Enterprise Service Management (ESM) is rapidly emerging as a strategic priority across global organizations, and according to QKS Group, the ESM market is projected to register a robust CAGR of 14.20% by 2028. The market’s growth reflects the increasing need for unified service delivery, digital transformation, automation, and improved employee and customer experiences.
Originally evolving from IT Service Management (ITSM), which was traditionally restricted to managing IT-related tasks such as incident management, helpdesk support, ticketing, and back-office operations, ESM has now expanded far beyond IT. It has become a holistic enterprise-wide approach, enabling every department—HR, Finance, Facilities, Procurement, Legal, Security, Operations, and Customer Service—to leverage standardized service workflows, automation tools, and data-driven decision-making.
Drivers Fueling the Growth of the ESM Market
The CAGR of 14.20% is being driven by several key market trends:
1. Growing Digital Transformation Initiatives
Organizations are increasingly shifting toward digital-first business strategies. Modern ESM platforms provide automation tools and digital workflows that streamline complex processes, eliminate manual inefficiencies, and improve overall operational responsiveness.
2. Rise of Remote and Hybrid Work Models
Accelerated by the post-pandemic business environment, remote work has increased the demand for seamless collaboration and centralized access to enterprise services. ESM ensures that employees, regardless of location, can request support, access resources, or resolve issues in real time through self-service portals and digital workspaces.
3. Integration Across Front and Back-Office Operations
Today’s businesses require smooth coordination between customer-facing functions and internal teams. ESM bridges departmental silos by integrating workflows and automating service delivery, resulting in faster turnaround times, enhanced customer satisfaction, and improved service visibility.
4. Focus on Enhancing Employee Experience
Modern organizations now recognize employee experience as a competitive differentiator. ESM platforms provide consumer-grade service experiences with intelligent routing, AI-powered chatbots, predictive analytics, and automated approvals—reducing delays and boosting productivity.
The Evolution of ESM: Beyond ITSM
While ITSM laid the foundation for structured service delivery and process standardization, ESM expands this capability enterprise-wide, enabling all business units to:
• Digitize and automate manual processes
• Standardize service request and fulfillment workflows
• Improve transparency with real-time dashboards and reporting
• Enable collaboration between IT and business teams
• Reduce operational costs and resource dependencies
As a result, organizations using ESM are realizing significant improvements in service quality, decision-making efficiency, and business agility.
Future Outlook of the Enterprise Service Management Market
With rapid advancements in AI, machine learning, low-code workflow automation, and predictive analytics, ESM platforms are becoming smarter and more scalable. The next generation of ESM will deliver:
• Hyperautomation across departments
• AI-driven self-service and conversational interfaces
• Integrated risk, compliance, and security service workflows
• Unified enterprise portals for employees and customers
• Enhanced interoperability with ERP, CRM, HRMS, and collaboration platforms
As businesses continue to prioritize automation and unified service delivery, the ESM market is expected to expand significantly, driven by adoption across small, medium, and large enterprises globally.
Conclusion
The projected 14.20% CAGR by 2028 reflects strong and sustained growth momentum for the Enterprise Service Management market. What began as an IT-centric function has now become a strategic enterprise capability enabling improved efficiency, collaboration, and service excellence. Organizations embracing ESM are better positioned to drive digital transformation, enhance employee and customer satisfaction, and stay competitive in an increasingly dynamic market.
Vendors Covered:
Atlassian, BMC Software, Broadcom, EasyVista, Freshworks, IBM, IFS, Ivanti, ManageEngine, Matrix42, OpenText, ServiceNow, SolarWinds, SysAid, TOPdesk, and USU Solutions.
Key questions this study will answer:
• At what pace is the Enterprise Service Management (ESM) market growing?
• What are the key market accelerators and market restraints impacting the global Enterprise Service Management (ESM) market?
• Which industries offer maximum growth opportunities during the forecast period?
• Which global region expects maximum growth opportunities in the Enterprise Service Management (ESM) market?
• Which customer segments have the maximum growth potential for the Enterprise Service Management (ESM) solution?
• Which deployment options of Enterprise Service Management (ESM) solutions are expected to grow faster in the next 5 years?
