ITOps market poised for double-digit growth as AI reshapes industry, Raymond James By Investing.com

Investing.com – The IT operations (ITOps) market, once viewed as a cost center limited to back-office functions, is experiencing a profound transformation driven by artificial intelligence and automation, according to a note. Raymond: (NS:) James.

The company predicts the sector will expand to $125 billion by 2028, up 13 percent from $80 billion in 2024.

Raymond James highlights the changing role of ITOps from back-office support to a critical business engine, with platforms such as ServiceNow (NYSE: ) gaining importance among C-suite executives to simplify and differentiate operations A heavy reliance on artificial intelligence to automate redundant tasks and optimize workflows has set the industry up for steady double-digit growth. attracting investor interest despite a challenging macroeconomic backdrop.

The report notes that valuation multiples for ITOps companies are now trading in line with broader technology indices such as the Technology Select Sector SPDR Fund ( XLK ). However, Raymond James sees this as an attractive entry point for investors, emphasizing shareholders the potential for significant value creation through a cycle of growth, profitability and reinvestment.

The ITOps ecosystem includes several submarkets, including IT Service Management (ITSM), Health Performance and Analytics (HPA), and Artificial Intelligence for IT Operations (AIOps).

ITSM – The over $7 billion ITSM market is expanding into the low to mid-teens, driven by cost consolidation and integration of AI capabilities across key platforms.ServiceNow remains the leader with nearly 50% market share, followed by competitors such as Atlassian (NASDAQ: ) using its Jira ecosystem.

HPA – This $22 billion market supports IT infrastructure and application performance, with submarkets such as Application Performance Monitoring (APM) and observability showing high growth as organizations move to cloud-based systems and the importance of real-time performance monitoring are the main drivers of growth.

AIOps – At $2 billion, the AIOps sector is growing in its mid-teens.Using AI to analyze vast amounts of IT data, this technology enhances decision-making and accelerates problem-solving.Raymond James expects AIOps to become increasingly integrated into ITSM with platforms.