Cloud Monitoring Market Size, Share & COVID-19 Impact Analysis, By Type (Database Monitoring, Website Monitoring, Virtual Network Monitoring, Cloud Storage Monitoring, and Virtual Machine Monitoring), By Cloud Architecture (Public Cloud, Private Cloud, and Hybrid Cloud), By Service Model (SaaS, PaaS, IaaS, and Others), By Enterprise Type (SMEs and Large Enterprise), By Industry (BFSI, Healthcare, IT & Telecom, Government, Manufacturing, and Others), and Regional Forecast, 2023-2030

The global cloud monitoring market size was valued at USD 1.86 billion in 2022 and is projected to grow from USD 2.19 billion in 2023 to USD 9.96 billion by 2030, exhibiting a CAGR of 24.1% during the forecast period. North America dominated the global market with a share of 51.08% in 2022.

In the scope, we have considered cloud monitoring provided by key players in the market such as Google LLC, IBM Corporation, Cisco Systems, Inc., Solarwinds Worldwide LLC, Oracle Corporation, LogicMonitor, Inc., and Microsoft Corporation.

Cloud monitoring refers to monitoring, reviewing, and controlling operations and works throughout IT infrastructure based on the cloud. The industry is growing globally as the IT industry progressively migrates to these services. It can be used in BFSI, retail & consumer goods, media & entertainment, and manufacturing sectors.

COVID-19 IMPACT

Increased Need for Monitoring Cloud-based Applications During COVID-19 Propelled Market Growth

The COVID-19 pandemic had put organizations into disorder. The increased use of conferencing and collaboration services by telecommuting employees was straining back-end support services and increasing traffic on the networks that connect users to these services. Only providers with robust and forgiving architectures that maintain a consistent customer experience can meet the growing demand.

The COVID-19 pandemic has made a positive impact on various technologies. For instance, Zoom has become a dominant technology with positive influence. This crisis has increased interest in video conferencing solutions. Businesses are taking corporate action by instructing employees and customers to be more observant when opening links, documents or emails related to COVID-19.

Thus, the increased need for monitoring cloud-based applications during the pandemic propelled the global cloud monitoring market growth.

LATEST TRENDS

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Rising Demand for Software as a Service (SaaS) in Large Enterprises to Aid Market Expansion

Software-as-a-Service is an on-demand technology used to modify and control system performance. The rising adoption of software as a service in Human Capital Management (HCM), Customer Relationship Management (CRM), enterprise resource management, and other financial applications creates a favorable environment for cloud monitoring adoption, particularly in large enterprises.

Unlike traditional banking application software, it does not require staff to keep the system running smoothly. Also, it doesn't require large investments in PCs, network infrastructure, and backup systems. Furthermore, it provides data security and does not require frequent software upgrades. Therefore, the overall system cost can be reduced. Additionally, the increasing propensity of enterprise buyers to adopt SaaS is expected to fuel the growth of the market.

DRIVING FACTORS

Increased Adoption of Low-cost Cloud-based Solutions to Manage Dataset to Facilitate Market Proliferation

As datasets grow in size, the need to monitor and manage them becomes more important. Data-driven businesses need flexible, scalable solutions to monitor their data cost-effectively. This need for cloud monitoring services is driving market growth.

Cloud services are provided and maintained by cloud providers. This benefits large companies as it frees employees from other productive tasks. This has increased the acceptance of cloud services by large enterprises. As cloud services use grows, the need to monitor them also increases. Further, the massive adoption of low-cost cloud-based solutions drives the market.

Thus, the above factors contribute to the global market growth.

RESTRAINING FACTORS

Limited Cloud Visibility and High Level of Technical Expertise Create Cloud Monitoring Challenges 

Customers in the market are concerned about limited cloud visibility. Workstations, virtualization, servers, and other systems are independent of physical hardware and difficult to monitor. For instance, the application owner cannot access hypervisor layers. Monitoring requires various monitoring tools, but they do not offer a complete monitoring solution, which can discourage end-users from adopting these solutions. Also, such services require public network connectivity, which can be a threat due to its large attack surface. Internal network monitoring solutions can be isolated from public networks. Further, the high costs of these services hinder their adoption in various fields. The high level of technical expertise required to adopt cloud monitoring services also hinders market augmentation.

SEGMENTATION

By Type Analysis

Increasing Amount of Unstructured Data to Boost the Demand for Cloud Storage Monitoring

Based on type, the market is divided into database monitoring, website monitoring, virtual network monitoring, cloud storage monitoring, and virtual machine monitoring.

Cloud storage monitoring segment accounted for over 31% of the cloud monitoring market share in 2022. The increasing amount of unstructured data drives the demand for advanced technologies such as artificial intelligence, analytics, Internet of Things, and automation. Cloud storage stores and manages data over the internet and can be provisioned according to an on-demand, pay-as-you-go model. Cloud-based storage provides global scalability, agility, remote access, and longevity of data storage. These factors contribute to expansion of this segment.

Whereas, the website monitoring segment will grow at the highest CAGR during the forecast period. This growth is attributed to the rising need for an efficient network in various countries such as India, Japan, and Canada.

By Cloud Architecture Analysis

Increased End-users Spending on Public Cloud had a Major Impact on Segmental Growth

Based on cloud architecture, the market is segmented into public cloud, private cloud, and hybrid cloud.

The public cloud segment held significant market share in 2022. This is due to increased spending on the public cloud. Public cloud services cover many capabilities, from the basics of storage, processing, and network performance, to artificial intelligence and Natural Language Processing (NLP), to standard office applications. Additionally, increasing end-user spending on public clouds is fueling the growth of this segment.

Additionally, the hybrid cloud segment is expected to grow significantly due to increasing demand for hybrid deployments, as enterprises can benefit from private and public deployments. Therefore, increasing demand for hybrid cloud storage due to data security, flexibility, and agility will likely boost market growth in the coming years. Enterprises rely on multiple public clouds, private clouds, and legacy platforms for on-premises to meet their infrastructure needs. These factors are expected to increase the demand for hybrid cloud-based storage.

By Service Model Analysis

Easy Installation and Maintenance of Application Contributes to the Positive Impact on SaaS

As per service model, the market is categorized into Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and others (FaaS).

Software as a Service (SaaS) held a major market share in 2022. Organizational factors can hit the measuring point of many SaaS-based applications. These monitoring tools provide continuous visibility into SaaS performance and the ability to identify and troubleshoot performance slowdowns and issues proactively. Applications, which are based on SaaS, allow consumers to easily maintain and install applications over the internet instead of maintaining complex hardware and software systems. These factors support the expansion of the SaaS segment in the market.

Furthermore, Infrastructure as a Service (IaaS) will grow at the highest CAGR during the forecast period. These service applications are elastic, real-time scalable, and metered according to usage.

By Enterprise Type Analysis

High Demand for Advanced Cloud Monitoring Systems in Large Enterprises to Aid Market Expansion

On the basis of enterprise type, the market is categorized into large enterprise and SMEs.

The large enterprise segment held a major market share in 2022 due to high demand for advanced monitoring systems in large enterprises. Cloud enables large organizations to easily partition operational and data storage across the enterprise to increase productivity, cost-effectiveness, and security. This will support the expansion of the segment in the coming years.

Furthermore, the Small & Medium-sized Enterprises (SMEs) segment will grow at the highest CAGR during the forecast period (2023-2030) owing to the increased need and awareness of cloud monitoring.

By Industry Analysis

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Inclination Toward Modernization and Digitization in the BFSI Industry to Boost Market Growth

By industry, the market is categorized into BFSI, healthcare, IT & telecom, government, manufacturing, and others (retail).

Among these, the BFSI segment captured a major market share in 2022. As the financial services industry transitions to modernization and digitization, institutions of all sizes are putting their guard down and capitalizing on the opportunity of the cloud. By using the cloud, financial institutions can shorten new product development cycles, enabling them to respond more quickly and efficiently to the requirements of their banking customers.

Banks and financial institutions have experienced multiple data breaches. The cost of dealing with these breaches is high for business and banking sectors, which focus on cloud monitoring, thereby driving market growth. Further, the healthcare segment will grow at the highest CAGR during the forecast period (2023-2030).

REGIONAL INSIGHTS

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Geographically, the market is studied across into key regions, North America, South America, Asia Pacific, Europe, and the Middle East & Africa. They are further categorized into countries.

As per our analysis, the North America market held the largest cloud monitoring market share in 2022. The increasing number of vendors and rapid adoption of cloud-based solutions in the region boost the market. Increasing awareness and adoption of cost-effective and scalable cloud-based solutions for ongoing projects will further propel the regional market expansion.

Asia Pacific is estimated to record the highest CAGR in the forecast period (2023-2030). It is primarily driven by the increased adoption of cloud technology by several end-users, especially in China and India. In India, cloud technology is focused on the growing need for business innovation and agility, the ability to scale quickly in a competitive market, and the government's commitment to the Digital India Initiative.

An increased requirement to follow government data monitoring regulations is backing the development of the Europe market. Nations, such as the Bahrain, Oman, United Arab Emirates (UAE), Qatar, and others, are intensely adopting digitization in the cloud, which is projected to increase the market growth.

Further, Middle East & Africa and South America are also growing at a substantial CAGR during the study period.

KEY INDUSTRY PLAYERS:

Strategic Partnerships and Product Launches to Boost Market Expansion

Significant players have been engaging into strategic partnerships with other technology suppliers. Major market players are adopting this strategy to integrate cloud monitoring with novel technologies to increase revenue streams. Using business strategy, companies have been gaining capability and enlarging their customer base.

LIST OF KEY COMPANIES PROFILED:

• Google LLC (U.S.)


• IBM Corporation (U.S.)


• Cisco Systems, Inc. (U.S.)


• Nutanix (U.S.)


• Oracle Corporation (U.S.)


• LogicMonitor, Inc. (U.S.)


• Microsoft Corporation (U.S.)


• Zenoss, Inc. (U.S.)


• Dynatrace LLC (U.S.)


• Datadog, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: Pico launched Corvil Cloud Analytics and expanded the visibility of Corvil Analytics to the cloud. Corvil Cloud offers deep real-time visibility to understand the root causes of the adaptable performance that remains to impact real-time applications consecutively in the public cloud.


• November 2022: Datadog, Inc., a cloud application monitoring and security platform announced the general availability of Universal Service Monitoring. It automatically discovers all microservices across your enterprise environment and provides instant insight into their health and dependencies without any code changes.


• October 2022: AllCloud, a cloud services company, launched a managed monitoring solution with Datadog, a cloud application security and monitoring platform. This solution integrates real-time logs and metrics for databases, servers, containers, and applications with end-to-end tracing and over 400 integrations for alerting, graphing, and troubleshooting.


• October 2022: Aviatrix introduced CostIQ for cloud cost monitoring. It controls distributed telemetry made into the cloud network to measure the practice of shared cloud network resources in responsible cost centers. CostIQ provides FinOps, line-of-business (LOB) owners, and IT/operations teams with the accurate show back or chargeback allocations, giving leadership teams greater visibility and control.


• June 2022: Cisco Systems, Inc. announced the launch of AppDynamics cloud platform. This platform is specifically designed for cloud-native monitoring. This often means monitoring new kinds of applications built using cloud provider application services and modern container technology, especially Kubernetes.

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The research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed rapidly at the global level. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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