In 2021, the top 10 IT Service Management software vendors accounted for nearly 83.3% of the global IT Service Management applications market which grew 21.9% to approach nearly $7.7 billion in license, maintenance and subscription revenues.
Last year ServiceNow led the pack with a 40.1% market share riding on a 23.6% jump in ITSM license, maintenance and subscription revenues. Atlassian was #2, followed by GoTo, BMC Software, and Ivanti.
We ask the simple question: Who’s buying ITSM applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the ITSM applications market size is expected to reach $9 billion by 2026, compared with $7.7 billion in 2021 at a compound annual growth rate of 3.2%.
| Exhibit 2: Worldwide IT Service Management Software Market 2021-2026 Forecast, $M | |||
|---|---|---|---|
| Year | 2021 | 2026 | 2021-2026 CAGR, % |
| Total | 7724 | 9058 | 3.2% |
Source: Apps Run The World, September 2022
Top 10 IT Service Management Software Vendors
ITSM applications are being used to make a growing number of employee self-service functions possible through enterprise service management for asset, incident and project management. ITSM applications are considered a derivative market with revenue contribution to functional areas such as Project and Portfolio Management and Enterprise Resource Planning.
Massive software projects to digitize business communities fuel growth of Cloud-based vendors such as Atlassian and ServiceNow as incumbents like BMC and CA race to meet changing IT requirements.
Here are the rankings of the top 10 IT Service Management software vendors in 2021 and their market shares.
| Rank | Vendor | 2020 IT Service Management Apps Revenues, $M | 2021 IT Service Management Apps Revenues, $M | YoY Growth | 2021 IT Service Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | ServiceNow | Subscribe | Subscribe | 23.6% | Subscribe | World-leading energy and utility companies such as TransAlta, Engie, Veolia, First Solar, Yarra Valley Water, Centralschweizerische Kraftwerke AG (CKW), and others rely on ServiceNow to simplify and automate the planning, delivery, and management of IT services. As of December 31, 2021, ServiceNow had approximately 7,400 enterprise customers and nearly 1,360 of them are spending more than $1 million in annual contract. |
| 2 | Atlassian | Subscribe | Subscribe | 20.4% | Subscribe | The company stopped selling new on-prem server licenses as of 2021. While the company is supporting existing on-prem server customers until 2024, the idea is to now move them to the cloud and this offering should help. One thing that is clear is that the pandemic has accelerated the move to the cloud by companies of every size, and this should encourage the company’s largest customers to make the move.Atlassian’s number of total customers increased to 236118 as of June 2021 from 174,097 at June 30, 2020. |
| 3 | GoTo | Subscribe | Subscribe | 8.6% | Subscribe | In 2022, LogMeIn, the company that owns remote collaboration software like GoTo Meeting and password management company LastPass is changing its name to GoTo. The rebranding comes after the company reported over $1 billion in revenue and that “GoTo” product usage is growing — including a 36 percent year-over-year sales increase of its GoTo Connect VoIP, video conferencing, and collaboration platform. Along with the name change comes a new software product called GoTo Resolve: an IT ticketing platform that will integrate support tools and include a freemium tier. |
| 4 | BMC Software, Inc. | Subscribe | Subscribe | 7.7% | Subscribe | BMC Software has recently announced the industry’s first end-to-end integrated ITSM and ITOM platform which brings together the capabilities of ITSM and ITOM into BMC Helix. Integrated solutions will enable IT teams to discover, optimize, remediate and deliver through an omnichannel for IT and business users. Such solutions will eliminate silos to make better-informed decisions and enhance the customer experience. It’ll also help in discovering unknown assets in multi-cloud, monitor & predict events, uncover & remediate security vulnerabilities and provide 360-degree intelligence environment. |
| 5 | Ivanti | Subscribe | Subscribe | 9.8% | Subscribe | Over the last 12 months of operations Ivanti has acquired MobileIron, a leading provider of mobile-centric unified endpoint management solutions; Pulse Secure LLC, a leading provider of secure access and mobile security solutions; Cherwell Software, a global leader in enterprise service management solutions, and RiskSense, a pioneer in risk-based vulnerability management system. All these acquisitions were made to fuel its growth trajectory. |
| 6 | Microsoft | Subscribe | Subscribe | 17.9% | Subscribe | GitHub, which has 73 million developers, has emerged as the focal point of Microsoft’s ITSM strategy. Customers are choosing GitHub Enterprise to provide their developer teams the right platform to build, ship, and maintain software. In 1QFY22, it introduced more than 70 enterprise features like GitHub Actions for developers to better manage their workflows. |
| 7 | Broadcom Inc. | Subscribe | Subscribe | 15.4% | Subscribe | Broadcom Inc. has acquired CA Technologies to build one of the world’s leading infrastructure technology companies. The all-cash transaction represents an equity value of approximately $18.9 billion and an enterprise value of approximately $18.4 billion. CA Technologies has more than 90000 customers across the globe. |
| 8 | Cisco Systems | Subscribe | Subscribe | 3.1% | Subscribe | At the beginning of 2021, Cisco announced its intent to acquire Opsani to boost its AppDynamics observability platform. This followed two other deals that closed in 2021: Epsagon and replex, both of which further built out Cisco’s full-stack observability strategy. |
| 9 | Datto | Subscribe | Subscribe | 19.2% | Subscribe | In April 2022. Kaseya acquire Datto for $6.2 billion. Datto is adding a widely adopted backup solution to Kaseya’s stack, including Backupify, which Datto acquired in 2015. In addition to Datto’s solutions, Kaseya will also gain 17,000 MSP customers with an estimated down-stream customer base of nearly half a million businesses. |
| 10 | IBM | Subscribe | Subscribe | -6.5% | Subscribe | ITSM remains a key focus for IBM after spinning off units like AppScan, Big Fix, Notes and Domino to HCL. Its Red Hat purchase could be a boon for IT security. |
| Subtotal | Subscribe | Subscribe | 18.5% | Subscribe | ||
| Other | Subscribe | Subscribe | 42.6% | Subscribe | ||
| Total | 6336 | 7724 | 21.9% | 100% |
Source: Apps Run The World, September 2022
Other ITSM software providers included in the report are: Access Group, Alemba, Aranda Software, Aurea, Axios Systems, Axway, Baidu, Cisco Systems, Citrix, DataOcean, EasyVista, Espressive, Freshworks (formerly Freshdesk), Liferay, Inc, Lumen Technologies, Open Text Corporation, Oracle, QuickBase, Inc., Roper Technologies, Inc., Rippling, SAP, Splunk, Sumo Logic, SolarWinds, Sunview Software, SysAid Technologies, TeamDynamix, TIBCO Software Inc., TOPdesk, Yonyou, Zoho Corp.
Custom data cuts related to the ITSM Applications market are available:
- Top 50+ ITSM Applications Vendors and Market Forecast 2021-2026
- 2021 ITSM Applications Market By Industry (21 Verticals)
- 2021 ITSM Applications Market By ITSM Segments and Categories
- 2021 ITSM Applications Market By Country (USA + 45 countries)
- 2021 ITSM Applications Market By Region (Americas, EMEA, APAC)
- 2021 ITSM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2021 ITSM Applications Market By Customer Size (revenue, employee count, asset)
- 2021 ITSM Applications Market By Channel (Direct vs Direct)
- 2021 ITSM Applications Market By Product
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like eCommerce, Enterprise Performance Management, Sales Performance Management and Treasury and Risk, where first movers remain less established than those that for decades have been entrenched in functional areas like ERP, CRM and PLM.
IT Service Management Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in IT Service Management systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest ITSM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features win/loss extensive analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Source: Apps Run The World, September 2022
Further Readings
An expanded version of this report covers the top 50+ IT Service Management Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2021 product revenues.
Their 2021 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries (from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
