI in ITSM enables more effective and targeted management of IT services, developing a more proactive, predictive, and personalized approach to ITOSM, ultimately leading to improved user experience, reduced costs, and increased operational agility. Moreover, AI is also capable of automating routine troubleshooting tasks and analyzing IT service desk issues. For example, digital assistants automate repetitive tasks, such as ticket classification, initial response to customer queries, and workload optimization. AI in ITOSM leverages digital assistants to enhance user experience, reduce manual effort, and increase operational efficiency. Integrating AI into ITOSM processes involves various components to streamline incident analysis, generate insights into service performance, support decision-making, and improve customer service by answering queries through chatbots for optimal service delivery. Thus, the incorporation of AI in ITOSM is expected to create immense opportunities for companies to fundamentally improve their processes in the IT operations and service management (ITOSM) market during the forecast period.

IT Operations and Service Management (ITOSM) Market Report Segmentation Analysis

Key segments that contributed to the derivation of the IT operations and service management (ITOSM) market analysis are type, application, deployment, enterprise size, and industry.

• Based on type, the market is divided into solution and services. The solution segment dominated the market in 2023.
• By application, the market is segmented into configuration automation and discovery; operation and performance management; dashboard, reporting, and analytics; and others. The operation and performance management segment dominated the market in 2023.
• By deployment, the market is bifurcated into on-premises and cloud. The cloud segment dominated the market in 2023.
• Based on enterprise size, the market is bifurcated into large enterprises and SMEs. The large enterprises segment dominated the market in 2023.
• In terms of industry, the market is segmented into IT & telecom, healthcare, BFSI, government, manufacturing, and others. The IT & telecom segment dominated the market in 2023.

IT Operations and Service Management (ITOSM) Market Share Analysis by Geography

• The IT operations and service management (ITOSM) market is segmented into six major regions: North America, Europe, Asia Pacific (APAC), the Middle East, Africa, and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
• The North America IT operations and service management (ITOSM) market is growing significantly due to the presence of various market players continuously working on advancing ITOSM solutions, increased adoption of remote work, compliance requirements, and a focus on productivity and efficiency. Moreover, North America is a frontrunner in terms of technological innovations and adoption. Prominent North American countries, such as the US and Canada, have exhibited massive adoption of technologies such as artificial intelligence (AI), machine learning (ML), and blockchain in the past three years across all major industry verticals. With the surging penetration of digitization in various industries, IT operations and service management solutions have become a vital component for businesses in North America.

IT Operations and Service Management (ITOSM) Market Regional Insights

The regional trends and factors influencing the IT Operations and Service Management (ITOSM) Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses IT Operations and Service Management (ITOSM) Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

IT Operations and Service Management (ITOSM) Market Report Scope

IT Operations and Service Management (ITOSM) Market Players Density: Understanding Its Impact on Business Dynamics

The IT Operations and Service Management (ITOSM) Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the IT Operations and Service Management (ITOSM) Market are:

1. Ardent IT Private Limited
2. Alnafitha IT
3. PROV INTERNATIONAL INC.
4. BMC Software, Inc.
5. Happiest Minds
6. IBM Corporation.

Disclaimer: The companies listed above are not ranked in any particular order.

IT Operations and Service Management (ITOSM) Market News and Recent Developments

The IT operations and service management (ITOSM) market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the IT operations and service management (ITOSM) market are listed below:

• ServiceNow and Fujitsu announced a new strategic commitment to launch innovative cross-industry solutions designed to maximize value for customers worldwide. The companies launched a new Fujitsu-ServiceNow Innovation Center to focus on digital transformation and customer success. Fujitsu expands its use of the Now Platform to provide even greater value to customers. (Source: ServiceNow, Press Release, March 2023)
• BMC, a global leader in software solutions for the Autonomous Digital Enterprise, announced that its BMC Helix operations management portfolio received provisional authorization for Impact Level 5 (IL-5) from the Defense Information Systems Agency (DISA). The BMC Helix solution enables US Department of Defense (DoD) customers to accelerate their move to the cloud with comprehensive IT operations management to streamline workflows, automate tasks, and improve operational efficiencies. By achieving DISA IL-5 authorization, the BMC Helix portfolio delivered by Amazon Web Services (AWS) GovCloud meets DoD security requirements for Controlled Unclassified Information (CUI) and unclassified National Security Systems (NSS) information. (Source: BMC Software, Press Release, June 2024)

IT Operations and Service Management (ITOSM) Market Report Coverage and Deliverables

The "IT Operations and Service Management (ITOSM) Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• IT operations and service management (ITOSM) market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• IT operations and service management (ITOSM) market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• IT operations and service management (ITOSM) market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the IT operations and service management (ITOSM) market
• Detailed company profiles