IT Financial Management (ITFM)

Chronicle

2023: The global IT budget management software market grew by 11% over the year to reach $3.72 billion

In 2023, spending in the global IT management software market (ITFM) reached $3.72 billion. Growth in relation to 2022, when costs were estimated at $3.36 billion, was recorded at 11%. The industry analysis is provided in the Market Research Future review published in mid-December 2024.

ITFM tools provide the business with operational financial information that provides an objective understanding of the costs and revenues of the company within the framework of specific IT services. This data helps you make informed decisions about planning, budgeting, and IT spending management.

One of the main drivers of the market under consideration is the desire of companies to optimize costs in the field of IT. Organizations around the world are looking for ways to cut costs without compromising service quality. ITFM tools help enterprises more efficiently allocate resources and identify areas where they can reduce costs. In addition, the ongoing digital transformation in various areas increases the need for specialized IT budget management software. The use of such tools allows companies to align their financial strategies with common business goals, which contributes to faster decision-making and better management.

Another stimulating factor is the transition to cloud platforms and services SaaS (software as a service). Organizations are actively deploying cloud technologies to increase the flexibility, scalability, and availability of their IT operations. Using cloud-based ITFM tools, enterprises can benefit from seamless integration, regular upgrades, and reduced maintenance costs. In addition, ITFM tools facilitate compliance.

According to the deployment model, the authors of the study segment the ITFM market into local, cloud and hybrid solutions. In 2023, software of the first type provided revenue in the amount of $1.76 billion: such products are in demand among organizations that need full control over their IT environments and data. Cloud services brought in $1.12 billion: the popularity of this model is growing due to flexibility, scalability and low initial costs. Hybrid solutions, which are a combination of cloud and local systems, accounted for $0.84 billion. The list of leading industry players includes:

• IBM;
• CIO WaterCooler;
• Oracle;
• Apptio;
• SierraCedar;
• Microsoft;
• Planview;
• BMC Software;
• ProSpend;
• Harvey Nash;
• ServiceNow;
• Cloud DynamiX;
• Wrike;
• Micro Focus;
• SAP.

In 2023, IT budget management software spending in North America reached $1.458 billion, making the region the leader in the global ITFM market. The strong position is due to the high level of development of the IT sector and the demand for financial efficiency. In second place in terms of costs geographically is Europe with $0.867 billion, where the industry is stimulated by the need for compliance and digital transformation initiatives. The Asia-Pacific region closes the top three with $0.67 billion. South America secured a contribution of $0.394 billion, the Middle East and Africa - approximately $0.331 billion.

In 2024, revenue in the IT budget management software segment is estimated at $4.11 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 10.65%. Thus, by 2032, costs on a global scale may increase to $9.24 billion.^[1]

Notes