Unified Monitoring Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The unified monitoring market was valued at USD 3.73 billion in 2020 and is expected to reach USD 10.89 billion by 2026, at a CAGR of 19.56% over the forecast period 2021 - 2026. The increasing investment in IT infrastructure development, growing demand for a single monitoring tool that will reduce the cost and increase employee productivity, and enhance the customer buying experience are some of the major factors driving the growth of the unified monitoring market.

Key Highlights

• Growing demand for Digital Age Networking that enables enterprises to move toward digital transformation and generate new business outcomes by leveraging new digital age technologies such as the Internet of Things (IoT), cloud, and Artificial Intelligence (AI) is expected to drive the market. For instance, according to the report, 70% of companies either have a digital transformation strategy in place or are working on it, and 21% of companies perceive that they have already completed the digital transformation. Around 40% of all technology spending in 2019 is expected to go towards digital transformation.
• Moreover, increasing emphasis on customer experience by the enterprise in order to grow the business is also compelling the market. The unified monitoring tools help companies to deliver an optimal customer experience by monitoring the availability and performance of all their services, applications, and technologies. It was found that companies that earn USD 1 billion annually can expect to earn, on average, an additional USD 700 million within three years of investing in customer experience. Additionally, companies using SaaS apps, in particular, can expect to increase revenue by USD 1 billion.
• With the spread of covid-19 across the globe the industries and their IT infrastructure has been tested for new challenges. The new work from home norm has exposed the end-user to new challenges where a single solution is not the efficient solution and has resulted in a silo-based approach for monitoring being of no longer sufficient to use, in which each technology tier wass monitored independently by a different tool. The market is expected to experience new capabilities being integrated into existing solutions to address the emerging needs. indicating preparedness of vendors to meet the evolving needs.

Key Market Trends

BFSI Sector Will Experience Significant Growth and Drive the Market

• The banking, financial services, and insurance companies (BFSI) demand an IT infrastructure that is available 24X7x365 days and meets rigorous internal and external service level requirements. As the segment majorly deals with end customers, who contribute to companies’ revenue, an enterprise needs to ensure that the end-user applications and business services are monitored with a robust IT infrastructure management tool that also supports business-critical availability and performance and thus poses huge dependency on unified monitoring tools.
• Additionally, the BFSI sector faces major cyberattacks, and according to the report, financial firms are 300 times more likely than other institutions to experience cyberattacks and thus require a hypervigilant security system and its continuous monitoring. For instance, in 2019, Mastercard reported over 460,000 intrusion attempts each day, which has increased by 70% compared to the year prior.
• Further, during the Covid-19 coronavirus pandemic, most of the users are relying on digital banking, and there is a sudden increase in cyberattacks targeting the financial services sector. According to the VMware Carbon Black Threat Analysis Unit, cyberattacks spiked by 38% between February and March in 2020. Attackers are using Covid-19 to launch phishing attacks, trojans, backdoors, crypto miners, botnets and ransomware, and so increased vigilance and visibility into enterprise-wide endpoint activity are paramount than ever and so financial institutions are investing heavily to update their networking solutions which are expected to drive the market.
• Moreover, these organizations are geographically distributed and deal with different technologies from legacy systems to hybrid cloud-based solutions. Hence, there is a tremendous pressure on such financial organizations to monitor all the components with real-time data simultaneously maintaining security.

North America is Expected to Experience Significant Growth

• North America is expected to dominate the market throughout the forecast period due to rapid technological advancements and its penetration in various sectors such as education, healthcare, telecom, etc., development of data centers to meet the on growing demand for servers and storage space, increasing cost of resources and rising investment in smart cities projects which are expected to drive the growth in North America.
• Most of the enterprises with IT landscapes are featuring numerous software layers from multiple vendors, and thus there are rising support expectations from users side which is fueling the dependency on unified monitoring capabilities for automatically discovering all of the active software resources in the environment including end-user client applications,and application servers with business logic.
  
• With growing competition, most of the vendors in the market are enhancing their solutions or releasing a new unified monitoring platform to gain a competitive and strategic edge over their competitors. For instance, in December 2019, GroundWork company launched Monitor 8, a new version of a mature product, GroundWork Monitor Enterprise, which is more responsive with simplified administration as most functions of administration are possible by using the UI and don’t require dropping to the command line.

Competitive Landscape

The unified monitoring market is competitive and is dominated by a few major players like Dynatrace LLC, Zoho Corporation, AppDynamics Inc., Broadcom Inc., and Zenoss Inc. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

• June 2020 - AppDynamics Inc. released a new version of its business application journey tracking feature Experience Journey Map. The new updates to Experience Journey Map allow users to segment performance data by device, operating system, browser, and geo-location. Users can now also identify and isolate user sessions exhibiting poor performance to help streamline and speed up the troubleshooting process. It will proactively manage digital journeys and consistently deliver better customer experiences.
• April 2020 - Zenoss Inc., partnered with Health Partners Plans (HPP), a large not-for-profit managed health care organization to monitor its large and complex IT infrastructure. It’s a patented technology that builds real-time topology models of hybrid IT infrastructures, provides actionable, prescriptive insights, and predicting service disruptions before they impact business would be implemented.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support