Synthetic Monitoring Market Size, Share, and Industry Analysis By Monitoring Type (Website Monitoring, API Monitoring, SaaS Monitoring, and Application Monitoring), By Deployment Model (On-premises and Cloud), By Industry Vertical (IT and Telecom, BFSI, Healthcare, Retail, and Government, Others), and Regional Forecast, 2025-2032

The global synthetic monitoring market is estimated to expand at a significant rate over the forthcoming years with a rise in the need for effective data management amid surging complexities associated with web applications. The advent of Industry 4.0 and the soaring adoption of cloud computing technologies are anticipated to elevate the demand for efficient monitoring solutions to provide optimal user experience.

Synthetic monitoring involves the use of scripts for monitoring the performance of an application for a range of geographic locations, scenarios, and devices. The practice can offer vital insights regarding the way users respond to an application, help monitor system health, and enhance resiliency. Browser click paths, single-URL browser monitors, and HTTP monitors are a few examples of synthetic monitors.

Synthetic Monitoring Market Driver

Rising Adoption of Monitoring Tools by Government Bodies to Bolster their Demand

In a bid to effectively manage their data and provide a smooth user experience, several government bodies are adopting synthetic monitoring systems. For instance, the U.S. Census Bureau has developed the SynLBD (Synthetic Longitudinal Database) and the SSB (SIPP Synthetic Beta), which are fully synthetic datasets. The mounting adoption of these solutions for streamlined operations by regulatory bodies is anticipated to foster industry expansion.

Surging Product Deployment in IT Sector to Boost Industry Growth

Synthetic monitoring tools are gaining traction in the IT sector with a rise in the demand for availability testing. The tools help detect availability failures even during off business hours. The services also help monitor the performance and availability of third-party endpoints and serve as a vital tool in API endpoints testing. The rapid expansion of the IT industry is slated to push product demand over the ensuing years.

Synthetic Monitoring Market Restraint

Data Privacy Concerns May Hamper the Tool Adoption

Despite the advantages associated with synthetic monitoring tools, concerns associated with data privacy may create challenges for industry expansion. To counter the same, several regulators are undertaking initiatives to promote data privacy.

• An instance is the launch of ‘Synthetic Data for Official Statistics: A Starter Guide’ by the UNECE (United Nations Economic Commission for Europe) in 2023. The guide has been published for assisting national statistical offices in maintaining confidentiality and managing data access.

Synthetic Monitoring Market Opportunity

Increasing Research Initiatives Focused on Exploring the Potential of the Technology

These has been an escalated emphasis on research initiatives focused on assessing and exploring the potentialities associated with this technology. For instance, the U.S. Census Bureau is conducting research on fully synthetic data products. The intent is to assess if the technology could offer more detailed tabulations and enhanced data accuracy at lower levels of geography. Such initiatives are anticipated to open door to new growth opportunities for industry stakeholders.

Launch of Synthetic Data Challenges and Conferences

To understand the scope of synthetic monitoring, several conferences and events are being conducted across the globe. An instance of the same is the HLG-MOS Synthetic Data Challenge. According to NIST (National Institute of Standards and Technology), 17 teams, including NGOs, NSOs (National Statistical Organizations), academic, and industry players, participated in the challenge in 2022. The challenge comprised the synthesis of a complex dataset (American Community Survey Excerpt with 35 features) and a small dataset (Students’ SAT-GPA data with 7 features). Collectively, 34 data utility evaluation, 17 data synthesis, and 21 data privacy evaluation techniques were deployed at the challenge.

The organization of such events is estimated to help industry players in enhancing their business prospects, paving way to innovation and the escalated use of synthetic monitoring for an array of applications.

Segmentation

Key Insights

The report covers the following key insights:

• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory Scenario
• Impact of COVID-19 on the Synthetic Monitoring Market 

Analysis by Component

Based on component, the market is divided into website monitoring, API monitoring, SaaS monitoring and application monitoring.

The application segment is projected to emerge as the dominant segment as the solutions can help organizations in monitoring their websites and applications. These insights can help businesses in ensuring the smooth running of their applications. A few of the instances are Sematext, a full-stack monitoring and observability platform, and Pingdom, which provides full transaction monitoring and allows multi-step testing transactions.

Analysis by Deployment Model

By deployment model, the market is bifurcated into on-premises and cloud.

The demand for cloud-based systems is anticipated to record significant expansion as the solutions enable the automated monitoring of web applications and APIs. These systems help enhance collaboration and efficiency by monitoring response times for data storage APIs and serverless functions.

The on-premises segment is expanding as industry players are bringing solutions that facilitate the testing of on-premise applications. These solutions help businesses monitor their internal applications and conduct tests in their CI (continuous integration) environment.

Analysis by Industry Vertical

Based on industry vertical, the market is divided into IT and telecom, BFSI, healthcare, retail, and government.

Synthetic monitoring solutions depict an increasing adoption across the BFSI industry for various applications. The tools can be used for ensuring the availability and responsiveness of online banking systems. Another significant application is the prevention of transaction delays and failures in payment gateways. Owing to these factors, the segment is set to record significant growth over the coming years.

In the healthcare industry, the use of synthetic monitoring can help in ensuring the accessibility of EHR (Electronic Health Record) systems. The segment is witnessing considerable expansion fueled by the rising product adoption in monitoring patient portals and telehealth platforms.

Regional Analysis

On the basis of geography, the market has been segmented into Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa.

The Europe market is anticipated to depict significant growth over the ensuing years with an increase in the launch of various projects for assessing the demand for synthetic monitoring. For instance, the ONS (Office for National Statistics) in the U.K. conducted a pilot project for analyzing synthetic data requirements, applying synthetic data generation to the Labour Force Survey.

The North America market is projected to dominate the global market fostered by the expansion of the IT and telecom sector. The region is a major innovation hub, which creates the demand for synthetic monitoring solutions for maintaining application performance and providing optimal experience to users for enhanced business outcomes.

The increasing emphasis on digitalization and the expansion of the tech sector in developing countries in the Asia Pacific region is poised drive the demand for synthetic monitoring solutions. The surging launch of applications to facilitate operations in the government, healthcare, and telecom sector is projected to create new opportunities for business growth in the region.

Key Players Covered

The report includes the profiles of the following key players:

• Dynatrace (U.S.)
• SolarWinds (U.S.)
• AppDynamics (U.S.)
• New Relic (U.S.)
• Datadog (U.S.)
• Pingdom (Sweden)
• Catchpoint (U.S.)
• Broadcom (U.S.)
• ThousandEyes (U.S.)
• Uptrends (Netherlands)
• Apica Systems (Sweden)
• Site24x7 (India)
• Rigor (U.S.)
• Micro Focus (U.K.)
• BMC Software (U.S.)
• SmartBear (U.S.)
• Keynote Systems (U.S.)
• LogicMonitor (U.S.)
• Sematext (U.S.)
• Nagios (U.S.)

Key Industry Developments

• In November 2024, Splunk expanded its observability portfolio by launching a series of innovations, comprising new capabilities in Splunk Observability Cloud. The incorporation of Cisco AppDynamics into its portfolio is a vital step in strengthening its industry position. 
• In July 2024, New Relic introduced the industry’s first AI-driven and fully-integrated DEM (Digital Experience Monitoring) solution for optimizing performance. The solution has been claimed to offer real-time insights and end-to-end visibility, helping organizations provide high-quality digital experiences across a range of touchpoints.
• In June 2024, Cisco’s internet monitoring unit ThousandEyes launched Digital Experience Assurance (DXA), a new AI-powered tool for automatically predicting and fixing internet outages. The tool has been claimed to go beyond the traditional monitoring approach and would help take preemptive measures on network problems.
• In October 2020, Splunk acquired APM (application performance management) platform Plumbr and inked a definitive agreement for the takeover of synthetic monitoring provider Rigor. The platforms would be integrated with the company’s IT management tools suite, the Splunk Observability Suite and offer a full-fidelity platform that deploys ML (machine learning) algorithms for real-time IT observations.