Algorithmic IT Operations (AIOps) Global Market Report 2025

The algorithmic IT operations (AIOps) market size has grown exponentially in recent years. It will grow from $13.16 billion in 2024 to $15.96 billion in 2025 at a compound annual growth rate (CAGR) of 21.3%. The growth in the historic period can be attributed to rising adoption of cloud computing, increasing need for real-time IT monitoring, expansion of digital transformation initiatives, growing demand for automation in incident management, and the proliferation of hybrid and multi-cloud environments.

The algorithmic IT operations (AIOps) market size is expected to see exponential growth in the next few years. It will grow to $34.13 billion in 2029 at a compound annual growth rate (CAGR) of 20.9%. The growth in the forecast period can be attributed to rising demand for autonomous and self-healing IT systems, increasing need for proactive issue resolution, greater focus on operational efficiency and cost reduction, and expanding adoption of observability and analytics platforms. Key trends in the forecast period include advancements in generative AI and automation technologies, growing research and development in intelligent analytics, innovations in predictive maintenance and anomaly detection, technological progress in real-time data processing, and increasing use of agentic AI for autonomous IT operations.

The rising adoption of cloud-based services is expected to drive the growth of the algorithmic IT operations (AIOps) market going forward. Cloud computing services deliver computing resources such as storage, servers, and software over the internet, providing scalable, on-demand access without the need for physical infrastructure. This adoption is fueled by scalability and flexibility, allowing businesses to adjust resources on demand without significant upfront costs. Algorithmic IT operations (AIOps) support cloud adoption by enabling intelligent automation, real-time analytics, and proactive issue resolution. They optimize performance, reduce downtime, and enhance scalability, making cloud environments more reliable and efficient for businesses. For example, in December 2023, Eurostat, a Luxembourg-based government agency, reported that 45.2% of enterprises purchased cloud computing services. Therefore, the increasing adoption of cloud-based services is driving the growth of the algorithmic IT operations (AIOps) market.

Key companies in the algorithmic IT operations (AIOps) market are focusing on developing advanced platforms, such as predictive and agentic AI systems, to enhance efficiency, digital resilience, and reduce manual effort and service disruptions. Predictive and agentic AI refers to advanced systems that autonomously anticipate, diagnose, and resolve IT issues before they affect business operations. For instance, in April 2025, Riverbed Technology Inc., a US-based IT solutions company, launched a next-generation AIOps platform integrating predictive, agentic, and generative AI capabilities. This platform transforms IT operations from reactive to predictive by providing full-stack observability, automated anomaly detection, and intelligent incident resolution across networks, applications, and user experiences. It leverages advanced telemetry analytics and AI-driven insights to deliver real-time visibility and proactive performance optimization. The platform simplifies complex IT operations, drives data-driven decision-making, and supports the transition toward autonomous, self-healing IT environments.

In December 2024, NVIDIA Corporation, a US-based technology company, acquired Augtera Networks Inc. for an undisclosed amount. Through this acquisition, NVIDIA aims to strengthen its AI-driven network management and automation capabilities by integrating Augtera’s AIOps technology into its networking and data center platforms. Augtera Networks Inc. is a US-based algorithmic IT operations (AIOps) company specializing in AI-powered network monitoring, anomaly detection, and automated incident management.

Major players in the algorithmic it operations (aiops) market are Microsoft Corporation, International Business Machines Corporation, Cisco Systems Inc., Broadcom Inc., VMware Inc., ServiceNow Inc., Splunk Inc., BMC Software Inc., Datadog Inc., Dynatrace Inc., Elastic N.V., New Relic Inc., SolarWinds Corporation, PagerDuty Inc., LogicMonitor Inc., ScienceLogic Inc., Moogsoft Inc., Zenoss Inc., BigPanda Inc., and StackState B.V.

North America was the largest region in the algorithmic IT operations (AIOps) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in algorithmic IT operations (AIOps) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the algorithmic IT operations (AIOps) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The algorithmic IT operations (AIOps) market research report is one of a series of new reports that provides algorithmic IT operations (AIOps) market statistics, including algorithmic IT operations (AIOps) industry global market size, regional shares, competitors with an algorithmic IT operations (AIOps) market share, detailed algorithmic IT operations (AIOps) market segments, market trends and opportunities, and any further data you may need to thrive in the algorithmic IT operations (AIOps) industry. This algorithmic IT operations (AIOps) 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.

Algorithmic IT operations (AIOps) refers to the use of artificial intelligence, machine learning, and advanced analytics to automate and enhance IT operations. It enables the detection, diagnosis, and resolution of IT issues in real time by analyzing large volumes of operational data. This approach improves system performance, reduces downtime, and supports proactive incident management through intelligent automation and actionable insights.

The key offerings of algorithmic IT operations (AIOps) are platforms and services. Platforms are integrated software systems that combine machine learning, big data analytics, and automation tools to manage and optimize IT operations. They are deployed through on-premises, cloud-based, and hybrid models and are applied in IT operations, development and operations (DevOps), security operations, and business process management, serving end users including large enterprises, small and medium enterprises (SMEs), and managed service providers (MSPs).

The algorithmic IT operations (AIOps) market consists of revenues earned by entities by providing services such as real-time data analytics, anomaly detection, automated root cause analysis, performance optimization, and predictive issue resolution. The market value includes the value of related goods sold by the service provider or included within the service offering. The algorithmic IT operations (AIOps) market also includes sales of anomaly detection systems, log management software, performance monitoring solutions, and cloud management platforms. 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.

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