GVR Report cover Artificial Intelligence For IT Operations Platform Market Size, Share & Trends Report

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, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-169-7
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 100

Report Overview

The global artificial intelligence for IT operations platform market size was valued at USD 5.26 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. Artificial Intelligence For IT Operations (AIOps) platform refers to the AI platform for IT operations. It combines human intelligence with automated algorithms to provide full 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 useful information running in the background to provide actionable insights.

Asia Pacific AIOps platform market size, by offering, 2018 - 2028 (USD Million)

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. For instance, Lakeside Software, LLC, a U.S.-based digital experience monitoring company, incorporates NLP in its SysTrack AIOps tool. It powers an easy-to-use search function that enables IT operations.

AIOps platform uses intelligence and self-learning algorithms backed by ML to automate regular IT tasks. It also detects and anticipates any possible events via historical and behavioral data analysis. Moreover, it provides a cognitive analysis of data by leveraging big data analytics and derives meaningful information from data for comprehensive processing. The integration of IT operations with AI ensures real-time data correlation, multi-dimensional data normalization, severity-based incidents prioritizing, and predefined response plans to mitigate future events. This ability to derive actionable insights from scratch data helps build a responsive ITOps infrastructure.

The COVID-19 outbreak is expected to stimulate 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, has realized a significant increase in new sign-ups across all service portfolios amid the outbreak. Additionally, tech companies are expanding their service and product portfolios to increase availability across the globe. For instance, in April 2020, Google LLC launched the Rapid Response Virtual Agent, an AI-supported chatbot for call centers. This chatbot is developed to respond to customers’ issues concerning the COVID-19 outbreak over chat, voice, and other social channels.

Offering Insights

The platform offering segment led the AIOps platform market in 2020, accounting for over 88% share of the global revenue. 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 platform 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.

Several companies offer AI technology for different IT applications, such as real-time analytics, infrastructure management, and network management. For instance, Splunk Inc., an American software company, offers a data platform called Splunk for IT operations, security, and DevOps. This platform enables infrastructure monitoring and business and IT service monitoring. The AIOps services segment is also expected to record a significant CAGR, owing to the growing need for implementation services for AIOps platforms that are deployed into existing systems.

Deployment Mode Insights

The on-premises deployment model segment led the market in 2020, accounting for over 70% share of the global revenue. Organizations mostly prefer deploying AI models on-premises owing 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. The integration of AIOps solutions across premises brings improved speed and reliability in results.

The cloud deployment model segment is anticipated to witness substantial growth over the forecast period. This growth can be attributed to the fact that cloud-based AIOps platforms remove 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.

Organization Size Insights

The large enterprises' segment led the market in 2020, accounting for over 75% share of the global revenue. Large enterprises are deploying AIOps solutions for different industries, such as media and entertainment. For instance, with the recent launch of new gaming consoles from Microsoft and Sony Corporation and continued pandemic-induced confinement orders in place, the online gaming industry gained momentum in 2020. This high share can be attributed to the increasing competition among key players and rising data decay rates in several industry verticals. Additionally, higher technological proficiency in large enterprises compared to SMEs promotes the deployment of AIOps platforms and related services to improve IT agility. Large enterprises also leverage AIOps in terms of data enrichment capabilities in order to keep up with the competition.

The SMEs segment is anticipated to witness substantial growth over the forecast period. This growth can be attributed to the fast-gained acceptance of digital solutions in every industry. Multiple AIOps solutions are being adopted by SMEs to improve their IT infrastructure management. For instance, Moogsoft, a U.S.-based IT company, offers an AIOps platform for cloud-native SMEs to continually enhance their digital services, while preventing malfunctions and outages.

Vertical Insights

The BFSI segment led the market in 2020, accounting for over 20% share of the global revenue. AIOps technology for securing financial and banking-related data has grown considerably in this sector. For instance, in September 2019, China Asset Management, a China-based fund management company, collaborated with Microsoft’s researchers to develop an AI model. This AI model analyzes the vast amount of real-time data of financial transactions. This high share can be attributed to the increasing IT operations and digital experiences in the financial services and banking 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, Broadcom, an American semiconductor manufacturing and software development company, offers AIOps platform solutions for banking, finance, and the FinTech industry. The company's solutions cater to data management, operational intelligence, and analytics and reporting requirements in the BFSI industry.

AIOps platform 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, the Application Performance Monitoring (APM) solution offered by AppDynamics, a subsidiary of Cisco Systems, Inc., is used by financial institutions to reduce costly outages and enhance the performance of IT operations. Other verticals in the industry include healthcare, retail and e-commerce, IT and telecom, energy and utilities, government and public sector, and media and entertainment.  

Application Insights

The real-time analytics application segment led the market in 2020, accounting for over 34% share of the global revenue. 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, GAVS Technologies, a U.S.-based software company, offers the Zero Incident Framework (ZIF) platform that performs real-time mapping of IT infrastructural events and executes real-time data processing. This platform comprises Bot-based remediation, AI-based predictive analytics, and virtualized desktop infrastructure.

Global AIOps platform market share, by application, 2020 (%)

The infrastructure management application segment is anticipated to witness substantial growth over the forecast period. This growth can be attributed to the fast-gained acceptance of AI across heavy IT infrastructure workloads. For instance, in May 2020, International Business Machines Corporation announced the launch of IBM Watson AIOps, a wide range of new AI-powered services and capabilities for enterprise automation. These services are designed to enable automation in IT infrastructures and make them more resilient.

Regional Insights

North America dominated the market in 2020, accounting for over 40% share of the global revenue. In the U.S., AI-based investment advisory consumer applications are getting traction to improve investment decisions. This can be attributed to the presence of 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.

Asia Pacific is anticipated to witness significant growth over the forecast period. This can be attributed to the rapid adoption of automation across various industries in the region. Furthermore, the fast generation of data in large volumes has paved the way for AI-based solutions and services, such as data analytics. For instance, in July 2019, Zheshang Fund Management Co., a China-based investment advisor company, planned to use about 300 artificial intelligence-based investment models to analyze 3,000 Chinese stocks. The resulting insights from the analysis would be used for enhancing data management capabilities and improving decision-making processes. A rapid increase in the number of AI start-ups in the region is also boosting the adoption of AIOps platforms and services to enable process automation in IT infrastructure.

Key Companies & Market Share Insights

The AIOps market vendors focused on developing cutting-edge platforms, expanding their customer base, and global reach to attain a competitive edge. Along with increasing their offerings based on AIOps products and solutions in various industries includes financial services, retail, insurance, government, media and entertainment, and healthcare. Therefore, key players are taking several strategic initiatives, such as partnerships and collaborations, mergers and acquisitions with other key players, and new product or technology development. For instance, in January 2020, ServiceNow, a U.S.-based IT workflow management company, acquired Loom Systems, an Israel-based AIOps company. Through this acquisition, the company intends to boost productivity and drive operational efficiency on a single platform. Some of the prominent players operating in the global artificial intelligence for IT operations (AIOps) platform market are:

  • AppDynamics

  • BMC Software, Inc.

  • Broadcom

  • HCL Technologies Limited

  • International Business Machines Corporation

  • Micro Focus

  • Moogsoft

  • ProphetStor Data Services, Inc.

  • Resolve Systems

  • Splunk Inc.

  • VMware, Inc.

Artificial Intelligence for IT Operations (AIOps) Platform Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 7.09 billion

Revenue forecast in 2028

USD 27.26 billion

Growth Rate

CAGR of 21.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Offering, application, deployment mode, organization size, vertical, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; Japan; India; Brazil

Key companies profiled

AppDynamics; BMC Software, Inc.; Broadcom; HCL Technologies Limited; International Business Machines Corporation; Micro Focus; Moogsoft; ProphetStor Data Services, Inc.; Resolve Systems; Splunk Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

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 2018 to 2028. For this study, Grand View Research has segmented the global artificial intelligence for IT operations (AIOps) platform market report based on offering, application, deployment mode, organization size, vertical, and region:

  • Offering Outlook (Revenue, USD Million, 2018 - 2028)

    • Platform

    • Service

  • Application Outlook (Revenue, USD Million, 2018 - 2028)

    • Infrastructure Management

    • Application Performance Analysis

    • Real-Time Analytics

    • Network & Security Management

    • Others

  • Deployment Mode Outlook (Revenue, USD Million, 2018 - 2028)

    • Cloud

    • On-Premises

  • Organization Size Outlook (Revenue, USD Million, 2018 - 2028)

    • SMEs

    • Large Enterprises

  • Vertical Outlook (Revenue, USD Million, 2018 - 2028)

    • BFSI

    • Healthcare & Life Sciences

    • Retail & E-Commerce

    • IT & Telecom

    • Energy & Utilities

    • Government & Public Sector

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East and Africa (MEA)

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