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Navigating the Future: Application Performance Monitoring Market Trends and Forecast Insights, 2025 Edition

07-24-2025 02:23 PM CET | IT, New Media & Software

Press release from: The Business Research Company

Application Performance Monitoring Market Size

Application Performance Monitoring Market Size

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Application Performance Monitoring Market Size Growth Forecast: What to Expect by 2025?
The market size of application performance monitoring has seen a sharp upswing recently, expanding from $9.66 billion in 2024, it is projected to hit $10.79 billion in 2025. This growth represents a compound annual growth rate (CAGR) of 11.7%. Factors contributing to this growth during the historic period include the escalating complexity of IT environments, heightened demands for user satisfaction, an increase in digital transformation endeavors, efforts to mitigate risks and prevent downtime, and lastly the increasing complexity of applications.

How Will the Application Performance Monitoring Market Size Evolve and Grow by 2029?
In the coming years, rapid expansion is predicted for the application performance monitoring market, with an estimated worth of $17.71 billion by 2029 and a compound annual growth rate (CAGR) of 13.2%. Such progression over the forecast period can be ascribed to various factors such as the increasing focus on cloud computing, the spread of microservices architecture, a shift towards proactive performance management, globalization, and the rise in distributed workforces, combined with devOps practices integration. The forecast period will likely witness significant trends including the emergence of observability platforms, the integration of application security, the embrace of real-time analytics, focus on the analysis of business impact, and collaboration with devOps practices.

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What Drivers Are Propelling the Growth of Application Performance Monitoring Market Forward?
With the escalating requirement for cloud and mobile computing, the application performance monitoring market is anticipated to witness substantial growth. Cloud computing denotes the online distribution of diverse computing services like storage, processing ability, and applications. Mobile computing, however, refers to the ability to utilize and engage with digital data and services via mobile devices. Application Performance Monitoring (APM) becomes paramount in the sphere of cloud and mobile computing, as it aids in ensuring optimal application performance and a superior user experience. As an example, data from the UK-based NGO, AAG IT Services, from June 2024 suggested that in 2022, 89% of the surveyed companies leveraged multi-cloud solutions for their storage and operations. In contrast, a mere 9% utilized a singular public cloud, while just 2% relied on a single private cloud. Thus, the booming demand for cloud and mobile computing is set to fuel the application performance monitoring market. The increasing adoption of the microservice architecture is expected to boost the application performance monitoring market. The concept of microservice architecture involves breaking down complex applications into smaller, loosely combined, and independently deployable services. This form of architecture is commonly used in the realms of cloud and mobile computing, which necessitates efficient supervising and managing of application performance, thereby increasing the demand for application performance monitoring services. For example, as per a November 2022 report by Codeit, a US-based software enterprise offering a range of services and products in coding, software development, and healare, 81.5% businesses were already employing microservices and there was a potential 17.5% planning to shift to this type of architecture. This steady rise in the adoption of microservice architecture is contributing significantly to the progress of the application performance monitoring market.

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Which Emerging Trends Are Transforming the Application Performance Monitoring Market in 2025?
Primary corporations active in the application performance monitoring sector are concentrating on the development of enhanced solutions, such as APM 360, in order to improve their reliability in customer service and solidify their market standing. APM 360, a cloud-operated asset performance management tool, caters to a broad spectrum of aspects including aggregate asset health status, predictive maintenance, and real-time condition tracking. For instance, New Relic Inc., an American web tracking and analytics firm, unveiled New Relic APM 360 in June 2023, signifying a significant step forward in the application performance monitoring (APM) field. This tool not only provides the selected professionals with incident troubleshooting insights but also daily performance, security, and development insights for all engineers. By connecting all crucial telemetry data across the application stack and the development cycle, such as deployment changes, crucial transactions, service-level objects (SLOs), logs, facility failures, security, and debugging, APM 360 facilitates a unified view of system health for all engineering teams. It helps eliminate gaps in instrumentation, leading to an increase in platform adoption and data flow into the system.

What Are the Key Segments in the Application Performance Monitoring Market?
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, Healare, 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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Who Are the Key Players Shaping the Application Performance Monitoring Market's Competitive Landscape?
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

What Geographic Markets Are Powering Growth in the Application Performance Monitoring Market?
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

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3.Policy Makers & Regulators - To track industry developments and align regulatory frameworks.
4.Consultants & Analysts - To support market entry, expansion strategies, and client advisory work.

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With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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