AIOps Market Size, Share & Industry Analysis, By Enterprise Type (Small & Medium Enterprises (SMEs) and Large Enterprises), By Deployment (On-premise and Cloud), By Application (Application Performance Management, Infrastructure Management, Network and Security Management, Real-Time Analytics, and Others), By Industry (IT & Telecom, BFSI, Healthcare, Manufacturing, Retail & E-commerce, Government, Energy & Utility, and Others), and Regional Forecast, 2024-2032

The global AIOps market size was valued at USD 1.59 billion in 2023. The market is projected to grow from USD 1.87 billion in 2024 to USD 8.64 billion by 2032, exhibiting a CAGR of 21.1% during the forecast period.

Artificial intelligence for IT operations (AIOps) encompasses the application of big data analytics, machine learning (ML), and various AI technologies to streamline the detection and fixing of frequent IT problems. It helps to deliver deep data insights, make predictions, uncover patterns, detect issues, and facilitate troubleshooting in advanced IT environments. In large-sized companies, especially with the progress in distributed architectures such as multi-cloud setups, systems, containers, microservices setups, and applications generate vast amounts of log and performance data that can hinder an IT team's capacity to quickly identify and address issues. AIOps leverages this data to oversee assets and understand the relationships between components within and beyond IT systems.

The growth of the AIOps market is driven by the need for more efficient and proactive management of complex IT infrastructures. The market is also driven by the rising volumes of data generated by IT systems, the need to automate IT operational tasks, and the demand for faster issue resolution to ensure business continuity.

• According to NetBase Quid via AI Index Report in 2023, the annual corporate investment in artificial intelligence in 2021 and 2022, based on collaborations and acquisitions of companies in different industries, was estimated at USD 119.66 and USD 77.17 billion, respectively.

Thus, artificial intelligence for IT operation technology has the potential to facilitate digital transformation by providing enterprises with more flexible, agile, and secure IT infrastructure.

The COVID-19 pandemic has adversely affected the entire IT ecosystem of different industry verticals. Thus, to manage and control the IT operations of organizations from remote locations, the companies aim to adopt AIOps platforms to enhance productivity and maintain business continuity.

Increasing usage of artificial intelligence for IT operations platforms helps to decrease downtime and boost the digital transformation journey of organizations over the forecast period. Thus, the adoption ofartificial intelligence for IT operations platforms is increased to automate the IT operations.

IMPACT OF GENERATIVE AI

Gen AI Integrated AIOps Tools Automate IT Operational Tasks to Deliver Deep Data Insights

The increasing integration of generative AI technology with artificial intelligence for IT operations platforms helps identify root causes and respond to threats. It significantly enhances the operational performance, availability, and security of IT systems for IT teams. Artificial intelligence for IT operations incorporates predictive analytics techniques to identify potential issues before they occur. By evaluating historical data patterns, it helps to identify trends and growth opportunities with proactive remediation. According to a research survey, 80% of artificial intelligence for IT operations vendors are projected to implement generative AI by 2024. This implementation will deliver on-demand assistance, boost adoption rates, and enhance user experience.

Generative AI enables users to visualize and interact with data and insights. It is used by different artificial intelligence for IT operations platform, such as Splunk, IBM Watson, and Google Cloud, to improve the performance of their IT systems with high accuracy. Generative Artificial intelligence for IT operations hold tremendous potential for organizations by automating repetitive tasks and allowing IT professionals to focus on more strategic initiatives. By analyzing historical and real-time data, AI for IT operations empower businesses with actionable insights for active problem-solving, reducing downtime, optimizing resource allocation, and enabling faster incident resolution.

Generative AI has been successfully implemented across various industry verticals to revolutionize their IT operations by applying actionable strategies to gain valuable deep data insights. Artificial intelligence for IT operation platform powered by gen AI can help optimize the average cloud spending of companies by identifying multiple resources and bringing digital transformation across various resource allocation processes.

• For instance, in July 2023, BigPanda integrated advanced generative artificial intelligence (AI) capabilities based on large language models (LLMs) into its artificial intelligence for IT operations platform for automated incident analysis, achieving an accuracy rate of 95% while carrying out the beta testing process.

Thus, the growing integration of gen AI with artificial intelligence for IT operations platforms is estimated to generate lucrative opportunities and boost market growth during the forecast period.

AIOps Market Trends

Growing Demand for Predictive IT Operations to Boost Market Growth

Rising demand for proactive and predictive IT operations due to the integration of natural language processing (NLP), artificial intelligence (AI), and machine learning (ML) methods enhances the complexity of IT infrastructure. As the artificial intelligence (AI) for IT operations platforms leverage machine learning algorithms to forecast potential issues before they impact operations, enabling IT teams to adopt preventive measures. The adoption of traditional approaches for resolving IT incidents is no longer effective or efficient enough to keep up with the demands of modern, rapidly evolving digital landscape. Thus, multiple companies are combining their expertise to enhance artificial intelligence for IT operations platforms and services.

The increasing usage of artificial intelligence for IT operations platforms reduces downtime and enhances the overall user experience. Hence, companies understand the importance of artificial intelligence for IT operations platforms and make strategic investments to ensure the continuous availability and performance of their IT systems by delivering a more agile and responsive IT infrastructure. Thus, the growing demand for predictive IT operations propels market growth over the forecast period.

AIOps Market Growth Factors

Surge in Demand for AIOps Platforms Helps to Regain Control and IT Operations over Outsourcers to Boost the Market Growth

The increasing investment in AIOps enables organizations to regain control and reduce operational risks without sacrificing the financial advantages of outsourcing. It offers a comprehensive view of IT operations performance, ensuring the efficiency of service providers. It provides automated access to handle overall IT operations processes, along with their performance data and metrics, which significantly helps companies to save costs over time.

• For instance, according to IBM’s Global AI Adoption Index 2022, 33% of organizations use AI for automating IT operational processes, 29% use AI for security and threat detection, and 22% use AI for financial planning and analysis purposes.

The growing penetration of artificial intelligence technology to handle various IT operations drives digital transformation across IT processes, allowing organizations to focus on implementing new digital initiatives.  

• According to an IBM survey in 2022, 54% of companies have experienced the advantages of AI implementation across different industries. The adoption of AI helps enhance the performance of IT or network operations (53%), reduce costs with increased efficiency, and improve customer satisfaction (48%).

This increased demand for artificial intelligence for IT operations platforms enable organizations to regain control over their operations from outsourcers during the forecast period.

RESTRAINING FACTORS

Data Security and Privacy Concerns to Restrict Market Growth

Artificial intelligence deals with large amounts of confidential data from various sources and digital channels, which raises significant concerns about data privacy and security-related issues. To reduce data fraud activities, the increasing usage of government compliance regulations, such as GDPR, slows down the implementation of artificial intelligence for IT operations platform across different industry verticals. It is crucial for companies to ensure that these solutions meet rigorous security criteria to address these issues.

The high implementation cost of these platforms restricts their adoption among small and medium-sized companies. The increasing volume of data generated by customers' changing demands raises major data privacy and security concerns, which significantly restrict the market's growth during the forecast period.

AIOps Market Segmentation Analysis

By Enterprise Type Analysis

SMEs to Grow with Highest CAGR Due to Rapid Adoption of AIOPs Platform to Make Data-Driven Decision

By enterprise type, the market is divided into small & medium enterprises (SMEs) and large enterprises.

The small & medium enterprises segment is expected to grow with the highest CAGR over the forecast period. The implementation of artificial intelligence for IT operation tools by SMEs helps enhance the performance of integrated IT operations and supports better decision-making. Increasing usage of these platforms among small and medium enterprises improves customer retention and loyalty, resulting in an expanded customer base.  According to the Wall Street Journal, SMEs to large-sized companies now form partnerships with an average of eight different cloud providers for the usage of different services and applications.

Similarly, large enterprises will hold the largest AIOps market share in 2023 due to the increased usage of AI in IT operations solutions to reduce system downtime while performing IT operations.

By Deployment Analysis

Cloud-based AIOPs to Grow with Highest CAGR Due to Increasing Implementation of Cloud-based IT Infrastructure

On the basis of deployment, the market is divided into on-premise and cloud.

The cloud-based platform is projected to grow with the highest CAGR during the forecast period. The growing implementation of cloud-based IT infrastructure by multiple businesses boosts the demand for cloud-based artificial intelligence for IT operations systems to enhance business operations performance. Hence, the demand for cloud-based platforms is higher compared to on-premise platforms, propelling the growth of cloud-based platforms during the forecast period.

Furthermore, on-premise deployments are anticipated to grow with a steady growth rate in the coming years due to the increasing adoption of cloud technology by small and medium-sized enterprises.

By Application Analysis

Application Performance Management Segment Secures the Highest CAGR to Make Proactive Decisions

By application, the market is segregated into application performance management, infrastructure management, network and security management, real-time analytics, and others.

The application performance management segment holds the highest CAGR during the forecast period. This is due to AI's revolutionary approach in managing and optimizing the performance of applications, networks, and IT infrastructures within IT operations. APM leverages AI and automation technologies to make proactive decisions and streamline operations.

Similarly, the infrastructure management segment holds the largest market share in 2023. This is due to the growing usage of cloud computing infrastructure, which drives the automation of many operations. As businesses shift from their traditional IT infrastructure to the cloud, the need for these platforms is projected to surge over the forecast period.

• According to a survey of 270 IT professionals, 43% of organizations are yet to adopt artificial intelligence for IT operations platforms to perform infrastructure management operations and only 15% plan to do so in the next 12 months.

By Industry Analysis

IT & Telecom Segment to Dominate owing to Automate Routine Infrastructure Tasks

By industry, the market is segregated into IT & Telecom, BFSI, healthcare, manufacturing, retail & e-commerce, government, energy & utility, and others.

The IT & Telecom sector will grow with the highest CAGR and hold the largest market share in 2023. This is due to the rising usage of artificial intelligence for IT operations tools and services by IT professionals in order to automate routine infrastructure tasks and enhance customer experiences. The usage of these solutions in the IT sector speeds up the performance of resources while performing complex IT tasks, thereby boosting market growth during the forecast period.

The BFSI sector is likely to exhibit the second-highest CAGR over the forecast period. The increasing usage of artificial intelligence for IT operations technology in the BFSI sector helps protect confidential and financial data. Implementing AI in managing banking and financial IT operations provides real-time analytics solutions, resolves challenging IT problems, automates banking processes, and boosts operational scalability.

REGIONAL INSIGHTS

The market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

North America is expected to be a prominent contributor to the AIOps market growth and hold the maximum market share in 2023. Rising demand for digital advancements and growing investments by companies to enhance the accuracy and speed of the solutions drive the demand for these tools in the region. Additionally, the presence of major artificial intelligence for IT operation tool providers such as Amazon Web Services, Inc., IBM Corporation, Dynatrace LLC., BMC Software, Inc., and Dell Inc. in countries such as the U.S., Canada, and Mexico will boost the AIOps market growth in North America during the forecast period.

Asia Pacific is estimated to grow with the highest CAGR during the forecast period. This is due to the continuous integration of AI/ML technologies, leading to digital transformations across different industry verticals. This integration streamlines business operations with AI-integrated actions, and enhances human judgment opportunities in countries such as India, China, Japan, and South Korea. Rising investments in SMEs by artificial intelligence for IT operations platform providers and advancements in IT infrastructure due to increased acceptance of automation technologies also drive market growth in the region during the forecast period. Furthermore, China's advanced digital IT infrastructure boosts the implementation of these platforms to manage business operations smoothly.

Europe is projected to showcase moderate growth during the forecast period. This is due to the increasing advancement in developed IT infrastructure in various European countries to recognize and resolve the advanced security threats to boost operational performance along with greater accuracy due to advanced IT infrastructure. Furthermore, the rising usage of digital and automation technologies is also estimated to fuel market growth during the forecast period.

Middle East & Africa are expected to grow with the second highest CAGR due to the growing implementation of data management technologies and rising investments in AI and machine learning technologies which will drive the growth of the market.

• For instance, in February 2024, Metra Group declared a value-added partnership with TechBridge Consultancy Servies LLP, an India-based secure artificial intelligence for IT operations platform provider company, to drive digital transformation across GCC countries using advanced analytics and AI / ML capabilities.

South America is in a development phase due to the increasing usage of IT infrastructure management, network, and security management platforms in countries such as Brazil and Argentina. This trend fuels the adoption of these platforms during the forecast period.

KEY INDUSTRY PLAYERS

Technological Developments by Leading Companies to Aid Market Proliferation

Companies operating in the market mainly include Amazon Web Services, Inc., IBM Corporation, Dynatrace LLC., BMC Software, Inc., Open Text Corporation (Micro Focus), Dell Inc., and HCL Technologies Limited. These companies are keeping their focus on innovating their ERP software by enhancing their features.  Partnerships, collaborations, acquisitions, and mergers are some of the strategic methods used by key market players to improvise their operations.

List of Top AIOps Companies:

• Amazon Web Services, Inc. (U.S.)


• IBM Corporation (U.S)


• Dynatrace LLC. (U.S.)


• BMC Software, Inc. (U.S.)


• Open Text Corporation (Micro Focus) (U.K.)


• Dell Inc. (U.S.)


• HCL Technologies Limited (India)


• Splunk Inc. (U.S.)


• Extreme Networks (U.S.)


• Broadcom Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: BMC, a software solution provider, acquired Netreo, a smart and secure IT network and application provider, to strengthen its leadership in observability and artificial intelligence for IT operations. Through this acquisition, BMC aims to improve visibility into business operational performance across infrastructure, networks, and applications through an open observability platform.


• March 2024: Visionet Systems Inc., a technology service provider, formed a partnership with Algomox, an artificial intelligence for IT operation platform provider, to bring digital transformations in Visionet's ITOps operations. Integration of Algomox's AIOps platform into Visionet's managed cloud services automates complex IT tasks using cutting-edge AI technology, delivers deep operational data insights, and ensures reliable service delivery.


• September 2023: Viavi Solutions Inc. formed a partnership with Google Cloud to launch NITRO AIOps, a cloud-based network intelligence and optimization solution. This partnership aimed to manage critical challenges for communication service providers (CSPs) and explore new opportunities for network optimization and intelligence.


• October 2022: Mazda Motor Europe (MME) selected Fujitsu to facilitate digital transformation in public multi-cloud infrastructure using DevOps, AIOps, FinOps, and Fujitsu's various security services. This partnership enabled Mazda IT operations to intelligently adapt the advanced IT infrastructure, applications, and services used across hybrid cloud ecosystems.


• March 2022: Deloitte developed a new AI-powered business platform, AIOPS.D, to automatically manage and implement core business operational processes to fulfill companies' specific needs. This platform managed multiple business process functions, including finance, procurement, supply chain and more, with better customer experience.

REPORT COVERAGE

The study on the market includes prominent areas globally to gain enhanced knowledge of the industry verticals. Moreover, the research offers insights into the most recent endeavors and industry developments and an analysis of high-tech solutions being adopted promptly worldwide. It also highlights some of the growth-stimulating limitations and elements, allowing the reader to obtain a comprehensive understanding of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 21.1% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Enterprise Type Small & Medium Enterprises (SMEs) Large Enterprises  By Deployment On-premise Cloud By Application Application Performance Management Infrastructure Management Network and Security Management Real-Time Analytics Others (Predictive Analytics, Root Cause Analysis) By Industry IT & Telecom BFSI Healthcare Manufacturing Retail & E-commerce Government Energy & Utility Others (Media & Entertainment) By Region North America (By Enterprise Type, By Deployment, By Application, By Industry, and By Country) U.S. Canada Mexico Europe (By Enterprise Type, By Deployment, By Application, By Industry, and By Country) U.K. Germany France Italy Spain   Russia Benelux Nordics Rest of Europe Asia Pacific (By Enterprise Type, By Deployment, By Application, By Industry, and By Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Enterprise Type, By Deployment, By Application, By Industry, and By Country) Turkey Israel GCC South Africa North Africa Rest of the Middle East & Africa South America (By Enterprise Type, By Deployment, By Application, By Industry, and By Country) Brazil Argentina Rest of South America