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Leading Element Driving Change in the Data Observability Market in 2025: Cloud Computing Expansion On Data Management And Monitoring Enhancing Scalability, Security, And Real-Time Insights Driver
Data Observability
The burgeoning of cloud computing is projected to fuel the progress of the data observability market in the future. The provision of computing services like servers, storage, databases, networking, software, and analytics through the internet by cloud computing allows users to leverage shared resources as required, reducing the necessity for managing physical infrastructure. The surge in cloud computing is propelled by scalability, adaptability, and cost-effectiveness, enabling organizations to swiftly adjust to fluctuating demands and maximize their IT resources. Data observability solutions act as a vital component in cloud computing landscapes, offering transparency and command over intricate data streams to ensure real-time precision, efficiency, and conformity. For example, Eurostat, a governmental statistics agency based in Luxembourg, disclosed in December 2023 that approximately 42.5% of European Union businesses procured cloud computing services mainly for email, file storage, and office software in 2023. This shows a 4.2 percentage point rise compared to 2021. Thus, the proliferation of cloud computing is steering the advancement of the data observability market.
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How will the growth rate of the data observability market shape industry trends by 2034?
The market size of data observability has seen a rapid uptick in the previous years, and is set to climb from $2.53 billion in 2024 to $2.94 billion in 2025, with a compound annual growth rate (CAGR) of 16.1%. Factors contributing to this significant growth during the historical period include escalating data-driven decision-making, the increasing volume of data, the development of cloud-based solutions, the growth in the use of artificial intelligence and machine learning technologies, as well as the advent of big data analytics solutions.
Forecast revelations hint at an expedited expansion of the data observability market in the imminent years, soaring to $5.27 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 15.8%. This surge during the projection period can be ascribed to the escalating demand for superior compliance solutions, an exponential rise in the quest for real-time data insights, a magnified focus on data quality management, an increasing recognition of automated monitoring solutions, and a burgeoning need for ameliorated visualization tools. Some prevailing trends during the predicted period encompass progressive strides in real-time monitoring, automated anomaly detection, accepting data lineage visualization, incorporating AI-driven insights, improving data quality management, fusion with cloud platforms, and enhancement in alerting systems.
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What trends are poised to drive the future success of the data observability market?
Primary players in the data observability market are concentrating efforts on technological innovations like the inclusion of artificial intelligence (AI) to improve the precision, productivity, and expandability of data tracking. This enables real-time anomaly identification, predictive intelligence, and automatic resolution of data-related problems across intricate systems. AI involves developing machines capable of executing tasks that typically need human intelligence, such as learning, problem-solving, and decision-making, with the capability to enhance through experience. To illustrate, in May 2024, Riverbed Technology LLC, an American IT firm, unveiled its AI-integrated riverbed platform. The platform is engineered to enhance digital experiences by utilizing data and AI to boost observability and intelligence. Some of its prominent features are a single agent for easy deployment across IT platforms, the riverbed data storage for data processing without requiring separate repositories, and improved observability by amalgamating data from networks, applications, and cloud architectures. In addition, the platform offers AIOps for automated analysis and resolution, with fresh solutions such as Aternity mobile for mobile tracking and NPM+ for monitoring network performance in cloud and zero trust environments.
Which primary segments of the data observability market are driving growth and industry transformations?
The data observability market covered in this report is segmented -
1) By Component: Solution, Services
2) 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 Detection
2) By Services: Consulting Services, Integration And Deployment Services, Support And Maintenance Services
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Which geographical regions are pioneering growth in the data observability market?
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 the data observability market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the data observability market landscape?
Major companies operating 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
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What Is Covered In The Data Observability Global Market Report?
•Market Size Forecast: Examine the data observability market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the data observability market for a structured understanding.
•Key Players Overview: Analyze major players in the data observability market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the data observability market.
•Segment Contributions: Evaluate how different segments drive overall growth in the data observability market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the data observability market.
•Industry Challenges: Identify potential risks and obstacles affecting the data observability market.
•Competitive Landscape: Review strategic developments in the data observability market, including expansions, agreements, and new product launches.
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