What Is The Current and Historic Market Size Analysis Of The Observability Tools and Platforms Market?
The observability tools and platforms market has seen considerable growth due to a variety of factors.
• A significant rise in the size of the observability tools and platforms market has recently been noted. The market size, which is expected to be at $2.85 billion in 2024, is projected to increase to $3.18 billion in 2025, boasting a compound annual growth rate (CAGR) of 11.4%.
The cause of this exceptional growth during the historic period includes regulatory compliance, deteriorating infrastructure, amplified operational intricacy, heightened focus on operational efficiency as well as a growing awareness of predictive maintenance.
What Is The Forecast For The Observability Tools and Platforms Market Size?
The observability tools and platforms market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of the observability tools and platforms is forecasted to experience swift expansion in the following years, increasing to $4.96 billion by 2029 with a compound annual growth rate (CAGR) of 11.8%.
This anticipated growth for the forecast period can be accredited to the incorporation of Industry 4.0, sustainability and ecological concerns, supply chain globalization, emergence of performance-based contracts, and a heightened focus on data-oriented decision making. The key trends expected throughout the forecast period consist of the assimilation of edge computing, the adoption of artificial intelligence and machine learning, usage of blockchain in asset management, application of augmented reality (AR) in maintenance support, and the rise of subscription and cloud-based solutions.
What Are The Essential Drivers Behind The Growth Of The Observability Tools and Platforms Market?
The observability tools and platforms market is poised for expansion, fueled by the escalating uptake of the Internet of Things (IoT). IoT refers to an interconnected network of physical objects, including devices, appliances, and vehicles, equipped with sensors, software, and connectivity that facilitate data collection and sharing. Advancements in technologies such as artificial intelligence (AI) and machine learning (ML) allow for in-depth analyses of IoT data and the unlocking of new applications. Observability tools and platforms aid in the collection, analysis, and visualization of the substantial data generated by IoT devices. These tools assist operators and developers in comprehending system performance, detecting irregularities, and enhancing operations. For instance, in November 2022, Ericsson, a telecommunications company based in Sweden, reported that broadband IoT (4G/5G), the prime connectivity for the majority of cellular IoT devices, reached 1.3 billion connections in 2022. Nearly 60% of cellular IoT connections are predicted to be broadband IoT connections by 2026, primarily utilizing 4G. Moreover, Northeast Asia, currently leading in cellular IoT connections, is projected to surpass 2 billion connections in 2023. Thus, the growing adoption of IoT is propelling the rise of the observability tools and platforms market.
How Is The Global Observability Tools and Platforms Market Divided Into Key Segments?
The observability tools and platforms market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Type: Public Cloud, Private Cloud
3) By End User: Banking, Financial Services And Insurance, Healthcare And Life Sciences, Retail And E-commerce, Manufacturing, Telecom And Information Technology, Government And Public Sector, Media And Entertainment, Other End Users
Subsegments:
1) By Solution: Monitoring Tools, Logging Tools, Tracing Tools, Incident Response Tools, Analytics And Visualization Tools, Performance Management Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services, Managed Services
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How Are New Trends Impacting The Size Of The Observability Tools and Platforms Market?
Leading businesses in the observability tools and platforms arena are introducing innovative technologies, like AI-enabled observability aides, to augment their market position. These tools utilize AI methodologies to gather, scrutinize, and decipher telemetry data, including logs, metrics, and traces within software systems. For example, in May 2023, New Relic, an American software development firm, unveiled their product, relic grok. This product is an AI-powered observability assistant, crafted uniquely by employing generative AI and OpenAI's language models, with the aim to streamline observability for engineers. Users can interact using everyday language to implement instrumentation, resolve issues, prepare reports, and administer accounts. Grok is capable of performing AI-based root cause analysis, aids in resolving issues at the code level, reporting automation, and is adaptable to multiple languages while carrying out administrative duties.
Who Are the Key Players In The Observability Tools and Platforms Market?
Major companies operating in the observability tools and platforms market report are:
• Microsoft Corporation
• International Business Machines Corporation (IBM)
• Broadcom Inc.
• Splunk Inc.
• Datadog Inc.
• ScienceLogicInc.
• Dynatrace Inc.
• Elastic N.V.
• New Relic Inc.
• SolarWinds Worldwide
• LLC
• Riverbed Technology LLC
• Sumo Logic Inc.
• GitLab Inc.
• Nexthink S.A.
• Grafana Labs
• AppDynamics LLC
• LogicMonitor Inc.
• Auvik Networks Inc.
• Monte Carlo Data Inc.
• Honeycomb.io Inc.
• Graylog Inc.
• Sysdig Inc.
• Raygun Inc.
• Acceldata Inc.
• Lightstep Inc.
• StackState B.V.
• Instana Inc.
What Are The Regional Insights Into The Observability Tools and Platforms Market?
North America was the largest region in the observatory tools and platforms market in 2024. The regions covered in the observability tools and platforms market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
