Network Monitoring Market Size, Share & Industry Analysis, By Offerings (Hardware, Software, and Services), By Enterprise Type (Small & Medium Enterprises and Large Enterprises), By Industry (Telecommunications Industry, Government & Defense, Cloud Service Providers, and Others), and Regional Forecast, 2024-2032

The global network monitoring market was valued at USD 3.34 billion in 2023 and is projected to grow from USD 3.71 billion in 2024 and reach USD 8.30 billion by 2032, exhibiting a CAGR of 10.6% during the forecast period.

Network monitoring is a modern technology designed to monitor and track computer networks in the event of data loss or theft, notify or inform the network administrator if data is lost or stolen. Continuous network monitoring is important as faulty devices affect network performance. The systems continuously monitor large amounts of data and can use network monitoring tools to filter the data and detect anomalies. Therefore, these technologies are used in enterprises, cloud services, and communications.

The market is expected to grow in the coming years due to increasing concerns about security risks in various industries such as healthcare, energy, utilities, and medical. Additionally, the increasing complexity of IT infrastructure is further increasing the demand for network monitoring solutions. Organizations are realizing the need to ensure the security and stability of their networks to protect sensitive data and maintain operational efficiency, which is driving the growth of the network monitoring market.

 The spread of the COVID-19 outbreak had a massive effect on various industries, significantly forcing 30% of companies to adopt a remote work culture during the COVID-19 pandemic. This factor boosted the demand for network security services during the pandemic. According to Akamai, a content delivery service provider, there has been a 50% increase in internet traffic during the pandemic situation. Thus, during the COVID-19 pandemic, enterprises aim to deploy network security tools and other network capabilities to optimize the efficiency of the end user and the network's performance.

Network Monitoring Market Trends

Rising Number of Cyberattacks Drives Market Growth

The growing number of cyberattacks due to the increasing usage of remote desktops, which significantly generates high network traffic, and the rise in adoption of work-from-home work culture generates the demand for network performance monitoring solutions to provide network security visibility to the larger IT infrastructure of the companies present across different industry verticals.

As the number of cyberattacks increases, it generates continuous demand for the adoption of network monitoring solutions. Thus, this factor is expected to boost the market growth during the forecast period.

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Network Monitoring Market Growth Factors

Increasing Complexity of Data Center Network Architecture to Drive the Market Growth 

Increasing demand for high bandwidth by cloud artificial intelligence (AI) applications used in data centres continues to build complex and high-storage IT infrastructure to handle the massive data flow. The network bandwidth factor monitors the storage device's health, operational capacity, and system performance. In the last few years, it has been observed that companies aim to deploy networking tools and other network capabilities to boost the user's efficiency.

The complex network IT infrastructure generates demand for high bandwidth and advanced network security systems, which is projected to propel the market demand during the forecast period.

RESTRAINING FACTORS

High Implementation Cost of Hardware Devices Hinder Market Growth       

The higher cost of hardware devices across the advanced networking monitoring systems restricts the adoption of network performance monitoring solutions across SMEs and start-up companies. Network monitoring solutions are continuously used to test the systems to enhance the network performance, which generates high demand for hardware and software devices.

Thus, the high implementation cost of hardware devices of network security & monitoring systems restricts the market growth.

Network Monitoring Market Segmentation Analysis

By Offerings Analysis

Rising Software Demand to Resolve Remote Networking Issues to Boost Market Growth

Based on offerings, the market is divided into hardware, software, and services. Increasing usage of network performance monitoring software to troubleshoot network issues. Using network monitoring software significantly reduces network problems and helps measure the network bandwidth. Thus, the software segment holds the largest market share during the forecast period.

Furthermore, the prices of hardware devices and tools are increasing gradually, and it is projected to reduce the usage of hardware devices for security surveillance and IT infrastructure development.

By Enterprise Type Analysis

Increasing Adoption of Networking Tools Across SMEs to Drive Market Growth

Based on enterprise type, the market is segmented into small & medium enterprises (SMEs) and large enterprises. The surge in demand for network security and network performance monitoring in small and medium companies leads to the adoption of network security tools and solutions. These tools help to troubleshoot the network issues across the IT infrastructure of SMEs. Hence, the SME segment grows significantly during the forecast period.

Furthermore, the adoption of networking solutions across large enterprises is low compared to small and medium enterprises.

By Industry Analysis

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Rising Number of Cyberattacks in the Telecommunications Industry to Fuel Market Growth

Based on industry, the market is segmented into the telecommunication industry, government & defense, cloud service providers, and others. Among these, the telecommunication industry holds the largest market share during the forecast period due to complex IT infrastructure and the need for network security services due to growing threats of cyberattacks across companies. This factor leads the telecommunication industry to hold the largest network monitoring market share during the forecast period.

REGIONAL INSIGHTS

The global market scope is divided across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

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North America holds the largest market share, owing to multiple market players. The presence of many network monitoring solution providers and growing investment in developing advanced IT infrastructure across different industry sectors in countries like the U.S., Canada, and Mexico helps to enhance the network monitoring market growth in the region.

Asia Pacific is projected to grow with the highest CAGR during the forecast period. There is rising usage of smartphones and advanced network-connected devices across countries like India, China, and Japan. According to NETSCOUT, network traffic increased by around 30% in the Asia Pacific region after February 2020. The adoption of networking solutions to deliver reliable network performance monitoring and network security services to enterprises of all sizes in the Asia Pacific region boosts market growth during the forecast period.

Europe is expected to experience a major CAGR during the forecast period owing to the existence of various telecom businesses, an increasing number of investments, the surge in innovation, and the development of AR applications by various platforms using 5G technology. These factors are estimated to drive market growth in the region in the coming years.

List of Key Companies in Network Monitoring Market

Key Players Focuses on Developing Network Monitoring Solutions to Strengthen their Position

Companies operating in the market, NETSCOUT SYSTEMS, INC., Paessler AG, SolarWinds Worldwide, LLC., Nagios Enterprises, LLC., Fortra, LLC, Cisco Systems, Inc., LogicMonitor Inc., Riverbed Technology LLC, and others are network monitoring solution providers/generators. Network monitoring solutions help monitor network devices' and applications' continuous and reliable performance across companies. The market players also opt for various strategies such as partnerships, acquisitions, and collaborations to expand their distribution network and business to maintain their market position.

List of Key Companies Profiled:

• NETSCOUT SYSTEMS, INC. (U.S.)


• Paessler AG (Germany)


• SolarWinds Worldwide, LLC. (U.S.)


• Nagios Enterprises, LLC. (U.S.)


• Fortra, LLC (U.S.)


• Cisco Systems, Inc. (U.S.)


• LogicMonitor Inc. (U.S.)


• Riverbed Technology LLC (U.S.)


• Broadcom Inc. (U.S.)


• Keysight Technologies, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Nokia announced that it would provide NOS with its scalable MantaRay network management solution (formerly known as NetAct). This would offer a unified and automated network monitoring view and management.


• July 2023: ConnectWise, Inc. developed a new network management capabilities solution based on the ConnectWise Asio™ platform. It partnered with Auvik to deliver seamless network visibility and real-time monitoring alerts to IT solution providers (TSPs)and their customers.


• June 2023: Spirent Communications plc., a next-generation network device provider, introduced a new over-the-air (OTA) performance monitoring solution to deliver network edge services to enterprises working with remote work culture.


• February 2023: Tech Mahindra introduced SANDSTORM, a remote-based real-time monitoring service and smart device assurance solution for telecom operators and companies. This solution is integrated with VR headsets, smartphones, smart TVs, tablets, and connected cars to examine the customer experiences remotely.


• May 2022: Kristile partnered with Paessler to deliver Paessler Router Traffic Grapher (PRTG) network monitoring solution to SMEs and start-ups in East Africa to monitor their IT infrastructure and provide real-time notifications to the customer.

REPORT COVERAGE

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The report provides detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Moreover, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation