Monitoring Tools Market by Offering (Software (by Deployment) & Services), Type (Infrastructure Monitoring, Application Performance Monitoring, Security Monitoring and End User Experience Monitoring), Vertical and Region - Global Forecast to 2028
The global Monitoring Tools Market is estimated to grow from USD 24.5 billion in 2023 to USD 63.7 billion by 2028, at a CAGR of 21.1% during the forecast period.
Monitoring tools provide a comprehensive overview of IT infrastructure, making them indispensable for various industries. These tools encompass network monitoring to track devices and bandwidth, server monitoring to monitor resource usage, and application performance monitoring (APM) to analyze application health. Cloud monitoring ensures optimal performance and resource allocation in cloud environments, while log monitoring centralizes log data for efficient troubleshooting and security analysis. Security monitoring aids in detecting threats and breaches, and capacity planning tools predict resource needs for future growth. With real-time monitoring, alerts, and customizable dashboards, monitoring tools empower organizations to optimize performance, ensure reliability, and proactively address issues, fostering smooth operations and enhanced user experiences across their IT landscapes.
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Market Dynamics
Driver: Rising demand for real-time monitoring and analytics
In today's business landscape, organizations heavily rely on their IT systems to drive operations, deliver services, and maintain customer satisfaction. Real-time monitoring has gained prominence as it offers the ability to monitor systems and applications continuously, enabling the identification and resolution of issues as they occur, rather than after they have already caused significant disruptions. Real-time monitoring meets the needs of businesses in several ways. It enables proactive issue detection, allowing organizations to identify potential bottlenecks, system failures, or security breaches in real-time. Real-time monitoring enhances system performance by providing insights into critical metrics. By closely monitoring performance indicators such as resource utilization and network traffic, organizations can identify areas of improvement and optimize their systems accordingly. Furthermore, real-time monitoring plays a crucial role in security and threat detection. By continuously monitoring network traffic, user activity, and system logs, organizations can promptly identify suspicious behavior, potential breaches, or unauthorized access attempts. Real-time monitoring also helps in optimizing the customer experience. By monitoring customer-facing applications and services in real-time, organizations can proactively identify and resolve issues that may affect the customer experience. This ensures high customer satisfaction levels, reduces customer churn, and fosters customer loyalty.
Restraint: High implementation and maintenance costs
High implementation and maintenance costs refer to the significant expenses associated with the initial setup and ongoing upkeep of a particular system, process, or technology within a business. This restraint can have a substantial impact on a company's financial resources and overall profitability. Implementing new technologies or systems often requires significant investments in hardware, software, training, and integration with existing infrastructure. For instance, when a manufacturing company decides to upgrade its production line with advanced robotics and automation, it needs to invest in purchasing the machinery, configuring it to the specific requirements, and training the employees to operate and maintain it effectively. All these activities come with substantial upfront costs that may strain the company's budget. Maintenance costs are another aspect that businesses must consider. After implementing a new system, there are ongoing expenses associated with monitoring, troubleshooting, upgrading, and repairing the technology. These costs can include software updates, equipment servicing, licensing fees, and the employment of skilled personnel to manage the system efficiently. Due to these high costs, businesses need to evaluate the potential return on investment (ROI) and consider the long-term benefits before committing to implementing or maintaining a particular system. It becomes essential to conduct a thorough cost-benefit analysis to ensure that the expected gains justify the financial outlay.
Opportunity: Emerging markets and untapped potential in developing regions
The emergence of new markets and untapped potential in developing regions presents significant opportunities for the monitoring tools market. As developing regions experience rapid economic growth and technological advancement, businesses in these areas are increasingly adopting digital solutions to drive their operations and improve productivity. This creates a demand for monitoring tools that can ensure the effective performance and reliability of their digital infrastructure. In emerging markets and developing regions, businesses are often in the early stages of digital transformation. They may be transitioning from manual or traditional processes to digital systems, making it crucial to have robust monitoring tools in place. These tools can help organizations monitor the performance of their newly implemented digital systems, identify areas for improvement, and ensure a smooth transition to digital workflows. Furthermore, developing regions often have unique market dynamics and regulatory environments. Monitoring tools that can adapt to these specific requirements have a competitive edge. The untapped potential in developing regions means that there is a significant market share waiting to be captured by monitoring tool providers. By establishing a presence in these regions and offering tailored solutions to local businesses, monitoring tool vendors can tap into new customer bases and drive revenue growth.
Challenge: Ensuring compatibility and interoperability with diverse IT environments
A significant challenge faced by the Monitoring Tools Market is ensuring compatibility and interoperability with diverse IT environments. As organizations adopt a wide range of technologies, systems, and infrastructure components, it becomes crucial for monitoring tools to seamlessly integrate with these diverse IT environments. The complexity of modern IT landscapes often results in a heterogeneous mix of technologies and vendor-specific solutions within an organization. Monitoring tools must be capable of capturing and analysing data from various sources and provide a unified view of the entire infrastructure. However, the lack of compatibility between monitoring tools and diverse IT environments can lead to limited coverage, data inconsistencies, and inefficient data collection processes. To address this challenge, monitoring tool providers should prioritize standardization and interoperability protocols. Adhering to widely accepted standards such as SNMP (Simple Network Management Protocol) and RESTful APIs (Application Programming Interfaces) can enable seamless integration with a variety of IT components. Additionally, monitoring tool providers should invest in comprehensive testing and certification processes to ensure compatibility with popular operating systems, databases, and applications. Moreover, monitoring tools should offer flexible deployment options to accommodate different IT architectures. Whether it is on-premises, cloud-based, or hybrid infrastructure, the tools should be designed to integrate seamlessly and capture data from any environment. This flexibility empowers organizations to monitor their entire IT ecosystem, regardless of its complexity or distribution.
Monitoring Tool Market Ecosystem
By infrastructure monitoring, Network Monitoring to account for the largest market size during the forecast period
Network monitoring involves the use of software to continuously monitor the health and reliability of a computer network. By collecting and analyzing performance data, network performance monitoring (NPM) systems generate topology maps and provide actionable insights to IT teams. These insights offer complete visibility into network components, application performance, and related IT infrastructure, allowing organizations to monitor network health, identify issues, and optimize data flow. NPM systems are capable of monitoring network resources across various environments, including on-premises, data centers, cloud services, and hybrid ecosystems. They detect malfunctioning network devices, overloaded resources, and anomalies in network traffic. One of the key features of NPM software is its ability to alert network administrators when performance issues arise. These systems collect and analyze data to measure traffic flow, performance, and availability. They can also establish thresholds and leverage machine learning algorithms to determine baseline performance and generate more accurate alerts. By implementing network monitoring, organizations can proactively manage their networks, ensure optimal performance, and maintain service availability. This enables businesses to detect and address performance issues efficiently, resulting in improved network reliability, enhanced user experiences, and optimized data transmission.
By deployment, on-premises to account for the largest market size during the forecast period
While the market for on-premises monitoring tools still holds relevance, it has been impacted by the rising popularity of cloud-based alternatives. On-premises solutions are favored by businesses relying on legacy systems and those with stringent compliance and security requirements. The ability to customize and control the monitoring environment, lower latency for real-time applications, and the management of hybrid environments are factors driving the continued demand for on-premises tools. However, the overall trend in the monitoring tools market is shifting towards cloud-based solutions due to their scalability, cost-effectiveness, accessibility, and advanced features.
By application monitoring, Database Monitoring to account for the largest market size during the forecast period
Database monitoring is the practice of tracking the performance and health of databases to ensure optimal performance. It involves collecting and analyzing performance metrics to identify issues and optimize resource allocation. Database monitoring is crucial for businesses that rely on databases for their daily operations, as it helps maintain optimal performance, minimize downtime, and ensure a positive user experience. Database monitoring tools provide real-time insights into the performance of databases, allowing IT teams to proactively address potential issues. These tools offer features such as dashboards, metrics collection, and event monitoring to help identify issues, trends, and patterns. Some of the key metrics tracked by database monitoring tools include resource usage, response time, throughput, error rate, and bandwidth utilization. Effective database monitoring ensures that applications can run properly without crashes or performance degradation due to database downtime.
North America to account for the largest market size during the forecast period
North America is expected to have the largest market share in Monitoring tools. North America has been a major contributor to the development and growth of the Monitoring tools market. In recent years, North America has witnessed a significant surge in the adoption of monitoring tools across various industries. The region's IT sector, including the United States and Canada, has been at the forefront of this growth, with companies investing heavily in advanced monitoring solutions to optimize their IT infrastructure. Network monitoring, server monitoring, and application performance monitoring (APM) have seen substantial uptake as organizations prioritize seamless operations and enhanced user experiences. Cloud monitoring and security monitoring have gained traction, driven by the rising popularity of cloud services and the increasing need to safeguard digital assets from cyber threats.
Key Market Players
The Monitoring tools vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global market for Monitoring tools Microsoft (US), Google (US), AWS (US), IBM (US), Cisco (US), Dynatrace (US), Splunk (US), Solarwinds (US), Netscout (US), New Relic (US), Logic Monitor (US), Paessler AG (Germany), Netreo (US), ManageEngine (US), Idera (US), Sematext (US), Datadog (US), Icinga (Germany), Nagios (US), Zabbix (Latvia), Sentry (US), UptimeRobot (Malta), Atera (Israel), Better Stack (Czech Republic), Sumo Logic (US), Checkmk (Germany), Exporise (US), ITRS (UK), Riverbed Technology (US), Nlyte Software (US).
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Report Metrics |
Details |
Market size available for years |
2017–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
USD Million/Billion |
Segments covered |
Offering, Type, Infrastructure Monitoring, Application Performance Monitoring (APM), Security Monitoring, End User Experience Monitoring, Vertical, and Region |
Geographies covered |
North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America |
Companies covered |
Microsoft (US), Google (US), AWS (US), IBM (US), Cisco (US), Dynatrace (US), Splunk (US), Solarwinds (US), Netscout (US), New Relic (US), Logic Monitor (US), Paessler AG (Germany), Netreo (US), ManageEngine (US), Idera (US), Sematext (US), Datadog (US), Icinga (Germany), Nagios (US), Zabbix (Latvia), Sentry (US), UptimeRobot (Malta), Atera (Israel), Better Stack (Czech Republic), Sumo Logic (US), Checkmk (Germany), Exporise (US), ITRS (UK), Riverbed Technology (US), Nlyte Software (US) |
This research report categorizes the Monitoring tools market based on Offering, Type, Infrastructure Monitoring, Application Performance Monitoring (APM), Security Monitoring, End User Experience Monitoring, Vertical, and Region.
By Offering
-
Software
- Cloud
- On-premises
-
Services
-
Professional Service
- Consulting Services
- Deployment & Integration
- Training, Support, and Maintenance
- Managed Service
-
Professional Service
By Type:
- Infrastructure Monitoring Tools
- Application Performance Monitoring (APM) Tools
- Security Monitoring Tools
- End-User Experience Monitoring Tools
By Infrastructure Monitoring:
- Network Monitoring
- Storage Monitoring
- Server Monitoring
- Cloud Infrastructure Monitoring
- Other Infrastructure Monitoring
By Application Performance Monitoring (APM):
- Database Monitoring
- Web Application Monitoring
- Mobile Application Monitoring
- Code-Level Monitoring
- Other Application Performance Monitoring
By Security Monitoring:
- Intrusion Detection and Prevention Systems (IDPS)
- Log Monitoring and Analysis
- Vulnerability Assessment and Management
- Other Security Monitoring
By End User Experience Monitoring:
- Synthetic Monitoring
- Real User Monitoring (RUM)
- Other End User Experience Monitoring
By Vertical:
- Banking, Financial Services, and Insurance
- Retail & eCommerce
- Healthcare & Life Sciences
- IT/ITeS
- Media & Entertainment
- Manufacturing
- Automotive, Transportation and Logistics
- Telecom
- Other Verticals
By Region:
-
North America
- US
- Canada
-
Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
-
Asia Pacific
- China
- Japan
- ASEAN
- South Korea
- ANZ
- India
- Rest of Asia Pacific
-
Middle East & Africa
- Kingdom of Saudi Arabia
- United Arab Emirates
- Israel
- Qatar
- Turkey
- South Africa
- Rest of Middle East and Africa
-
Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
Recent Developments:
- In June 2023, IBM acquired Apptio, this acquisition to advance IBM's existing resource optimization, observability, and application management offerings, maximize value for clients and drive significant synergies across several IBM growth areas.
- In March 2023, Cisco and Lightspin are aligned with a common goal to help customers modernize their cloud environments with end-to-end security and observability from build to runtime.
- In February 2022, Netscout announced the availability of nGeniusEDGE Server, a comprehensive, plug-and-play solution that provides customers with the visibility and insights they need to ensure a high-quality end-user experience regardless of where employees work..
- In April 2021, ManageEngine launched RMM CENTRAL WHICH is a unified remote monitoring and management solution for managed service providers.
- In November 2020, Datadog and Google will grow a relationship with Datadog’s first European Google Cloud data center to now include new regions, making it even easier for organizations to access and implement Datadog’s monitoring and security platform.
Frequently Asked Questions (FAQ):
What is Monitoring tools?
Monitoring tools are software applications that track and analyze the performance, health, and availability of IT infrastructure components. They offer specialized functionalities like network monitoring, server monitoring, application performance monitoring (APM), cloud monitoring, log monitoring, security monitoring, and capacity planning.
Which countries are considered in the European region?
The report includes an analysis of the UK, Germany, France, Spain, Nordic, Benelux and Italy in the European region.
Which are key verticals adopting Monitoring tools software and services?
Key verticals adopting Monitoring tools include Banking, Financial Services, and Insurance, Retail & eCommerce,
Which are the key drivers supporting the market growth for Monitoring tools?
The key drivers supporting the market growth for Monitoring tools include Rising demand for real-time monitoring and analytics, Increasing emphasis on security and compliance, Growing adoption of cloud-based monitoring solutions, Escalating complexity in the IT infrastructure and network ecosystem.
Who are the key vendors in the market for Monitoring tools?
The key vendors in the global Monitoring tools market include Microsoft (US), Google (US), AWS (US), IBM (US), Cisco (US), Dynatrace (US), Splunk (US), Solarwinds (US), Netscout (US), New Relic (US), Logic Monitor (US), Paessler AG (Germany), Netreo (US), ManageEngine (US), Idera (US), Sematext (US), Datadog (US), Icinga (Germany), Nagios (US), Zabbix (Latvia), Sentry (US), UptimeRobot (Malta), Atera (Israel), Better Stack (Czech Republic), Sumo Logic (US), Checkmk (Germany), Exporise (US), ITRS (UK), Riverbed Technology (US), Nlyte Software (US).
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The research methodology for the global monitoring tools market report involved the use of extensive secondary sources and directories, as well as various reputed open-source databases, to identify and collect information useful for this technical and market-oriented study. In-depth interviews were conducted with various primary respondents, including key opinion leaders, subject matter experts, high-level executives of multiple companies offering monitoring tools offerings, and industry consultants to obtain and verify critical qualitative and quantitative information and assess the market prospects and industry trends.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports; press releases and investor presentations of companies; and white papers, certified publications, and articles from recognized associations and government publishing sources.
The secondary research was used to obtain key information about the industry’s value chain, the market’s monetary chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides of the monitoring tools market ecosystem were interviewed to obtain qualitative and quantitative information for this study. The primary sources from the supply side included industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various vendors providing Monitoring tools offerings; associated service providers; and system integrators operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
After the complete market engineering (including calculations for market statistics, market breakup, market size estimations, market forecast, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also undertaken to identify and validate the segmentation types; industry trends; key players; the market's competitive landscape, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to record the critical information/insights throughout the report.
The following is the breakup of primary profiles:
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Market Size Estimation
For making market estimates and forecasting the Monitoring tools market and the other dependent submarkets, top-down and bottom-up approaches were used. The bottom-up procedure was used to arrive at the overall market size of the global Monitoring tools market, using the revenue from the key companies and their offerings in the market. With data triangulation and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
The top-down approach prepared an exhaustive list of all the vendors offering Monitoring tools. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding and investor presentations, paid databases, and primary interviews. Each vendor’s offerings were evaluated based on the breadth of solution and service offerings, Applications, and verticals. The aggregate of all the companies’ revenues was extrapolated to reach the overall market size. Each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CIOs, CEOs, VPs, directors, and marketing executives. The market numbers were further triangulated with the existing MarketsandMarkets repository for validation.
In the bottom-up approach, the adoption rate of Monitoring tools solutions and services among different end-users in key countries with respect to their regions contributing the most to the market share was identified. For cross-validation, the adoption of monitoring tools solutions and services among industries, along with different use cases with respect to their regions, was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation.
All the possible parameters that affect the market covered in the research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The data is consolidated and added with detailed inputs and analysis from MarketsandMarkets.
- The pricing trend is assumed to vary over time.
- All the forecasts are made with the standard assumption that the accepted currency is USD.
- For the conversion of various currencies to USD, average historical exchange rates are used according to the year specified. For all the historical and current exchange rates required for calculations and currency conversions, the US Internal Revenue Service’s website is used.
- All the forecasts are made under the standard assumption that the globally accepted currency, USD, remains constant during the next five years.
- Vendor-side analysis: The market size estimates of associated solutions and services are factored in from the vendor side by assuming an average of licensing and subscription-based models of leading and innovative vendors.
- Demand/end-user analysis: End users operating in verticals across regions are analyzed in terms of market spending on Monitoring tools solutions based on some of the key use cases. These factors for the Monitoring tools tool industry per region are separately analyzed, and the average spending was extrapolated with an approximation based on assumed weightage. This factor is derived by averaging various market influencers, including recent developments, regulations, mergers and acquisitions, enterprise/SME adoption, startup ecosystem, IT spending, technology propensity and maturity, use cases, and the estimated number of organizations per region.
Top Down and Bottom Up Approach
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Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
According to Sumo Logic, Infrastructure monitoring software tools capture log files from throughout the network and aggregate them into a single database where they can be sorted, queried, and analyzed by either humans or machine algorithms.
According to Sumo Logic, APM tools capture data, and aggregate and analyze the data to detect patterns and present actionable insights in a human-readable format.
According to Riverbed Technology, End User Experience Monitoring enables teams to monitor the impact of application and device performance from the end user’s point of view. EUEM products help IT ensure the quality of key IT services across an enterprise. Unlike domain-specific monitoring tools that look at performance and availability of individual infrastructure components, EUEM products monitor IT, as seen by the end user.
Key Stakeholders
- Investors and venture capitalists
- Monitoring tools companies
- Technology services providers
- Government and research organizations
- Association and industry bodies
- Cloud services providers
- Technology consultants
- Value-added resellers
- Satellite service providers
- Market research and consulting firms
- Internet of Things (IoT) analytics vendors
- Analytics solution providers
- Independent software vendors (ISVs)
Report Objectives
- To determine and forecast the global monitoring tools market by offering (software and services), type, infrastructure monitoring tools, application performance monitoring tools, security monitoring, end user monitoring tools, vertical, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors affecting the market growth
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and Latin America
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To profile the key market players; provide a comparative analysis on the basis of business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the market
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and research & development (R&D) activities, in the market
- To analyze the impact of recession across all the regions across the monitoring tools market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company
Geographic Analysis
- Further breakup of the North American market for Monitoring tools
- Further breakup of the European market for Monitoring tools
- Further breakup of the Asia Pacific market for Monitoring tools
- Further breakup of the Latin American market for Monitoring tools
- Further breakup of the Middle East & Africa market for Monitoring tools
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Monitoring Tools Market