Network Monitoring Market Report 2025

The network monitoring market size has grown strongly in recent years. It will grow from $2.84 billion in 2024 to $3.04 billion in 2025 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to rise in complexity of network environments, growing cybersecurity concerns, increased emphasis on performance optimization, compliance and regulatory requirements, expanding scale of IT infrastructure.

The network monitoring market size is expected to see rapid growth in the next few years. It will grow to $4.76 billion in 2029 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to rise in cloud-based network deployments, growing importance of application performance monitoring (APM), integration with artificial intelligence (AI) and machine learning (ML), emergence of edge computing networks, focus on network automation and orchestration. Major trends in the forecast period include hybrid and multi-cloud network monitoring solutions, focus on end-user experience monitoring, collaboration with network security solutions, integration of 5G network monitoring capabilities, compliance with data privacy regulations.

The growing popularity of SaaS-based network monitoring solutions is expected to drive the growth of the network monitoring market in the coming years. Software as a Service (SaaS) is a method of software distribution where a cloud provider hosts applications, making them accessible to customers online. SaaS network monitoring enhances visibility and awareness while enabling users to address issues without relying on a service provider's help desk by providing real-time data directly through their browsers. This cloud-based network monitoring service involves the collection, storage, and analysis of network performance data in a SaaS repository, as opposed to traditional physical or virtual appliances. For example, according to BetterCloud's 2023 report, demand for SaaS applications continues to rise, with organizations now using an average of 130 apps, reflecting an 18% increase in 2023. Therefore, the increasing popularity of SaaS-based network monitoring solutions is driving 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 are becoming a key trend in the network monitoring market. Major companies in this sector are focused on developing innovative solutions to enhance their market position. For example, in June 2024, Datadog, Inc., a US-based monitoring and security platform for cloud applications, announced significant enhancements to its security product portfolio. The latest offerings include Agentless Scanning, Data Security, and Code Security features. These innovations aim to empower DevOps and security teams to effectively secure their code, cloud environments, and production applications, thereby improving the overall security posture throughout the development lifecycle.

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 August 2022, Datadog, a US-based monitoring and security platform for cloud applications, announced its acquisition of Seekret, a Tel Aviv-based company specializing in observability for cloud-native applications, for an undisclosed amount. This acquisition is aimed at enhancing Datadog's monitoring capabilities by integrating Seekret's technology into its platform. The collaboration seeks to provide customers with deeper API observability, governance, and automation throughout the entire API lifecycle, ultimately improving the overall user experience. Seekret is an Israel-based API build automation platform.

Major companies operating in the network monitoring market include 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 2024. 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.

Network monitoring is the systematic examination of a computer network to detect potential issues such as delayed traffic or component failure. This proactive process involves continuous scanning by network monitoring systems, ensuring the prompt alerting of network administrators through various channels such as text, email, or other applications in the event of identified problems.

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.

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