The Cloud-Based ITSM Market is estimated to be valued at USD 10.6 billion in 2025 and is projected to reach USD 37.6 billion by 2035, registering a compound annual growth rate (CAGR) of 13.5% over the forecast period.
| Metric | Value |
|---|---|
| Cloud-Based ITSM Market Estimated Value in (2025 E) | USD 10.6 billion |
| Cloud-Based ITSM Market Forecast Value in (2035 F) | USD 37.6 billion |
| Forecast CAGR (2025 to 2035) | 13.5% |
The Cloud-Based ITSM market is experiencing strong growth, driven by the increasing demand for flexible, scalable, and cost-efficient IT service delivery models across industries. Organizations are increasingly shifting away from on-premises ITSM deployments in favor of cloud-based platforms that enable rapid implementation, lower infrastructure costs, and enhanced adaptability. Rising complexity in IT environments, combined with the growth of remote and hybrid workforces, is further accelerating the need for centralized, automated service management solutions.
AI-powered automation, self-service portals, and predictive analytics are reshaping the ITSM landscape, providing enterprises with greater agility in incident resolution and change management. The heightened focus on business continuity, digital transformation, and customer-centric service delivery is strengthening adoption across both large enterprises and SMEs.
Moreover, the ability of cloud-based ITSM platforms to integrate seamlessly with enterprise applications and scale based on demand positions them as a key enabler of long-term IT strategy As companies continue to prioritize service efficiency, compliance, and innovation, the Cloud-Based ITSM market is expected to achieve sustained growth in the coming years.
The cloud-based itsm market is segmented by solutions, verticals, and geographic regions. By solutions, cloud-based itsm market is divided into Service Portfolio Management, Service Demand Management, Service Financial Management, Configuration And Change Management, Operations And Performance Management, and Dashboard, Reporting, And Analytics.
In terms of verticals, cloud-based itsm market is classified into Government And Public Sector, Energy And Utilities, Travel And Hospitality, Banking, Telecommunication And IT, Healthcare And Life Sciences, and Education.
Regionally, the cloud-based itsm industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The service portfolio management solutions segment is projected to hold 30.2% of the Cloud-Based ITSM market revenue in 2025, making it a leading component of the solutions landscape. Its growth is being driven by the increasing need for organizations to effectively manage the complete lifecycle of IT services, from planning and design to delivery and retirement. Cloud-based service portfolio management platforms enable real-time visibility into service performance, costs, and demand, allowing enterprises to align IT services with strategic business goals.
The scalability of cloud infrastructure provides organizations with the flexibility to expand services as requirements evolve, while automation capabilities enhance efficiency in managing complex service portfolios. Additionally, integration with service desk and change management functions ensures seamless workflows and better resource utilization.
Enterprises are leveraging these solutions to achieve greater transparency, optimize service value, and improve decision-making As businesses intensify their focus on aligning IT investments with business objectives, the adoption of service portfolio management solutions is expected to remain robust, driving continued market growth.
The government and public sector verticals segment is anticipated to account for 38.2% of the Cloud-Based ITSM market revenue in 2025, establishing it as the largest vertical. This leadership is being supported by the increasing demand for digital transformation initiatives, efficient public service delivery, and compliance with stringent data governance requirements. Cloud-based ITSM platforms in government institutions enable streamlined management of citizen services, faster response to service requests, and improved transparency in operations.
The ability to automate service workflows and provide self-service options enhances efficiency and reduces administrative burdens. Moreover, the scalability of cloud infrastructure ensures continuity of critical services, even during demand surges or emergencies. Governments are also prioritizing cybersecurity and data sovereignty, which are increasingly being addressed by advanced cloud ITSM solutions with robust security frameworks.
The emphasis on modernizing legacy IT systems, improving accountability, and ensuring cost-effective operations continues to fuel adoption As digital government initiatives expand globally, the government and public sector verticals segment is expected to retain its dominant position in the Cloud-Based ITSM market.
Cloud based technologies and services are opted for business purpose by most of the organization due to increase in usage of smartphones and tablets which enables employees to work remotely. With the help of cloud-based ITSM, many organizations are moving towards BYOD trend which allows user to access organizational data and resources from different location.
Cloud based ITSM provides transparency to value added services and satisfying business needs by ensuring high quality solutions. Cloud-based ITSM is a new way of offering IT and business services without on premises deployment of the system thereby reducing setup cost which helps for managing and maintenance of backend infrastructure.
The three service strategies used in cloud-based ITSM are Portfolio management, demand management and financial management. These services are effectively used for workload and cost calculations to meet the rapidly increasing workload demand. Cloud-based ITSM is a way to improve a current service or to implement new service.
| Country | CAGR |
|---|---|
| China | 18.2% |
| India | 16.9% |
| Germany | 15.5% |
| Brazil | 14.2% |
| USA | 12.8% |
| UK | 11.5% |
| Japan | 10.1% |
The Cloud-Based ITSM Market is expected to register a CAGR of 13.5% during the forecast period, exhibiting varied country level momentum. China leads with the highest CAGR of 18.2%, followed by India at 16.9%. Developed markets such as Germany, France, and the UK continue to expand steadily, while the USA is likely to grow at consistent rates.
Japan posts the lowest CAGR at 10.1%, yet still underscores a broadly positive trajectory for the global Cloud-Based ITSM Market. In 2024, Germany held a dominant revenue in the Western Europe market and is expected to grow with a CAGR of 15.5%.
The USA Cloud-Based ITSM Market is estimated to be valued at USD 3.7 billion in 2025 and is anticipated to reach a valuation of USD 3.7 billion by 2035. Sales are projected to rise at a CAGR of 0.0% over the forecast period between 2025 and 2035. While Japan and South Korea markets are estimated to be valued at USD 506.8 million and USD 313.1 million respectively in 2025.
| Item | Value |
|---|---|
| Quantitative Units | USD 10.6 Billion |
| Solutions | Service Portfolio Management, Service Demand Management, Service Financial Management, Configuration And Change Management, Operations And Performance Management, and Dashboard, Reporting, And Analytics |
| Verticals | Government And Public Sector, Energy And Utilities, Travel And Hospitality, Banking, Telecommunication And IT, Healthcare And Life Sciences, and Education |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | ServiceNow Inc., BMC Software Inc., IBM Corporation, Hewlett Packard Enterprise, Atlassian Corporation Plc, Micro Focus International Plc, Broadcom (CA Technologies), Freshworks Inc., Ivanti Inc., ASG Technologies Group, Inc., Cherwell Software LLC, Citrix Systems Inc., and Axios Systems Plc |
The global cloud-based ITSM market is estimated to be valued at USD 10.6 billion in 2025.
The market size for the cloud-based ITSM market is projected to reach USD 37.6 billion by 2035.
The cloud-based ITSM market is expected to grow at a 13.5% CAGR between 2025 and 2035.
The key product types in cloud-based ITSM market are service portfolio management, service demand management, service financial management, configuration and change management, operations and performance management and dashboard, reporting, and analytics.
In terms of verticals, government and public sector segment to command 38.2% share in the cloud-based ITSM market in 2025.
Cloud-Based ITSM Market
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