AI surge keeps Gigamon atop fast-growing observability

Gigamon has maintained its position as the largest vendor in the deep observability market, holding 50 percent share in the first half of 2025, according to new research from 650 Group.

The research firm reported that revenue in the deep observability segment grew 25 percent year on year in the first half of 2025. It forecast a compound annual growth rate of 29 percent and projected revenue of nearly USD $1.7 billion by 2029.

650 Group said wider adoption of artificial intelligence is increasing demand for deep observability tools. It cited the roll-out of generative AI and large language model technologies across hybrid cloud environments.

Enterprises are deploying AI workloads across a mix of public cloud, private data centres, and co-location sites. These environments often involve multiple vendors and distributed applications.

Deep observability platforms focus on network-derived telemetry rather than event logs. They extract and enrich data from packets, flows, and application metadata.

650 Group said this approach allows IT and security teams to inspect network, security, and computing traffic. It said this requires tools that operate alongside traditional logging platforms.

The segment includes functions such as decryption, filtering, and deduplication. It also includes hardware probes and virtual agents that vendors sell as standalone systems.

According to the research, deep observability products must maintain multi-vendor support. They must also operate across multiple networks, including public cloud and private data centres.

Vendors covered in the report include Arista, Gigamon, Kentik, Keysight, and Netscout. 650 Group positioned deep observability as a subset of the broader observability market, which it expects to reach USD $13.4 billion in 2029.

AI demand

Organisations are scaling AI workloads and automation projects across hybrid cloud infrastructure. Many of these deployments require monitoring of complex data flows and model behaviour.

650 Group highlighted the specific impact of large language models on infrastructure monitoring. It said these systems add layers of abstraction that traditional tools can struggle to analyse.

"As AI adoption accelerates, deep observability has become essential to maintaining security, performance, and compliance across hybrid cloud infrastructure," said Alan Weckel, co-founder and analyst at 650 Group. "LLMs introduce new levels of opacity and complexity, which makes trusted, network-derived telemetry critical for understanding system behavior and detecting threats that traditional tools might otherwise miss. This is why AI is now one of the strongest drivers of the deep observability market."

The report linked AI growth with an increased need for visibility into encrypted and lateral traffic. It said many threats move within internal network segments and across cloud boundaries.

Gigamon said organisations are continuing to adopt its Deep Observability Pipeline across hybrid cloud environments. The product sits between production networks and monitoring or security tools.

It collects network-derived telemetry from data in motion. It then enriches this data with AI-based analysis across packets, flows, and application metadata.

Gigamon said this approach gives organisations a single view of traffic across cloud and on-premise systems. It said customers use this view to detect hidden threats, address performance issues, and validate compliance controls.

The company cited findings from its 2025 Hybrid Cloud Security Survey. It said 90 percent of respondents agreed that deep observability is now a foundational element of cloud security.

Regional growth

650 Group reported that the Asia Pacific region recorded the strongest growth in the first half of 2025. Revenue in that region rose 38 percent year on year.

The firm also forecast a shift in how deep observability products are delivered. It expects cloud-delivered offerings to account for more than 90 percent of the nearly USD $1.7 billion market by 2029.

Deep observability platforms are integrating with a range of observability data lakes and toolsets. They often feed data into security information and event management systems and performance monitoring platforms.

Vendors in the segment design products that work with different cloud providers and network architectures. Many offerings target enterprises with complex, multi-cloud operations.

Customer adoption

Gigamon said customers in sectors including telecommunications, government, and large enterprise are using its platform. It highlighted Cybastion as an example of an organisation using deep observability with AI initiatives.

"Deep observability is becoming strategically critical to our security strategy as we expand our AI efforts," said Kevin Cardwell, CIO and CTO from Cybastion. "Gigamon has been a trusted partner in elevating our cybersecurity posture, and we're confident that the Gigamon Deep Observability Pipeline will continue to give us the visibility, control, and resilience we need to stay ahead of threats and drive our digital strategy forward."

Gigamon positions itself as an early mover in the deep observability market. It said more than 4,000 organisations use its technology, including most of the Fortune 100 and many large mobile network operators.

The company said customers use its products to monitor encrypted traffic and lateral movement within networks. They also use the tools to troubleshoot network and application performance bottlenecks and manage operational complexity.

Shane Buckley, President and CEO at Gigamon, said AI projects are changing monitoring requirements inside organisations.

"As AI-driven workloads scale across hybrid cloud infrastructure, the need for trusted, network-derived telemetry has never been greater. Deep observability gives our customers the clarity required to detect threats, maintain performance, and uphold compliance in environments that are growing more dynamic every day," said Shane Buckley, president and CEO, Gigamon. "As the pioneer of deep observability, Gigamon remains focused on giving organizations the visibility and resilience they need to securely embrace AI at scale."