IT Operations Analytics (ITOA) Market

[362 Pages Report] The global market for the IT operations analytics market is projected to grow from USD 26.8 billion in 2024 to USD 127.4 billion in 2029, at a CAGR of 36.6% during the forecast period.

IT operations analytics is necessary for the management of IT environments to ensure smooth processes. With big data techniques at its core, ITOA provides real-time insight related to system performance that enables IT teams to diagnose problems in milliseconds and restore services promptly to reduce outages and service disruptions. It automates routine monitoring, heightens visibility into changing demands, and predicts possible issues for better capacity assurance and optimization of IT operations. ITOA empowers organizations to maintain an efficient, reliable, and resilient IT infrastructure.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

IT Operations Analytics Market Dynamics

Driver: Complex multi-cloud environments drive demand for unified IT operations analytics

The adoption of multi-cloud and hybrid cloud environments is one of the major factors that is impacting the IT operations analytics market to a great extent. According to Dynatrace, a staggering 99% of the firms were cited to be operating within a ‘multi-cloud environment’, while the average firm was using over four clouds. The management of these varied cloud environments presents a significant challenge. Organizations typically use about seven different infrastructure monitoring solutions to handle this complexity. This patchwork of tools can make it incredibly difficult for them to optimize how their infrastructure performs and how resources are used. According to Dynatrace,  more than half of the organizations (57%) find that managing multiple monitoring solutions complicates their ability to effectively manage and improve their infrastructure. Such a scenario creates a strong demand for advanced IT operations analytics solutions, which enables organizations to efficiently monitor their IT infrastructure and, in turn, improve performance and resource management over multi-cloud environments.

Restraint: Increasing complexities and dynamic nature of IT architecture

Organizations are deploying modern IT architecture to make IT infrastructure more dynamic and agile, using virtualization technologies such as cloud, containers, and virtual machines. Many organizations have adopted containers, due to which the adoption of cloud-based solutions is rising, and most companies are migrating their applications to the cloud. The dynamic nature of cloud-based and analytics technologies has enabled businesses to adjust to the fluctuating resource demand. However, it also reduces visibility, as workflows and workloads move away from traditional physical IT infrastructure, making it harder to identify potential issues.

Opportunity: AIOps enhances IT operations with AI-driven automation and insights.

AIOps holds great potential within the IT operations analytics market. Fast-paced IT environments and a rise in the requirement for operations management infused with AI will additionally raise the demand for AIOps. AIOps utilizes AI and ML to provide advanced event correlation, anomaly detection, and automated root cause analysis, features that give organizations an understanding of patterns in an immense amount of IT data and support their quick identification of systems’ problems. This technology helps organizations process huge volumes of data, removes noise from IT-related alerts, and creates real-time insight into IT infrastructure. With businesses striving for more proactive and automated IT operations, AIOps will also see an increase in its adoption as a very powerful tool to improve operational efficiency, reduce downtime, and drive digital transformation initiatives within organizations.

Challenge: Securely migrating on-premises data to the cloud poses a significant challenge

Adapting to rapidly changing technology presents a significant challenge for IT Operations Analytics, especially when managing analytics data in the cloud. The acceleration in both the volume and velocity of data influx demands that organizations adapt continuously to keep pace. As the data streams grow and become more dynamic, companies must ensure that their architecture can handle such growth. For many, that shift is needed from legacy data warehouses to cloud solutions that scale better. This continuous development in technology and related skills fosters a reactive cycle wherein organizations constantly realign strategies and systems to deal with the ever-increasing burden of demands from data analytics.

Impact of Generative AI in IT Operations Analytics Market

IT Operations Analytics Market Ecosystem

The IT operations analytic market ecosystem comprises of solution providers, service providers, end users and regulatory authorities.

By offering, solutions segment to account for the largest market size during the forecast period.

For businesses, large or small, data is one of the most precious assets that can be used to gain an edge over their competitors. Implementing Al, deep learning, and ML with IT operations analytics solutions will help companies manage and drive value from their data. Data is aggregated by IT operations analytics tools from various sources, and big data analytics is applied to extract the insights. The increasing adoption of Al and ML technology helps IT operations teams to deliver both perfect service availability and a shorter mean time to recovery when incidents occur, leading to the rapid growth of IT operations analytics solutions. Various companies, such as IBM, Oracle, Broadcom, and Cisco, provide IT operations analytics solutions to address the enterprises' IT complexity and high-performance demands. These vendors help decrease response time and make efficient use of infrastructure resources.

By end user, the manufacturing segment is projected to grow at the highest CAGR during the forecast period.

The manufacturing end user is increasingly adopting Al and ML technologies to enhance the working ability of their equipment. The amount of data required during a supply chain process is growing every day. Challenges faced by manufacturers include the analysis of a large volume of data to discover trends for operational improvements and support strategic decision-making. Manufacturers generate and store data from several sources across the supply chain, including process control instruments, supply chain management systems, and systems that monitor product performance after being sold. In January 2020, Cisco launched a Comprehensive Security Architecture for advanced anomaly detection. The solution enables the collection and extraction of data from the IoT edge and helps organizations increase efficiency and make better real-time business decisions to accelerate digitization projects.

North America to account for the largest market size during the forecast period.

North America is expected to be the highest revenue-generating region in the IT operations analytics market, with the US contributing a higher market share, followed by Canada. The region is a major adopter of IT operations analytics because of various factors, including the presence of two large economies (the US and Canada), large-scale infrastructure, and the presence of IT operations analytics solution providers in the region. Both countries have invested heavily in technologies, such as Al and ML, to enhance internal operations. These countries are also investing in improving smart infrastructure for automating and enhancing IT operational practices, and accessing continuous insights into the performance of their business services, contributing to the market growth in the region. The region is known for being the hub of innovation, and IT giants are continuously introducing new offerings. Aggressive collaborations are also taking place in the IT operations analytics market. North America has shown great promise across various verticals such as BFSI, retail and eCommerce, IT & ITeS, and telecommunication.

Key Market Players

The major IT operations analytics solutions and service providers include Cisco (US), Broadcom (US), IBM (US), Oracle (US), Microsoft (US), OpenText (Canada), Hitachi (Japan), Dynatrace (US), SolarWinds (US), BMC Software (US), NetApp (US), Elastic (US), Nexthink (Switzerland), HCL Technologies (India), New Relic (US), ServiceNow (US), Dell Technologies (US), HPE (US), Cloud Software Group (US), Veritas Technologies (US), BigPanda (US), ExtraHop Networks (US), Squadcast (US), ScienceLogic (US), Apica (Sweden), Diamanti (US), MCG (Denmark), Evolven (US), XPLG (US), HEAL Software (US), Sumo Logic (US), Devo (US), meshIQ (US), and CloudFabrix (US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the IT operations analytics market.

Want to explore hidden markets that can drive new revenue in IT Operations Analytics (ITOA) Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the IT operations analytics (ITOA) market based on offering (solution, services), technology, data source, application, end user and region.

Offering:

• Solution
  • Cloud
  • On-premises
• Services
  • Professional Services
    • Consulting
    • System Integration & Implementation
    • Support & Maintenance
  • Managed Services

By Technology:

• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics
• Diagnostic Analytics

By Data Source:

• Machine Data
• Wire Data
• Agent Data
• Synthetic Data
• Human Data

By Application:

• Log Management & Analysis
• Application Performance Monitoring
• Anomaly Detection and Root Cause Analysis
• Network Management
• IT Service Management
• Infrastructure Management
• Security & Event Management
• Other Applications [BPM, cost management, and capacity management]

By End User:

• BFSI
• Retail & eCommerce
• Manufacturing
• Healthcare & Life Sciences
• IT & ITeS
• Telecommunication
• Transportation & logistics
• Government & Defense
• Energy & Utilities
• Telecommunication
• Other end users [Media & Entertainment, Travel & Hospitality, and Education]

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments:

• In May 2024, SolarWinds announced the launch of SolarWinds Al, a transformative tool designed to enhance IT operations and assist tech professionals in managing complex digital environments.
• In April 2024, IBM acquired IntelliMagic, enhancing its IBM Z AIOps offerings with IntelliMagic's proven innovation that leverages explainable Al. The acquisition provides a further strong transformation of the IBM Operations Software Portfolio and sets a new benchmark in IT Operations Analytics for the mainframe.
• In April 2024, Fujitsu Limited and Oracle partnered to provide their Japanese customers across business and the public sectors with sovereign cloud and artificial intelligence services. Using Oracle Alloy, Fujitsu will enhance its Hybrid IT offerings for Fujitsu Uvance, supporting business growth and societal problem-solving.
• In February 2024, BMC Software expanded its Enterprise Service Management and AIOps capabilities by integrating Al and machine learning. This enhancement aims to deepen observability, automate IT operations processes, detect patterns, and predict potential issues before they arise.
• In March 2024, Cisco completed the acquisition of Splunk to provide increased visibility and insight into an organization's digital footprint. Cisco would then be able to offer a single, real-time view over the entire digital landscape by bringing together network capabilities with security and observability solutions.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst