The AIOps market is set to register considerable expansion by 2027 owing to increasing prevalence of remote working setup across the globe.
AIOps refers to artificial intelligence for IT operations', which is the application of artificial intelligence (AI) and related technologies to conventional IT operations. Notably, the recent work-from-home norm that was introduced in response to the COVID-19 pandemic has created robust demand for an efficient virtual information security infrastructure.
Moreover, the pandemic has also forced many enterprises to shift their customer and employee services to mobile apps, enabling users to check official emails, order goods, pay bills, and perform other operations through their mobile phones. As a result, increased dependency on mobile apps and remote networks has fostered industry uptake during the pandemic.
The AIOps market has been segmented based on end-use, component, application, deployment model, enterprise size, and region. In terms of application, the market has further been divided into application performance management, infrastructure management, network & security management, and real-time analytics.
The application performance management sub-segment is projected to showcase significant growth by 2027, expanding at a CAGR of around 28.6% over the assessment period. This growth is attributed to the prevalent use of AI in monitoring app performance.
With respect to end-use, the AIOps market has been categorized into media & entertainment, BFSI, manufacturing, IT & telecom, government, healthcare, and retail. The BFSI sub-segment held a market share of nearly 16.2% in 2020 and is slated to garner substantial gains through the analysis period. The proliferation of AI-infused network monitoring platforms in the BFSI sector is likely to promote segmental expansion in the coming years.
The government sub-segment is speculated to progress at around 24.6% CAGR over the study timeframe. Federal enterprises have adopted automation to reduce mundane IT tasks, which is set to foster segmental growth over the forthcoming years.
The AIOps industry share from the manufacturing sub-segment is anticipated to exhibit a solid growth trajectory, registering a CAGR of above 25.6% over the review timeline. With the booming AI landscape, the manufacturing sector has shifted majority of the IT load on cloud platforms, which is estimated to fuel product uptake in the manufacturing sector through the stipulated timeframe.
Meanwhile, in 2020, the media & entertainment sub-segment held a market share of over 7.9% and is expected to grow at a steady pace over 2021-2027. Increasing use of AI-powered incidence management tools in the media & entertainment sector is foreseen to drive segmental growth.
From the regional perspective, the Latin America AIOps market is poised to grow at a rate of about 26% through the projected timespan owing to the rising popularity of software automation and SME-focused AI tools in the LATAM region. On the other hand, the MEA AIOps market accounted for nearly 5.2% of the overall industry revenue in 2020 and is set to reach a notable valuation by the end of 2027. Surging IT investments, coupled with mounting focus on the amplification of AI technology in MEA, is likely to bolster regional market expansion over the forecast period.