AI-Based Data Observability Software Market Revenue to Attain USD 3.29 Bn by 2035

Published: 29 Jan 2026

Author: Precedence Research

Share:

AI-Based Data Observability Software Market Revenue and Trends 2026 to 2035

The global ai-based data observability software market revenue was valued at USD 1.10 billion in 2025 and is expected to attain around USD 3.29 billion by 2035, growing at a CAGR of 11.57% during forecast period.The market is significantly expanding due to the growing need to manage complex data architectures amid emerging technologies and ensure data reliability to combat data breaches.

What are the Major Factors Driving the AI-based Data Observability Software Market?

The market for AI-based data observability software is mainly driven by factors such as rapidly increasing data volumes, growing data complexity, and the rise of AI/ML and GenAI applications. Organizations across sectors handling sensitive, high-volume data with strict compliance requirements are increasingly seeking operational efficiency and automation. The reliance on real-time data for decision-making has created strong demand for AI-powered tools that provide high-quality, self-healing data platforms, reduce downtime, and enhance overall data reliability.

Segment Insights

• By Component, The software platform segment held the largest market share of around 78% in 2025. This is because it offers essentially centralized and scalable infrastructure, aiming to manage distributed data pipelines with AI applications.
• By Deployment Mode, The cloud-based segment held the largest market share of nearly 71% in 2025. This is mainly due to its unmatched offerings like high scalability, flexibility, cost-effectiveness, and the ability to monitor data streams in real-time for cloud-based architecture.
• By Capability Type, The anomaly detection & alerting segment dominated the AI-based data observability software market while holding the largest share of 31% in 2025, as it provides real-time data identification, pipeline, and security anomalies in a highly complex digital environment, bypassing sheer manual analysis and errors related to it.
• By End-User Industry, The BFSI segment held the largest market share of nearly 17% in 2025 as it requires following stringent data security compliance, real-time data breaches detection, which is crucial for handling massive volumes of sensitive data by sectors like BFSI.

Regional Insights 

North America 

North America registered dominance in the market by capturing nearly 43% share in 2025 due to the convergence of intense digital transformation, rapid adoption of cloud-based architectures, and huge investments by leading players to adopt AI-driven tools for better security and data protection. Substantial investment by government and private firms to establish an AI/ML integrated ecosystem is another cause of the region’s dominance.

Asia Pacific

Asia Pacific is projected to grow at the fastest CAGR during the foreseeable period, driven by rapid digitalization requiring robust security, high AI adoption to stay competitive in emerging tech and e-commerce, and the aggressive deployment of AI strategies in the 5G and telecom sectors. Additionally, growing reliance on real-time data decision-making and regulatory compliance boosts the adoption of AI-based observability platforms in the region.

AI-based Data Observability Software Market Coverage

Recent Development

• In January 2026, the leading intelligent observability company, New Relic, released its 2026 AI impact report and showcases clear link between the usage of AIOp and enhanced engineer productivity.(Source: https://www.businesswire.com)

Get this report to explore global market size, share, CAGR, and trends, featuring detailed segmental analysis and an insightful competitive landscape overview @ https://www.precedenceresearch.com/sample/7432

You can place an order or ask any questions, please feel free to contact us at sales@precedenceresearch.com |+1 804 441 9344