Network Observability for Telecom Market Forecasts to 2032 - Global Analysis By Component (Software and Services), Deployment Model, Organization Size, Technology, End User and By Geography

According to Stratistics MRC, the Global Network Observability for Telecom Market is accounted for $3.68 billion in 2025 and is expected to reach $9.78 billion by 2032 growing at a CAGR of 15% during the forecast period. Network Observability in telecom refers to the comprehensive ability to monitor, measure, and understand the performance, health, and behavior of a telecommunications network in real time. It involves collecting and analyzing data from various sources, including network devices, traffic flows, applications, and services, to gain actionable insights. Observability enables operators to detect anomalies, predict potential failures, optimize performance, and ensure service reliability. By combining metrics, logs, and traces, telecom providers can achieve end-to-end visibility across complex, multi-layered networks, including 5G, SDN, and cloud-based infrastructures, supporting proactive management and enhanced customer experience.

Market Dynamics:

Driver:

Increasing demand for real-time monitoring

Service providers need observability platforms that deliver instant visibility into network performance. Modernized systems enable proactive detection, automated alerts, and predictive analytics to reduce downtime. Vendors are embedding AI-driven monitoring tools to enhance responsiveness and accuracy. Rising demand for seamless connectivity is amplifying adoption across mobile, broadband, and enterprise telecom services. Real-time monitoring is increasingly viewed as essential for sustaining customer trust in digital-first environments. Growing reliance on instant visibility is positioning observability as a strategic foundation for telecom resilience.

Restraint:

Lack of skilled IT professionals

Telecom operators struggle to recruit and retain talent capable of managing advanced observability platforms. Smaller firms face higher risks compared to incumbents with larger resources. Rising complexity of AI-driven and cloud-native systems further intensifies workforce challenges. Vendors are introducing simplified interfaces and automation to reduce dependency on specialized skills. Persistent talent shortages are slowing deployment timelines and raising operational costs. Limited expertise is reshaping modernization strategies and making workforce development a decisive factor for success.

Opportunity:

Adoption of AI-driven analytics

Operators are embedding intelligent analytics into monitoring systems to strengthen predictive capabilities. AI-driven platforms enable anomaly detection, adaptive monitoring, and automated optimization across complex networks. Vendors are deploying machine learning algorithms to enhance scalability and responsiveness. Rising investment in digital transformation is amplifying demand for advanced analytics solutions worldwide. AI integration is reshaping observability into a proactive enabler of secure and efficient connectivity.

Threat:

Data security and privacy concerns

Data security and privacy concerns are slowing adoption of telecom observability solutions. Operators face rising risks from breaches targeting sensitive customer and network data. Smaller providers struggle to maintain compliance compared to incumbents with larger resources. Regulatory frameworks across regions add complexity to observability strategies. Vendors are embedding encryption, anonymization, and compliance features to strengthen trust. Growing privacy concerns are shifting priorities and making resilience central to observability success. Rising security risks are redefining observability as a frontline defense against digital threats in telecom markets.

Covid-19 Impact:

The Covid-19 pandemic accelerated demand for telecom observability as digital service usage surged. On one hand, disruptions in workforce and supply chains slowed modernization projects. On the other hand, rising demand for secure remote connectivity boosted adoption of observability platforms. Enterprises increasingly relied on real-time monitoring and AI-driven analytics to sustain operations during volatile conditions. Vendors embedded advanced automation and compliance features to strengthen resilience. The pandemic underscored observability as a vital enabler of trust and continuity in telecom ecosystems.

The telecom service providers segment is expected to be the largest during the forecast period

The telecom service providers segment is expected to account for the largest market share during the forecast period, driven by demand for scalable observability frameworks. Enterprises are embedding advanced monitoring platforms into workflows to strengthen efficiency and customer engagement. Vendors are developing solutions that integrate automation, analytics, and compliance features. Rising demand for digital-first operations is amplifying adoption in this segment. Telecom operators view observability as critical for sustaining competitiveness in high-speed networks. Service providers are emerging as the primary drivers of observability scale and innovation. Their leadership reflects the sector's focus on reliability and customer-centric performance.

The edge & IoT observability segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the edge & IoT observability segment is predicted to witness the highest growth rate, supported by rising demand for real-time monitoring in distributed environments. Enterprises increasingly require observability systems that manage IoT devices and edge networks. Vendors are embedding AI-driven analytics and adaptive monitoring into workflows to strengthen responsiveness. SMEs and large institutions benefit from scalable solutions tailored to diverse IoT ecosystems. Rising investment in edge computing is amplifying demand in this segment. Edge and IoT observability is positioning itself as a catalyst for next-generation connectivity.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share by mature telecom infrastructure and strong enterprise adoption of observability frameworks. Operators in the United States and Canada are leading investments in cloud-native monitoring platforms. The presence of major technology providers further strengthens regional dominance. Rising demand for compliance with data privacy regulations is amplifying adoption across industries. Vendors are embedding advanced automation and analytics to differentiate offerings in competitive markets. North America's leadership is defined by its ability to merge innovation with regulatory discipline in telecom observability.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, fueled by rapid digitalization, expanding mobile penetration, and government-led connectivity initiatives. Countries such as China, India, and Southeast Asia are investing heavily in observability systems to support telecom growth. Local startups are deploying cost-effective solutions tailored to diverse consumer bases. Enterprises are adopting AI-driven and cloud-native platforms to strengthen scalability and meet compliance expectations. Government programs promoting digital transformation are accelerating adoption. Asia Pacific's growth is being shaped by evolving network demands making it the most adaptive hub for observability innovation. Its trajectory underscores the region's role as a testing ground for next-generation monitoring solutions.

Key players in the market

Some of the key players in Network Observability for Telecom Market include Ericsson AB, Nokia Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., NEC Corporation, NetScout Systems, Inc., Splunk Inc., Dynatrace Inc., New Relic, Inc., Tech Mahindra Ltd., Infosys Ltd., Wipro Ltd., Accenture plc, Hewlett Packard Enterprise Company and IBM Corporation.

Key Developments:

In October 2024, Huawei partnered with MTN South Africa to deploy its Autin intelligent O&M solution, enhancing network observability through AI-driven fault prediction and automated root cause analysis across MTN's radio and core networks.

In February 2024, Nokia launched its Network as Code platform with DevPortal, significantly expanding its network observability and monetization strategy. The platform exposes 5G network capabilities via APIs, allowing developers to create applications with built-in observability for quality-on-demand services, bridging the gap between telecom and IT operations.

Components Covered:

• Software
• Services

Deployment Models Covered:

• On-Premise
• Cloud

Organization Sizes Covered:

• Small & Medium Enterprises
• Large Enterprises

Technologies Covered:

• Edge & IoT Observability
• API & Microservices Monitoring
• Data Integrity & Security Technologies
• Other Technologies

End Users Covered:

• Telecom Service Providers
• Internet Service Providers
• Mobile Virtual Network Operators
• Enterprises
• Government & Public Sector
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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