AIOps Platform Market

AIOps Platform Market - Industry Trends & Forecast

The global market for AIOps Platform is estimated to be worth USD 11.7 billion in 2023. It is projected to reach USD 32.4 billion by 2028 at a CAGR of 22.7% during the forecast period.The rapid digital transformation in global business organizations has led to increasingly complex datasets, requiring significant time, cost, and effort for data processing. As IT operations are also undergoing this transformation, IT teams face the challenge of managing intricate datasets to sustain business operations. Additionally, the distributed architecture and dynamic nature of modern business applications and services have resulted in a considerable increase in data loads over recent years. To address the growing demand for IT agility, the AIOps platform has emerged as a solution for IT operations teams. This AI-powered platform combines human intelligence with automated algorithms, providing full visibility into IT system performance.

Technology Roadmap of AIOps Platform till 2030

The AIOps Paltform market report covers technology roadmap till 2030, with insights around short-term, mid-term, and long-term developments.

Short-term roadmap (2023-2025)

• The focus is on improving the integration of diverse data sources into the AIOps platform.
• The AIOps platform enables real-time analysis of streaming data to provide instantaneous insights and proactive monitoring.
• Focus on improving the interpretability and explainability of AI models used in the AIOps platform.
• The AIOps platform incorporates self-learning capabilities to adapt and improve over time.

Mid-term roadmap (2025-2028)

• The AIOps platform expands its integration capabilities to include emerging data sources such as IoT devices and edge computing systems.
• Strengthens capabilities for processing and analyzing high-velocity, real-time data streams.
• Advanced techniques, such as rule-based approaches, causal AI, and counterfactual explanations, are explored to provide deeper insights into the reasoning behind AI-driven decisions.
• Development of self-adaptive systems to dynamically adjust algorithms and models based on evolving IT landscapes.

Long-term roadmap (2028-2030)

• Advanced techniques, such as data virtualization and federated learning, enable the platform to handle distributed data sources and perform real-time data fusion.
• Development of advanced streaming analytics techniques that enable real-time decision-making and automated actions.
• Ethical considerations, including bias mitigation, privacy preservation, and algorithmic transparency, are integrated into the design and implementation of the AIOps platform.
• Developing intelligent systems capable of self-healing, self-optimizing, and self-configuring.

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Market Dynamics

Driver: Streamlining IT operation for digital transformation through AI and automation

AIOps plays a pivotal role in driving digital transformation by streamlining IT operations and meeting the evolving customer demands in the digital age. It enables businesses to deliver seamless digital experiences by transforming the backend operations. With AIOps, the management of complex environments becomes simpler as it orchestrates infrastructure, applications, and services across hybrid cloud ecosystems, ensuring optimal efficiency and customer satisfaction. Enterprises worldwide are embarking on digital transformation journeys, driven by the need to modernize and adapt in the post-pandemic era of remote work and digital collaboration. However, the success rate of these initiatives remains challenging, with many projects falling short of their goals due to the complexities of implementing new technologies throughout the organization. To overcome these challenges, organizations can harness the power of AI and automation, specifically through the adoption of AIOps platforms. These solutions leverage machine learning to connect and contextualize operational data, enabling informed decision-making and automated issue resolution. By simplifying and streamlining the transformation process, AIOps platforms prove to be a game-changer, particularly as businesses scale up their operations.

By embracing AIOps platforms, enterprises empower their digital transformation initiatives, leveraging the capabilities of AI and automation to drive success, enhance operational efficiency, and effectively navigate the complexities of the modern business landscape.

Restraint: Addressing data quality and availability in AIOps implementation

Data quality and availability pose significant challenges in the implementation of AIOps platforms. AIOps relies on a diverse range of data sources, including system logs, metrics, historical performance data, real-time operations events, and incident-related information. However, the data required for AIOps often suffers from issues such as incompleteness, inconsistency, and being stored in disparate silos across the organization's infrastructure. Insufficient or poor-quality data adversely impacts the accuracy and reliability of AIOps algorithms, resulting in misleading insights and erroneous technology decisions. To overcome these restraints, organizations must focus on data governance practices, data integration techniques, and data quality assurance processes. This includes implementing robust data pipelines, data cleansing procedures, and data normalization techniques to ensure the data used by AIOps platforms is accurate, reliable, and readily available. Furthermore, organizations need to break down data silos, establish data standards, and enforce data quality controls to enhance the overall effectiveness and trustworthiness of AIOps platforms.

Opportunity: Growing demand for increased security threats mitigation and compliance requirements

The rising demand for increased security threats mitigation and compliance requirements presents a significant opportunity for AIOps platforms. With the growing complexity of IT environments and the evolving threat landscape, organizations face challenges in effectively detecting and responding to security incidents while meeting regulatory compliance standards. AIOps platforms leverage advanced analytics and machine learning algorithms to enhance security operations. By analyzing vast amounts of security-related data, including logs, events, and network traffic, these platforms identify patterns, anomalies, and potential security breaches in real-time. This proactive approach enables early threat detection and faster incident response, reducing the risk of data breaches and minimizing the impact of security incidents.

Moreover, AIOps platforms aid organizations in achieving compliance requirements by automating the collection, analysis, and reporting of security-related data. It provide continuous monitoring, audit trail generation, and assist in maintaining adherence to industry-specific regulations. By leveraging the power of AI and automation, AIOps platforms empower organizations to strengthen their security posture, mitigate security threats, and streamline compliance processes. It enable IT teams to efficiently manage security incidents, enhance visibility into security operations, and ensure the protection of critical assets and sensitive data.

Challenge: Lack of transparency and explainability

The lack of transparency and explainability in AIOps algorithms poses a significant issue that hampers the comprehension and articulation of the decision-making process. This lack of transparency and explainability leads to trust issues, especially in regulated industries where human judgment holds paramount importance. The complexity inherent in AIOps algorithms presents challenges in understanding and validating the outcomes they generate. This becomes particularly critical in highly regulated sectors such as finance and healthcare, where accountability and compliance are of utmost significance. Being able to elucidate AI-driven decisions becomes crucial in such environments. To tackle this challenge, it is imperative to enhance the explainability of AIOps algorithms through the development of interpretability techniques. These techniques aim to provide transparent insights into the inner workings and decision-making process of AIOps platforms. By incorporating explainability features, organizations build trust, ensure compliance with regulations, and gain a deeper understanding of the rationale behind the recommendations and actions of AIOps platforms. Effectively addressing this challenge requires striking a balance between algorithmic complexity and interpretability, enabling stakeholders to comprehend and trust the decisions made by AIOps systems with confidence. Achieving explainability is instrumental in the successful adoption and acceptance of AIOps platforms, particularly in regulated industries where transparency and accountability are integral.

AIOps Platform Market Ecosystem

By application, infrastructure management to account for the largest market size during the forecast period

Infrastructure management is adopting AIOps platforms to optimize and streamline IT operations. AIOps leverages AI and ML algorithms to analyze vast amounts of infrastructure data in real-time, enabling proactive monitoring, predictive insights, and intelligent automation. By detecting anomalies, predicting potential issues, and automating routine tasks, AIOps improves resource allocation, reduces downtime, and enhances overall infrastructure performance. This adoption of AIOps empowers IT teams to efficiently manage complex and dynamic infrastructures, ensuring better system reliability and meeting the demands of modern business operations.

By deployment, cloud to account for the largest market size during the forecast period

Cloud environments are increasingly adopting AIOps platforms to address the challenges posed by the dynamic and complex nature of cloud-based infrastructures. AIOps leverages AI and ML technologies to analyze data from various cloud sources, such as logs, metrics, and monitoring tools, in real-time. This enables cloud providers and users to gain deep insights into the performance, security, and resource utilization of cloud services. AIOps platforms help optimize cloud resource allocation, automate incident management, and detect potential issues proactively. By embracing AIOps, cloud environments enhance efficiency, improve service reliability, and provide better user experiences for organizations and end-users leveraging cloud services.

By offering, platform to account for the largest market size during the forecast period

AIOps technology is being adopted across various platforms to enhance IT operations. Domain-centric AIOps focuses on specific IT domains, offering tailored insights and automation. Monitoring-centric AIOps uses real-time data from monitoring tools to detect anomalies and improve system performance. ITSM-centric AIOps integrates with IT Service Management processes for efficient incident and problem resolution. Data lake-centric AIOps leverages data repositories for advanced analytics, enabling proactive operations. Domain-agnostic AIOps provides a unified view of the entire IT environment, using data integration for comprehensive analytics.

North America to account for the largest market size during the forecast period

North America is expected to have the largest market share in AIOps Platform market. AIOps Platform is making a significant impact on North America, driving innovation and transforming industries across the region. North America's leadership in AIOps platforms is driven by early adoption, a vibrant tech innovation ecosystem, and a skilled workforce. The region's focus on digital transformation, collaborations, and significant investments in AIOps drive its competitiveness. A thriving startup ecosystem introduces disruptive solutions, keeping North America at the forefront of AIOps technology. These factors collectively enable the region to leverage cutting-edge AIOps platforms and gain a competitive edge in the evolving market.

Key Market Players

The AIOps Platform vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global market for AIOps Platform IBM (US), Splunk (US), Broadcom (US), OpenText (Canada), Dynatrace (US), Cisco (US), HCL Technologies (India), Elastic (US), ServiceNow (US), HPE (US), Datadog (US), New Relic (US), SolarWinds (US), BMC Software (US), ScienceLogic (US), BigPanda (US), LogicMonitor (US), Sumo Logic (US), Moogsoft (US), Resolve Systems (US), AIMS Innovation (Norway), Interlink Software (UK), CloudFabrix (US), PagerDuty (US), Aisera (US), ManageEngine (US), Digitate (US), ZIF.ai (US), Autointelli (India), UST (US), Freshworks (US), Everbridge (US), StackState (US), Logz.io (US).

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Scope of the Report

This research report categorizes the AIOps Platform market based on Offering, Services, Deployment Mode, Application, Vertical, and Region.

By Offering:

• Platform
• Domain-Centric
  • Monitoring-centric AIOps
  • ITSM centric-AIOps
  • Data-Lake centric-AIOps
• Domain-Agnostic
• Services

By Services:

• Professional Services
  • Implementation Services
  • Licenses and Maintenance Services
  • Training & Education Services
  • Consulting Services
• Managed Services
  • Managed Network Servicecs
  • Managed Cloud Services
  • Managed Security Services
  • Manged Automation Servcies

By Deployment Mode:

• On-Premises
• Cloud
  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Application:

• Infrastructure Mangement
  • Anomaly Detection and Root Cause Analysis
  • Automated Incident Management
  • Capacity Planning and Optimization
  • Performance Monitoring and Optimization
  • Server Monitoring and Management
  • Storage Monitoring and Management
  • Application Performance Monitoring
  • Network Monitoring
• ITSM
  • Service Level Management
  • Configuration Management
  • Actionable Intelligence
  • IT Asset Management
  • Service Desk Automation (Chatbot)
• Security & Event Management
• Security Incident and Event Management (SIEM)
• Threat Intelligence and Detection
• Security Automation and Orchestration
• Security Event Correlation
• User and Entity Behavior Analytics
• Vulnerability Management

By Vertical:

• BFSI
• Retail & eCommerce
• Transportation and Logistics
• Government & Defense
• Healthcare & Life Sciences
• Telecom
• Energy & Utilities
• Manufacturing
• IT/ITeS
• Media & Entertainment
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • South Korea
  • ANZ
  • Japan
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • KSA
  • Israel
  • Egypt
  • UAE
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Recent Developments:

• In June 2023, IBM announced the acquisition of Apptio to accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
• In February 2023, OpenText announced the acquisition of Micro Focus to help enterprise professionals secure their operations, gain more insight into their information, and better manage an increasingly hybrid and complex digital fabric.
• In January 2023, Interlink Software partnered with Cisco and integrated its AIOps platform with AppDynamics. By leveraging this integration, IT teams mitigate the risk of unnecessary IT outages and enhance service availability, optimizing overall operational performance.
• In April 2022, Meliá Hotels International collaborated with Dynatrace to fuels its digital transformation by migrating its critical applications. Using Dynatrace's observability and advanced AIOps capabilities, Meliá ensures that their digital services match the quality of in-person interactions with hotel staff.
• In December 2021, Broadcom announced the acquisition of AppNeta.  The acquisition of AppNeta by Broadcom allows for the integration of AppNeta's scalable end-to-end visibility solution with Broadcom's infrastructure and AIOps capabilities.

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