Network Monitoring Market Size, Share & COVID-19 Impact 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, 2023 – 2030

The global network monitoring market size was valued at USD 3.04 billion in 2022 and is projected to grow from USD 3.34 billion in 2023 to USD 6.97 billion by 2030, exhibiting a CAGR of 11.1% during the forecast period.

Network monitoring is a process that helps monitor, analyze, and identify various aspects of the local and distributed network, including bandwidth, network traffic, computer network’s health and reliability, and servers in the network. It gives complete visibility of network components, application performance monitoring, and related IT infrastructure.

Network monitoring systems use protocols such as Simple Network Management Protocol (SNMP) to monitor network-connected devices and Internet Control Message Protocol (ICMP) to detect errors and observe network performance. The networking devices and solutions are continuously used to detect real-time network performance issues and deliver advanced end-to-end network infrastructure visibility by notifying the network administrator.

COVID-19 IMPACT

Growing Usage of Networking Tools and Devices to Optimize Network Performance Propelled Market Growth

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.

The overall network traffic increased by 49% from January 2020 to May 2020 compared to the previous year due to remote working culture and rising demand for network security by different sizes of enterprises and cloud and other service providers. According to researchers, internet service providers in the U.K. have observed increased internet traffic during the pandemic.

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.

LATEST TRENDS

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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.

DRIVING 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 centers 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 network performance monitoring solutions adoption 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 market growth.

SEGMENTATION

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, 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 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

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

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. The 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, increasing number of investments, surge in the innovation, and development of AR applications by various platforms using 5G technology. These factors are estimated to drive the market growth in the region in coming years.

The Middle East & Africa, and South America region are an increasing number of data centers in both regions. The growing need for network monitoring facilities drives the market demand during the forecast period.

KEY INDUSTRY PLAYERS

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 for expanding 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:

• 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 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.


• December 2021: Broadcom Inc. acquired APPNeta Inc., a SaaS-based network performance monitoring solution to deliver end-to-end visibility network performance monitoring solutions and services across the internet and to monitor the issues of complex business-critical cloud applications.


• 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.

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