This Data Observability Market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.
The data observability market size has grown rapidly in recent years. It will grow from $2.53 billion in 2024 to $2.94 billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth during the historic period can be attributed to the increased demand for data-driven decision-making, the growth in data volume, the expansion of cloud-based solutions, the rise in adoption of artificial intelligence and machine learning technologies, and the emergence of big data analytics solutions.
The data observability market size is expected to rapid growth in the next few years. It will grow to $5.27 billion in 2029 at a compound annual growth rate (CAGR) of 15.8%. The growth during the forecast period can be attributed to the increasing need for improved compliance solutions, rising demand for real-time data insights, a growing focus on data quality management, the rising importance of automated monitoring solutions, and the expanding need for enhanced visualization tools. Key trends in the forecast period include advancements in real-time monitoring, automated anomaly detection, the adoption of data lineage visualization, AI-driven insights, enhanced data quality management, integration with cloud platforms, and advancements in alerting systems.
The expansion of cloud computing is expected to significantly drive the growth of the data observability market in the coming years. Cloud computing provides services such as servers, storage, databases, networking, software, and analytics over the internet, enabling users to access shared resources on demand while reducing the need for physical infrastructure management. This growth in cloud computing is fueled by its scalability, flexibility, and cost efficiency, which allow organizations to quickly adjust to changing demands and optimize their IT resources. Data observability solutions are crucial in cloud computing environments as they offer visibility and control over complex data flows, ensuring real-time accuracy, performance, and compliance. For example, in December 2023, Eurostat, a Luxembourg-based government agency, reported that around 42.5% of European Union businesses purchased cloud computing services in 2023, primarily for email, file storage, and office software. This marked a 4.2 percentage point increase compared to 2021. As a result, the expansion of cloud computing is driving the growth of the data observability market.
Key players in the data observability market are focusing on technological advancements, such as integrating artificial intelligence (AI) into data observability, to improve the accuracy, efficiency, and scalability of data monitoring. This enables real-time anomaly detection, predictive insights, and the automated resolution of data issues across complex systems. AI refers to the development of machines that can perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making, improving over time through experience. For instance, in May 2024, Riverbed Technology LLC, a US-based IT company, launched its AI-powered Riverbed platform, designed to optimize digital experiences by utilizing data and AI for enhanced observability and intelligence. Key features include a unified agent for simplified deployment across IT environments, the Riverbed data store for processing data without separate repositories, and improved observability by integrating data from networks, applications, and cloud infrastructures. The platform also includes AIOps for automated analysis and remediation, as well as new solutions such as Aternity mobile for mobile monitoring and NPM+ for network performance monitoring in cloud and zero-trust environments.
In July 2024, International Business Machines Corporation (IBM), a US-based technology company, acquired StreamSets and webMethods from Software AG for $2.33 billion. This acquisition strengthens IBM's data integration and AI capabilities by enabling real-time data pipelines and enhancing support for hybrid multi-cloud environments. Software AG, a Germany-based technology company, specializes in enhancing data observability, particularly through its DataOps initiatives and IoT data management solutions.
Major players in the data observability market are Alphabet (Google LLC), Microsoft Corporation, International Business Machines Corporation, Amazon Web Services Inc., Splunk Inc., Snowflake Inc., Datadog Inc., Informatica Corporation, Databricks Inc., Dynatrace LLC, Elastic NV, Alteryx Inc., New Relic Inc., TIBCO Software Inc., DataRobot Inc., AppDynamics Inc., Fivetran, Talend S.A., Cribl, Dremio, Acceldata Inc., Astronomer Inc., Monte Carlo Data Inc., DataKitchen, StackState.
North America was the largest region in the data observability market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data observability report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data observability market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Data observability refers to the capability to monitor, track, and understand the health and behavior of data systems by providing comprehensive visibility into the entire data lifecycle. It proactively detects and resolves real-time issues, ensuring data reliability, quality, and performance. Data observability is essential for organizations that depend on data-driven decision-making, as it helps maintain trust in data systems, reduces downtime, and supports the seamless operation of data pipelines.
The primary components of the data observability market are solutions and services. A solution refers to a software or tool designed to meet specific needs, such as monitoring and enhancing data performance. These solutions play a vital role in helping organizations ensure the reliability of their data pipelines. They can be deployed through cloud-based, on-premises, or hybrid models. Data observability solutions are used across various industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecom, government and public sector, energy and utilities, manufacturing, healthcare and life sciences, retail and consumer goods, among other sectors.
The data observability market research report is one of a series of new reports that provides data observability market statistics, including the data observability industry's global market size, regional shares, competitors with a data observability market share, detailed data observability market segments, market trends and opportunities, and any further data you may need to thrive in the data observability industry. This data observability market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The data observability market includes revenues earned by entities by providing services such as root cause analysis, anomaly detection, performance optimization, audit and compliance support, and incident management. The market value includes the value of related goods sold by the service provider or included within the service offering. The data observability market consists of sales of software platforms, monitoring tools, and analytics 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 and 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.
This product will be delivered within 3-5 business days.
The data observability market size has grown rapidly in recent years. It will grow from $2.53 billion in 2024 to $2.94 billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth during the historic period can be attributed to the increased demand for data-driven decision-making, the growth in data volume, the expansion of cloud-based solutions, the rise in adoption of artificial intelligence and machine learning technologies, and the emergence of big data analytics solutions.
The data observability market size is expected to rapid growth in the next few years. It will grow to $5.27 billion in 2029 at a compound annual growth rate (CAGR) of 15.8%. The growth during the forecast period can be attributed to the increasing need for improved compliance solutions, rising demand for real-time data insights, a growing focus on data quality management, the rising importance of automated monitoring solutions, and the expanding need for enhanced visualization tools. Key trends in the forecast period include advancements in real-time monitoring, automated anomaly detection, the adoption of data lineage visualization, AI-driven insights, enhanced data quality management, integration with cloud platforms, and advancements in alerting systems.
The expansion of cloud computing is expected to significantly drive the growth of the data observability market in the coming years. Cloud computing provides services such as servers, storage, databases, networking, software, and analytics over the internet, enabling users to access shared resources on demand while reducing the need for physical infrastructure management. This growth in cloud computing is fueled by its scalability, flexibility, and cost efficiency, which allow organizations to quickly adjust to changing demands and optimize their IT resources. Data observability solutions are crucial in cloud computing environments as they offer visibility and control over complex data flows, ensuring real-time accuracy, performance, and compliance. For example, in December 2023, Eurostat, a Luxembourg-based government agency, reported that around 42.5% of European Union businesses purchased cloud computing services in 2023, primarily for email, file storage, and office software. This marked a 4.2 percentage point increase compared to 2021. As a result, the expansion of cloud computing is driving the growth of the data observability market.
Key players in the data observability market are focusing on technological advancements, such as integrating artificial intelligence (AI) into data observability, to improve the accuracy, efficiency, and scalability of data monitoring. This enables real-time anomaly detection, predictive insights, and the automated resolution of data issues across complex systems. AI refers to the development of machines that can perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making, improving over time through experience. For instance, in May 2024, Riverbed Technology LLC, a US-based IT company, launched its AI-powered Riverbed platform, designed to optimize digital experiences by utilizing data and AI for enhanced observability and intelligence. Key features include a unified agent for simplified deployment across IT environments, the Riverbed data store for processing data without separate repositories, and improved observability by integrating data from networks, applications, and cloud infrastructures. The platform also includes AIOps for automated analysis and remediation, as well as new solutions such as Aternity mobile for mobile monitoring and NPM+ for network performance monitoring in cloud and zero-trust environments.
In July 2024, International Business Machines Corporation (IBM), a US-based technology company, acquired StreamSets and webMethods from Software AG for $2.33 billion. This acquisition strengthens IBM's data integration and AI capabilities by enabling real-time data pipelines and enhancing support for hybrid multi-cloud environments. Software AG, a Germany-based technology company, specializes in enhancing data observability, particularly through its DataOps initiatives and IoT data management solutions.
Major players in the data observability market are Alphabet (Google LLC), Microsoft Corporation, International Business Machines Corporation, Amazon Web Services Inc., Splunk Inc., Snowflake Inc., Datadog Inc., Informatica Corporation, Databricks Inc., Dynatrace LLC, Elastic NV, Alteryx Inc., New Relic Inc., TIBCO Software Inc., DataRobot Inc., AppDynamics Inc., Fivetran, Talend S.A., Cribl, Dremio, Acceldata Inc., Astronomer Inc., Monte Carlo Data Inc., DataKitchen, StackState.
North America was the largest region in the data observability market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data observability report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data observability market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Data observability refers to the capability to monitor, track, and understand the health and behavior of data systems by providing comprehensive visibility into the entire data lifecycle. It proactively detects and resolves real-time issues, ensuring data reliability, quality, and performance. Data observability is essential for organizations that depend on data-driven decision-making, as it helps maintain trust in data systems, reduces downtime, and supports the seamless operation of data pipelines.
The primary components of the data observability market are solutions and services. A solution refers to a software or tool designed to meet specific needs, such as monitoring and enhancing data performance. These solutions play a vital role in helping organizations ensure the reliability of their data pipelines. They can be deployed through cloud-based, on-premises, or hybrid models. Data observability solutions are used across various industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecom, government and public sector, energy and utilities, manufacturing, healthcare and life sciences, retail and consumer goods, among other sectors.
The data observability market research report is one of a series of new reports that provides data observability market statistics, including the data observability industry's global market size, regional shares, competitors with a data observability market share, detailed data observability market segments, market trends and opportunities, and any further data you may need to thrive in the data observability industry. This data observability market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The data observability market includes revenues earned by entities by providing services such as root cause analysis, anomaly detection, performance optimization, audit and compliance support, and incident management. The market value includes the value of related goods sold by the service provider or included within the service offering. The data observability market consists of sales of software platforms, monitoring tools, and analytics 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 and 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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Data Observability Market Characteristics3. Data Observability Market Trends and Strategies4. Data Observability Market - Macro Economic Scenario Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Data Observability Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Data Observability Market34. Recent Developments in the Data Observability Market
5. Global Data Observability Growth Analysis and Strategic Analysis Framework
6. Data Observability Market Segmentation
7. Data Observability Market Regional and Country Analysis
8. Asia-Pacific Data Observability Market
9. China Data Observability Market
10. India Data Observability Market
11. Japan Data Observability Market
12. Australia Data Observability Market
13. Indonesia Data Observability Market
14. South Korea Data Observability Market
15. Western Europe Data Observability Market
16. UK Data Observability Market
17. Germany Data Observability Market
18. France Data Observability Market
19. Italy Data Observability Market
20. Spain Data Observability Market
21. Eastern Europe Data Observability Market
22. Russia Data Observability Market
23. North America Data Observability Market
24. USA Data Observability Market
25. Canada Data Observability Market
26. South America Data Observability Market
27. Brazil Data Observability Market
28. Middle East Data Observability Market
29. Africa Data Observability Market
30. Data Observability Market Competitive Landscape and Company Profiles
31. Data Observability Market Other Major and Innovative Companies
35. Data Observability Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Data Observability Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on data observability 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.
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Description
Where is the largest and fastest growing market for data observability? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The data observability market global report 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 market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include: the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Component: Solution; Services2) by Deployment Model: Cloud-Based; on-Premises; Hybrid
3) by End-User: Banking, Financial Services, and Insurance (BFSI); Information Technology (IT) and Telecom; Government and Public Sector; Energy and Utility; Manufacturing; Healthcare and Life Science; Retail and Consumer Goods; Other End Users
Subsegments:
1) by Solution: Data Monitoring; Data Profiling; Data Lineage Tracking; Anomaly Detection2) by Services: Consulting Services; Integration and Deployment Services; Support and Maintenance Services
Key Companies Profiled: Alphabet (Google LLC); Microsoft Corporation; International Business Machines Corporation; Amazon Web Services Inc.; Splunk Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
The companies featured in this Data Observability market report include:- Alphabet (Google LLC)
- Microsoft Corporation
- International Business Machines Corporation
- Amazon Web Services Inc.
- Splunk Inc.
- Snowflake Inc.
- Datadog Inc.
- Informatica Corporation
- Databricks Inc.
- Dynatrace LLC
- Elastic NV
- Alteryx Inc.
- New Relic Inc.
- TIBCO Software Inc.
- DataRobot Inc.
- AppDynamics Inc.
- Fivetran
- Talend S.A.
- Cribl
- Dremio
- Acceldata Inc.
- Astronomer Inc.
- Monte Carlo Data Inc.
- DataKitchen
- StackState
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 175 |
| Published | May 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 2.94 Billion |
| Forecasted Market Value ( USD | $ 5.27 Billion |
| Compound Annual Growth Rate | 15.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 26 |
