Global Network Observability Market 2025 – 2034

Reports Description

As per the Network Observability market analysis conducted by the BRI Team, the global Network Observability market is expected to record a CAGR of 10.8% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 2.9 billion. By 2034, the valuation is anticipated to reach USD 6.9 billion.

Overview

The unrelenting digitization, cloud modernization, and open API network trends are driving the Network Observability market in the world more than ever before. State-of-the-art automated network observation, fault tolerance, traffic analytics and compliance management suite on the IT, telecom, cloud and enterprise systems via real-time data exchange with unparalleled security and access controls.

The AI systems also automate monitoring, predictive maintenance, operation efficiencies, and network performance by reducing downtimes and enhancing anomaly detection, root-cause analysis and predictive maintenance. Network Observability Platforms raise the operational cost savings and enterprise agility through the integration with cloud analytics to improve the security compliance and network resiliency, as well as scalability.

Report highlights

• North America led the network observability market with a 41.5% market share in 2035.

• Asia Pacific is expected to expand at the fastest CAGR of 11% between 2025 and 2035.

• By component, the solutions/platforms segment led the network observability market, capturing around 68.1% of the market share in 2025.

• By component, the services (consulting, implementation, and managed) segment is expected to grow at the fastest CAGR of 10.5% between 2025 and 2035.

• By deployment mode, the on-premises segment dominated the market with a share of 42% in 2025, driven by data sovereignty requirements, legacy network infrastructure, and security concerns among large enterprises.

• By deployment mode, the cloud-based network observability segment is projected to expand at the highest CAGR of 11.5% during 2025–2035.

• By organization size, large enterprises accounted for approximately 46.8% of the market share in 2025, supported by complex multi-cloud networks, high traffic volumes, and the need for real-time visibility and performance assurance.

• By organization size, the small & medium enterprises (SMEs) segment is anticipated to grow at the fastest CAGR of 11% between 2026 and 2035.

• By application, the performance monitoring segment held the largest market share of 43.8% in 2025.

• By application, the security monitoring/compliance segment is expected to register strong growth during the forecast period, driven by rising cyber threats, regulatory requirements, and increased adoption of zero-trust network architectures.

Key Growth Drivers

Network Observability (PAS) Market Trends have tremendous growth opportunities due to several reasons:

• Global Expansion and Strategic Partnerships Among Network Observability Providers: Cisco, Dynatrace, Splunk, SolarWinds, and Riverbed – the industry frontrunners and partners of numerous cloud suppliers, IT service firms, and corporate customers, aim to offer full observability ecosystems in 2023–2026. More automated real-time reporting tools, predictive analytics, and integrated visibility to the networks enhance observability across the infrastructure and provide the customers with full control of their systems. As an example, Cisco has reported a customer base of 800,000+ and reported that AppDynamics and ThousandEyes have been integrated into the multicloud and enterprise networks to provide unified and real-time visibility.

• Surge of AI-Enabled Network Observability Platforms: Network operations are being revolutionized by integrating AI and machine learning for automated anomaly detection, root-cause analysis, predictive performance optimization, and threat detection. Explainable AI (XAI) and machine learning deconstruct network processes and dynamically divide IT resources to address anomalies and system failures.

• The Stratum Levels of Cloud-Based Platforms and APIs First Framework: API compliant and cloud-native platforms of a particular class will offer real-time observability, automated incident management, and linkage to enterprise IT, SaaS, and cloud systems. Examples include Cisco, Dynatrace, and Splunk, which have used API-first architecture that offers interoperability and data security and real-time visibility in the multi-cloud, hybrid, and on-prem networks. As an example, Splunk can handle petabyte machine data serving 100+ REST APIs and processes per day to provide real-time machine observability and interoperability in hybrid, multicloud, and on-prem IT environments.

Impact Factors

• Global Expansion Operational Hurdles: The global expansion of network observability vendors in mid-2025 was stalled because of the latest data residency regulations, widely dispersed cloud access, and legacy IT infrastructure. Vendors who operated without localized cloud solutions and data privacy regulatory partnerships faced backlash from their clients. Organizations demand real-time visibility of the network, with the ability to take action on diverse networks instantaneously. Vendors who did not provide necessary resources to meet these demands lost a large number of enterprise clients and also increased their global deployment.

• Competition Deepens with Limited Product Differentiation: The competition in the Network Observability segment of IT and telecom has become hyper-competitive. Vendors who have generative AI and provide end-to-end automation and self-improvement in their features are also hyper-competitive. The most vulnerable vendors in the industry are those that lack cloud observability, flexible API, AI-powered real-time visibility, and closed loop monitoring systems.

Opportunity

• Potential in Developing Regions: The digitization of Southeast Asia, Africa, the Middle East, and Eastern Europe is encouraging the adoption of cloud observability technologies. Enterprises and telecom providers are using modular, API-first observability tools for automated fault probing, performance analytics across multiple sites, and security compliance. Network Global Observability Companies in Eastern Europe and Africa are Providing Scalable, Interoperable Network System Observability Solutions to Telecoms and Enterprises.

• AI Automation and Predictive Insights: The contribution of Network Observability’s AI and ML is Predictive analytics for automated root cause anomaly reporting. Communication Networks Adaptive observability of the automated in-built systems has made it possible for organizations to identify network lapses and rectify them promptly, enhance unimpeded access, and perform periodic security monitoring. Enterprises aiming to enhance operational performance continue to select other platforms. These platforms are specifically focused on combining generative AI and explainable machine learning approaches.

Category Wise Insights

By Component

• Solutions / Platforms: These are software systems providing complete visibility across networks. They enable real-time monitoring, traffic analysis, anomaly detection, root-cause detection, and optimization of performance. Solutions/platforms connect with cloud services, on-premises infrastructure, and multi-vendor environments to deliver a unified view of networks and dashboards for health, uptime, and compliance. They do away with manual interventions and enhance automated decision-making among IT teams.

• Consulting Services: Help companies to develop observability frameworks that capture business interests, regulation frameworks, and the concentration and complexity of their networks.

• Implementation Services: These services deploy and integrate observability platforms with the clients’ IT systems and frameworks to guarantee the right configurations, onboarding, and testing are completed.

• Managed Services: These services offer continuous monitoring, management of alerts, predictive analytics, and troubleshooting to clients. Providers remain proprietors of the infrastructure and are also tasked with maintaining optimal performance of the infrastructure so that enterprises can focus on their strategic IT initiatives.

By Deployment Mode 

• On-Premises:These solutions are deployed in an organization’s own data centers. They offer full control over sensitive network data, internal processes, and security.

• Cloud: Observability characterized by the cloud allows for the greatest smoothness of use in terms of quick implementation and self-service installation, self-initiated renewals, and real time updates. Observability characterized by the cloud allows for versatility, no over-occupancy of the infrastructure, and real time monitoring. Cloud infrastructure creates environments for predictive analytics and allows for multi-faceted, geographically dispersed real time analytics at a reasonable cost. Furthermore, cloud environments enable network data to be accessed remotely and at no additional cost.

By Organization Size

• Large Enterprises: Large corporations use enterprise-grade, network wide, global observability solutions, in real time, and across multiple geographically dispersed locations, to seamlessly streamline the network to instantaneous global operational capability. These solutions, instantaneously and in real time, seamlessly provide multiple advanced instant analytics, deep learning, assisted predictive capacity planning, real time multi-tiered compliance, and monitoring at instantaneous global scales.

• Small & Medium Enterprises (SMEs): For operational efficiency and to maintain security and compliance, most network observability solutions provide automated resource optimization to streamline the performance of network analyzers. In most cases, this enables the flexibility desired to instantaneously and economically expand network operational capability.

By Application / Functionality

• Performance Monitoring: Monitors real-time network throughput, network utilization, and overall network status. Alerts the user to network issues and service level performance relative to the defined SLA and/or performance target to support target performance issues.

• Security Monitoring / Compliance: Prevention of use of the system by non-owners and securing lateral movement of malware, policy violations, and other behaviors deemed suspect. Compliance with expected behaviors.

• Fault Management: This refers to the automation of detection, logging, alerting, and root-cause analysis of failures within the network. This allows the business to sustain operational flow by reducing the mean time to resolution (MTTR) and downtime.

• Network Optimization: Provides insights on traffic flow, utilization of resources, and overall efficiency of the network. Improves overall network performance through capacity planning, load balancing, and optimal resource allocation.

• Others (e.g. Capacity Planning, SLA Management): Facilitates the predictive assessment of network growth, monitoring and the performance oversight of service-level agreements, active resource management, and the facilitation of operational and business goals.

Historical Context

Digital transformation of Network observability can deliver a faster and more resilient as well as a complete and integrated network ecosystem to organizations through real-time monitoring, AI-driven analytics, and automated incident management.

Effects of the Current Trade Regulations

The global adoption of Network Observability solutions is being influenced by international trade regulations, data sovereignty requirements, and restrictions of cross-border data flows across North America, Europe and Asia-Pacific. These regulations impact decisions related to the placement of network monitoring, host cloud services, APIs, and sensitive telemetry or network performance data. Moreover, cloud infrastructure, network surveillance software, and other tool tariffs are also forcing businesses to redesign digital networks to strike a balance between compliance and efficiency.

The interdependence of cross-border trade systems is an essential factor that causes the Network Observability vendors to offshore the software development, analytics and back-end operations into the economically favorable and trade-enabling nations like India, Vietnam, the Philippines, Mexico and Eastern Europe. These are areas where they offer skilled labor, cheaper infrastructure and less restrictive digital trade laws. As such, vendors will be able to provide Network Observability solutions at reasonable costs, ease integration with enterprise IT systems, and align with local operation and cybersecurity requirements.

International regulatory complexity has also caused network monitoring system innovations, such as automated anomaly detection, AI-based root-cause analysis, security compliance monitoring, and centralized visibility dashboards. Organizations are introducing cloud-native observability platforms and streamlining data flows to guarantee regulatory compliance and to provide secure, scalable and real-time network management. These improvements enhance visibility, uniform control and better governance throughout the network operations in the global environment.

Report Scope

Feature of the Report	Details
Market Size in 2025	USD 2.9 billion
Projected Market Size in 2034	USD 6.9 billion
Market Size in 2024	USD 2.8 billion
CAGR Growth Rate	10.8% CAGR
Base Year	2024
Forecast Period	2025-2034
Key Segment	By Component, Deployment Mode, Organization Size, Application and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Regional Perspective

North America: North America, other than having the largest share of the market, the early deployment of innovative technologies within the regions, IT infrastructures, cloud services, and cyber regulations across the markets has bolstered the market Network Observability. Organizations implement automated monitoring workflows, near-real time analytics, and AI for efficient energy deployment across the networks to detect business-compliance-policy-standards deviations and policy non-compliances.

• US: In the United States, observatory platforms in the cloud are resourceful in the supervision and monitoring of multi- and hybrid cloud networks. Also, the observatory platforms are useful in the provocation and automation of fault detections and in the security compliances of the networks. At optimum net performances, resource-rich predictive analytics and AI root and cause fault identification enhance the net performances.

• Canada: Canada, Enterprises adopt hybrid deployments for on-premise control alongside cloud deployment facilitation. The automated control of the networks and the monitoring of performances and compliance with security regulations in the multi-locational control networks enhance downtime visibility and support the regulatory requirements and compliances.

• Mexico: Mexico, modernizing the management of networks in organizations is, of late, using cloud observatory technologies. AI in network control for operational efficiency optimization, fault predictive monitoring and analytics in corporate and telecom networks is improving.

Europe: In Europe, Organizations in Europe are attentive and cautious to Network Observability solutions adopted and deployed within the legal frameworks of the General Data Protection Regulation, Cyber security EU Directives and provided to the business sector. Multi-tenant cloud and observatory Network platforms for automated monitoring and detection of anomalies, predictive analytics, and performance visibility across sites are efficient and useful.

• Germany: Companies provide AI-enabled observability to manage networks in multiple locations and automate the identification of anomalies. For these companies, predictive analytics serves IT governance and risk mitigation. These tools sustain operational flow and network compliance.

• United Kingdom: Companies in the United Kingdom provide cloud-first observability solutions that include automated real-time monitoring, security fault diagnosis, and compliance monitoring. These solutions also offer end-to-end integration with current IT and ERP systems.

• France: French companies utilize network monitoring tools with automated alerting and compliance monitoring. These tools also utilize predictive analytics and artificial intelligence to enhance system transparency and speed of problem resolution.

Asia-Pacific: The rapid adoption of technologies is the reason why Asia and the Pacific is the fastest growing region for Network Observability. Countries in the region have recently experienced strong digital transformations and the adoption of cloud computing alongside the internet, telecommunications, and financial software technologies. AI is used to provide flexible, cloud-based solutions that improve monitoring, analytics, and incident management.

• China: Companies use AI observability platforms to automate the detection of faults and analyze network performance in real-time as a means of risk mitigation.

• India: Cloud-first networks that monitor real-time performance, automate fault detection, and ensure compliance with regulations have been adopted by Indian companies. Large companies and Small-Medium Enterprises are both supported by these systems.

• Japan: Japanese businesses enhance the efficiency and transparency of their legacy networks by integrating them with AI-enabled oversight systems on the Japanese efficiency/transparency and J-SOX and IT governance compliance via the merging of complex networks into one system to enable sight and automated report generation.

LAMEA (Latin America, the Middle East, and Africa): Within LAMEA, the adoption of Digital Network Observability (DNO) solutions have been propelled by the expanded accessibility of digital banking, the telecom sector, and cloud infrastructure. Predictive fault resolution and compliance pivot new layers of network monitoring.

• Brazil: Observability solutions within the cloud enhance the operational function of the network by providing and implementing automated alert systems and predictive analytics to multiply efficiency.

• Saudi Arabia: Saudi Arabia features an added level of compliance monitoring to control governance gaps with the private sector’s SAMA and IT networks in place while the networks provide automated fault resolution and event monitoring with the IT networks in place.

• South Africa: Within the region, cloud-enabled monitoring systems provide relatively large businesses and SMEs with transparency on network efficiencies while improving on-fault detection and efficient networks.

Key Developments

• In March 2025, SolarWinds, the leading IT management software company, purchased Squadcast to add to its portfolio, integrating observability and incident response on one platform. It leads to the acquisition of intelligent incident management, on-call alerting centralization, automation of response, and workflows of Site Reliability Engineering, which will reduce by 68 percent mean time to remediation (MTTR) and save customers numerous costs and work hours. The action will enable IT teams to work more effectively and navigate hybrid cloud and operational resilience with AI-driven alert isolation, integrated collaboration, and improved incident resolution tools, all of which are immediately available to organizations of any scale.

Leading Players

The Network Observability market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• Cisco Systems
• IBM Corporation
• Broadcom (including CA Technologies / AppNeta)
• Dynatrace
• Splunk Inc.
• SolarWinds
• Riverbed Technology
• Gigamon
• Kentik
• Nokia (Deepfield)
• Juniper Networks
• Arista Networks
• New Relic
• NETSCOUT Systems
• LogicMonitor
• Others

The Global Network Observability market is growing due to organizations, enterprises, telecom operators, and cloud service providers using cloud-native observability platforms with secure API integration and AI automated technologies. These platforms help organizations cloud, hybrid, and on-premise multi-cloud environments with automated and complete network monitoring, performance tracking, and proactive fault detection. Users gain insights into network health and improve real-time traffic flow. There is increased automation in the network observability processes which leads to higher operational efficiency of the overall system.

The Network Observability Market is segmented as follows:

By Component

• Solutions/Platforms
• Services (consulting, implementation, managed)

By Deployment Mode

• On-Premises
• Cloud

By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Application

• Performance Monitoring
• Security Monitoring / Compliance
• Fault Management
• Network Optimization
• Others (e.g. capacity planning, SLA management)

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America

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