Global Artificial Intelligence for IT Operations (AIOps) Platform Market By Component (Platform (Without Services) and Services), By Application (Real-Time Analytics, Application Performance Analysis, Infrastructure Management, Network & Security Management, and Others), By Deployment Type (On-premise and Cloud), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By End User (BFSI, Retail & eCommerce, Energy & Utilities, Healthcare & Life Sciences, Government & Public Sector, Telecom & IT, and Others), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Artificial Intelligence for IT Operations (AIOps) Platform Market
Market Report Description
The Global Artificial Intelligence for IT Operations (AIOps) Platform Market size is expected to reach $19.5 billion by 2027, rising at a market growth of 21% CAGR during the forecast period. Artificial Intelligence for IT Operations (AIOps) platform indicates those solutions that utilize machine learning and artificial capabilities to automate processes and tasks without the need of human interference. This platform is next-generation of IT operations analytics (ITOA). In addition, this platform gathers, comprehend, and evaluates the high volume of IT data by running various algorithms in the data to obtain the result in real-time. AIOps helps companies by providing real-time data and enables them to identify the issues and also resolves them automatically with the help of several algorithms. Additionally, these platforms allow companies to gain a deep understanding of their business and IT operations.
Information technology is facing several challenges as it has to work efficiently to keep running numerous systems, platforms, and apps in the best conditions. Companies and associated complexities are growing correspondingly which results in the massive generation of data from both businesses and IT operations. AIOps leverages AI techniques to IT operations data. Moreover, this platform helps in automating workflows for enhanced responsiveness and constant monitoring of the main problem originating in events.
In the past few years, various technological advancements have emerged that have facilitated the way for artificial intelligence in IT operations. Moreover, to provide enhanced Artificial Intelligence for IT Operations (AIOps) platforms and services, various organizations are deploying domain-enriched Machine Learning (ML) and Natural Language Processing (NLP) techniques. For example, Lakeside Software by LLC, a U.S.-based digital experience monitoring company has integrated Natural Language Processing (NLP) in its SysTrack AIOps tool. It comprises an easy-to-use search function, which allows IT operations.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic had a negative impact on numerous industries in the market. Though, the pandemic has boosted the market growth of the next-generation technologies such as machine learning and artificial intelligence. This growth is attributed to the imposition of mandatory regulations by governments of several nations. The number of cases of COVID-19 patients was increasing day by day, due to which, governments implemented the work-from-home policy. However, optimizing on the pandemic opportunity, various tech companies started expanding their product & service portfolios to accelerate their availability around the world.
Market Growth Factors:
Growing deployment of cloud solutions due to increasing data size
DevOps systems are continuously changing and becoming smarter as IT devices & tools have become more complex. These systems will offer efficient and flawless business operations that would accelerate the deployment rate of AIOps. In addition, the increasing penetration of cloud computing across the world is escalating the automation of these procedures that leads to the migration of several businesses towards the cloud. This is attributed to an increase in the demand for AIOps platforms in the forthcoming years.
Assists in automating routine practices
Artificial intelligence for IT operations platforms enables IT teams, to set automatic alerts for incidents and remediate problems by running automatic system responses. This approach assists in solving application performance problems in real-time, which would lead to the enhanced productivity of the business and the overall experience of the customer. Additionally, this platform can also automate routine practices like helping customer requests and inspecting non-critical IT system alerts. Moreover, AIOps also assist in establishing an automated help desk, which could help customer requests and allocate resources automatically on customer requests.
Market Restraining Factor:
Growing concerns associated with privacy and security of data
As businesses are shifting towards digitization, the concerns related to security are also growing. In the current scenario, market players need real-time and secure data to offer a tremendous customer experience. Various companies are collecting data from varied touchpoints and analyzing it virtually. The collected data comprises small data, big data, and public information. This data may contain individual preferences, permissions, and updated contact information. Thus, the collected data may contain very sensitive and providers are required to ensure high-level data security to maintain the reliability and trust of the customer.
Based on Component, the market is segmented into Platform (Without Services) and Services. The services segment would display a prominent growth rate in artificial intelligence for the IT operations platform market during the forecast period. This surge in the segment is attributed to the surging requirements for implementation services for AIOps platforms, which are installed into the available systems.
Based on Application, the market is segmented into Real-Time Analytics, Application Performance Analysis, Infrastructure Management, Network & Security Management, and Others. In 2020, the real-time analytics segment dominated artificial intelligence for the IT operations platform market. The manufacturing sector is making optimum use of real-time analytics in lead times (customer service time & cycle time), costs (system complexity, overhead efficiency, waste rates, and inventory turns), production quality (data accuracy, cost overruns, and vendor quality), delivery reliability (vendor delivery performance and schedule adherence).
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Cloud. The on-premises segment is witnessing significant growth due to the improved privacy and security offered by on-premises solutions across IT operations. Moreover, these solutions also integrate edge analytics which helps in reducing the bandwidth need. Further, the incorporation of AIOps solutions in premises would create enhanced reliability and speed in outcomes.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The SMEs segment would witness significant growth rate in the artificial intelligence for IT operations platform market during the forecasting period. The high demand for digital solutions across various sectors is driving the growth of the segment. In addition, SMEs are focusing on deploying a wide range of AIOps solutions in order to enhance their IT infrastructure management.
End User Outlook
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Energy & Utilities, Healthcare & Life Sciences, Government & Public Sector, Telecom & IT, and Others. In 2020, the BFSI segment acquired the maximum market share of artificial intelligence for the IT operations platform market. In the BFSI sector, the AIOps technology for banking-related data and securing finances is witnessing substantial growth.
|Market size value in 2020||USD 5.3 Billion|
|Market size forecast in 2027||USD 19.5 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 21% from 2021 to 2027|
|Number of Pages||385|
|Number of Tables||564|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Application, Deployment Type, Enterprise Size, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia-Pacific is expected to display a promising growth rate in the artificial intelligence for IT operations platform market during the forecasting years. The increasing deployment of automation across several sectors in the region is driving the growth of the regional market. In addition, a significant rise in the generation of the huge volume of data is boosting the adoption of AI-based services and solutions like data analytics.
KBV Cardinal Matrix - Artificial Intelligence for IT Operations (AIOps) Platform Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; IBM Corporation and AppDynamics are the forerunners in the Artificial Intelligence for IT Operations (AIOps) Platform Market. Companies such as HCL Technologies Ltd. (HCL Enterprises), Splunk, Inc., Moogsoft are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Micro Focus International PLC, Dell Technologies, Inc. (VMware, Inc.), Broadcom, Inc., BMC Software, Inc. (KKR & Co., Inc.), AppDynamics (Cisco Systems, Inc.), HCL Technologies Ltd. (HCL Enterprises), Splunk, Inc., Moogsoft, and Resolve Systems, LLC (Insight Partners).
Recent Strategies Deployed in Artificial Intelligence for IT Operations (AIOps) Platform Market
» Partnerships, Collaborations and Agreements:
- Oct-2021: Moogsoft came into partnership with IRIS Network Systems, a monitoring solution provider. Under this partnership, Moogsoft would improve IRIS’s monitoring solution with AIOps capabilities like anomaly detection, insight enrichment, and noise reduction.
- Oct-2021: Splunk teamed up with Accenture, an Irish-based multinational professional services company. Together, the companies would form a business group, which would bring Accenture’s deep industry, technical experience, and functional knowledge together with Splunk’s platform technology to assist the customer in increasing their insights from data, with a particular focus on security automation, intelligent supply chain, and AI-powered IT operations.
- Oct-2020: Moogsoft formed a partnership with Optimiz, a multisided digital platform. Under this partnership, Optimiz would adopt the Moogsoft Observability Cloud to assist customers in quickly streamlining their IT operations and digital business goals, and offering better customer experiences.
- Oct-2020: BMC came into a partnership with Tech Mahindra, a digital transformation and consulting firm. Under this partnership, the companies would allow digital transformation for companies across the world. Moreover, this partnership aimed to focus on escalating agility and minimizing time to market by leveraging AIOps (Artificial Intelligence for IT Operations) and analytics.
- Oct-2020: IBM came into a partnership with ServiceNow, an American software company. Under this partnership, the companies aimed to assist organizations in minimizing operational risk and reducing costs by applying AI to automate IT operations.
- Aug-2020: Resolve Systems came into a partnership with Excalibur Data Systems, a pioneer in IT Service Management (ITSM) and Enterprise Service Management (ESM) solutions. Under this partnership, the companies would transform IT operations and business to be more responsive, futureproof, and agile by utilizing advanced technologies and data-driven strategies.
- Jul-2020: HCL Technologies came into a partnership with Zenoss, a leader in intelligent application and service monitoring platforms. Through this partnership, the companies aimed to offer the only end-to-end solution, which would integrate full-stack monitoring, AI-powered runbook automation, and AIOps.
- Jun-2020: Resolve Systems formed a partnership with Information Technology Consulting Company, an industry leader in Digital Optimization and Digital Risk Management Practices. Under this partnership, Information Technology Consulting Company would transform the way companies approach IT by assisting them in escalating digitization efforts that would also enable them to thrive and survive in the existing environment.
- May-2020: Moogsoft entered into a partnership with World Wide Technology, a global technology solution provider. Together, the companies would offer customers a solution, which would enable IT operations and DevOps teams to more effectively ensure digital service uptime from anywhere and create increased business value.
- Mar-2020: Resolve Systems entered into a partnership with Prodapt, a leading consulting and managed services provider. Together, the companies would offer exponential value to their DSP clients by fundamentally evolving their approach to network operations & IT and escalating their digital transformation initiatives via the power of automation and AIOps.
» Acquisitions and Mergers:
- Oct-2021: BMC signed an agreement to acquire StreamWeaver, a software company. Under this acquisition, StreamWeaver's broad set of integrations combined with the BMC Helix Platform would enable clients to bring data in from their available tools & technology investments and also benefit from advanced AIOps analytics for improved root cause isolation and policy-driven automated remediation.
- Jun-2021: IBM took over Turbonomic, a Boston-based application resource, and network performance management software provider. This acquisition would assist companies with their AIOps initiatives. Moreover, the company would offer businesses full-stack application management and observability to ensure performance and reduce costs utilizing AI to improve resources like VMs, servers, containers, networks, databases, and storage.
- Jun-2021: Resolve Systems completed the acquisition of Ayehu, a No-code IT Automation and Orchestration platform. Under this acquisition, Ayehu’s no code SaaS offering would help Resolve Actions hyper automation product line to allow IT operations teams to implement automation easily and quickly with out-of-the-box capabilities for the fastest time to value, while continuing to support personalization for the most complicated and exclusive environments.
- May-2021: Splunk signed an agreement to acquire TruSTAR, a San Francisco-based cloud-native security company. Through this acquisition, Splunk aimed to expand its available security capabilities that would enable customers to access all their data to cut through complexity, drive highly effective detection and respond to threats faster and in an independent way.
- Nov-2020: Splunk took over Flowmill, a Palo-Alto-based cloud network observability company. By acquiring Flowmill, Splunk aimed to expand its available observability capabilities that would provide clients the ability to collect, examine and act on additional cloud network & infrastructure data to immediately solve network-related problems, minimize network costs and improve network performance.
- Nov-2020: IBM completed the acquisition of Instana, an application performance monitoring and Observability Company. Under this acquisition, the company would assist businesses in better management of the complications of advanced applications, which span the hybrid cloud landscape.
- Oct-2020: Splunk acquired Plumbr, an application performance monitoring (APM) company, and Rigor, a digital experience monitoring (DEM) company. This acquisition would support Splunk’s vision to offer a complete Observability Suite with best-in-class DEM & APM for all applications.
- Jan-2020: VMware, Dell Technologies subsidiary took over Nyansa, a privately-held innovator of advanced IT analytics software technology. This acquisition would enable VMware to escalate the delivery of end-to-end monitoring and troubleshooting capabilities for LAN+WAN implementations in VMware's industry-leading SD-WAN, and VMware’s ability to allow Self-Healing Networks.
» Product Launches and Product Expansions:
- Sep-2021: Broadcom introduced DX NetOps 21.2 with new features to enhance scale and speed problems. This software would resolve these challenges with industry-leading outcomes in scaling, speeding, and simplifying for its clients and their networks.
- Jun-2021: Splunk unveiled Splunk Security Cloud, the only data-centric modern security operations platform. This platform would offer enterprise-grade developed security analytics, automated security operations, and combined threat intelligence with an open and unparalleled ecosystem.
- Apr-2021: BMC released AI-driven Service Management (AISM) and AI-driven IT Operations (AIOps) capabilities. These capabilities would allow IT operations and service teams to foresee problems better, resolve them faster, and offer always-on service.
- Apr-2021: VMware, Dell Technologies subsidiary launched VMware Anywhere Workspace. This solution would allow distribution companies to accurately operate work from anywhere. Additionally, this solution would bring together the industry-leading technologies of VMware SASE, VMware Carbon Black, and VMware Workspace ONE. Moreover, integration and combination of these solutions would offer companies the power to secure the distributed edge in a better way, automate the workspace, and control the multi-modal employee experience.
- Mar-2021: Micro Focus launched OPTIC (Operations Platform for Transformation, Intelligence, and Cloud). This platform would empower IT operations with built-in, unlimited-use intelligence at the core and the ability to improve the cloud as a full partner. Moreover, this platform would simplify the complications of transforming IT to fulfil evolving expectations.
- Dec-2020: Broadcom launched the latest generation of AIOps, an open platform with artificial intelligence, machine learning, and end-to-end observability. This platform would assist companies to achieve operational excellence and offer them complete observability over applications, infrastructure, user experience, and networks that would provide digital agility, actionable insights, and intelligent automation in order to improve customer experience and business outcomes.
- Oct-2020: Splunk released the Splunk Observability Suite, the most comprehensive and powerful combination of monitoring, investigation, and troubleshooting solutions. This suite would assist companies to become cloud-ready and increase their digital transformation.
- Oct-2020: Micro Focus unveiled ITOM's COSO Data Lake. This advanced generation of ITOM would drive full-stack AIOps over the broad set of Micro Focus automation and monitoring solutions.
- Sep-2020: Moogsoft unveiled its new cloud AIOps architecture and product vision. Through this launch, the company aimed to offer scalable and agile AIOps to organizations of all sizes. Moreover, the company would the results of its investment in a rapid-deployment and self-service model for delivering advanced AI and ML at scale to existing and new customers.
- May-2020: Broadcom unveiled DX NetOps, the industry’s first AI-driven, high-scale operations monitoring and analytics solution. This solution would provide fine-grain per packet and flow level visibility to reduce complicated network blocking.
- May-2020: IBM launched IBM Watson AIOps, an IT operations management solution. This solution would allow companies to launch automation at the infrastructure level and assist CIOs in shaping and predicting better future outcomes, focus resources on higher-value work, and build more responsive and intelligent networks, which could stay up and run longer.
» Geographical Expansions:
- Apr-2021: AppDynamics expanded its geographical reach in London, Hong Kong, Singapore, São Paulo, and Cape Town, South Africa by introducing its application performance monitoring platform. Through this expansion, the company would solve potential data sovereignty and gravity concerns by enabling companies to keep their data within their nation.
Scope of the Study
Market Segments Covered in the Report:
- Platform (Without Services)
- Real-Time Analytics
- Application Performance Analysis
- Infrastructure Management
- Network & Security Management
By Deployment Type
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By End User
- Retail & eCommerce
- Energy & Utilities
- Healthcare & Life Sciences
- Government & Public Sector
- Telecom & IT
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- Micro Focus International PLC
- Dell Technologies, Inc. (VMware, Inc.)
- Broadcom, Inc.
- BMC Software, Inc. (KKR & Co., Inc.)
- AppDynamics (Cisco Systems, Inc.)
- HCL Technologies Ltd. (HCL Enterprises)
- Splunk, Inc.
- Resolve Systems, LLC (Insight Partners)
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How valuable will the AIOps platform market be in the future?
The global AIOps platform market size is expected to reach $19.5 billion by 2027.
What are the key driving factors and challenges in the AIOps platform market?
Growing deployment of cloud solutions due to increasing data size are driving the market in coming years, however, growing concerns associated with privacy and security of data have limited the growth of the market.
What are the major top companies in the competitive landscape?
IBM Corporation, Micro Focus International PLC, Dell Technologies, Inc. (VMware, Inc.), Broadcom, Inc., BMC Software, Inc. (KKR & Co., Inc.), AppDynamics (Cisco Systems, Inc.), HCL Technologies Ltd. (HCL Enterprises), Splunk, Inc., Moogsoft, and Resolve Systems, LLC (Insight Partners).
Which segment shows a high revenue share of the AIOps platform market in 2020?
In 2020, the platform segment acquired the maximum revenue share of artificial intelligence for the IT operations platform market.
What has been the impact of COVID-19 on the global AIOps platform market?
The pandemic has boosted the market growth of the next-generation technologies such as machine learning and artificial intelligence.
Which region is leading the market in 2020?
In 2020, North America emerged as the leading region in the artificial intelligence for IT operations platform market. In the US, AI-based investment advisory consumer applications have become popular as they assist in enhancing investment decisions.