Gigamon leads deep observability market as AI traffic surges

Gigamon held 51% of the deep observability market in 2025, according to 650 Group research. The segment grew 18% year on year.

Demand increased as companies dealt with higher levels of AI-related traffic, more complex hybrid cloud environments, and rising east-west network traffic, which can create blind spots for security teams. 650 Group forecasts the deep observability market will expand at a compound annual growth rate of 29%, reaching nearly USD $2.1 billion in revenue by 2030.

It defines deep observability as a segment within the broader observability market that includes decryption, filtering, deduplication, probes and agents sold as standalone systems and billed separately from other observability tools. The wider observability market is forecast to reach USD $10.2 billion in 2026, with Gigamon ranked as the sixth-largest vendor overall.

The findings place deep observability among the faster-growing areas of infrastructure monitoring and security tooling, as organisations seek to trace data flows across public cloud, private data centres and co-location environments. These tools must also work across multiple vendors and connect with a range of observability platform data lakes.

Market Growth

Regional data showed that North America accounted for 60% of the market in 2025, followed by Europe at 24% and Asia-Pacific (excluding China) at 12%. Asia-Pacific excluding China recorded the strongest growth, with revenue rising 33% year on year.

Cloud-delivered offerings are expected to account for a larger share of total deep observability revenue over time, reaching 54% by 2030.

Other vendors named in the study include Arista, Kentik, Keysight and Netscout. The report describes the category as an emerging layer within enterprise technology stacks, as businesses seek to monitor AI-driven systems and distributed applications more closely.

In 2025, Gigamon introduced two AI-related products for security and IT teams managing hybrid cloud infrastructure. Gigamon AI Traffic Intelligence is designed to provide visibility into generative AI and large language model traffic across more than 40 engines. Gigamon Insights is described as an agentic AI application built for network-derived telemetry.

The products are intended to help organisations enforce policies, manage risk, investigate incidents and respond across distributed environments. Gigamon AI Traffic Intelligence is generally available, while Gigamon Insights is in limited access for global customers.

Security Focus

The report comes as vendors and enterprise customers place greater emphasis on monitoring lateral and encrypted traffic inside cloud and hybrid environments. These areas can be difficult to inspect using conventional logging and perimeter-based tools, particularly as AI workloads increase data volumes and machine-to-machine interactions.

Gigamon also cited findings from its 2025 Hybrid Cloud Security Survey, which surveyed more than 1,000 security and IT leaders and found that 89% agreed that deep observability is a foundational element of cloud security. The company says network-derived telemetry can provide security and operations teams with more context for threat detection, troubleshooting, and compliance checks.

Alan Weckel, co-founder and analyst at 650 Group, linked the market's growth to the operational pressure created by AI adoption and increasingly fragmented infrastructure.

"AI is rapidly intensifying cybersecurity challenges as data volumes surge and visibility becomes harder to maintain across increasingly complex cloud environments and evolving threats," Weckel said. "Organisations are turning to deep observability to regain end-to-end insight into AI-driven data flows, strengthening security, improving performance, and enabling greater automation. As the fastest-growing segment we cover, deep observability is emerging as a critical data layer that delivers consistent, high-quality network intelligence to AI-driven systems and helps organisations realise and protect the value of their AI investments."

Gigamon says it serves more than 4,000 organisations worldwide, including 83 of the Fortune 100, as enterprises and public sector bodies increase scrutiny of traffic moving across hybrid cloud networks.