Authored By: Sarah
11 Jul 2024

 Observability Platform Market Size to grow by USD 1.17 billion between 2024-2028

According to a research report “ Observability Platform Market” by Component (Solutions, Services) Type (Large enterprises, Medium enterprises, Small enterprises) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 1.17 billion, at a CAGR of  8.28% during the forecast period. In today's business landscape, the ability to gain valuable insights from data is crucial for productivity enhancement and risk mitigation. Observability platforms, equipped with advanced analytics capabilities, enable predictive mechanisms and risk-averting models, empowering companies to identify and address potential issues before they escalate. This proactive approach not only leads to improved operational efficiency but also opens up new growth opportunities by reducing error rates and failure rates. In the manufacturing sector, where competition is fierce and supply chain operations are paramount, the implementation of observability platforms has become a strategic priority. By leveraging predictive analysis, these platforms help forecast demand for popular products and optimize inventory levels, enabling businesses to expand sales through multiple channels. Consequently, the demand for observability platforms is surging among manufacturing companies, as they seek to streamline their supply chain operations and stay ahead of the competition.

Browse market data tables, figures, and in-depth TOC on “Observability Platform Market” by Component (Solutions, Services) Type (Large enterprises, Medium enterprises, Small enterprises) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Component, the Solutions segment is projected to dominate the market size in 2024

In the observability platform market, large enterprises held the largest market share in 2023, accounting for a significant portion of the revenue. This trend can be attributed to the digital transformation initiatives undertaken by large enterprises, enabling them to streamline business processes more efficiently and cost-effectively. With the increasing deployment of advanced technologies like IoT, AI, and big data, the complexity of business operations has grown, necessitating the adoption of observability platforms. These solutions offer seamless coordination, improved adaptability, and enhanced data protection, making them indispensable for large enterprises. The segment's growth is further fueled by the widespread transition to digital transformation in various industries.

By Type, Large enterprises  segment is expected to hold the largest market size for the year 2024

The observability platform market is experiencing significant growth in the solutions segment due to the increasing demand for enhanced business efficiency. This growth is driven by the widespread adoption of automation among end-users, the integration of artificial intelligence, and frequent product launches. The digital transformation of business processes and procedures, as well as the increasing volume of interactions and transactions, have resulted in an abundance of data. The observability platform's ability to provide a single source of truth for critical data and simplify the evaluation process for DevOps teams makes it an essential tool for managing the complexity of modern applications.

North America is forecasted to hold the largest market size by region in 2024

The North American observability platform market is primarily driven by significant revenues from businesses in the United States and Canada. The region's digital transformation initiatives are expected to see substantial investments, fueled by the integration of advanced technologies such as blockchain, artificial intelligence (AI), and Internet of Things (IoT) into system platforms. Vendors providing application programming interface (API) services for these advanced technologies as part of their observability platforms stand to benefit from additional revenue streams through product upgrades and maintenance fees. The demand for observability platforms is further propelled by the need for enhanced business process efficiency and transparency in the digital transformation journey.

The Observability Platform Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Acceldata Technology Pvt Ltd.
  • Auvik Networks Inc.
  • Broadcom Inc.
  • Cisco Systems Inc.
  • Datadog Inc.
  • Dynatrace Inc.
  • GitLab BV
  • International Business Machines Corp.
  • LogicMonitor Inc.
  • Microsoft Corp.
  • NamLabs Technologies Pvt Ltd.
  • New Relic Inc.
  • Nexthink SA
  • Riverbed Technology Inc.
  • ScienceLogic Inc.
  • ServiceNow Inc.
  • SolarWinds Corp.
  • Splunk Inc.
  • StackState B.V.
  • Sumo Logic Inc.
.

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Research Analysis Overview

The Observability Platforms market is experiencing significant growth as more Cloud-based systems are adopted by various industries, including manufacturing companies, industrial organizations, IT companies, healthcare, and SMEs. This market is driven by the need to monitor and improve Business efficiency, reduce Failure rates, and minimize Errors in supply chain operations and product and service delivery. Observability platforms provide Risk-averting models and Predictive mechanisms to help organizations identify and address potential issues before they become critical. The Public cloud segment is leading the Observability services market, with Cloud service providers offering various deployment types, including Public, Private, and Hybrid cloud, to cater to diverse business needs. The market is also witnessing the integration of Observability platforms with DevOps practices, enabling continuous monitoring and improvement of IT systems. However, security concerns, such as Distributed denial of Service (DDoS) attacks, remain a challenge for organizations adopting cloud-based observability solutions. The growth opportunities in the Observability Platforms market are immense, with increasing adoption by various industries and the need for real-time monitoring and analysis of complex systems. The market is expected to continue its upward trajectory, providing significant revenue opportunities for players in the Cloud service providers and IT industries.

Market Research Overview

The Observability Platform Market is witnessing significant growth as DevOps teams in various industries, including manufacturing companies and industrial organizations, seek to enhance their technological expertise and improve business consistency through the use of advanced observability platforms. These platforms leverage Artificial Intelligence (AI) and automation to help teams monitor and analyze complex systems, identify errors and failure rates in real-time, and ensure process alignment. The market for observability services is particularly beneficial for end-users in the public cloud segment, where scalability and cost savings are crucial. IoT, AI, mobility, and other emerging technologies are driving the demand for observability platforms in sectors such as healthcare and IT companies. Partners, employees, and users also stand to gain from business benefits like predictive mechanisms, risk-averting models, and improved business efficiency. The market for observability platforms is also expanding to include hardware and installation services, procurement, and sales channels. Supply chain operations and SMEs are exploring the potential of cloud-based systems and hybrid cloud solutions to streamline their operations and capitalize on growth opportunities. Cloud service providers are investing in observability services to offer more value-added services to their clients and stay competitive in the market. Despite the numerous benefits, challenges such as the need for integration with existing systems, security concerns, and the complexity of deployment types like public cloud and hybrid cloud, remain. However, the potential rewards far outweigh the risks, making observability platforms an essential tool for businesses seeking to stay agile and competitive in today's fast-paced technological landscape.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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