In 2019, the top 10 IT Service Management software vendors accounted for nearly 86.2% of the global IT Service Management applications market which grew 16.7% to approach nearly $5.4 billion in license, maintenance and subscription revenues.
Last year ServiceNow led the pack with a 37.7% market share riding on a 34.4% jump in ITSM license, maintenance and subscription revenues. Atlassian was #2, followed by Ivanti, BMC Software, and LogMeIn, Inc.
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 $5.7 billion by 2024, compared with $5.4 billion in 2019 at a compound annual growth rate of 0.9%.
| Exhibit 2: Worldwide IT Service Management Software Market 2019-2029 Forecast, $M | |||
|---|---|---|---|
| Year | 2019 | 2024 | 2019-2024 CAGR, % |
| Total | 5440 | 5688 | 0.9% |
Source: Apps Run The World, November 2020
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 2019 and their market shares.
| Rank | Vendor | 2018 IT Service Management Apps Revenues, $M | 2019 IT Service Management Apps Revenues, $M | YoY Growth | 2019 IT Service Management Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | ServiceNow | Subscribe | Subscribe | 34.4% | Subscribe | In October 2019, ServiceNow has appointed Bill McDermott as president and CEO. In November 2019, ServiceNow acquired Fairchild Resiliency Systems to help companies better manage risk at scale. |
| 2 | Atlassian | Subscribe | Subscribe | 36.0% | Subscribe | In May 2020, Atlassian has acquired Halp, an early-stage startup that enables companies to build integrated help desk ticketing and automated answers inside Slack. Atlassian’s number of total customers increased to 174,097 at June 30, 2020 from 152,727 at June 30, 2019. |
| 3 | Ivanti | Subscribe | Subscribe | 5.0% | Subscribe | Ivanti acquired Concorde Solutions, a UK based Software Asset Management company. This acquisition extends the company’s IT Asset Management (ITAM) offerings, providing customers with additional insights and control to help organizations model and improve their effective software license position. |
| 4 | BMC Software, Inc. | Subscribe | Subscribe | 11.1% | Subscribe | BMC Software has added its Helix Cognitive Service Management solution on Microsoft Azure. Businesses can now use BMC Helix on the cloud of their choice, including Azure, AWS, and the BMC cloud. |
| 5 | LogMeIn, Inc. | Subscribe | Subscribe | 34.2% | Subscribe | In May 2020, LogMeIn has launched Remote Deployment for GoToMyPC enabling IT administrators and business professionals to remotely deploy, install, and configure GoToMyPC remote access software across any number of computers simultaneously. |
| 6 | Microsoft | Subscribe | Subscribe | 35.0% | Subscribe | Microsoft shipped ITSMC that provides bi-directional integration between Azure monitoring tools and ITSM tools including ServiceNow, Provance, Cherwell, and System Center Service Manager. |
| 7 | IBM | Subscribe | Subscribe | 7.5% | 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. |
| 8 | Broadcom Inc. | Subscribe | Subscribe | 50.7% | Subscribe | CA Technologies was acquired by Broadcom in 2018 as part of the chip company’s efforts to expand into software. |
| 9 | SolarWinds | Subscribe | Subscribe | 34.5% | Subscribe | SolarWinds acquired Samanage, a cloud-based IT service desk software solution, for $329 million. |
| 10 | Cherwell Software | Subscribe | Subscribe | 11.5% | Subscribe | In March 2020, Cherwell launched the Cherwell Marketplace, a new forum for obtaining a wide range of free and paid enterprise applications or mApps™ built on top of the Cherwell CORE platform. |
| Subtotal | Subscribe | Subscribe | 29.6% | Subscribe | ||
| Other | Subscribe | Subscribe | -28.2% | Subscribe | ||
| Total | Subscribe | Subscribe | 16.7% | Subscribe |
Source: Apps Run The World, November 2020
Other ITSM software providers included in the report are: Access Group, Alemba, Aranda Software, Aurea, Axios Systems, Cisco Systems, Citrix, DataOcean, Datto | Autotask, EasyVista, Espressive, Freshworks (formerly Freshdesk), Liferay, Inc, Oracle, QuickBase, Inc. (Intuit, Inc.), Roper Technologies, Inc., SAP, Sunview Software, SysAid Technologies, TeamDynamix, TOPdesk, Yonyou, Zoho Corp.
Custom data cuts related to the ITSM Applications market are available:
- Top 40+ ITSM Applications Vendors and Market Forecast 2019-2024
- 2019 ITSM Applications Market By Industry (21 Verticals)
- 2019 ITSM Applications Market By Functional Market (16 Markets)
- 2019 ITSM Applications Market By Country (USA + 45 countries)
- 2019 ITSM Applications Market By Region (Americas, EMEA, APAC)
- 2019 ITSM Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 ITSM Applications Market By Customer Size (revenue, employee count, asset)
- 2019 ITSM Applications Market By Channel (Direct vs Direct)
- 2019 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, November 2020
Further Readings
An expanded version of this report covers the top 40+ 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 2015-2019 product revenues.
Their 2018 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.
