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North America Cloud Itsm Market

ID: MRFR/ICT/60695-HCR
200 Pages
Aarti Dhapte
October 2025

North America Cloud ITSM Market Research Report By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Service Type (Incident Management, Problem Management, Change Management, Asset Management), By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises), By End Use (IT Services, Telecommunications, Healthcare, Retail) and By Regional (US, Canada)-Forecast to 2035

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North America Cloud Itsm Market Summary

As per MRFR analysis, the North America cloud itsm market Size was estimated at 3800.0 USD Million in 2024. The North America cloud itsm market is projected to grow from 4429.28 USD Million in 2025 to 20500.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 16.56% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The North America cloud ITSM market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The US remains the largest market for cloud ITSM solutions, while Canada is emerging as the fastest-growing region.
  • There is a notable increase in the adoption of AI and automation technologies within cloud ITSM frameworks.
  • Organizations are placing greater emphasis on compliance and security measures to protect sensitive data.
  • Rising demand for IT efficiency and the integration of advanced analytics are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 3800.0 (USD Million)
2035 Market Size 20500.0 (USD Million)

Major Players

ServiceNow (US), BMC Software (US), Cherwell Software (US), Freshworks (IN), Atlassian (AU), Ivanti (US), ManageEngine (IN), Micro Focus (GB), SAP (DE)

North America Cloud Itsm Market Trends

The cloud itsm market in North America is currently experiencing a transformative phase, driven by the increasing demand for efficient IT service management solutions. Organizations are increasingly adopting cloud-based platforms to enhance operational efficiency and streamline service delivery. This shift is largely influenced by the need for scalability, flexibility, and cost-effectiveness, which cloud solutions inherently provide. As businesses continue to embrace digital transformation, the integration of advanced technologies such as artificial intelligence and machine learning into cloud itsm solutions is becoming more prevalent. This integration not only improves service automation but also enhances decision-making processes, thereby fostering a more responsive IT environment. Moreover, the regulatory landscape in North America is evolving, prompting organizations to prioritize compliance and security within their IT service management frameworks. The emphasis on data protection and privacy is leading to the adoption of cloud itsm solutions that offer robust security features. As a result, vendors are increasingly focusing on developing solutions that align with regulatory requirements while ensuring seamless service delivery. The ongoing trend towards remote work and distributed teams further accelerates the need for cloud-based IT service management, as organizations seek to maintain productivity and collaboration across various locations. Overall, the cloud itsm market is poised for continued growth as businesses adapt to the changing technological landscape and seek innovative solutions to meet their evolving needs.

Increased Adoption of AI and Automation

The cloud itsm market is witnessing a notable trend towards the integration of artificial intelligence and automation technologies. Organizations are leveraging these advancements to enhance service delivery, reduce response times, and improve overall user experience. By automating routine tasks, businesses can allocate resources more effectively, allowing IT teams to focus on strategic initiatives.

Focus on Compliance and Security

As regulatory requirements become more stringent, the cloud itsm market is seeing a heightened emphasis on compliance and security measures. Organizations are prioritizing solutions that not only streamline IT service management but also ensure adherence to data protection regulations. This trend is driving vendors to enhance their offerings with robust security features.

Remote Work and Distributed Teams

The shift towards remote work is significantly influencing the cloud itsm market. Organizations are increasingly adopting cloud-based solutions to support distributed teams, ensuring seamless collaboration and communication. This trend highlights the necessity for flexible IT service management tools that can adapt to the evolving work environment.

North America Cloud Itsm Market Drivers

Emphasis on User Experience

In the cloud itsm market, there is a growing emphasis on enhancing user experience. Organizations are recognizing that a positive user experience is critical for the successful adoption of IT service management solutions. This focus is reflected in the design and functionality of cloud ITSM tools, which are increasingly user-friendly and intuitive. Research indicates that companies that prioritize user experience in their ITSM strategies see a 25% increase in user satisfaction and engagement. As the cloud itsm market evolves, vendors are investing in user-centric design principles to ensure that their solutions meet the needs of diverse user groups. This trend not only improves service adoption rates but also contributes to overall organizational productivity, as employees are more likely to engage with systems that are easy to navigate and utilize.

Rising Demand for IT Efficiency

The cloud itsm market in North America experiences a notable surge in demand for IT efficiency. Organizations are increasingly seeking solutions that streamline operations and reduce costs. According to recent data, companies that implement cloud ITSM solutions report a reduction in operational costs by up to 30%. This drive for efficiency is fueled by the need to optimize resource allocation and enhance service delivery. As businesses face mounting pressure to improve performance, the adoption of cloud ITSM tools becomes essential. The industry is witnessing a shift towards integrated platforms that offer comprehensive service management capabilities, enabling organizations to respond swiftly to changing market dynamics. This trend indicates a robust growth trajectory for the cloud itsm market, as companies prioritize investments in technologies that enhance productivity and operational agility.

Integration of Advanced Analytics

The integration of advanced analytics into the cloud itsm market is transforming how organizations manage their IT services. By leveraging data analytics, companies can gain insights into service performance, user behavior, and operational bottlenecks. This capability allows for proactive decision-making and improved service delivery. In North America, the market for analytics-driven ITSM solutions is projected to grow at a CAGR of 15% over the next five years. Organizations are increasingly recognizing the value of data-driven strategies, which enhance their ability to anticipate issues and optimize resource utilization. The cloud itsm market is thus evolving to incorporate sophisticated analytics tools, enabling businesses to harness the power of data for strategic advantage. This trend not only improves service quality but also fosters a culture of continuous improvement within IT departments.

Growing Importance of IT Governance

The cloud itsm market in North America is increasingly influenced by the growing importance of IT governance. Organizations are recognizing the need for robust governance frameworks to ensure compliance with regulatory requirements and industry standards. This trend is particularly relevant in sectors such as finance and healthcare, where adherence to strict regulations is paramount. The cloud itsm market is responding by offering solutions that facilitate governance, risk management, and compliance (GRC) capabilities. As businesses strive to mitigate risks and enhance accountability, the demand for ITSM solutions that integrate GRC features is expected to rise. Recent surveys suggest that over 70% of organizations consider IT governance a top priority, indicating a strong market potential for cloud ITSM providers that can deliver comprehensive governance solutions.

Shift Towards Subscription-Based Models

The cloud itsm market in North America is witnessing a significant shift towards subscription-based pricing models. This transition allows organizations to access advanced IT service management tools without the burden of hefty upfront investments. Subscription models offer flexibility and scalability, enabling businesses to adapt their ITSM solutions to changing needs. Recent studies indicate that approximately 60% of organizations prefer subscription-based services due to their cost-effectiveness and ease of implementation. This trend is reshaping the cloud itsm market, as vendors increasingly offer tiered pricing structures that cater to diverse organizational sizes and requirements. As companies seek to optimize their IT budgets, the appeal of subscription models is likely to drive further adoption of cloud ITSM solutions, fostering a competitive landscape among service providers.

Market Segment Insights

By Deployment Model: Public Cloud (Largest) vs. Private Cloud (Fastest-Growing)

In the North America cloud itsm market, the distribution of market share among deployment models shows that Public Cloud holds the largest share, signifying a strong preference among businesses for scalable and cost-effective solutions. Private Cloud, while not leading, remains a significant player, catering to organizations requiring enhanced security and compliance. The Hybrid Cloud model, combining both public and private solutions, also garners attention as organizations seek flexibility in their IT strategies. Growth trends in this segment indicate a robust shift towards Private Cloud as enterprises prioritize data security and control in their IT operations. Factors driving this growth include increasing regulatory requirements and a rising need for customized solutions that align with specific business needs. The Public Cloud segment, while dominant, will continue to evolve with innovations that enhance resilience and adaptability in the face of market changes.

Public Cloud (Dominant) vs. Private Cloud (Emerging)

The Public Cloud segment stands as the dominant force in the North America cloud itsm market primarily due to its ability to provide scalable solutions at lower costs, enabling organizations to rapidly deploy and integrate IT services. It allows businesses to leverage advanced technologies with minimal upfront investment. In contrast, the Private Cloud sector is emerging strongly, appealing to companies that prioritize data privacy and require tailored configurations. This model offers enhanced control and security, making it attractive for industries with stringent regulatory standards. As businesses increasingly shift towards digital transformation, the demand for both deployment models is expected to grow, with the Private Cloud gaining traction due to evolving security concerns.

By Service Type: Incident Management (Largest) vs. Change Management (Fastest-Growing)

In the North America cloud itsm market, Incident Management holds the largest share among service types, reflecting its critical role in maintaining smooth IT operations. Following closely are Change Management and Problem Management, both of which contribute significantly to service efficiency and productivity, albeit with slightly smaller market shares. Asset Management, while essential, represents a smaller portion of the overall market, indicating opportunities for growth and innovation in this area. The growth trends for these service types are driven by increasing digital transformation initiatives and a shift towards automation in IT service management. Incident Management is being driven by the need for rapid resolution of IT incidents, while Change Management is recognized as the fastest-growing due to organizations' commitment to agile practices and seamless transitions. The emphasis on cost reduction and operational efficiency further fuels the demand for these services in North America.

Incident Management (Dominant) vs. Asset Management (Emerging)

Incident Management is a dominant service type characterized by its emphasis on quick response times and effective incident resolution strategies. It plays a pivotal role in minimizing downtime and maintaining customer satisfaction, making it a top priority for organizations. In contrast, Asset Management, although categorized as an emerging segment, focuses on optimizing IT assets throughout their lifecycle. With organizations increasingly recognizing the importance of managing resources effectively, Asset Management is gaining traction. While it may not have the same immediate impact as Incident Management, its strategic role in resource utilization and cost management is becoming increasingly vital for long-term success in the evolving landscape of IT service management.

By Organization Size: Medium Enterprises (Largest) vs. Small Enterprises (Fastest-Growing)

In the cloud it service management landscape, Medium Enterprises hold a significant share of the overall market, reflecting their substantial needs for scalable IT solutions and integrated service management. This segment benefits from a growing focus on efficiency and enhanced service delivery, which results in a more pronounced market presence compared to Small and Large Enterprises. The growth trajectory for Small Enterprises indicates a rapidly expanding influence, driven by the increasing adoption of cloud solutions to optimize operations. Emerging technologies and the necessity for agile IT service management are propelling this segment forward, showcasing its adaptability and potential to lead future trends in the marketplace.

Medium Enterprises: Dominant vs. Small Enterprises: Emerging

Medium Enterprises represent the dominant force in the Organization Size segment, characterized by their sophisticated IT infrastructure and budget allocations that allow them to leverage advanced cloud ITSM solutions. These organizations prioritize enhancing user experience and operational efficiency, resulting in tailored service management practices. On the other hand, Small Enterprises are emerging as a vital segment, utilizing cloud ITSM to streamline workflows and reduce costs. Their growing recognition of the benefits of digital transformation fosters innovation and competitiveness, making them a key player in the market's evolution. Both segments illustrate distinct, yet complementary, approaches to leveraging cloud ITSM in pursuit of their organizational goals.

By End-Use: IT Services (Largest) vs. Healthcare (Fastest-Growing)

In the North America cloud itsm market, the distribution of market share among end-use segments reveals that IT Services holds the largest share, driven by increasing demand for innovative cloud solutions and robust IT management. Telecommunications follows closely, benefiting from the need for enhanced connectivity and service efficiency in an increasingly digital world. Healthcare and Retail are also significant, with cloud ITSM playing a crucial role in operational efficiency and customer engagement. Growth trends in this segment are being propelled by digital transformation initiatives across industries. The healthcare sector is emerging as the fastest-growing end-use segment, largely due to the rising adoption of cloud-based solutions for patient management and operational workflows. Simultaneously, IT Services continue to dominate, supported by ongoing advancements in cloud technologies that provide competitive advantages and enhance organizational agility.

IT Services: Dominant vs. Healthcare: Emerging

IT Services represents the dominant end-use segment in the cloud ITSM landscape, characterized by a high degree of investment in cloud solutions that improve service delivery and operational efficiency. Organizations in this sector are increasingly leveraging cloud ITSM to streamline processes, enhance collaboration, and reduce costs. On the other hand, the healthcare sector is emerging as a pivotal segment, focusing on optimizing patient care and compliance through cloud-based ITSM solutions. This segment is driven by regulatory requirements and the need for data security and accessibility, making it ripe for innovation. As healthcare organizations adopt more advanced technologies, the demand for tailored ITSM solutions continues to expand, signaling a robust growth trajectory.

Get more detailed insights about North America Cloud Itsm Market

Regional Insights

US : Innovation Drives US Market Growth

Key markets include tech hubs like San Francisco, New York, and Austin, where a vibrant startup ecosystem thrives. The competitive landscape features major players like ServiceNow, BMC Software, and Ivanti, which dominate the market with innovative solutions. Local dynamics favor agile businesses that can adapt to changing consumer needs, particularly in sectors like finance, healthcare, and education, where cloud ITSM applications are increasingly essential.

Canada : Growth Opportunities in Canada

Key markets include Ontario, particularly Toronto, and British Columbia, with Vancouver emerging as a tech hub. The competitive landscape features players like Freshworks and SAP, alongside local firms that cater to specific industry needs. The business environment is characterized by a collaborative approach to innovation, with a focus on sectors such as healthcare, education, and public services, where cloud ITSM solutions are gaining traction.

North America Cloud Itsm Market Regional Image

Key Players and Competitive Insights

The cloud ITSM market in North America is characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for efficient service management solutions. Key players such as ServiceNow (US), BMC Software (US), and Ivanti (US) are strategically positioned to leverage innovation and digital transformation. ServiceNow (US) focuses on enhancing its platform capabilities through continuous updates and integrations, while BMC Software (US) emphasizes its AI-driven solutions to optimize IT operations. Ivanti (US) is actively pursuing partnerships to expand its service offerings, indicating a collective shift towards integrated solutions that enhance customer experience and operational efficiency.

The market structure appears moderately fragmented, with several players vying for market share. Key business tactics include localizing service offerings to meet regional demands and optimizing supply chains to ensure timely delivery of solutions. This competitive environment is shaped by the collective influence of major players, who are increasingly adopting strategies that prioritize customer-centric approaches and technological advancements.

In October 2025, ServiceNow (US) announced a strategic partnership with a leading cloud provider to enhance its service delivery capabilities. This collaboration is expected to bolster ServiceNow's position in the market by providing customers with more robust and scalable solutions, thereby addressing the growing demand for cloud-based ITSM services. The partnership signifies a commitment to innovation and responsiveness to market needs.

In September 2025, BMC Software (US) launched a new AI-driven feature within its ITSM platform aimed at automating routine tasks. This development is crucial as it not only streamlines operations but also allows IT teams to focus on more strategic initiatives. The introduction of AI capabilities reflects BMC's dedication to staying ahead in a competitive landscape increasingly defined by automation and efficiency.

In August 2025, Ivanti (US) expanded its product suite through the acquisition of a cybersecurity firm, enhancing its ITSM offerings with integrated security features. This move is particularly significant as it addresses the growing concern over cybersecurity in IT service management, positioning Ivanti as a comprehensive solution provider. The acquisition underscores the trend towards convergence of ITSM and security solutions, which is likely to resonate well with customers seeking holistic service management.

As of November 2025, the competitive trends in the cloud ITSM market are increasingly influenced by digitalization, sustainability, and AI integration. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing service offerings. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine how companies position themselves in the market, emphasizing the importance of delivering unique value propositions to customers.

Key Companies in the North America Cloud Itsm Market market include

Industry Developments

The North America Cloud IT Service Management (ITSM) Market has seen significant developments recently, particularly with companies like ServiceNow, Salesforce, and Atlassian leading innovation and market growth. In April 2023, ServiceNow announced strategic partnerships that enhanced its cloud offerings, aiming to optimize enterprise workflows. Freshworks and Zendesk have also stepped up their competitive strategies by launching new features that improve customer engagement and operational efficiencies.

Furthermore, in June 2023, IBM made headlines by acquiring a cloud service provider to bolster its ITSM capabilities, aiming to integrate advanced AI technologies into its offerings. Major players in the market are witnessing substantial growth, with ServiceNow's valuation touching over $100 billion, reflecting a strong demand for cloud-based solutions.

The market's evolution over the past two to three years has been marked by innovations in automation and artificial intelligence, with companies like Micro Focus and BMC Software adapting to meet the needs of businesses transitioning toward cloud ITSM solutions. The overall positive momentum in the North America Cloud ITSM Market underscores the increasing reliance on digital transformation and remote operations across various sectors.

Future Outlook

North America Cloud Itsm Market Future Outlook

The cloud ITSM market is projected to grow at a 16.56% CAGR from 2024 to 2035, driven by digital transformation, increased automation, and enhanced customer experience.

New opportunities lie in:

  • Development of AI-driven incident management solutions
  • Integration of cloud ITSM with IoT for real-time monitoring
  • Expansion of subscription-based pricing models for scalability

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic investments.

Market Segmentation

North America Cloud Itsm Market End-Use Outlook

  • IT Services
  • Telecommunications
  • Healthcare
  • Retail

North America Cloud Itsm Market Service Type Outlook

  • Incident Management
  • Problem Management
  • Change Management
  • Asset Management

North America Cloud Itsm Market Deployment Model Outlook

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

North America Cloud Itsm Market Organization Size Outlook

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

Report Scope

MARKET SIZE 20243800.0(USD Million)
MARKET SIZE 20254429.28(USD Million)
MARKET SIZE 203520500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)16.56% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["ServiceNow (US)", "BMC Software (US)", "Cherwell Software (US)", "Freshworks (IN)", "Atlassian (AU)", "Ivanti (US)", "ManageEngine (IN)", "Micro Focus (GB)", "SAP (DE)"]
Segments CoveredDeployment Model, Service Type, Organization Size, End-Use
Key Market OpportunitiesIntegration of artificial intelligence enhances efficiency in the cloud itsm market.
Key Market DynamicsRising demand for automation in cloud IT Service Management drives competitive innovation and regulatory adaptation.
Countries CoveredUS, Canada

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FAQs

What is the expected market size of the North America Cloud ITSM Market in 2024?

The North America Cloud ITSM Market is expected to be valued at 2.5 USD Billion in 2024.

What is the projected value of the North America Cloud ITSM Market by 2035?

By 2035, the North America Cloud ITSM Market is projected to reach a value of 5.2 USD Billion.

What is the expected compound annual growth rate (CAGR) for the North America Cloud ITSM Market from 2025 to 2035?

The expected CAGR for the North America Cloud ITSM Market between 2025 and 2035 is 6.885%.

Which regions are primarily contributing to the North America Cloud ITSM Market?

The primary regions contributing to the North America Cloud ITSM Market are the US and Canada.

What is the market value for the Cloud ITSM Market in the US in 2024?

In 2024, the market value for the Cloud ITSM Market in the US is expected to be 1.5 USD Billion.

What is the forecasted market size for the Cloud ITSM Market in Canada by 2035?

By 2035, the Cloud ITSM Market in Canada is forecasted to reach 1.9 USD Billion.

Who are the key players in the North America Cloud ITSM Market?

Key players in the North America Cloud ITSM Market include Micro Focus, ServiceNow, and Atlassian among others.

What are the market size forecasts for the Public Cloud segment of the North America Cloud ITSM Market?

The Public Cloud segment is expected to be valued at 2.6 USD Billion by 2035, up from 1.2 USD Billion in 2024.

How is the Private Cloud segment projected to grow in the North America Cloud ITSM Market?

The Private Cloud segment is projected to grow from 0.8 USD Billion in 2024 to 1.7 USD Billion by 2035.

What challenges and opportunities are driving growth in the North America Cloud ITSM Market?

Key challenges include competition among vendors, while opportunities stem from increasing demand for cloud-based services and improved IT workflows.

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