Cloud ITSM Market Overview

The global Cloud IT Service Management (ITSM) market was estimated at 7.73 (USD Billion) in 2024.The Cloud ITSM Market Industry is expected to grow from 8.23(USD Billion) in 2025 to 16.5 (USD Billion) by 2035. The Cloud ITSM Market CAGR (growth rate) is expected to be around 6.53% during the forecast period (2025 - 2035).

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Market Segmentation

By Component

• Solutions dominate (~73% market share in 2024), including service desk, incident management, configuration, analytics, and performance management .

• Services (professional and managed) are gaining traction, growing double-digit annually as organizations turn to integration and support .

By Deployment Model

• Public cloud leads adoption (~58% share in 2024), thanks to scalability and cost benefits.

• Hybrid cloud is the fastest-growing segment, expected to expand at ~16.4% CAGR by 2030 .

• Private cloud remains relevant for security-conscious industries.

By Organization Size

• Large enterprises hold ~60% share in 2024.

• SMEs are rapidly adopting cloud ITSM, with ~18.7% CAGR forecast through 2030 .

By Service Type

• Core modules like Service Desk/Incident Management lead current use.

• IT Asset Management is growing strongly due to complex IT estates .

• Other services include CMDB, service catalog, portfolio management, and reporting.

By Vertical

• IT & Telecom leads (~24–25% share).

• Healthcare, BFSI, Manufacturing, Retail, Government, and Education are actively implementing cloud ITSM solutions .

Key Players

Prominent vendors in the Cloud ITSM space include:

• ServiceNow – cloud-native platform with AI-enhanced workflows and deep enterprise integration .

• BMC Software (Helix) – AI-powered incident prediction and automation .

• Broadcom (formerly CA/VMware) – hybrid cloud ITSM tools.

• IBM, HPE, Ivanti, ManageEngine, Atlassian (Jira Service Management), Zendesk, Freshworks, SolarWinds, Axios Systems, Citrix .

Emerging challengers include Cherwell (now part of Ivanti), OpenText, Hornbill, and Zoho’s ManageEngine. According to Gartner discussions, top vendors in 2025 include ServiceNow, Atlassian, BMC, InvGate, and ManageEngine .

Industry News

Key recent updates:

• Zendesk teamed up with AWS & Anthropic (Claude 3 on Bedrock) in April 2024 to deliver improved AI customer experience and intelligent service agents .

• ServiceNow + NVIDIA launched telco-specific generative AI for service management in Feb 2024 with Now Assist, optimizing resolution times and efficiency r.

• Amdocs + BMC alliance in Feb 2024 integrates IT & network automation with generative AI for telecom and financial verticals .

• In Nov 2023, ServiceNow introduced more advanced Now Assist generative AI across virtual agents, flow generation, and field service.

Additionally, Broadcom’s acquisition of VMware in Nov 2023 for USD 61 billion strengthens its hybrid cloud and ITSM capabilities .

Recent Developments

• AI & ML integration is a prevailing trend: predictive incident resolution, automated ticket routing, and proactive monitoring are reshaping ITSM .

• Self-service portals, chatbots, and virtual agents enhance user experience and reduce resolution times .

• Multi-cloud management is essential as enterprises host workloads across AWS, Azure, and GCP, leading to unified visibility and governance .

• Enhanced cybersecurity and compliance modules are increasingly embedded, addressing cloud risks and data sovereignty .

• FinOps and cost controls are rising concerns amid growing cloud OPEX .

Academic work like TickIt (April 2025) and AIOps frameworks showcase research-backed LLM and ML models facilitating automated ticket escalation and intelligent incident management 

Regional Analysis

Based on MRFR and Mordor Intelligence:

• North America leads with ~42% global market share and strong enterprise usage, projected to reach USD 7.0 billion by 2035 .

• Europe sits second, with ongoing digital transformation and ITIL maturity, estimated USD 2.5 billion in 2024, rising to USD 4.9 billion by 2035 .

• Asia-Pacific is the fastest-growing region, with ~17–17.3% CAGR trajectory; forecasted at USD 1.8 billion in 2024, doubling to USD 3.6 billion by 2035 .

• Latin America, MEA show steady adoption, with growing SMB cloud ITSM uptake .

Market Dynamics

Drivers

• Digital transformation across industries boosts cloud ITSM use .

• Remote/hybrid work demands self-service, AI chatbots, and virtualization support .

• AI/ML and AIOps improve incident resolution, predictive maintenance, and efficiency.

• IoT and 5G proliferation drive demand for scalable ITSM capable of managing complex, distributed systems .

• Subscription/OPEX models favored over capital-heavy on-prem investments, especially among SMEs.

Restraints

• Data residency and compliance hinder centralized platforms, needing regional deployments .

• Legacy tool sprawl delays cloud migrations due to CMDB complexities .

• Rising cloud OPEX and license costs spark FinOps scrutiny .

• Talent shortage in AI-integrated ITSM skills poses implementation hurdles.

Opportunities

• LLM-driven ticketing systems like TickIt showcase next-gen automation potential .

• Niche ITSM integrations with devops, security, green IT, and industry-specific workflows .

• SME-targeted lightweight tools such as Jira Service Management, Freshservice offer cost-effective alternatives.

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Future Outlook

1. Continued strong growth – from USD 9.5 B (2024) to potentially USD 20–22 B by 2030, sustained by 13–14% CAGR .

2. Deeper AI/AIOps adoption, automating incident resolution and self-healing infrastructures.

3. Hybrid/multi-cloud management will solidify as core demand grows.

4. Data compliance will drive localized data-center expansion and sovereign cloud solutions.

5. SME-focused, modular offerings will gain market share, leveraging subscription models and minimal integration overhead.