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Leading Growth Driver in the Application Performance Monitoring Market in 2025: Rising Demand For Cloud And Mobile Computing Drives Growth In The Application Performance Monitoring Market Driver's Influence

03-07-2025 08:36 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Application Performance Monitoring Market Size

Application Performance Monitoring Market Size

Which drivers are expected to have the greatest impact on the over the application performance monitoring market's growth?
The application performance monitoring market is poised for growth, primarily propelled by the burgeoning demand for cloud and mobile computing. These technologies indicate a rise in the delivery of multiple computing services, like storage, apps, and processing power, over internet channels. Moreover, mobile computing provides the ability to engage with and access digital data and services through portable devices. One integral component of these technologies is Application Performance Monitoring (APM) that ensures applications function effectively and improve user experience. For example, the AAG IT Services, a non-government organization in the UK, reported in June 2024 that 89% of the organizations they surveyed in 2022 used multi-cloud solutions for their storage needs and workloads. On the other hand, only 9% utilized a single public cloud, and merely 2% depended on a single private cloud. As such, the mounting demand for cloud and mobile computing is anticipated to spur the application performance monitoring market. Another key driver triggering the growth of the application performance monitoring market is the rising incorporation of microservice architecture. It is a method of software development that segregates a complex application into smaller, loosely linked, and independently deployable services. This kind of architecture finds significant usage in cloud and mobile computing as they necessitate productive monitoring and management of application performance, thereby fueling the need for application performance monitoring services. As an example, in November 2022, Codeit, a US-based software firm offering services and products related to coding, software development, and healthcare, noted that 81.5% of firms already employ microservices, and 17.5% of businesses are gearing up to transition to this architectural design. Therefore, the increasing utilization of microservice architecture is expected to positively impact the growth direction of the application performance monitoring market.

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What is the future CAGR of the application performance monitoring market, and how will it impact industry expansion?
The market size for application performance monitoring has significantly increased over the past few years. There will be a surge from $9.66 billion in 2024 to $10.79 billion in 2025, with a compound annual growth rate (CAGR) of 11.7%. This substantial growth in the historical period is due to factors such as the growing complexity of IT environments, rising demand for user satisfaction, an escalation in digital transformation initiatives, the need for risk mitigation and prevention of downtime, and the increase in application complexity.

In the coming years, the application performance monitoring market is predicted to experience swift expansion. It is projected to reach a value of $17.71 billion by 2029, with a compound annual growth rate (CAGR) of 13.2%. Factors contributing to this projected growth during the forecast period include increased reliance on cloud computing, the spread of microservices architecture, emphasis on proactive performance management, globalization and the rise of distributed workforces, and the integration with devOps practices. Furthermore, the forecast period is expected to see certain trends, including the emergence of observability platforms, integration of application security, adoption of real-time analytics, a focus on business impact analysis, and collaboration with devOps practices.

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What trends are poised to drive the future success of the application performance monitoring market?
Leading firms in the application performance monitoring market are concentrating on developing innovative solutions like APM 360 to provide trustworthy customer service and bolster their market standing. APM 360, a cloud-based asset performance management product, offers comprehensive asset health, predictive maintenance, and real-time condition monitoring. For example, in June 2023, New Relic Inc., a company based in the US that specializes in web tracking and analytics, introduced New Relic APM 360, signifying the next evolutionary stage of the application performance monitoring (APM) industry. This tool offers more than just incident troubleshooting insights for select professionals; it also provides everyday performance, security, and development insights for all engineering teams. APM 360 unifies crucial telemetry data across the application stack and development cycle, incorporating deployment changes, critical transactions, service-level objectives (SLOs), logs, facility failures, security, and debugging. By providing a unified view of system health and bridging instrumentation gaps, APM 360 encourages more widespread platform use and promotes data integration into the system.

Which key market segments comprise the application performance monitoring market and drive its revenue growth?
The application performance monitoring market covered in this report is segmented -

1) By Component: Software, Services
2) By Deployment: Cloud, On-Premises
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Application: Synthetic Monitoring, End-User Monitoring, Mobile Monitoring, Other Applications
5) By End-User: Banking Finance And Insurance (BFSI), IT And Telecom, Retail And E-Commerce, Healthcare, Education, Media And Entertainment, Manufacturing, Other End-Users

Subsegments:
1) By Software: On-Premises Software, Cloud-Based Software, SaaS Solutions
2) By Services: Professional Services, Managed Services, Consulting Services

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What regions are at the forefront of application performance monitoring market expansion?
North America was the largest region in the application performance monitoring market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application performance monitoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

Who are the leading players fueling growth in the application performance monitoring market?
Major companies operating in the application performance monitoring market report are International Business Machines Corporation (IBM), Oracle Corporation, Wavefront Technology Solutions Inc., Splunk Inc., Micro Focus International PLC, Datadog Inc., Dynatrace Inc., Elastic NV, Quest Software Inc., New Relic Inc., Riverbed Technology LLC, SolarWinds Corp, Ensono Limited., Nexthink SA, AppDynamics, Coralogix Ltd., AppNeta Inc., Honeycomb.io, Catchpoint Systems Inc., Lightstep Inc., Aternity Inc., Site24x7, Nagios Enterprises LLC, Sematext Group Inc., Prometheus Group Enterprises LLC

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What Is Covered In The Application Performance Monitoring Global Market Report?

• Market Size Forecast: Examine the application performance monitoring market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the application performance monitoring market for a structured understanding.
• Key Players Overview: Analyze major players in the application performance monitoring market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the application performance monitoring market.
• Segment Contributions: Evaluate how different segments drive overall growth in the application performance monitoring market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the application performance monitoring market.
• Industry Challenges: Identify potential risks and obstacles affecting the application performance monitoring market.
• Competitive Landscape: Review strategic developments in the application performance monitoring market, including expansions, agreements, and new product launches.

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