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, 2020 - 2027

  • Published Date: Oct, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-169-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The global artificial intelligence for IT operations platform market size was valued at USD 4.36 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 30.6% from 2020 to 2027. The Artificial Intelligence for IT Operations (AIOps) platform correlates and contextualizes data across various customers, infrastructure, applications, and network services. It applies advanced analytics, machine learning, and automation to deliver an advanced level of visibility and data-driven recommendations. The exclusive use of digital experience monitoring tools and AIOps platform among large enterprises for infrastructure and application monitoring is expected to grow exponentially over the forecast period. Furthermore, these platforms enable modeling and predicting workload capacity requirements, optimizing expenditure, and resource usage. Therefore, resource optimization also acts as an opportunity for the market to grow.  

Asia Pacific AI for IT operations platform market size

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 preempts 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 its 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 market in 2019, accounting for over 85.0% share of the global revenue. 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 & 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 2019, accounting for over 70.0% share of the global revenue. 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 enterprise segment led the market in 2019, accounting for over 72.0% share of the global revenue in 2019. 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 to keep up with the competition. 

The SME 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 2019, accounting for over 20.0% share of the global revenue. 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 & 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 & public sector, and media & entertainment.  

Application Insights

The real-time analytics application segment led the market in 2019, accounting for over 30.0% share of the global revenue. The high share can be attributed to the increasing penetration of real-time leaderboards among businesses to build competitive intelligence. 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 AI for IT operations platform market share

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 2019, accounting for over 40.0% share of the global revenue. 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 platform market vendors focus on expanding their customer base and global reach to attain a competitive edge. Therefore, key players are taking several strategic initiatives, such as partnerships & collaborations, mergers & 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 prominent players in the global artificial intelligence for IT operations platform market include:

  • 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 Platform Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 6.18 billion

Revenue forecast in 2027

USD 39.97 billion

Growth Rate

CAGR of 30.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

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

The U.S.; Canada; Mexico; Germany; The 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.; VMware, Inc.

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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 2016 to 2027. For this study, Grand View Research has segmented the global artificial intelligence for IT operations platform market report based on offering, application, deployment mode, organization size, vertical, and region:

  • Offering Outlook (Revenue, USD Million, 2016 - 2027)

    • Platform

    • Service

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Infrastructure Management

    • Application Performance Analysis

    • Real-Time Analytics

    • Network & Security Management

    • Others

  • Deployment Mode Outlook (Revenue, USD Million, 2016 - 2027)

    • Cloud

    • On-Premises

  • Organization Size Outlook (Revenue, USD Million, 2016 - 2027)

    • SMEs

    • Large Enterprises

  • Vertical Outlook (Revenue, USD Million, 2016 - 2027)

    • BFSI

    • Healthcare & Life Sciences

    • Retail & E-Commerce

    • IT & Telecom

    • Energy & Utilities

    • Government & Public Sector

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • 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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