Artificial Intelligence For IT Operations Platform Market Size, Share & Trends Analysis Report By Offering, By Application, By Deployment Mode, By Organization Size, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

AIOps Platform Market Size & Trends

The global artificial intelligence for IT operations platform market size was valued at USD 9.30 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 17.4% from 2023 to 2030. Artificial intelligence for IT operations (AIOps) platform refers to the AI platform for IT operations. It combines human intelligence with automated algorithms to provide better visibility into the performance of IT systems. The key factor driving the adoption of AIOps in the IT environment is the fulfillment of adequate speed and agility required for the business. Also, advanced machine learning algorithms capture the necessary information running in the background to provide actionable insights. For instance, in October 2021, BMC, a global leader in software solutions, announced several new Control-M innovations and BMC Helix, enabling enterprises to gain more value-added insights, serve customers, and enhance resilience & agility. It planned to extend data science in enterprises.

Recent technological advancements have paved the way for AI in IT operations. Several companies are adopting the connection of knowledge, Natural Language Processing (NLP), and domain-enriched Machine Learning (ML) techniques to offer improved AIOps platforms and services. Over the recent years, several advanced elements have been identified, analyzed, and acknowledged for self-driving cars. Deep learning algorithms are applied to assist self-driving cars in contextualizing information picked up by their sensors, such as speed of movement, distance from other objects, and a prediction of where they will be in 5-10 seconds.

AIOps platform uses intelligence and ML-based self-learning algorithms to automate regular IT tasks. It also detects and anticipates possible events via historical and behavioral data analysis. Moreover, it provides a cognitive data analysis by leveraging big data analytics and derives meaningful information from data for comprehensive processing.

Integrating IT operations with artificial intelligence (AI) ensures real-time data correlation, multi-dimensional data normalization, severity-based incident prioritizing, and predefined response plans for future events. This ability to derive actionable insights from scratch helps build a responsive ITOps infrastructure. For instance, in March 2022, TSB Bank plc, a retail and commercial bank based in the United Kingdom, leveraged the Dynatrace platform to speed up innovation as it extended digital offerings for its clients.

The COVID-19 outbreak stimulated the market growth of next-generation tech domains, including artificial intelligence, owing to the mandated work-from-home policy. For instance, LogMeIn, Inc. (U.S.), a cloud and SaaS-based remote connectivity and customer engagement services provider, experienced a significant increase in new sign-ups across its all-service portfolios during the outbreak.

Additionally, enterprise IT workers have been dependent on commercial AIOps solutions to keep their computing systems running smoothly despite technical workforce issues during the pandemic. For instance, in January 2021, IBM and other major IT suppliers made AIOps a critical thread for connecting their disparate platforms and capabilities. AI-driven IT service management is making a significant difference for multi-cloud management tool suppliers.

Offering Insights

The platform offering segment led the AIOps platform market growth in 2022, accounting for 87.6% of the global revenue share. AIOps vendors deliver reliable, responsive, and innovative platform experiences for business organizations to gain a competitive edge in the market. This high market share can be attributed to its business benefits, such as better decision-making, faster digital transformation, efficient data processing, and cohesive agility. Automation is a crucial component fueling the demand for AIOps platforms in organizations.

Besides, it enables the deployment of correlation analytics, which helps identify the root cause of the issues taking place in IT infrastructure and fix them as required. For instance, in February 2022, MetTel, a global leader in digital transformation and communications, announced its plans to provide its customers with a managed secure access service edge solution driven by VMware SASE. With the help of the SASE, IT firms can deploy networking, cloud-based security, and edge computing capabilities to applications, running at the edge more efficiently.

Several companies offer AI technology for different IT applications, such as real-time analytics, infrastructure management, and network management. For instance, in June 2021, Dynatrace, a well-known application performance monitoring (APM) provider and another publicly traded company, focused on various IT solutions ranging from application and micro-services support to application security. The company provides automated AIOps solutions, including Davis, an assistant that analyses dependencies and events using open APIs and AI, recognizes IT problems, and performs root cause analysis.

The service offering segment is expected to expand at the fastest CAGR of 19.8% during the forecast period. With the growing complexity of IT environments and the increasing need for real-time decision-making, the demand for AIOps services is expected to grow substantially, providing significant market opportunities for service providers in the coming years.

Application Insights

The real-time analytics application segment dominated the market in 2022, accounting for the largest revenue share of 33.9%. The manufacturing industry is leveraging real-time analytics in terms of production quality (vendor quality, data accuracy, and cost overruns), lead times (cycle time and customer service time), delivery reliability (schedule adherence and vendor delivery performance), and costs (waste rates, inventory turns, system complexity, and overhead efficiency).

The high share can be attributed to the increasing penetration of real-time leaderboards among businesses to build competitive intelligence. In addition, real-time analytics provides organizations with a data-driven approach for identifying, prioritizing, diagnosing, and resolving events or issues. For instance, in October 2021, Moogsoft, one of the market leaders in AIOps solutions that enable IT teams to work more efficiently and effectively, provided DevOps teams and SREs with real-time visibility into IT issues, allowing them to detect, diagnose, and remediate incidents.

The infrastructure management application segment is estimated to register the fastest CAGR of 20.2% during the forecast period. This growth can be attributed to the fast-growing acceptance of AI across heavy IT infrastructure workloads. For instance, in January 2021, BMC Software, Inc., a U.S.-based multinational information technology services and consulting firm, offered a wide range of traditional cloud and IT operations solutions exclusively for large enterprises. TrueSight Infrastructure Management, a software solution from the company, combines infrastructure monitoring, incident management, and operational analytics to give IT teams a centralized view of IT infrastructures.

Vertical Insights

The BFSI segment led the market in 2022, accounting for a revenue share of 20.4%. AIOps technology for securing financial and banking-related data has grown considerably in this sector. AI finds wide applications in banking and financial IT operations, including real-time analytics, solving complex IT issues, banking automation, and enhancing scalability, among other use cases.

For instance, in February 2021, Relic Explorer, a product created by New Relic, a technology company based in the United States, introduced advanced new visualizations and capabilities to give engineers unequaled visibility across their entire estate. Engineers can help detect emerging issues and restore systems to functionality without impacting customers or employees.

Artificial intelligence for IT operations platforms is used to improve IT agility for enterprises with extensive IT infrastructure or architecture and deal with multiple technologies with massive data. Application performance analysis is one of the most used applications in every vertical. For instance, in January 2021, AIOps could determine that an application performance issue is caused by a cyber-attack against the underlying server rather than an IT fault because a hostile hacker exploited an unpatched vulnerability by accessing security data.

In such circumstances, security procedures should be initiated to mount a defense. These appear as performance concerns in standard tools, and the relationship to security dangers is missed. It will provide the advantage of using operations as a first line of defense, such as shutting down an infected server or blocking access to a hacked storage system.

The government and public sector segment is anticipated to expand at the fastest CAGR of 23.0% during the forecast period. Within the government and public sector, there is a growing recognition of the need to enhance operational efficiency, optimize resource utilization, and ensure the delivery of reliable and secure IT services. AIOps offers significant potential to address these challenges by providing advanced analytics, automation, and predictive capabilities.

Deployment Mode Insights

The on-premises deployment model segment led the market in 2022, accounting for 67.7% of the global revenue share. Organizations prefer deploying AI models on-premises due to the risk associated with public cloud deployment. This high share can be attributed to enhanced security and privacy provided by on-premises solutions in IT operations. These solutions also incorporate edge analytics that minimizes the bandwidth requirement.

Integrating AIOps solutions across premises brings improved speed and reliability in results. For instance, in April 2021, Broadcom Inc. and Google Cloud announced a strategic partnership to strengthen cloud services integration and accelerate innovation across Broadcom's core software franchises. Furthermore, while Broadcom's migration to Google Cloud began with its security software, the company intends to migrate other applications, including AIOps. This collaboration is aimed to allow Broadcom to leverage Google Cloud's infrastructure more easily to accelerate development, reduce latency, and scale, enabling it to diversify its public Internet options.

The cloud deployment model segment is expected to expand at the fastest CAGR of 21.5% during the forecast period. This growth can be attributed to cloud-based AIOps platforms removing firewall restrictions that can hamper access to an on-premises solution. Cloud-based and SaaS platforms also eliminate overhead and maintenance costs.

Moreover, cloud object storage service offers unlimited virtual storage capacity, which removes the storage volume and scalability restrictions of locally placed hardware. For instance, in October 2021, Extra Hop, the pioneer in cloud-native network detection and response, announced that its Reveal(x) Advisor services were expanded to include threat detection, hunting, and network assurance analysis. Threat analysts and security experts are available through Reveal(x).

Regional Insights

North America dominated the market and accounted for the largest revenue share of 38.7% in 2022. In the U.S., AI-based investment advisory consumer applications are getting traction to improve investment decisions. It can be attributed to numerous AIOps platform vendors in the region. Several organizations, including tech start-ups and giants, are developing AIOps platforms for different verticals.

The high investments in R&D activities and continued digital transformation in developed economies are also significant factors driving the adoption of AIOps platforms in the region. For instance, in December 2020, Broadcom, a U.S.-based company specializing in LED technology production announced the launch of AIOps. The solution provides full-stack observability, actionable insights, and intelligent automation for hybrid clouds allowing businesses to attain digital agility.

Asia Pacific is expected to expand at the fastest CAGR of 23.4% during the forecast period. It can be attributed to the rapid adoption of automation across various regional industries. Furthermore, the quick data generation in large volumes has paved the way for AI-based solutions and services, such as data analytics. For instance, in December 2021, Micro Focus launched a brand-new software as a service platform that merges SaaS with full-stack AIOps to encourage innovation in the AIOps development process. Micro Focus intends the SaaS platform, termed Operations Bridge, to give a "quick path" to a full-stack AIOps platform by providing observability, problem resolution, automation, and data translation capabilities.

Organization Size Insights

The large enterprises segment held the largest revenue share of 75.2% in 2022. Large enterprises are deploying AIOps solutions for different industries, such as media & entertainment. For instance, in June 2020, DataStax announced the release of Astra, a cloud-native Database-as-a-Service (DBaaS) based on the Apache Cassandra database.

Astra provides cloud-native support for Google Kubernetes Engine (GKE) and Amazon Elastic Kubernetes Service (EKS) management planes based on technologies like Kubernetes, Prometheus, and Envoy. Additionally, higher technological proficiency in large enterprises than in SMEs promotes deploying AIOps platforms and related services to improve IT agility. Large enterprises also leverage AIOps regarding data enrichment capabilities to keep up with the competition.

The SMEs segment is anticipated to expand substantially at the fastest CAGR of 19.0% during the forecast period. This growth can be attributed to the fast-growing acceptance of digital solutions in every industry. SMEs are adopting multiple AIOps solutions to improve their IT infrastructure management. For instance, in January 2021, Amazon Web Services (AWS) announced Amazon DevOps Guru, one of the latest machine learning-driven services. DevOps Guru digs out operational issues, generates reports and notifications, and provides actionable insights and recommendations.

Key Companies & Market Share Insights

The market is highly competitive, and the players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. For instance, in February 2022, Monq Lab, a Latvian AIOPs startup, released a free version of its incident control and automation platform to assist corporations and SMEs with proactive IT system maintenance.

Based on a topological database, the system uses machine learning and robust correlation to detect and address impending IT incidents and is officially termed Monq Free Community Edition. It analyses data from various monitoring systems, detects topology automatically, assesses application and infrastructure health, and delivers rapid root cause analysis, allowing enterprises to figure the issues with their IT systems quickly.

Recent Developments

• In June 2023, Saama, an AI- and ML-based solutions provider, unveiled an AI-driven data platform to expedite clinical advancements. This new platform leverages the power of artificial intelligence and machine learning to automate crucial processes in clinical development. This innovative solution empowers clinical development teams to make informed decisions, optimize trial efficiency, and enhance research outcomes.

• In May 2023, DataStax, a leading real-time AI company, introduced Luna ML, a support service designed specifically for Kaskada Open Source. Luna ML offers customers comprehensive assistance in leveraging modern, open-source event processing for machine learning (ML), empowering them to implement Kaskada with expert support from DataStax.

• In May 2023, NTT, a Japan-based IT infrastructure and services company, launched SPEKTRA (Sentient Platform for Network Transformation), its global services platform for NTT-managed network solutions. This platform leverages NTT's extensive expertise in managed services, technical resources, and cutting-edge technologies such as AIOps, automation techniques, and predictive analytics. It enhances network performance, expands monitoring capabilities, and significantly improves operational efficiency to deliver better customer solutions.

• In May 2023, IBM introduced Watsonx, an innovative AI and data platform to empower enterprises to expand and expedite cutting-edge AI technologies' transformative potential while leveraging reliable and trustworthy data. By providing a comprehensive suite of tools and capabilities, Watsonx enables AI builders to test, train, fine-tune, and deploy various machine learning models, including the latest generative AI capabilities powered by foundation models.

• In May 2023, Infosys, a digital services and consulting company, introduced Infosys Topaz, a comprehensive suite of services, solutions, and platforms designed using generative AI technologies. By integrating the capabilities of Infosys Cobalt cloud and data analytics, Infosys Topaz harnesses AI's potential to empower businesses to deliver cognitive solutions.

• In May 2023, Tata Consultancy Services unveiled a collaboration with Google Cloud and introduced its latest offering. By harnessing the capabilities of generative AI, TCS aims to support clients in accelerating their growth and transformation endeavors. TCS Pace Ports will facilitate these collaborative initiatives, which serve as co-innovation hubs in strategic locations such as Pittsburgh, New York, Toronto, Amsterdam, and Tokyo.

• In April 2023, Hewlett Packard Enterprise (HPE) introduced the next generation of HPE Aruba Networking Central. This next-generation release of HPE Aruba Networking Central offers many valuable business outcomes, including streamlined factory operations, personalized customer experiences, reduced environmental impact, and enhanced omnichannel retail operations. With its advanced capabilities, businesses can benefit from automated processes, cater to individual customer preferences, contribute to sustainability efforts, and provide a seamless shopping experience across in-store, mobile, and online channels.

• In March 2023, Zenoss Inc., a leading AI-driven full-stack monitoring company, unveiled a new offering: streaming data monitoring for Kubernetes. This cutting-edge solution allows for real-time monitoring of Kubernetes streaming data and forms part of a comprehensive suite of initiatives centered around cloud-based monitoring. By providing visibility into ephemeral systems that are challenging to monitor using conventional tools, Zenoss empowers organizations to monitor and manage their cloud-based environments effectively.

• In January 2023, DataStax acquired Kaskada and released the Kaskada code as open source in March. This strategic move provided customers access to open capabilities well-suited for real-time AI and ML applications. As the interest and adoption of Kaskada Open Source continue to evolve, the Luna ML support service from DataStax will serve as a valuable resource, offering users the necessary guidance and expertise to deploy Kaskada technology confidently.

• In April 2022, Moogsoft, a prominent player in the AIOps solutions market, made notable advancements by introducing cutting-edge features and integrations. By integrating these new features, Moogsoft aims to elevate the user experience, empowering customers with valuable and actionable insights within a remarkably short timeframe, typically within a few days after implementation. These developments highlight Moogsoft's commitment to continuous innovation and dedication to delivering enhanced value to its customers in the dynamic field of AIOps.

Artificial Intelligence For IT Operations Platform Market Report Scope

Global Artificial Intelligence For IT Operations Platform Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global artificial intelligence for IT operations platform market report on the basis of offering, application, deployment mode, organization size, vertical, and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2030)

  • Platform

  • Service

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Infrastructure Management

  • Application Performance Analysis

  • Real-Time Analytics

  • Network & Security Management

  • Others

• Deployment Mode Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • SMEs

  • Large Enterprises

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Healthcare & Life Sciences

  • Retail & E-commerce

  • IT & Telecom

  • Energy & Utilities

  • Government & Public Sector

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE