As per Persistence Market Research’s network performance monitoring industry analysis, the market is set to register exponential growth at 12% CAGR from 2021 to 2031, as adoption of complex IT structures increases and issues affecting network performance are rising.
Demand for network performance monitoring platforms is set to surge at an impressive 13.7% CAGR. In terms of hardware components, share of network access control (NAC) appliances is the largest. However, network packet brokers (NPBs) are slated to increase at 12.9% CAGR through 2031.
Find Out More about the Report Coverage
- SolarWinds Worldwide, LLC
- Niagara Networks
- Ixia ( Keysight)
- Profitap HQ B.V.
- Cisco Systems, Inc.
- Juniper Networks
- Microsoft Corporation
- Paessler AG
- Nagios Enterprises, LLC
- ManageEngine (Zoho Corp)
- LogicMonitor, Inc.
- Cubro Network Visibility
- Xena Networks
- NETSCOUT Systems, Inc.
Key Points Covered in Network Performance Monitoring Industry Survey:
- Market Estimates and Forecasts 2016-2031
- Key Drivers and Restraints Impacting Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Demand for Network Performance Monitoring Solutions and How to Navigate
- Recommendation on Key Winning Strategies
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Demand Analysis of Network Performance Monitoring from 2016-2020 Compared to Market Outlook for 2021-2031
Integration of artificial intelligence (AI), predictive analytics, and machine learning (ML) is set to propel the growth of network performance monitoring tools over the coming years. Network performance monitoring demand outlook remains positive, with growth to unfold at 12% CAGR through 2031 in comparison with 10.1% CAGR registered during 2016-2020.
Growing adoption of more complex IT structures and rising issues affecting network performance are driving demand for network performance monitoring.
Network performance monitoring solutions help reduce and identify instances of network issues or bottlenecks affecting end users as well as the internal tasks with maintaining business operations. The process of network performance monitoring consists of collecting, measuring, and diagnosing the metrics of each component of a network with the help of watching and reviewing.
Network performance monitoring solutions improve IT operations while mitigating the effects of performance issues, workflows, establishing policies, and network operations, and solve issues that affect network performance. Thus rising number of enterprises/companies with strict reliability requirements augments the growth of network performance monitoring solutions.
Rising demand for continuous monitoring owing to network complexities and security concerns drives the need for network performance monitoring tools. Cyber-threats affect various performance-related issues in networks, and network performance monitoring solutions help protect from potential threats and various security risks.
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Rising Adoption of Vigorous Network Monitoring, Uninterrupted Network Services, and Smart Home Devices Likely to Drive Market Growth
Nowadays, businesses need to monitor the performance of any IP-based device by remotely visualizing the system performance. They need to monitor network services, bandwidth utilization, routers, switches, manage traffic flow, solve network issues, and prevent the network going down.
Network performance monitoring solutions help provide uninterrupted network services to customers and make sure there is continuous availability with good health, which is crucial for uninterrupted business operations.
They help minimize damage, reduce loss of productivity of organizations, maintain the track of network security, secure network infrastructure from cyber-attacks, and address network issues.
Thus, small and mid-sized businesses are continuously adopting network performance monitoring solutions to protect themselves from security threats. Rising adoption of uninterrupted network services, vigorous network monitoring, and increasing smart home devices are spurring the growth of network performance monitoring.
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How Large is the Opportunity for Network Performance Monitoring Solutions in the U.S.?
The U.S. is predicted to remain one of the most attractive markets during the forecast period, according to Persistence Market Research. According to the study, the U.S. is expected to account for over 78.3% of the North America market through 2031.
The U.S. is witnessing growing demand for advanced technologies such as AI, predictive analytics, Internet of Things (IoT), IT & communication solutions, and ML. The U.S. has also developed infrastructure for digital technologies, AI, and ML for performance monitoring solutions and IoT technologies. These factors are driving demand for network performance monitoring in the country.
Rising adoption of more complex IT structures and growing issues affecting network performance by SMEs and large enterprises are influencing market growth.
- For instance, in May 2020 Cisco acquired ThousandEyes. This acquisition helps the company enhance its network performance and monitoring capabilities across the enterprise and into the cloud. It helps provide customers with an end-to-end view into the digital delivery of applications and services.
Such inorganic developments by key vendors across the country augments demand for network performance monitoring in the U.S.
Why is Demand for Network Performance Monitoring Increasing in the U.K.?
Demand in the U.K. is expected to rise at nearly 13.6% CAGR over the forecast period. Over the next ten years, the telecom industry is expected to continue growing strongly owing to stable and healthy economic growth rate in the country.
The U.K. is witnessing technological innovations and adoption of advanced telecommunication infrastructure by large telecom companies in the country, which helps fuel the growth of the network performance monitoring solutions.
The U.K. has developed infrastructure for the adoption of new technologies such as AI, ML, and other digital technologies, pushing the frontier of applications in the private, public, and social sectors, thereby driving demand for network performance monitoring solutions.
The U.K. has the presence of new start-ups such as TransferWise, GoCardless, Sequel, Triptease, and Duffel, who offers network performance monitoring software. Emergence of such companies in the country propels the network performance monitoring demand outlook.
As per the report, the U.K. is recognized as a primary market and is expected to continue exhibiting strong demand through the forecast period. The U.K. is a key market in Europe for AI start-ups in the field of health and medical technology, with notable support from the government.
What is the China Network Performance Monitoring Industry Analysis?
In 2031, China is set to account for 55.9% share in East Asia, and is estimated to rise at a CAGR of 11.8%. The country is witnessing accelerated growth of digital transformations and rapidly increasing investments into connectivity, owing to growing network complexities and security concerns in enterprises.
According to China AI Development Report 2018, China’s AI patents as a percentage of the global total increased from 4.26% in 1997 to 27.68% in 2017, far ahead of other countries. China has become the largest owner of AI patents, followed closely by the U.S. and Japan, and the three countries combined have 74% of the world’s issued AI patents.
The network performance monitoring sector is witnessing growth owing to rising adoption of key advanced technologies, and China has most of the recent patents in such technologies.
Such developments in the country help it to dominate the APAC and global market as well.
Why is the Hardware Segment Dominating the Global Market for Network Performance Monitoring Services?
The hardware segment is dominating the global network performance monitoring industry with a 60% market value share. The segment is estimated to register a market share of 48.4% by the end of 2031.
Rising adoption of network monitoring, uninterrupted network services, and increasing smart home devices likely to drive demand for network performance monitoring hardware.
This needs to monitor network services, bandwidth utilization, routers, switches, manage traffic flow, solve network issues, and prevent network outage. Network performance monitoring solutions help provide uninterrupted network services to customers and make sure there is uninterrupted business operations.
Why are Managed Network Services Gaining Momentum?
Managed network services is the fastest growing segment in the global market for network performance monitoring, and is estimated is estimated to rise at a CAGR of 18.2%, owing to rising adoption of AI, predictive analytics, and ML.
With the help of these technologies, network performance monitoring solutions/tools enable features such as anomaly detection, smart log parsing, correlation, predictive analytics, and outliers.
It monitors large amounts of data that travels through networks and can analyze real-time data. Thus, increasing adoption of advanced technology such as AI, predictive analytics, and ML in network performance monitors (NPMs) to process all data is fueling demand for managed network services.
Why are Cloud Service Providers Gaining Traction in the Network Performance Monitoring Space?
Cloud service providers is the fastest-growing segment in the industry, and are estimated is estimated to surge at a CAGR of 17.8%, owing to rising adoption of cloud-based technologies such as integration of AI, IoT, evolution of 5G networks, predictive analytics, and ML.
As per New Eclipse Foundation’s IoT Commercial Adoption Survey, around 40% of industry leaders says that their organizations are currently using IoT solutions, and 22% more plan to deploy IoT over the coming years. This enables IT operations and network managers to understand the performance of applications, network, and infrastructure components remotely.
Thus, rise in demand for cloud services owing to increased smartphone penetration, 5G, and connected devices through networks, AI, ML, IoT technology is driving demand for network performance monitoring solutions.
What are the Effects of COVID-19 on Network Performance Monitoring?
The COVID-19 pandemic has changed the way businesses operate, and organizations/enterprises have been forced to adopt new practices due to network complexities and security concerns.
During the pandemic, most businesses are relying on data connectivity. Internet connectivity is essential to continue business as usual, until the world of business returns to normal. The world is focused on the economic and health threats posed by COVID-19.
There has been significant increase in network traffic as a result of COVID-19 lockdown measures. Network monitoring solutions help businesses improve network performance or fix network security issues. Thus, network performance monitoring makes sure that business networks are running smoothly.
Network monitoring solutions provide benefits to organizations such as real-time performance monitoring, monitoring incoming network traffic, feature real-time network alerting capabilities, tracking video and voice performance, remote network remediation, and many more.
Thus, increasing demand for the security of business solutions due to COVID-19 has fueled demand for network performance monitoring. According to Persistence Market Research study, demand for network performance monitoring will increase 2% - 3% in organizations by 2031.
Companies providing network performance monitoring solutions are aiming at product innovation and strategic partnerships with other manufacturers to expand their production capacity, addressing the demand of an expanding customer pool.
- In December 2020, Amazon launched new network performance metrics for EC2 instances. It provides additional network performance metrics to help customers gain more insights into instance network performance.
- In June 2020, SolarWinds Worldwide, LLC added new features, improvements, and fixed issues in Network Performance Monitor 2020.2. It provides information about upgrades and describes workarounds for known issues.
Manufacturers are also focusing on mergers and acquisitions to maintain their global presence.
- In January 2018, SolarWinds Worldwide, LLC acquired Loggly, Inc. This acquisition provides cloud-based log monitoring and log analytics software with transactions.
Network Performance Monitoring Market Report Scope
Historical Data Available for
US$ Million for Value
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Customization & Pricing
Available upon Request
Network Performance Monitoring Industry Research by Category
- Network Packet Brokers (NPBs) Appliances
- Network Terminal Access Points (TAPs)
- Network Access Control (NAC) Appliances
- Network Performance Monitoring Platforms
- Professional Services
- Network Consulting Services
- Network Integration Services
- Support & Maintenance
- Managed Services
- Professional Services
By Enterprise Size:
- Network Performance Monitoring for Small & Mid-sized Retailers
- Network Performance Monitoring for Large Retailers
By End Use:
- Network Performance Monitoring for Telecom Service Providers
- Network Performance Monitoring for Cloud Service Providers
- Network Performance Monitoring for Managed Service Providers
- Network Performance Monitoring for Network Service Providers
- Network Performance Monitoring for Governments
- Network Performance Monitoring for Enterprises
FAQs Answered in Report
- Who are the leading players offering network performance monitoring solutions?
Gigamon, SolarWinds Worldwide, LLC, Cisco Systems, NETSCOUT Systems, Inc., and Juniper Networks, Inc, are leading players offering network performance monitoring solutions.
- Which is the most attractive segment of network performance monitoring solutions?
The hardware segment is expected to dominate the market over the forecast period, generating revenue over US$ 4 Bn by 2031.
- How much is the global network performance monitoring market worth currently?
The network performance monitoring market is valued at over US$ 2.6 Bn, and is estimated to grow at an exponential pace over the years.
- At what rate did demand for network performance monitoring increase from 2016 to 2020?
From 2016 to 2020, the market increased at a CAGR of 10.1%.
- What is sales forecast for network performance monitoring solutions?
Sales forecast for network performance monitoring solutions is US$ 8.1 Bn for 2031.
- What are the key trends shaping the market outlook for network performance monitoring solutions?
Key trends in the market include increasing demand for IoT and integration of AI, predictive analytics, and ML technology.
- Which factors are driving demand for network performance monitoring solutions?
Adoption of more complex IT structures and rising issues affecting network performance are driving demand for network performance monitoring solutions.
- Which are the top 5 countries driving demand for network performance monitoring?
Top 5 countries driving demand for network performance monitoring include the U.S, U.K., Germany, China, and Russia.
- What is the outlook of network performance monitoring in Europe?
The market in Europe is valued at US$ 661.5 Mn, and is set to expand at a CAGR of 11% over the next ten years.
- What are the key network performance monitoring statistics for South Korea and Japan?
The markets in Japan and South Korea are valued at US$ 98.7 Mn and US$ 77.6 Mn, respectively, and are projected to register CAGRs of 15.7% and 10.6%.
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