AI-Enhanced IT Service Management (ITSM) Market Size, Share, Opportunities, And Trends By Deployment (On-Premise, Cloud-Based), By Enterprise Size (Large Enterprises, Small and Medium-sized Enterprises), By Application (Operations & Performance Management, Network Management, Incident & Problem Management, Others), By End-User (IT and Telecommunication, Banking, Financial Services, and Insurance (BFSI), Healthcare, Government, Others), And By Geography – Forecasts From 2025 To 2030

AI-Enhanced IT Service Management (ITSM) Market Size:

The AI-enhanced IT service management (ITSM) market is anticipated to expand at a high CAGR over the forecast period.

The AI-enhanced IT service management (ITSM) market is experiencing steady growth. This is due to an increase in organisations seeking smarter, more efficient ways to manage increasingly complex IT environments. Integration of AI with ITSM platforms, routine tasks can be automated, and businesses can predict and prevent outages. Features such as AI-powered chatbots and intelligent ticket routing are helping to transform how IT services are delivered.

Furthermore, increased remote working options, along with cloud computing, are rapidly transforming markets in other areas too. Businesses now rely even more on AI-enhanced ITSM due to maturing technologies focused on Artificial Intelligence for enhancing agility as well as enabling long-term operational efficiency. Industries such as IT, telecom, healthcare, and finance are using these solutions. This is done to reduce operational costs, improve service uptime, and enhance end-user experience.

AI-Enhanced IT Service Management (ITSM) Market Overview & Scope:

The AI-Enhanced IT Service Management (ITSM) Market is segmented by:

• Deployment: Cloud-based solutions hold a significant share of the AI-enhanced IT Service Management (ITSM) market. This is due to an increase in scalability, flexibility, and ease of integration with AI technologies. It also allows organisations to deploy and update ITSM platforms rapidly.
• Enterprise Size: Large enterprises hold major share of the AI-enhanced IT Service Management (ITSM) market. It is due to their complex IT infrastructures, high service demands, and need for operational efficiency at scale.
• Application: Operations & performance management is expected to grow at a considerable pace in the AI-enhanced IT Service Management (ITSM) market.This is because it is central to maintaining system uptime, resource optimization, and service quality in modern IT environments
• End User: IT and Telecommunication hold a substantial share of the AI-enhanced IT Service Management (ITSM) market. These sectors manage vast networks, data centres, and customer service operations. It requires real-time monitoring, predictive maintenance, and rapid incident resolution, which is done by AI-driven ITSM platforms.
• Region: The Asia-Pacific AI-enhanced IT service management (ITSM) market is witnessing growth. This is due to accelerated digital transformation and increasing adoption of cloud infrastructure. Organisations such as banking, telecom, manufacturing, healthcare, and public services are turning to AI-driven ITSM solutions.

Top Trends Shaping the AI-Enhanced IT Service Management (ITSM) Market:

• Integration of Generative AI for Enhanced Self-Service: A trend in the AI-enhanced IT service management (ITSM) market is the integration of generative AI for enhanced self-service. Generative AI is powering advanced chatbots and virtual assistants in ITSM. It is helping in more natural and context-aware interactions for self-service portals.
• Shift to Experience-Level Agreements (XLAs)- Another significant trend is the growth of shift to experience-level agreements. It prioritises user satisfaction and employee experience over mere technical metrics. AI-driven analytics provide insights into customer and employee profiles. It also improves service delivery and aligns IT with business goals.
• Predictive Analytics for Proactive Issue Resolution: There has been an increase in the predictive analytics for proactive issue resolution. It helps ITSM to anticipate issues like hardware failures or security threats before they occur.

AI-Enhanced IT Service Management (ITSM) Market Growth Drivers vs. Challenges:

Drivers:

• Demand for Automation: One of the key drivers of the AI-enhanced IT service management (ITSM) market is the increase in demand for automation to reduce its costs and improve efficiency. Organisations have started using AI-driven ITSM solutions to automate repetitive tasks like ticket classification and routing. This reduces manual workloads and operational costs, with platforms like Atera and Freshservice. According to the Government of Gujrat report on “Setting up Industrial Robotics Integration Services” of 2024, the industrial robotics market is expected to grow from USD 32.6 million in 2022 to USD 61 billion by 2027.
• Advancements in Generative and Agentic AI Technologies: Another key driver of the AI-enhanced IT service management (ITSM) market is advancements in generative and agentic AI technologies. It enables more sophisticated ITSM capabilities, such as predictive analytics, natural language processing, and autonomous issue resolution. These technologies improve user experiences by offering personalised and context-aware support. According to Google Cloud, a report on “601 real-world gen AI use cases from the world's leading organisations”, the 2025 Colombian Security Council has developed a generative AI chatbot which will help in data analysis and will give quick responses to urgent scenarios.

Challenges:

• Data Security and Compliance Concerns: One of the major challenges of the AI-enhanced IT service management (ITSM) market is data security and compliance concerns. It is difficult to ensure compliance with regulations like GDPR, HIPAA, and CCPA while safeguarding against data breaches. AI systems, using generative or agentic models, are more prone to exposing sensitive data if not properly configured or secured. Organisations face challenges in maintaining trust in AI-driven decisions. Biases or errors in AI algorithms can lead to compliance violations or security risks. This challenge slows adoption, especially in regulated industries like healthcare and BFSI.

AI-Enhanced IT Service Management (ITSM) Market Regional Analysis:

• North America: North America’s AI-enhanced IT service management (ITSM) market is witnessing significant growth. The need for intelligent, automated service operations, the growing complexity of IT environments, and the quick digital transformation of businesses are the causes of this. AI-powered ITSM solutions are becoming more and more popular in industries like banking, healthcare, telecom, manufacturing, and government. It increases user experience, decreases downtime, and boosts service efficiency. This area boasts a robust cloud infrastructure ecosystem, advanced analytics capabilities, and machine learning expertise. It supports the integration of AI into ITSM platforms

AI-Enhanced IT Service Management (ITSM) Market Competitive Landscape:

The market has many notable players, including. Atera, Freshworks, Halo Service Solutions, TeamDynamix, SysAid, TOPdesk, Espressive, Moveworks, Alloy Software, InvGate, among others

• Partnership: In March 2025, ServiceNow acquired Moveworks, a leading AI-driven ITSM vendor, for USD 2.85 billion, the largest acquisition in its history. With its sophisticated chatbot and automation features for incident and request management, Moveworks' agentic AI improves ServiceNow's platform.
• Product Launch: In May 2024, under the "AI by Design" framework, SolarWinds introduced "SolarWinds AI," a generative AI engine built into its SolarWinds Service Desk. Through AI-driven automation, it optimises agent workflows, fixes problems more quickly, and reduces downtime.

AI-Enhanced IT Service Management (ITSM) Market Segmentation:

By Deployment

• On-Premise
• Cloud-Based

By Enterprise Size

• Large Enterprises
• Small and Medium-sized Enterprises

By Application

• Operations & Performance Management
• Network Management
• Incident & Problem Management
• Others

By End-User

• IT and Telecommunication
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Government
• Others

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Others

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. AI-Enhanced IT Service Management (ITSM) Market by Deployment

5.1. Introduction

5.2. On-Premise

5.3. Cloud-Based

6. AI-Enhanced IT Service Management (ITSM) Market by Enterprise Size

6.1. Introduction

6.2. Large enterprises

6.3. Small and Medium-sized Enterprises

7. AI-Enhanced IT Service Management (ITSM) Market by Application

7.1. Introduction

7.2. Operations & Performance Management

7.3. Network Management

7.4. Incident & Problem Management

7.5. Others

8. AI-Enhanced IT Service Management (ITSM) Market BY End-User

8.1. Introduction

8.2. IT and Telecommunication

8.3. Banking, Financial Services, and Insurance (BFSI)

8.4. Healthcare

8.5. Government 

8.6. Others

9.   AI-ENHANCED IT SERVICE MANAGEMENT (ITSM) MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. United Kingdom

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Spain

9.4.6. Others

9.5. Middle East & Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. India

9.6.3. Japan

9.6.4. South Korea

9.6.5. Thailand

9.6.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Atera

11.2. Freshworks

11.3. Halo Service Solutions

11.4. TeamDynamix

11.5. SysAid

11.6. TOPdesk

11.7. Espressive

11.8. SeviceNow

11.9. Alloy Software

11.10. InvGate

12. APPENDIX

12.1. Currency

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology

12.6. Abbreviations

Atera

Freshworks

Halo Service Solutions

TeamDynamix

SysAid

TOPdesk

Espressive

SeviceNow

Alloy Software

InvGate