Where are enterprise software giants directing their growth strategies? The battle between ServiceNow and Salesforce has intensified as both companies expand beyond their traditional strongholds. ServiceNow, commanding over 50% of the IT service management market with 85% of Fortune 500 companies as clients, is now venturing into CRM territory.
Meanwhile, Salesforce, which holds 21.8% of the global CRM market share (exceeding its four largest competitors combined), is developing ITSM capabilities to counter this encroachment.
Growth metrics tell a revealing story about which company might have the upper hand. ServiceNow achieved 20% year-over-year growth compared to Salesforce’s 8%, signaling shifting market dynamics. This trend reflects the broader industry shift toward end-to-end automation across both internal and customer-facing workflows. ServiceNow’s ITSM tools continue to drive adoption with their unified workflows that seamlessly connect front-end and back-office operations.
Looking ahead, ServiceNow projects Q3 2025 revenue between $3.26–3.265 billion, reflecting 19.5–20.5% year-over-year growth. Salesforce expects FY25 revenue of approximately $37.9 billion with 9% growth.
The Rule of 50+ score further highlights this gap. ServiceNow scored 54%, the only company in its peer group to exceed this benchmark. Competitors including Salesforce lag at 42%. This performance difference appears in client spending too, with ServiceNow reporting a 30% year-over-year increase in clients spending over $20 million.
Both companies are betting heavily on AI to drive future growth. ServiceNow offers AI-native capabilities including AI Control Tower and Agentic AI, while Salesforce counters with Agentforce for sales and service functions. These tools aim to automate workflows and enhance productivity across enterprise operations. Companies that successfully implement these AI solutions typically undergo business model transformation to revolutionize how they deliver products and services to customers.
Market projections suggest ServiceNow may continue its momentum. The ServiceNow market is expected to reach $23.77 billion in 2025 and grow to $37.45 billion by 2030 at a 9.52% CAGR.
Meanwhile, the larger CRM market will reach $128.97 billion by 2028, with Salesforce maintaining its dominant position.
As these software giants continue their territorial expansion, ServiceNow’s faster growth rate and higher efficiency metrics suggest Salesforce might be feeling more pressure in this competitive landscape, despite its larger overall market size.
