Amid persistent macroeconomic headwinds and tighter scrutiny of IT budgets, ServiceNow has continued to outperform its peer technology platforms, posting an impressive 22% year-on-year growth in 2024. According to Mordor Intelligence, technology investments in Digital Transformation and IT Service Management markets are projected to grow at a robust CAGR of 21.3% and 16.7%, respectively, from 2025 to 2030.
The infusion of GenAI into the ServiceNow partner ecosystem further reinforces the market’s strong growth trajectory. While the broader enterprise platform services market has seen relatively slow growth, ServiceNow has delivered strong performance across industry verticals and its various business functions and modules. By focusing strategically on scale, innovation, and broader enterprise adoption, partners continue to strengthen their role as key drivers of digital transformation initiatives.
Traditional service models are undergoing a transformation, as Enterprise Service Management (ESM) extends beyond legacy ITSM to include services and operational capabilities across non-IT workflows. As a result, both ServiceNow and its partners are being pushed to rapidly evolve, driving innovation and expanding beyond traditional IT service delivery models.
ServiceNow’s evolution from an ITSM provider to a full-fledged enterprise workflow platform is fuelling its growth. Strategic investments—both organic and inorganic—have expanded its reach into areas like Customer Service Management (CSM) and HR Service Delivery (HRSD), significantly broadening its enterprise relevance.
M&A momentum builds: Inorganic Strategies Take the Lead
The ServiceNow market is entering a consolidation phase, with global system integrators and providers turning to M&A to scale rapidly and deepen capabilities. Acquired firms offer expertise in AI, industry-specific workflows, and managed services – extending beyond implementation and integration to consultation and delivering measurable business outcomes. This reflects a broader shift toward value-driven, outcome-based engagements, making M&A a critical lever to meet evolving enterprise demands.
I believe the acquisition momentum in the ServiceNow ecosystem is set to accelerate, driven by:
Platform expansion and strategic relevance: ServiceNow’s evolution from ITSM to a full enterprise workflow platform – spanning HR, CSM, SecOps, and now GenAI-powered capabilities – is expanding its strategic value across the enterprise, prompting acquirers to deepen their platform expertise.
Need for vertical and workflow specialization: buyers are targeting partners with proven experience in specific industry verticals or advanced ServiceNow modules to enhance differentiation and domain depth in competitive growth initiatives.
Pressure to consolidate capabilities at scale: global system integrators and private equity-backed platforms are racing to consolidate fragmented players to create full-service, end-to-end ServiceNow powerhouses that can serve large enterprise clients with global complexity.
Geographic expansion imperatives: M&A is increasingly used by service providers to enter and strengthen their presence in high-potential regions, such as across EMEA and APAC. Acquiring local partners with established delivery hubs, deep client relationships, and customised services that meet local compliance and data regulations helps market entry and build regional resilience.
Demand for service-oriented skillsets: Rising demand for certified ServiceNow professionals—particularly in high-growth areas like ITOM, HRSD, CSM, and GenAI-led workflows—continues to outpace supply. For larger service providers, acquiring specialized firms remains the fastest way to bridge talent gaps and scale delivery capabilities.
At TH Global Capital, we are the leading global investment banking firm for ServiceNow partners. With 9 successful transactions across the ecosystem, we’ve consistently delivered exceptional outcomes for founders, investors, and strategic acquirers. Watch this space for our upcoming deep-dive research report on the ServiceNow ecosystem.