AI in IT Operations (AIOps) Market Size, Share and Trend Analysis, By Component (AIOps Platform, AIOps Services), Deployment Model (On-Premises, Cloud-Based), By Organization Size (Large Enterprises, Small & Medium Enterprises (SMEs), By Application, By End-Use, and By Region, Forecast 2025-2032

AI in IT Operations (AIOps) Market Overview and Key Insights:

The global AI in IT Operations (AIOps) market size reached USD 12.49 Billion in 2024 and is expected to register a revenue CAGR of 18.4% during the forecast period. Rapid adoption of AIOps for automation in IT operations is driving the market revenue growth. Information technology industries across globally are incorporating AIOps to maintain IT infrastructure.

Market Drivers:

Growing rate of enterprise digital transformation owing to increased internet penetration is significantly contributing to demand generation. According to the International Telecommunication Union (ITU), globally 68% of the population or 5.5 billion people will be using the Internet in 2024. Companies are deploying AI in IT Operations (AIOps) to automate critical operational tasks such as performance monitoring, workload scheduling, and data backups.

The exponential growth rate of data consumption and generation is accelerating requirement for advanced analytics and automation solutions to deliver actionable insights from large volume of datasets. According to a study, around 402.74 million terabytes of data are generated each day. Industries are leveraging AIOps to optimize return on investment (ROI), and address challenges in IT operations with precision and efficiency.

Market Opportunity:

Growth prospects of AI in IT Operations (AIOps) within telecommunication industries are fueling the expansion of market revenue share. Implementation of AIOps in telecommunication industries in performing various service improvement tasks such as preventive maintenance, planning infrastructure capacity, identifying potential faults and preventing customer complaints are expected to propel opportunities in emerging markets.

Moreover, increasing demand for AI in IT Operations (AIOps) in DevOps and continuous integration and continuous delivery (CI/CD) pipelines for faster resolution of critical operational tasks are expected to propel growth opportunities over the forecast period. In, DevOps and CI/CD pipelines AIOps streamlines incident management by identifying and correlating anomalies in real-time across multiple environments. AIOps has the ability to accelerate deployment cycles and helps in improving overall system reliability, which as a result, is expected to propel market revenue growth by 2032.

Recent Trends:

Generative AI is emerging as a major market trend in the AI in IT Operations (AIOps) market. Industries such as power and energy and Banking, Financial Services, & Insurance (BFSI) are increasingly deploying Generative-AI-enabled AIOps to process large volumes of operational data by using large language models (LLMs) to mitigate potential threats and reduce downtime.

Downtime in these industries can result in substantial financial loss for the company. According to research, downtime in IT service management (ITSM) platforms can cost around USD 5,600 per minute. Strategic collaborations are generating opportunities for investment in the development of new product lines.

Restraints & Challenges:

Concerns regarding data privacy and security with AI-driven automation are expected to restrain market revenue growth of AI in IT Operations (AIOps) market. AIOps systems highly rely on large volumes of data for analysis, pattern recognition, and decision-making, which raises concerns about data protection, compliance, and potential vulnerabilities to cyber threats.

Globally the risk of data breaches and cyber threats is increasing at an alarming rate. According to the FBI, the Internet Crime Complaint Center (IC3) recorded 880,418 complaints in 2023, with potential losses exceeding USD 12.5 billion, reflecting a 10% rise in complaints and a 22% surge in losses from the previous year.

Component Segment Insights and Analysis:

Based on the component, the AI in IT Operations (AIOps) Market is segmented into AIOps platform and AIOps services.

AIOps services segment can be sub-segmented into the key areas of professional services, managed services, license & maintenance services.

AIOps platform segment contributed the largest revenue share in 2024. Rapid deployment of AIOps platform in monitoring, managing, and optimizing complex tasks is a major market revenue contributor in 2024. AIOps platforms help organizations in enabling seamless data collection, event correlation, and root cause analysis, which are crucial for reducing downtime and maximizing system efficiency.

Competitors in AIOps market are working in the development of new platforms to offer end-to-end solutions for IT teams, which has supported market revenue expansion. For instance, In March 2024, Riverbed Technology launched Riverbed IQ 2.0 to minimize alert fatigue and empower IT teams to quickly identify and resolve issues through AI-driven correlation and automation.

Services segment is expected to register fastest revenue growth over the forecast period. Growth prospects of AIOps services in consulting, implementation, and managed services are projected to drive revenue share over the forecast period. Services such as professional and managed services are significantly becoming critical for enterprises for providing ongoing support for continuous monitoring and incident management.

Deployment Model Segment Insights and Analysis:

Based on the deployment model, the AI in IT Operations (AIOps) market is segmented into on-premises and cloud-based.

The cloud-based segment will be sub-segmented into the key areas of public cloud, private cloud and hybrid cloud.

On-Premises segment contributed largest revenue share in 2024. Integration of on-Premises based AIOps to manage IT infrastructure within an organization contributed in market revenue growth. Governments and regulated industries such as power and energy and Banking, Financial Services, & Insurance (BFSI) prefer on-premises solutions to control their IT infrastructure.

Cloud-based segment is expected to register the fastest revenue CAGR over the forecasted period. Cloud-based AIOps platforms leverage machine learning and artificial intelligence (AI) enabled algorithms for real-time data correlation, anomaly detection, and predictive analytics. These capabilities are highly being adopted by industries to manage and distribute workloads, which are expected to achieve significant market revenue share by 2032.

End-Use Segment Insights and Analysis:

Based on the end-use, the AI in IT Operations (AIOps) market is segmented into IT and Telecommunications, banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, media and entertainment, manufacturing, power and energy, government, and others.

IT and Telecommunications segment contributed the largest revenue share in 2024. Rapid deployment of 5G technology and the expansion of IoT networks contributed the demand for AIOps. According to the GSM Association, 5G will account for as many as 1.2 billion connections by 2025. AIOps enable telecom companies to process large volumes of customer and network data in addressing and mitigating real-time operational challenges. Additionally, information technology (IT) companies are rapidly incorporating AIOps to reduce operational expenditure by enhancing cloud infrastructure management and streamlining DevOps workflows.

Healthcare segment is expected to register fastest revenue growth by 2032. Increasing integration of AIOps in Internet of Medical Things (IoMT) devices and telehealth services is expected to propel market revenue growth over the forecast period. Healthcare organizations are significantly adopting AIOps solutions to address the growing complexity of IT systems, which support critical applications such as electronic health records (EHR), telemedicine platforms, and medical device integrations.

Geographical Outlook:

North America is registered highest market share in the AI in IT Operations (AIOps) market. Rapid investments in the industry ecosystem to develop new platforms and services in cloud and hybrid IT environments have contributed to the market revenue expansion in North America. Government support in funding has accelerated market revenue growth in the U.S. For instance, in 2023, the U.S. government announced USD 15 million in foreign assistance funding during the 78th UN General Assembly, aimed at enhancing global AI capacity in alignment with Sustainable Development Goals (SDG).

Moreover, ongoing investments in expansion of artificial intelligence (AI) infrastructure are expected to support market revenue growth over the forecast period. In January 2025, Microsoft announced a plan to invest USD 80 billion to build state-of-the-art data centers to support AI models and cloud-based applications. The company also mentioned that over 50% of this investment will be allocated within the United States.

Asia Pacific is expected to register significant revenue growth by 2032. Increasing adoption of AIOps across industries to streamline DevOps processes are expected to fuel the market revenue growth in this region. Asia Pacific is a major hub for information technology (IT) services export hub. Governments in this region are actively supporting foreign direct investments (FDI) to accelerate innovation and offer global companies to invest in their countries. According to the United Nations (UN) Trade Development, from 2021 to 2023, foreign investments averaged an impressive USD 220 billion annually, cementing ASEAN’s position as one of the leading FDI destinations among developing economies for three consecutive years.

Moreover, the rapid adoption of AIOps to provide real-time insights on system performance also supported the market revenue expansion. For instance, On December 2024, Kyndryl Inc. partnered with Indonesian geothermal power developer and operator Star Energy Geothermal (Star Energy), to incorporate generative AI technology into its operational processes. This AI-powered open integration platform will enhance Star Energy’s IT operations through advanced automation and AI-driven operations (AIOps).

Europe is expected to register steady revenue growth over the forecast period. Digital transformation across countries in the European Union (EU) is driving revenue growth in this region. Public investment in artificial intelligence (AI) is on the rise, with the EU’s Digital Europe Programme allocating a total of USD 2.30 billion for AI development and implementation during the 2021-2027 period.

Competition Analysis:

The AI in IT Operations (AIOps) market is characterized by a fragmented structure, with several players competing across various segments and regions. The list of major players included in the AI in IT Operations (AIOps) Market report are:

• IBM Corporation
• Dynatrace LLC.
• Splunk Inc
• BMC Software, Inc.
• Hewlett Packard Enterprise Development LP
• ServiceNow, Inc
• Cisco Systems, Inc
• Microsoft Corporation
• Dell Inc. 
• ScienceLogic 
• Kyndryl Inc.
• Riverbed Technology.
• Selector Software, Inc.

Strategic Developments in AI in IT Operations (AIOps) market:

• On 26^th December 2024, Microsoft introduced an open-source artificial intelligence (AI) framework tailored for agents in cloud environments. The framework is known as AIOpsLab. This framework enables developers to efficiently create, test, compare, and optimize AIOps agents. AIOpsLab provides a systematic approach to addressing the challenges of cloud operations, backed by the Azure AI agent service
• On 19^th November 2024, prominent key competitor of AIOps market Selector Software, Inc. successfully closed USD 33 million Series B funding round, led by New York City-based venture capital firm Ansa Capital. Selector’s total funding surpasses USD 66 million with this new investment.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The AI in IT Operations (AIOps) Market Report:

The AI in IT Operations (AIOps) market report offers a detailed analysis of market size, including historical revenue (in USD Billion) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Component Outlook (Revenue, USD Billion; 2022-2032)
  • AIOps Platform
  • AIOps Services
    • Professional Services
    • Managed Services
    • License & Maintenance Services

• Deployment Model Outlook (Revenue, USD Billion; 2022-2032)
  • On-premise
  • Cloud
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

• Organization Size Outlook (Revenue, USD Billion; 2022-2032)
  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

• Application Outlook (Revenue, USD Billion; 2022-2032)
  • Application Performance Management (APM)
  • Infrastructure Management
  • Network and Security Management
  • Real-Time Analytics
  • Business Process Automation
  • Others

• End-Use Size Outlook (Revenue, USD Billion; 2022-2032)
  • IT and Telecommunications
  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare
  • Retail and E-Commerce
  • Media and Entertainment
  • Manufacturing
  • Power and Energy
  • Government
  • Others

• Regional Outlook (Revenue, USD Billion; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Taiwan
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the AI in IT Operations (AIOps) Market report