What Has Been the Growth of the Data Observability Market So Far?
The data observability market has seen considerable growth due to a variety of factors.
• Recent years have seen a swift expansion in the data observability market size, which is forecast to rise from $2.53 billion in 2024 to $2.94 billion in 2025, equating to a compound annual growth rate (CAGR) of 16.1%.
Numerous factors have underpinned this past growth, including a surge in demand for decisions guided by data, a rise in data volume, an expansion of cloud-based solutions, an increased uptake of artificial intelligence and machine learning technologies, and the advent of big data analytics solutions.
What Is the Forecasted Market Size and Growth Rate for The Data Observability Market Size Evolve over the Forecast Period?
The data observability market is expected to maintain its strong growth trajectory in upcoming years.
• The observability market for data is anticipated to witness a swift expansion in the coming years, projected to hit $5.27 billion in 2029 with a CAGR of 15.8%.
The surge predicted for this period is a result of the heightened necessity for superior compliance solutions, the escalating demand for instant data insights, an increased emphasis on data quality management, growing importance of automated surveillance solutions, and a burgeoning requirement for improved visualization instruments. Key emerging trends for the forecast period are progress in real-time monitoring, automated anomaly identification, the endorsing of data lineage visualization, embracing AI-powered insights, superior data quality administration, amalgamation with cloud platforms, and advancements in alerting systems.
What Are The Leading Drivers Of Growth In The Data Observability Market?
The growth of the data observability market is likely to be propelled by the increasing adoption of cloud computing. This technology delivers crucial computing services like servers, storage, databases, networking, software, and analytics via the internet, facilitating on-demand access and utilization of shared resources and minimizing physical infrastructure management. Factors like scalability, flexibility, and economic efficiency, which rapidly adapt to shifting requirements and enhance IT resources, are stimulating the surge of cloud computing. Within these cloud computing environments, data observability solutions play a vital role, offering insight and management of intricate data flows to guarantee real-time precision, effectiveness, and adherence to rules. For example, in December 2023, Eurostat, a Luxembourg-based government institution for European statistics and information, reported that around 42.5% of EU businesses purchased cloud computing services for primary purposes like email, file storage, and office software, marking a 4.2 percentage point increase compared to 2021. Hence, the boom of cloud computing is enabling the progression of the data observability market.
What Are The Main Segments Of The Global Data Observability Market?
The data observability market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Model: Cloud-Based, On-Premises, Hybrid
3) By End-User: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecom, Government And Public Sector, Energy And Utility, Manufacturing, Healthcare And Life Science, Retail And Consumer Goods, Other End Users
Subsegments:
1) By Solution: Data Monitoring, Data Profiling, Data Lineage Tracking, Anomaly Detection
2) By Services: Consulting Services, Integration And Deployment Services, Support And Maintenance Services
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What Emerging Trends Are Influencing The Growth Of The Data Observability Market?
Major companies operating in the data observability market are focusing on technological advancements such as integrating artificial intelligence (AI) in data observability to enhance the accuracy, efficiency, and scalability of data monitoring, enabling real-time anomaly detection, predictive insights, and automated resolution of data issues across complex systems. Artificial Intelligence (AI) is the development of machines that can perform tasks requiring human intelligence, such as learning, problem-solving, and decision-making, improving through experience. For instance, in May 2024, Riverbed Technology LLC, a US-based information technology company, launched its AI-powered riverbed platform designed to optimize digital experiences by leveraging data and AI for enhanced observability and intelligence. Key features include a unified agent for simplified deployment across IT environments, the riverbed data store for processing data without needing separate repositories, and enhanced observability by integrating data from networks, applications, and cloud infrastructures. The platform also incorporates AIOps for automated analysis and remediation and new solutions such as Aternity mobile for mobile monitoring and NPM+ for network performance monitoring in cloud and zero trust environments.
Who Are the Key Players In The Data Observability Market?
Major companies operating in the data observability market are:
• Alphabet (Google LLC)
• Microsoft Corporation
• International Business Machines Corporation
• Amazon Web Services Inc.
• Splunk Inc.
• Snowflake Inc.
• Datadog Inc.
• Informatica Corporation
• Databricks Inc.
• Dynatrace LLC
• Elastic NV
• Alteryx Inc.
• New Relic Inc.
• TIBCO Software Inc.
• DataRobot Inc.
• AppDynamics Inc.
• Fivetran
• Talend S.A.
• Cribl
• Dremio
• Acceldata Inc.
• Astronomer Inc.
• Monte Carlo Data Inc.
• DataKitchen
• StackState
What Is The Most Dominant Region In The Data Observability Market?
North America was the largest region in the data observability market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data observability market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
