Gigamon holds 50% of deep observability as AI drives boom

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

The firm's latest market study reports that deep observability revenues grew 25% year on year in the first six months of 2025. The researchers forecast a compound annual growth rate of 29% for the segment and project that it will reach nearly USD $1.7 billion in annual revenue by 2029.

Deep observability is a specialist segment within the broader observability market, which 650 Group values at USD $13.4 billion by 2029. The segment covers tools that inspect and gather network, security, and computing traffic by extracting event metadata from packets or computing infrastructure.

650 Group defines deep observability products as including decryption, filtering and deduplication, along with probes and agents sold as standalone systems. The tools run across public cloud, private data centres and co-location sites and maintain support for multiple vendors and platforms.

The report lists vendors including Arista, Gigamon, Kentik, Keysight and Netscout. It says cloud-delivered deep observability offerings are on track to account for more than 90% of the market's revenues by 2029.

Regionally, the research finds that the Asia Pacific market delivered the strongest growth in the latest period, with revenue up 38% year on year.

AI workloads

650 Group links the expansion of the deep observability market with the enterprise roll-out of generative AI and large language models. The firm says AI adoption is increasing the requirement for closer scrutiny of traffic inside hybrid cloud infrastructure.

"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 follows survey data on hybrid cloud security that highlights a rising focus on this type of tooling. In that study of more than 1,000 global security and IT leaders, 89% of respondents said deep observability now forms a foundational element of cloud security.

The market data emerges against a wider backdrop of growing cyber risk. Recent global studies cited by Gigamon indicate that breach rates have risen 17% year on year and that more than half of organisations experienced a breach in the past 12 months.

Gigamon positioning

Gigamon describes its Deep Observability Pipeline as a core element in many customers' security and operations stacks for hybrid cloud and AI-based workloads. The product delivers network-derived telemetry across packets, flows and application metadata.

The company says this data gives customers visibility into data in motion across their environments. It says organisations use the information to detect threats in encrypted and lateral traffic, investigate network and application performance issues, and validate compliance. The firm also says customers report lower operational cost and complexity when they centralise this function.

Deep observability tools sit alongside logging and other event-based monitoring systems. They operate by extracting traffic data and event metadata from networks and infrastructure, then feeding that into security, observability and analytics platforms.

According to 650 Group, deep observability products must interoperate with numerous observability platform data lakes. They may run as physical probes or as virtual agents, and are sold separately from event-based observability systems.

Customer demand

Gigamon says organisations worldwide are deploying its platform as they expand AI initiatives. It cites security provider Cybastion as one example of a customer using network-derived telemetry as part of its hybrid cloud strategy.

"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 says it now works with more than 4,000 organisations globally. Its customer base includes 83 of the Fortune 100 and nine of the ten largest mobile network operators.

The company positions itself as an early mover in the deep observability segment. It links current demand with the growing use of AI-driven workloads and the resulting increase in traffic volumes and complexity across hybrid environments.

"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."