IT Operations Market Expected Growth at 37.2% CAGR from 2020–2025
Although the global IT operations analytics (ITOA) market is expected to slow down during 2020 due to the COVID-19 pandemic, its size could reach $45.1 billion by 2025. A reduction in operational costs and the desire for improved security, privacy measures, and better customer experiences could drive the market up at a CAGR of 37.2%.
The COVID-19 pandemic has had a strong global impact on manufacturing, supply chains, and logistics. This has particularly affected retail and consumer goods, making essential items unavailable despite continuous efforts to exclude them from the lockdown.
However, this situation is expected to come under control by the beginning of 2021, accompanied by a demand for ITOA solutions and services that include log management, root cause analysis, network and security management, application performance management, and anomaly detection. ITOA can monitor systems, gather and interpret data from various sources, and flag potential issues.
As IT architectures grow more segmented and cloud-centric, many enterprises are re-assessing their monitoring tools’ ability to work across large hybrid environments. Thanks to machine data, ITOA can identify insights hidden in system silos and get to the root causes for failure using predictive analysis.
Other factors driving the adoption of a new array of ITOA solutions include the desire to address mission-critical processes, reduce IT operational costs, and improve operations and customer relationships.
ITOA Market by Region
North America is already witnessing significant developments in the ITOA market, and the US, in particular, is expected to remain the largest revenue contributor for the forecast period.
Several solution providers in the region are integrating artificial intelligence (AI) and machine learning (ML) functionalities to their existing ITOA, while also adopting growth strategies that will solidify their leading position. This development benefits from highly efficient smart network infrastructure, large-scale internet penetration, and early adoption of advanced technologies.
Asia-Pacific is also expected to record the highest compound annual growth rate (CAGR) due to its rapid adoption of new technologies and the existence of a large population. Countries like China, Japan, and India are developing infrastructure and technologies that continue to fuel the demand for ITOA solutions.
ITOA Market by Solution
The ITOA market is segmented, for the purpose of the forecast, into log management, application performance management (APM), network and security management, and other solutions that include cost, capacity management, infrastructure management, and business process monitoring.
The segment expected to show the quickest growth is log management. These solutions help IT teams analyze the health and compliance of applications and systems, and manage system logs, application logs, and security logs.
The cloud deployment, in particular, could grow at the highest CAGR, as small and medium-sized enterprises adopt cloud-based network security software solutions. The global log management market size alone could grow from $1.9 billion in 2020 to $3.7 billion by 2025.
ITOA Market by End User
End-users for the ITOA market include banking, financial services and insurance (BFSI), government and defense, manufacturing, healthcare and life sciences, retail and consumer goods, telecom, energy and utilities, transportation and logistics, and others.
The largest market size will belong to the BFSI segment, due to the need for financial and banking industries to proactively work with customer needs and preferences to stay profitable, reduce risk, and enhance data security. Real-time analytics can handle millions of events per second, providing an active data grid for transparent scalability.
The introduction of advanced ITOA solutions in financial services can eliminate manual processes and extend the range of relevant records. It can also help avoid potential risk situations and reduce operational, reputational, and compliance risks. Telecom companies use ITOA to avoid fluctuations in service quality and resolve issues faster, while the healthcare sector can benefit from sophisticated monitoring and assessment capabilities that work across multiple dimensions.
ITOA has huge potential both within the realm of IT operations and end-user experience because it can produce business-driven decisions based on deeper insights and real-time analysis.
ITOA Market Players
Among the major vendors in the global IT Operations Analytics Market are IBM (powered by IBM Watson®, IBM Netcool®, IBM Cloud Event Management and IBM Cloud Management for hybrid development), BMS Software, Microsoft Corporation, and Oracle Corporation. Several startups are also expected to pose potential competition in the market.
Other important players in the ITOA market include SAP (Germany), Micro Focus (UK), Splunk (US), Hitachi (Japan), SAS Institute (US), Broadcom (US), Microsoft (US), SolarWinds (US), Cisco (US), BMC (US), NetApp (US), VMware (US), Elastic (US), Evolven (US), XPLG (US), ExtraHoop (US), NexThink (Switzerland), Appnomic (US), Apptio (US), Sumo Logic (US), Loom Systems (US), Moogsoft (US), iOPEX (US), Nastel Technologies (US), Devo (US), Optanix (US), StackState (US), OpsRamp (US), Humio (UK), OpsDataStore (US), CloudFabrix (US), Digitate (US), and Resolve (US).
This article was originally published in Startup Savant on October 6, 2020. Link: https://startupsavant.com/news/it-market-growth