AIOps Market size is set to surpass USD 10 billion by 2027, according to a new research report by Global Market Insights Inc.
Rapid adoption of AI-based platforms across enterprises is likely to boost the AIOps industry demand. IT infrastructure & operation leaders are planning for a post-COVID-19 environment by deploying AIOps to enable task automation, knowledge management, and change analysis. The flexibility of these tools in ingesting increasingly diverse datasets across a progressive roadmap stretching till 2027 is one of the major factors supporting the market growth.
Expansion of domain-centric solutions across multiple ITOM markets
The domain-centric platform segment is expected to grow at around 25% CAGR through 2027 driven by increasing deployment of such solutions by enterprises that have limited data variety and that prioritize a small number of focused use cases. Digital business transformation is enhancing the domain-centric AIOps market demand as more business operations are digitized, and analyzing the growing data volumes becomes both critical & difficult. With data volumes reaching or exceeding gigabytes per minute across a dozen or more different domains, AIOps solutions continue to enjoy sustained market growth.
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On-premise deployment model to safeguard critical data from malicious threats
The on-premise segment captured more than 60% of the revenue share in 2020 due to the increasing demand to control & manage AIOps solutions by in-house resources to safeguard critical data from malicious threats. In an on-premises environment, AIOps resources are deployed in-house and within an enterprise's network infrastructure. This provides customization in accordance with an enterprise infrastructure and business requirements. Moreover, cost benefits offered by on-premise AIOps are contributing to the rising demand.
Rising usage for automated incident management and robust IT automation in large enterprises
The increasing adoption of AIOps solutions & services across large enterprises is poised to witness rapid growth, exceeding USD 3 billion in AIOps market revenues by 2024. The standardization of software releases and accurate prediction of delivery timelines are critical for large enterprises to ensure timely software deployment. However, the growing use of automation tools by large enterprises to reduce manual IT Services Management (ITSM) have created new market growth opportunities.
Browse key industry insights spread across 330 pages with 494 market data tables and 42 figures & charts from the report, “AIOps Market Size By Component (Solution [Domain-agnostic AIOps, Domain-centric AIOps], Service [Professional Service, Managed Service]), By Deployment Model (On-premise, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Application (Infrastructure Management, Real-time Analytics, Network & Security Management, Application Performance Management), By End-use (BFSI, IT & telecom, Healthcare, Retail, Government, Manufacturing, Media & Entertainment), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing focus to simplify & automate IT infrastructure management to fuel AIOps market growth
The infrastructure management application is anticipated to register growth rate of over 25% till 2027 owing to the easy provision and management of physical infrastructure using templates and APIs to automate infrastructure configuration and lifecycle operations through AIOps. Enterprises are increasingly seeking out AIOps to leverage AI-powered autonomous operations across the IT infrastructure, which will ensure that the IT environment is always-on, always-fast, and always-agile, one of the major factors supporting the industry demand.
Rising proliferation of AI-enabled platforms across healthcare sector
The healthcare end-use is predicted to hold nearly 15% of the AIOps market share by 2027. The adoption of big data to develop sophisticated AI applications is disrupting the healthcare industry. An AIOps approach to digital infrastructure management is assisting healthcare institutes in responding to a data-driven, interactive, and scalable digital healthcare landscape while maintaining regulatory obligations. The growth has been amplified by the rising deployments of AIOps tools by medical enterprises for monitoring software performance, ensuring frequent updates/deployments, and providing high availability.
Presence of major players with innovative solutions in North America
North America AIOps market size is estimated to generate revenues of about USD 4 billion by 2027. Presence of prominent players and their increasing investments in R&D to enhance AIOps solutions is augmenting the regional market revenue. Additionally, companies are focusing on the development of advanced AIOps solutions by leveraging advanced technologies. For instance, in January 2020, Sealights raised USD 8.6 million from Cisco and Wipro ventures. This investment was utilized to develop DevOps solution with AI capabilities.
Focus on product development by key participants
The competitive rivalry amongst the players is high due to the presence of some companies such as IBM, Cisco, Dynatrace, and Broadcom Inc., amongst others. The ability to continually innovate their products & services has allowed them to gain a competitive advantage. These players can attain a greater sales footprint through strategic partnerships, mergers & acquisitions, and research & development activities.
For instance, in February 2021, New Relic introduced New Relic Explorer, a Full-Stack Observability experience that delivers innovative new visualizations & capabilities to give users a high visibility into emerging performance issues and swiftly take action to get systems back to full health before customers or employees are impacted.
Some of the key AIOps market players are Amelia US LLC, BigPanda , BMC Software Inc, Broadcom Inc., Cisco Systems Inc., Datadog Inc., Digital.ai (CollabNet VersionOne), Digitate, Dynatrace Inc, Elastic NV, ExtraHob Networks Inc, Harness Inc, IBM Corporation, Logz.io Inc., Moogsoft Inc, New Relic Inc, OverOps Inc, PagerDuty Inc, Pico Inc, ScienceLogic Inc, ServiceNow (Glidesoft) , Splunk Inc, StackState Inc, Sumo Logic Inc, and Virtana Corporation.