ITOps Market Poised for Double-Digit Growth as AI Reshapes Industry, Raymond James By Investing.com
Investing.com — The IT operations (ITOps) market, once considered a cost center limited to back-office functions, is undergoing a profound transformation driven by artificial intelligence and automation, according to a note Raymond (NS:) James.
The company estimates that the sector will expand to $125 billion by 2028, growing at a compound annual rate of 13% from $80 billion in 2024.
Raymond James highlights the shift in the role of ITOps from back office support to a critical business enabler, with platforms such as ServiceNow (NYSE: ) gaining traction among C-suite executives to streamline operations and enable differentiation. Increased reliance on artificial intelligence to automate redundant tasks and optimize work processes has positioned the sector for sustained double-digit growth, attracting investor interest despite a challenging macroeconomic backdrop.
The report notes that multiples for ITOps companies have declined, and now trade in line with broader technology indexes, such as the Technology Select Sector SPDR Fund ( XLK ). However, Raymond James sees this as an attractive entry point for investors, highlighting the potential for significant shareholder value creation through a cycle of growth, profitability and reinvestment.
The ITOps ecosystem spans several submarkets, including IT service management (ITSM), health performance and analytics (HPA), and artificial intelligence for IT operations (AIOps):
ITSM – Valued at over $7 billion, the ITSM market is expanding in the low to mid-teens, driven by the consolidation of spending into core platforms and the integration of AI capabilities. ServiceNow, with nearly 50% market share, remains the leader, followed by competitors such as Atlassian (NASDAQ 🙂 ), which uses its Jira ecosystem.
HPA – Estimated at $22 billion, this market supports IT infrastructure and application performance, with submarkets such as Application Performance Monitoring (APM) and visibility showing high growth. The shift of organizations to cloud-based systems and the criticality of real-time performance monitoring are key growth drivers.
AIOps – At $2 billion, the AIOps segment is growing in the mid- to high-teens. By using artificial intelligence to analyze vast amounts of IT data, this technology improves decision-making and accelerates problem-solving. Raymond James predicts that AIOps will increasingly integrate with ITSM platforms.
