Data Observability Market Size to Surpass USD 6.23 Billion by 2032, Owing to the Increasing Need for Real-Time Data Monitoring Solutions | SNS Insider

GlobeNewswire On April 21, 2025 19:00 IST

The Data Observability Market is rapidly gaining traction as organizations are placing more emphasis on the integrity, availability, and performance of their data systems.

Pune, April 21, 2025 (GLOBE NEWSWIRE) — Data Observability Market Size Analysis:

“The Data Observability Market size was USD 2.33 billion in 2023 and is expected to reach USD 6.23 billion by 2032, growing at a CAGR of 11.6% over the forecast period of 2024-2032.”

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Major Players Analysis Listed in this Report are:

Acceldata (Acceldata Platform, Acceldata Data Observability)
AppDynamics (AppDynamics Performance Monitoring, AppDynamics Business iQ)
Datadog (Datadog Log Management, Datadog Cloud Security Platform)
Dynatrace LLC (Dynatrace Smart Cloud Monitoring, Dynatrace AI-Powered Observability)
Hound Technology, Inc. (Hound Platform, Hound Data Solutions)
International Business Machines Corporation (IBM) (IBM Watson Studio, IBM Observability Platform)
Microsoft (Microsoft Azure Monitor, Microsoft Power BI)
Monte Carlo (Monte Carlo Data Observability, Monte Carlo Data Quality Management)
New Relic, Inc. (New Relic One, New Relic Infrastructure Monitoring)
Splunk Inc. (Splunk Enterprise, Splunk Observability Cloud)

Data Observability Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 2.33 Billion
Market Size by 2032	US$ 6.23 Billion
CAGR	CAGR of 11.6 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Regional Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Key Growth Drivers	• Growing Need for Real-Time Data Monitoring Solutions to Ensure Data Integrity and Performance Boosts Data Observability Market Growth

Key to Managing Complex Data Systems as Demand for Real-Time Insights Soars

The Data Observability Market is a fast-growing niche within the larger data management and analytics space. With more sectors turning to data to inform decision-making, companies are looking for technologies that can ensure the health of their data infrastructures. Data observability technologies give insights into data performance, availability, and quality, allowing organizations to see, track, and fix problems in real time. With the data volume, variety, and velocity still accelerating, it is essential to maintain control over these complexities.

The U.S. Data Observability Market was valued at USD 0.71 billion in 2023 and is projected to reach USD 1.71 billion by 2032, with a CAGR of 10.43% during the forecast period from 2024 to 2032.

The U.S. Data Observability Market is witnessing strong growth, led by an increasing focus on monitoring and maintaining the quality of data within organizations. With data systems growing increasingly complex and the need for real-time insights increasing, organizations across industry verticals are increasingly turning to advanced observability solutions. These solutions are critical for guaranteeing data integrity, improving performance, and enhancing decision-making. With the continuous evolution of data-driven strategies, the need for comprehensive data observability solutions will increase, driving growth in the market in the coming years.

By Component, Solution Segment Dominates Data Observability Market, While Services Segment Poised for Rapid Growth

The Solution segment dominated the Data Observability Market in 2023 with a market share of 62%. This is because of the rising need for end-to-end, full-stack monitoring solutions. Vendors such as Datadog and Splunk have achieved a great deal of progress in building observability tools for cloud infrastructures, which utilize machine learning to identify and correct data issues automatically. This has led to the mass adoption of observability solutions as digital transformation programs keep expanding in various industries. The Services segment, however, will grow at the maximum CAGR of 12.5% over the forecast period. The need for implementation, consulting, and managed services is increasing as companies look for the guidance of experts to implement data observability tools.

By Deployment, Public Cloud Dominates Data Observability Market, While Private Cloud Poised for Rapid Growth

The Public Cloud segment has the largest revenue share in 2023. Cloud platforms such as AWS, Microsoft Azure, and Google Cloud offer the scalability and flexibility required for data observability solutions. These cloud platforms are being more and more integrated with advanced AI and machine learning tools to enhance observability functionalities. Private Cloud segment will have the highest growth rate over the forecast period because companies that care about data privacy and regulatory issues are looking for more secure and controlled environments to host their observability solutions.

By End-Use, BFSI Sector Dominates Data Observability Market, While IT & Telecom Poised for Strong Growth

The BFSI industry had the highest market share in 2023 at 32% of total revenue. Data observability tools are gaining popularity among financial institutions to increase data quality, compliance with regulation, and avoid fraud. The complexity of transactions is on the rise, making data system health very important for this industry. Conversely, IT & Telecom industry is expected to see the maximum growth rate of 12.6% over the forecast period. Owing to the booming digital transformation and rising data traffic, the IT and telecom industries are significantly investing in data observability tools in order to enhance network performance and guarantee the continuity of services.

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Dispatch Console Market Segmentation:

By Component

Solutions
Services

By Deployment

Public Cloud
Private Cloud

By End-use

BFSI
IT & Telecom
Government & Public Sector
Energy & Utility
Manufacturing
Healthcare & Life Science
Retail & Consumer Goods
Others

North America Dominates Data Observability Market, While Asia Pacific Emerges as Fastest-Growing Region

North America led the Data Observability Market in 2023 with a predicted market share of more than 43%. Its leadership has been driven by its high penetration of cutting-edge technologies, together with the major presence of dominant companies like Splunk, Datadog, and New Relic. The dominant companies have unveiled innovative offerings that enhance monitoring and troubleshooting abilities for data. Also, the robust regulatory scenario in the U.S. and Canada, especially regarding data security and privacy, has further pushed the implementation of data observability solutions.

The Asia Pacific region is the most rapidly growing in the Data Observability Market with a forecast CAGR of 12.9% during the forecast period. As companies in these nations digitize, the need for observability solutions to maintain the availability, quality, and performance of their data is vital. Additionally, the emergence of industries such as e-commerce, fintech, and cloud computing is driving the use of data observability solutions in the region.

Recent Developments

• In March 2024, AppDynamics enhanced its platform’s observability capabilities by integrating advanced AI-driven insights, enabling organizations to proactively identify and address issues across their entire technology stack. This integration ensures quicker resolution of data-related issues, promoting business continuity.

• In 2024, Dynatrace launched a next-generation version of its observability platform, incorporating deeper AI and machine learning features to improve root cause analysis. This update will optimize data flows and help enterprises predict and resolve issues before they impact business operations, marking a significant step forward in observability solutions.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trend Reporting

6. Competitive Landscape

7. Data Observability Market Segmentation, By Component

8. Data Observability Market Segmentation, By Deployment

9. Data Observability Market Segmentation, By End-Use

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

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