PUBLISHER: The Business Research Company | PRODUCT CODE: 1458702
PUBLISHER: The Business Research Company | PRODUCT CODE: 1458702
Observability tools and platforms are software solutions and technologies designed to monitor and gain insights into the performance, behavior, and health of complex systems, applications, and infrastructure in real-time. They play a crucial role in identifying and troubleshooting problems, optimizing performance, and improving overall system reliability.
The main components of observability tools and platforms are solutions and services. Solutions refer to the software or technology products that provide the core functionality for monitoring, analyzing, and managing systems, applications, and infrastructure. These solutions can be deployed in public cloud and private cloud environments and are used across various industries such as 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, and others.
The observability tools and platforms market research report is one of a series of new reports from The Business Research Company that provides observability tools and platforms market statistics, including observability tools and platforms industry global market size, regional shares, competitors with a observability tools and platforms market share, detailed observability tools and platforms market segments, market trends and opportunities, and any further data you may need to thrive in the observability tools and platforms industry. This observability tools and platforms market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The observatory tools and platforms market size has grown rapidly in recent years. It will grow from $2.54 billion in 2023 to $2.85 billion in 2024 at a compound annual growth rate (CAGR) of 12.3%. The growth in the historic period can be attributed to several factors. Regulatory compliance has played a significant role, driving companies to invest in upgrading and maintaining their infrastructure. Aging infrastructure has also been a driving factor, as companies seek to modernize and improve their operations. The increased complexity of operations, coupled with a focus on operational efficiency, has further fueled growth. Additionally, there has been a growing awareness of the benefits of predictive maintenance, prompting companies to adopt these practices to enhance their operations.
The observatory tools and platforms market size is expected to see rapid growth in the next few years. It will grow to $4.43 billion in 2028 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period is driven by several factors, including the integration of Industry 4.0 technologies, sustainability and environmental concerns, the globalization of supply chains, the rise of performance-based contracts, and increased emphasis on data-driven decision-making. Major trends in the forecast period include the integration of edge computing, adoption of artificial intelligence and machine learning, use of blockchain for asset management, implementation of augmented reality (AR) for maintenance support, and the shift towards subscription-based and cloud solutions.
The increasing adoption of IoT is expected to drive the growth of the observability tools and platforms market. IoT, which encompasses a network of interconnected physical devices equipped with sensors and connectivity, enables the collection and exchange of data. Advancements in areas such as artificial intelligence (AI) and machine learning (ML) are enabling deeper analysis of IoT data, unlocking new applications. Observability tools and platforms play a crucial role in collecting, analyzing, and visualizing vast amounts of data generated by IoT devices. They help operators and developers understand system performance, identify anomalies, and optimize operations. For example, according to a report by Ericsson, broadband IoT (4G/5G), which is the primary connectivity for most cellular IoT devices, reached 1.3 billion connections in 2022. By 2026, nearly 60% of cellular IoT connections are expected to be broadband IoT connections, primarily using 4G. Northeast Asia currently leads in cellular IoT connections and is projected to exceed 2 billion connections in 2023. Thus, the increasing adoption of IoT is fueling the growth of the observability tools and platforms market.
Major companies in the observability tools and platforms market are focusing on developing advanced technologies, such as artificial intelligence (AI)-powered observability assistants, to enhance their competitiveness. These solutions leverage AI techniques to collect, analyze, and interpret telemetry data such as logs, metrics, and traces within a software system. For example, in May 2023, New Relic, a US-based software development company, introduced relic grok, an AI-powered observability assistant. This tool is uniquely designed using generative AI and openAI's language models to simplify observability for engineers. Users can interact in natural language to set up instrumentation, troubleshoot issues, generate reports, and manage accounts. Grok performs AI-driven root cause analysis, aids in code-level issue resolution, and automates reporting to support multiple languages and handle administrative tasks.
In July 2022, International Business Machines Corporation (IBM), a US-based technology corporation, acquired Databand.ai for an undisclosed amount. This acquisition has bolstered IBM's data observability capabilities, enabling the company to provide a comprehensive range of observability solutions across applications, data, and machine learning. These solutions help clients ensure trustworthy data and artificial intelligence (AI) at scale. Databand.ai, the acquired company, is a US-based technology firm specializing in providing a proactive data observability platform.
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., ScienceLogic, Inc., 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.
North America was the largest region in the observatory tools and platforms market in 2023. 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.
The countries covered in the observability tools and platforms market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The observability tools and platforms market consist of revenues earned by entities by providing services such as alert and notification services, incident response and management services, integration services, cloud-based observability services, security and compliance services and more. The market value includes the value of related goods sold by the service provider or included within the service offering. The observability tools and platforms market also includes sales of physical servers and edge devices which are used in providing the services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Observability Tools and Platforms Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on observability tools and platforms market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for observability tools and platforms? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The observability tools and platforms market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.