Network Monitoring Global Market Report 2024

The network monitoring market size has grown strongly in recent years. It will grow from $2.68 billion in 2023 to $2.91 billion in 2024 at a compound annual growth rate (CAGR) of 8.4%. The growth observed during the historical period can be attributed to the rise in the complexity of network environments, growing concerns about cybersecurity, increased emphasis on performance optimization, compliance and regulatory requirements, and the expanding scale of IT infrastructure.

The network monitoring market size is expected to see strong growth in the next few years. It will grow to $4.21 billion in 2028 at a compound annual growth rate (CAGR) of 9.7%. Forecasted growth is driven by the rise in cloud-based network deployments, increasing emphasis on Application Performance Monitoring (APM), integration with Artificial Intelligence (AI) and Machine Learning (ML), emergence of edge computing networks, and a focus on network automation. Major trends include hybrid and multi-cloud network monitoring, end-user experience monitoring, collaboration with network security solutions, integration of 5G monitoring, and adherence to data privacy regulations.

The increasing preference for Software as a Service (SaaS)-based network monitoring solutions is poised to propel the growth of the network monitoring market. SaaS is a software distribution model where cloud providers host programs, making them accessible to customers online. SaaS network monitoring enhances visibility, awareness, and issue-handling capacity without relying on a service provider's help desk, providing real-time data directly from the user's browser. This cloud-based SaaS infrastructure monitoring service involves the gathering, storage, and analysis of network performance monitoring data in a SaaS repository, departing from the traditional use of physical or virtual appliances. As indicated in the 2021 State of SaaSOps Report shared by BetterCloud, a US-based independent software vendor, the adoption of SaaS continued to grow. In 2021, organizations, on average, utilized 110 apps, up from 80 apps the previous year, reflecting a 38% increase. SaaS app consumption has seen a remarkable surge, exceeding seven times since 2017 and nearly 14 times since 2015. Consequently, the increasing popularity of SaaS-based network monitoring solutions is a driving force behind the growing demand in the network monitoring market.

The increasing adoption of cloud-based solutions is poised to drive the growth of the network monitoring market. Cloud-based solutions encompass services or applications hosted, accessed, and delivered over the internet, utilizing remote servers for data storage, processing, and management. They offer users flexibility and scalability, making them a crucial component of network monitoring. Cloud-based solutions provide a comprehensive, flexible, and user-friendly monitoring approach for the entire IT infrastructure. Hosted and managed by service providers, these solutions eliminate the need for a dedicated in-house server. As highlighted by the Australian Bureau of Statistics in June 2023, 85% of firms in Australia reported employing information and communication technologies (ICTs) for the year ended June 30, 2022, marking a significant increase from 69% in the year ended June 30, 2020. Notably, 59% of these ICT implementations were attributed to cloud computing. Consequently, the growing prominence of cloud-based solutions stands as a key driver behind the expansion of the network monitoring market.

Technological advancements stand out as a key and evolving trend in the network monitoring market. Leading companies within this sector are actively focused on the development of new technological solutions to enhance their positions in the market. A case in point is Netscout, a US-based provider of cybersecurity, service assurance, and business analytics solutions, which introduced nGeniusONE in July 2021. nGeniusONE is a smart edge network monitoring platform designed to provide end-user insights. Offering comprehensive visibility into infrastructure, dependencies, and applications, nGeniusONE serves as a robust platform for monitoring and service assurance. The platform enables continuous monitoring and analysis of network traffic data, utilizing adaptive service intelligence technology. This innovative approach integrates artificial transaction testing with smart data analytics, delivering end-user support and visibility. Notably, this information can be obtained for any network or application, regardless of the user's location, underscoring the industry's commitment to leveraging cutting-edge technologies for improved network monitoring capabilities and enhanced user experiences.

Major companies in the network monitoring market are actively developing innovative products, and one notable example is the introduction of remote network monitoring (RMON). RMON is a method designed to monitor network traffic remotely on an Ethernet transport to identify and resolve network issues. This approach aids network administrators in monitoring and analyzing data collected from local area networks (LANs), T-1/E-1 lines, and other network components, offering real-time information on network performance and potential problems. An instance of this innovation is the launch of SANDSTORM by Tech Mahindra in February 2023. SANDSTORM represents a remote network monitoring and smart device assurance service tailored for telecommunication companies (telcos) and enterprises. This comprehensive and innovative solution enables service providers to remotely measure customer experiences on various devices, ranging from smartphones to connected cars. SANDSTORM provides real-time network monitoring, device assurance, and an automation platform for testing and deploying applications. This initiative underscores the industry's commitment to leveraging advanced solutions, such as remote network monitoring, to enhance network performance, troubleshoot issues, and deliver a seamless user experience across diverse devices and applications.

In December 2021, Broadcom Inc., a leading U.S.-based provider of semiconductor and infrastructure software products, completed the acquisition of AppNeta for an undisclosed sum. This strategic acquisition is poised to enhance Broadcom's capabilities in network performance monitoring for internet and hybrid cloud-based applications. AppNeta, a U.S.-based Software as a Service (SaaS) company specializing in network performance monitoring solutions, now forms an integral part of Broadcom's portfolio, reinforcing its position in the industry.

Major companies operating in the network monitoring market report are International Business Machines Corporation, Broadcom Inc., Keysight Technologies Inc., Juniper Networks Inc., Arista Networks Inc., Splunk Inc., VIAVI Solutions Inc., Cisco Systems Inc., Datadog Inc., ManageEngine Inc., Riverbed Technology Inc., Netgear Inc., Netscout Systems Inc., SolarWinds Inc., Dynatrace LLC, Gigamon Inc., ExtraHop Networks Inc., SevOne Inc., LogicMonitor Inc., Paessler AG, Kentik Inc., AppNeta Inc., Accedian Networks Inc., Calient Technologies LLC, Garland Technology Inc., Plixer International Inc., Big Switch Networks Inc., Nagios Enterprises LLC, Motadata Inc., Apcon Technologies Inc.

North America was the largest region in the network monitoring market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global network monitoring market during the forecast period. The regions covered in the network monitoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the network monitoring market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key offerings in network monitoring encompass equipment, network TAPs (terminal access points), data monitoring switches, solutions, and services. Networking equipment plays a crucial role in connecting devices to facilitate the sharing of data among them. This includes various bandwidth speeds such as 1 and 10 Gbps, 40 Gbps, and 100 Gbps. These offerings are primarily utilized in large enterprises and SMEs, finding applications across various sectors, including IT and telecom, BFSI, healthcare, energy and utilities, government, retail, industrial, and others.

The network monitoring market research report is one of a series of new reports that provides network monitoring market statistics, including network monitoring industry global market size, regional shares, competitors with a network monitoring market share, detailed network monitoring market segments, market trends and opportunities, and any further data you may need to thrive in the network monitoring industry. This network monitoring market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The network monitoring market consists of revenues earned by entities by providing network monitoring services such as availability monitoring, configuration monitoring, performance monitoring, and cloud infrastructure monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The network monitoring market also includes sales of routers and switches which are used in providing network monitoring services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.