Market Dynamics
Global Artificial Intelligence for IT Operations Platform Market Drivers
Rapid Adoption of Cloud-Based Infrastructure in the IT Sector
In recent years, the popularity of cloud computing has grown quickly. Many businesses are drawn to cloud hosting services like Microsoft Azure (Microsoft), AWS (Amazon Web Services, Inc.), and Google Cloud (Alphabet Inc.) due to their stated features, which include the capacity to scale up or down based on usage, pay-per-use, self-service, and high resiliency, among others. These benefits of cloud computing result in much cheaper IT costs, excellent service quality, and quicker time to market than traditional IT solutions. Through consolidated visibility across all environments provided by AIOps solutions, IT problems may be quickly identified and fixed. Currently, most businesses have switched from static physical infrastructure to a dynamic mix of private and public clouds, managed clouds, and on-premises resources that are constantly reconfigurable and scaleable. Systems and applications across these environments produce a large volume of data that keeps growing.
Global Artificial Intelligence for IT Operations Platform Market Restraint
Complex and Dynamic Nature of IT Operations
In order to improve business agility, IT organizations are implementing dynamic and modern IT infrastructures enabled by virtualization. Containers, virtual machines, and microservices are all part of it. For instance, as more firms move their activities to the cloud, the use of cloud platforms is increasing. Such flexible infrastructures enable businesses to respond quickly to the shifting needs of global digital consumers. However, it frequently results in a loss of sight and poses new difficulties in identifying possible problems. With end-to-end correlated data, deploying these technologies may be safe and easy.
Global Artificial Intelligence for IT Operations Platform Market Opportunities:
Increasing Need for Risk Mitigation in the IT Organizations
The disruptive technological and economic settings of nowadays are determined by risk. Large businesses can minimize risk and maintain company continuity without sacrificing their core offerings, given the always-changing market needs and the quick speed of innovation. For IT firms, effective risk mitigation methods are vital. Risk mitigation solutions evaluate a company from top to bottom to identify unmet risks and danger vectors. Threats from the inside and the outside that might interfere with business continuity are included. The type of danger will determine how the business wants to lessen the risk's effects or lessen the occurrence's effects. Thus, to reduce risks and increase the value of automation investments, IT firms are entering the AIOps industry. By minimizing the disruption of vital digital services and speeding up issue identification and response, an AIOps platform lowers risk and increases flexibility.
Regional Analysis
The global artificial intelligence for IT operations (AIOps) platform market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant shareholder in the global artificial intelligence for IT operations (AIOps) platform market and is expected to grow at a CAGR of 38.5% during the forecast period. Over the forecast period, significant growth is expected in the Asia-Pacific region. This can be attributable to the region's diverse industries quickly adopting automation. Fast and massive data collection has made the Asia-Pacific market more open to AI-based products and services like data analytics. For instance, Zheshang Fund Management Co., a Chinese financial advisory firm, intended to assess 3,000 Chinese companies using around 300 artificial intelligence-based investment models. The analysis's conclusions would be used to improve decision-making procedures and data management skills.
Additionally, a machine learning-based AI platform called KRTI 4.0 is provided by Infosys Limited, a leading provider of IT services in India. It enables wise decision-making at all organizational levels. KRTI 4.0 is intended to serve as an enterprise-wide decision-making support tool, facilitating the seamless transfer of lessons learned from one facility to the entire organization while speeding up the analytical knowledge. The adoption of AIOps platforms and services to enable process automation in IT infrastructure is also gaining steam due to the significant growth in the number of AI start-ups in the Asia-Pacific region.
North America is expected to grow at a CAGR of 25.3%, generating USD 26,431.81 million during the forecast period. Consumer applications for AI-based investing advice are gaining steam in the US to help investors make better investment choices. This can be justified by the region's abundance of AIOps platform suppliers. AIOps platforms are being created by numerous companies, including tech heavyweights and start-ups. For instance, Broadcom Inc. released its newest AIOps generation, an open platform that includes AI, ML, and end-to-end observability to aid businesses in reaching their full potential. The adoption of AIOps platforms in the North American market is also significantly influenced by large R&D expenditures and ongoing digital transformation in developed nations.
Europe is expected to grow significantly over the forecast period. The government has been instrumental in raising public consciousness about the practical applications of AI. Several EU member states and agencies are taking steps to further the region's objectives for AI leadership by designating AI as a significant strategic priority. This entails releasing specialized national and EU-level AI strategy documents, accelerating research and innovation, and investigating novel regulatory frameworks to control the advancement and application of AI. In an effort to adopt an ethical stance toward emerging technology and gain an edge over China and the US, Europe unveiled a set of stringent guidelines and protections for the creation and application of AI. It states that before being released onto the market, any "high-risk" AI apps would require an evaluation. The healthcare and BFSI industries, which use AIOps to handle extremely sensitive data, will particularly benefit from this. Gambling websites can also benefit from AIOps' assistance with fraud prevention, improved customer care, regulatory compliance, simple onboarding, and client-specific experiences.
Segmental Analysis
The global artificial intelligence for IT operations (AIOps) platform market is segmented by offering, deployment mode, organization size, application, and vertical.
Based on the offering, the global AIOps platform market is bifurcated into platforms and services.
The platform segment is the highest contributor to the market and is expected to grow at a CAGR of 30.2% during the forecast period. This significant share can be attributed to the AIOps platform's increasing popularity among enterprises due to its advantages in better decision-making, effective data processing, quick digital transformation, and cohesive agility. AIOps vendors provide dependable, responsive, and innovative digital experiences for corporate enterprises to obtain a competitive edge in the market. For instance, an open AIOps platform was unveiled by the multinational technology corporation Broadcom to assist businesses in achieving operational excellence. A SaaS platform firm called OpsRamp, Inc. also unveiled a new user interface that gives access to several wizards that find the resources needed to automate the configuration procedure in a particular IT environment.
AIOps services have expanded due to their rising popularity among CSPs (Communication Service Providers) for their intelligent automation of IT operations. The need for managed and consulting services in the IT industry is responsible for growth. For instance, a partnership agreement was inked by SAP SE, a German multinational software business, and Lenovo, a Chinese multinational technology company, to create an HPC-based AIOps environment for IT enterprises. SP SE uses Lenovo's supercomputing capabilities to give enterprises access to flexible consumption patterns.
Based on deployment mode, the global AIOps platform market is bifurcated into on-premises and cloud.
The on-premises segment owns the highest market share and is expected to grow at a CAGR of 28.0% during the forecast period. Due to the improved security and privacy offered by on-premises IT operations solutions, the on-premises category has a significant market share. Additionally, these solutions use edge analytics to reduce the need for bandwidth. With the integration of AIOps solutions across premises, results are faster and more reliable.
The cloud deployment model sector would experience significant expansion over the forecast period. This development might be linked to removing firewall constraints by cloud-based AIOps systems, which can impede access to an on-premises solution. Cloud-based platforms and SaaS do away with overhead and maintenance expenses as well. Additionally, cloud object storage services' available virtual storage capacity eliminates the local hardware's limitations on storage volume and scalability.
Based on organization size, the global AIOps platform market is bifurcated into large enterprises and small and medium-sized enterprises (SMEs).
The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 29.9% during the forecast period. This large share can be linked to the escalating rivalry between major firms and the rising rates of data deterioration in several industrial verticals. Large businesses are implementing AIOps solutions for several sectors, including media and entertainment. For instance, the online gaming sector saw growth in 2020 due to the recent introduction of new game consoles from Microsoft and Sony Corporation and the continuous implementation of pandemic-induced confinement orders. Since gaming firms have begun integrating AIOps to support sophisticated AI capabilities in their games, the rise of the online gaming industry has created several opportunities for the AIOps market. The use of virtual assistants in major businesses expands and automates responses to support claims, enhancing customer satisfaction and lowering costs.
Cloud-native SMEs, corporations with vast environments, businesses with hybrid cloud and on-premise settings, and businesses with overworked DevOps teams are the firms leading the way in using AI for IT operations. The SME segment is anticipated to expand over the forecast period significantly. This expansion might be ascribed to the quick acceptance of digital solutions across all sectors. SMEs are using a variety of AIOps technologies to enhance the management of their IT infrastructure. For instance, an AIOps platform is provided by U.S.-based IT business Moogsoft to help cloud-native SMEs continuously improve their digital services while avoiding breakdowns and failures.
Based on application, the global AIOps platform market is bifurcated into infrastructure management, application performance analysis, software asset management, network and security management, and others.
The software asset management segment owns the highest market share and is expected to grow at a CAGR of 32.2% during the forecast period. The large proportion can be ascribed to real-time leaderboards' growing adoption among organizations to gather competitive intelligence. Software asset management gives businesses a data-driven method for locating, prioritizing, recognizing, and fixing problems. For instance, the Zero Incident Framework (ZIF) platform, provided by U.S.-based software company GAVS Technologies, provides real-time mapping of IT infrastructure events and real-time data processing. This platform includes virtualized desktop infrastructure, AI-powered predictive analytics, and bot-based remediation.
It is anticipated that the infrastructure management application segment will experience significant expansion over the forecast period. This growth can be ascribed to the fast-gained acceptance of AI across large IT infrastructure tasks. For instance, Instana, a German-American software company, was fully acquired by International Business Machines Corporation to grow its enterprise observability and application performance monitoring businesses.
Based on vertical, the global AIOps platform market is bifurcated into BFSI (banking, financial services, and insurance), healthcare and life sciences, retail and e-commerce, IT and telecom, energy and utilities, government and public sector, media and entertainment, and others.
The BFSI (banking, financial services, and insurance) segment is the highest contributor to the market and is expected to grow at a CAGR of 29.1% during the forecast period. One of the primary trends that most financial institutions utilize is cognitive process automation. It makes it possible to automate financial services prone to errors, such as claims administration. In this area, the use of AIOps technology for protecting banking and financial data has increased significantly. For instance, in September 2019, Microsoft researchers and the investment management company China Asset Management in China worked together to create an AI model. This AI algorithm analyzes the enormous volume of real-time financial transaction data.
In banking and financial IT operations, AI has many applications, including real-time analytics, resolving challenging IT problems, automating banking, and boosting scalability. For instance, AIOps platform solutions for banking, finance, and the FinTech sector are provided by Broadcom, an American semiconductor manufacturing and software development business. The company's products address the needs of the BFSI sector in terms of data management, operational intelligence, and analytics and reporting.
Businesses that manage numerous technologies and large amounts of data and have substantial IT architecture or infrastructure might improve IT agility using the AIOps platform. One of the most popular applications across all industries is application performance analysis. For instance, financial institutions employ the Application Performance Monitoring (APM) service provided by AppDynamics, a Cisco Systems, Inc. division, to lower expensive outages and improve the efficiency of IT operations.
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