ITSM: Key market research findings
- The Americas to dominate the market geographically
- The IT and telecom sector to be the largest end-user segment
- Key vendors – BMC Software, CA Technologies, HP, and IBM
Technavio’s market research analysts predict the global ITSM market to grow at a CAGR of around 8% between 2016 and 2020. The growth of the market is driven by the need to reduce IT costs while gaining flexibility. Most organizations, especially SMEs, spend a lot on IT management, which is an added cost for the organization. Information technology service management (ITSM) tools are cost effective and offer long-term financial benefits to end-users. During 2015, the global ITSM market was dominated by the Americas with a market share of more than 56%. The growing uptake of SaaS-based ITSM solutions coupled with changing business requirements and client demands will contribute to the growth of the ITSM market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the ITSM segments based on the end user.
“Currently, the market is witnessing an increase in the adoption of the third platform. The third platform is the new evolution in computing – comprising of mobile, cloud, big data analytics, and social media. Mobile is the largest component of the third platform and includes other components such as cloud, data analytics, and social media, which can be accessed via mobile devices. This platform helps to improve the efficiency of operations and generates ROI quickly, reduces the need for expensive in-house IT infrastructure, and lowers the burden on internal IT staff,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The IT and telecom sector accounted for around 26% of the overall market revenue in 2015 to become the key revenue generator in the global ITSM market. ITSM in telecom companies is implemented to standardize the operational process and to provide effective communication infrastructure services. The outsourcing of ITSM solutions is preferred by telecom companies in the interests of enhancing operational efficiency. The public sector spending for enhanced networking infrastructure is also rising, and ITSM is playing an important role to provide solutions that help develop advanced networking technologies.
The key vendors in the global ITSM market include BMC Software, CA Technologies, HP, and IBM. The global ITSM market is becoming increasingly competitive. As a result, vendors are striving hard to provide additional application features to sustain themselves in the market. However, to survive in the ITSM market is challenging as only some vendors have the capability to provide innovative ITSM solutions.
A more detailed analysis is available in the Technavio report, Global ITSM Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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