Artificial Intelligence For IT Operations Platform Industry Overview
The global artificial intelligence for IT operations platform market size is expected to reach USD 33.82 billion by 2030, registering a CAGR of 17.7%, according to a new report by Grand View Research, Inc. Rapid digital transformations in global business organizations have brought about increasingly complex datasets. Businesses spend a significant amount of time, cost, and effort on processing large volumes of data. IT operations are also on the edge of this transformation, wherein IT teams are required to manage complex datasets to sustain their business. Besides, there has been a considerable increase in data loads over the last few years due to the distributed architecture and dynamic nature of business applications and services.
With the increasing IT agility requirement, the artificial intelligence for IT operations (AIOps) platform has emerged as a way for IT operations teams to keep up with business demands, trends, and aggressive digitization of IT infrastructure. AIOps platform refers to the AI platform for IT operations that combines human intelligence with automated algorithms to provide full visibility into IT systems' performance. For instance, in March 2022, HCL Technologies, a leading global technology company, announced a center of excellence in collaboration with IBM. This Center of Excellence will assist CSPs in modernizing their network infrastructure, simplifying operations, and transforming service delivery.
The COVID-19 outbreak has created significant challenges and uncertainties for several businesses. AIOps platform can align with the industries, operating in the digital environment amid such a challenging era of business infrastructural transformations. The increasing digital transformation during the pandemic has led to various challenges concerning user experience, security, and the downfall of the industries. Organizations are restructuring operational infrastructure as security-related vulnerabilities in the digital environment have increased, significantly.
Under such highly dynamic circumstances, the AIOps platform helps businesses to take vigilant security measures. For instance, security teams can benefit from AIOps for cybersecurity, where they can gain data security visibility and intelligence. These devices can perform various vital tasks, such as surveillance, threat response, and engagement.
The adoption of cloud computing has been increasing rapidly in recent years. Cloud-hosting services such as Microsoft Azure (Microsoft), AWS (Amazon Web Services, Inc.), and Google Cloud (Alphabet Inc.) appeal to many enterprises, owing to features such as the ability to scale up or down based on usage, pay-per-use, self-service, and high resiliency. These advantages, in turn, lead to lower IT expenditure, better service quality, and faster time-to-market than traditional IT offerings.
AIOps solutions enable new IT operations efficiencies by offering centralized visibility across all environments, which helps diagnose and resolve IT issues, faster. For instance, in February 2022, Deloitte, a consulting and advisory services company, has announced the launch of AIOPS.D. This "AI-fueled, plug-and-play modular" micro-services platform automates business functions such as procurement, supply chain, and finance.
Artificial Intelligence For IT Operations Platform Market Segmentation
Grand View Research has segmented the global artificial intelligence for IT operations platform market based on offering, application, deployment mode, organization size, vertical, and region:
Based on the Offering, the market is segmented into Platform, and Service.
- The platform offering segment led the Artificial Intelligence for IT Operations (AIOps) platform market in 2021, accounting for over 85.0% 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.
- 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 it would provide customers with a managed secure access service edge solution, driven by VMware SASE. IT firms will deploy networking, cloud-based security, and edge compute capabilities to applications, running at the edge more efficiently thanks to the SASE solution.
Based on the Application, the market is segmented into Infrastructure Management, Application Performance Analysis, Real-Time Analytics, Network Security Management, and Others.
- The real-time analytics application segment led the market in 2021, accounting for over 30.0% 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), along with costs (waste rates, inventory turns, system complexity, and overhead efficiency).
- The high share can be attributed to the increasing penetration of real-time leader boards 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.
Based on the Deployment Mode, the market is segmented into Cloud, and On-premise.
- The on-premises deployment model segment led the market in 2021, accounting for over 65.0% of the global revenue share. 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-premise solutions in IT operations.
- The cloud deployment model segment is anticipated to witness substantial growth over the forecast period. This growth can be accredited 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.
Based on the Organization Size, the market is segmented into SMEs, and Large Enterprises.
- The large enterprises segment held the largest revenue share of over 70.0% in 2021. 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.
- The SMEs segment is anticipated to witness substantial growth during 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.
Based on the Vertical, the market is segmented into BFSI, Healthcare Life Sciences, Retail E-commerce, IT Telecom, Energy Utilities, Government Public Sector, Media Entertainment, and Others.
- The BFSI segment led the market in 2021, accounting for a revenue share of over 18.0%. 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.
- 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.
Key Companies Market Share Insights
The AIOps market vendors are 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 including financial services, retail, insurance, government, media entertainment, and healthcare. 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 February 2022, Monq Lab, a Latvian AIops startup, has released a free version of its incident control and automation platform to assist corporations and SMEs with proactive IT system maintenance. The system, based on a topological database and uses machine learning and robust correlation to detect and address impending IT incidents, 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 out what's wrong with their IT systems swiftly. 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
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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