ServiceNow tech services market size set to grow at CAGR of 17.4%

The ServiceNow tech services market size has been valued at US$24.8 billion in 2023 and is expected to grow to US$123.2 billion by 2033, expanding at a CAGR of 17.4% during the forecast period, according to Future Market Insights (FMI).

The growing demand for ServiceNow tech services from the healthcare sector to address the heightened concerns related to rising levels of security breaches is projected to aid market growth over the forecast period, the researchers state. The key players in the market provide solutions to help healthcare institutions to better comply with patients' standards and regulations.

Further, the rising adoption of these services by communication and media companies to adapt to the continuously changing market, measure performance, and further optimize the metrics, is also contributing to the market growth.

Additionally, the market is predicted to be propelled by the growing adoption of infrastructure-less solutions by business services providers to efficiently manage various areas within the business. Due to the powerful cloud-based computing and storage, the employees of the business can access the ServiceNow platform via mobile devices or any other such connected system. ServiceNow tech services also provide the on-the-go feature for invoice approvals, 24/7 system maintenance, and initiation of service requests.

The ServiceNow tech services market is projected to further grow owing to the rising investment in these services as they provide quick access to performance metrics of a single department or entire enterprise, thus summoning up financial insights for performance as well as resource allocation. Furthermore, rapid digitalisation is creating more opportunities for the market to grow, as customers of ServiceNow tech services are innovating at scale, exploring new ideas, and realising value faster.

Key takeaways from FMI include:

• The East Asia ServiceNow tech services market is estimated to grow significantly, witnessing a CAGR of 8% between 2023 and 2033. The market is expected to be positively influenced by increasing investments by end-use companies to digitize their businesses. The key industry players residing in the region are emphasizing forming strategic partnerships to elevate their revenues.
• Based on service, IT services attained the largest market share, accounting for about 1% in 2021. This market valuation can be attributed to the growing demand for automation of internal processes in every department, thus empowering teams to complete the task and further drive innovation.
• By enterprise size, small offices (1-9 employees) are estimated to grow at a rapid pace over the forecast period, expanding at a CAGR of 9%. The growing adoption of ServiceNow tech services by small offices is backed by the rising emphasis of key players to create SME-specific ServiceNow tech services with effective pricing.
• By industry, the services segment attained the largest market share in 2021, representing 27.9% of the overall market. The heightened adoption rate of ServiceNow tech services to boost employees' productivity, reduce compliance risks to a minimum, escalate business profitability, and quickly enlarge the customer base is aiding the market growth.

To fulfill the evolving and complicated needs of end-use sectors, the major market participants are concentrating on expanding their service portfolios, acquiring and integrating businesses, and developing new services. During the projection period, it is anticipated that the booming end-use industries would increase demand for ServiceNow tech services, opening up additional chances for market growth.

ServiceNow, Broadcom, Epicor Software Corporation, Hewlett Packard Enterprise, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com, SAP SE, SYSPRO, and Zoho Corporation are a few of the leading companies in the industry, FMI states.

ServiceNow announced the introduction of Now Platform Tokyo in September 2022. This platform is intended to help organisations deal with complex business difficulties in a volatile macro environment.

Later that month and year, the business disclosed that it was enhancing Now Platform Tokyo with further new capabilities to assist offer better customer and staff experiences and to simplify employee scheduling and order administration.