Deep Observability Market Predictions for 2023

Deep Observability Market to Grow over 50 Percent Y/Y and Approach $500M in 2023

Enterprises enter 2023 with several unique challenges that will put NetOps, DevOps, and SecOps front and center. Almost all enterprises operate in a hybrid and multi-cloud world. During 2023, they will adjust workloads and employees as supply chains return to normal and organizations move workloads to where they want them to be located, not where they had to deploy during the COVID-19 pandemic due to resource limitations. 

At the same time, enterprises realize that AI will be highly disruptive to almost every aspect of their business over the next three to five years. We project that during the decade, the most significant verticals will go through two AI digitization efforts to stay relevant because of AI. Enterprises will also increasingly rely on AI to help with their networking needs.

Deep observability will play an essential role in 2023 as enterprises look toward this technology to help democratize the NetOps, DevOps, and SecOps silos and to get the needed observability data that sits inside hybrid-cloud applications. Enterprises need to know what each packet is, extract Layer 7 app- and security-related metadata from that packet, and see if there is an unknown security hole in the application.

During 2023, we expect many enterprises to spend more on deep observability within existing applications and expand further into new workloads. At the same time, we see a strong appetite for a consumption-based (as-a-Service) model.

In terms of features, we expect more feature introductions in 2023. For example, we can expect deep observability to embrace AI directly in the offerings and as a dataset to larger AI models. In addition, we expect vendors to rapidly enhance their cloud offerings (GCP, AWS, Azure cloud) and encryption support and roll out new features.

The deep observability market thrived in 2022. While we are still finalizing our 4Q22 numbers, it looks like the category easily exceeded $200M, and Gigamon is the largest vendor in this segment. For 2023, we expect the market to grow over 50 percent Y/Y and approach $500M. Additionally, we expect the deep observability market to grow at over a 60 percent CAGR and exceed $2B by 2026.

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