Cloud Network Monitoring Market

Cloud Network Monitoring Market Outlook (2023 to 2033)

According to Future Market Insights, the global cloud network monitoring market size has reached US$ 1,069.2 million in 2018. Demand for cloud network monitoring recorded Y-o-Y growth of 14.0% in 2022, and thus, the global market is expected to reach US$ 2,044.2 million in 2023. Over the projection period 2023 to 2033, cloud network monitoring solutions sales are projected to exhibit 15.8% CAGR and total a market size of US$ 8,889.0 million by 2033-end.

Cloud network monitoring refers to the governance of a cloud infrastructure in which the monitoring tools help to observe and manage the operational flow of the infrastructure. The management techniques authenticate the availability as well as performance of the application, websites, and other cloud infrastructure. The constant surveillance and monitoring of the cloud network and server response time it is easier to predict the vulnerability for future technical issues.

Cloud network monitoring involves the continuous observation and analysis of network activities, performance, and security within a cloud-computing environment. It works by deploying monitoring tools and agents across various components of the cloud infrastructure, such as servers, virtual machines, storage systems, and network devices. These tools collect and transmit data about network traffic, bandwidth utilization, latency, error rates, and other relevant metrics to a centralized monitoring system.

Other Drivers Propelling the Demand for Cloud Network Monitoring include:

• The significant driver for cloud network monitoring market is it allows the user to monitor the workflow of the cloud-based applications.
• The complexity of network infrastructure requires robust monitoring solutions to ensure optimal performance and availability.
• Cloud network monitoring helps organizations proactively identify and resolve network issues, minimizing downtime and ensuring a smooth user experience.
• With the growing number of cyber threats and the value of data stored in the cloud, organizations need comprehensive monitoring solutions to detect and respond to security incidents promptly.

Challenges for Companies /Manufacturers in the Cloud Network Monitoring Market:

• Monitoring intricate and dynamic environments requires advanced tools, expertise, and complexity of cloud networks can pose challenges in terms of configuration, scalability, and ensuring comprehensive visibility across all components.

• Organizations must ensure that monitoring solutions comply with data protection regulations, poor security measures can hinder the cloud infrastructure with unauthorized access or breaches.
• Different cloud service providers may have their proprietary monitoring solutions, making it challenging to achieve unified monitoring across heterogeneous cloud environments.
• Resistance to change, organizational inertia, and lack of awareness about the benefits of cloud network monitoring can hinder the adoption and growth of the market.

Opportunities in the Cloud Network Monitoring Subscriber:

• As cloud environments become more complex, there is a growing need for specialized monitoring tools that can effectively monitor and manage network performance, security, and availability within these environments.
• Implementing advanced analytics and AI-driven anomaly detection algorithms can enhance the accuracy and efficiency of monitoring, providing actionable insights and reducing false positives.
• With the rise of multi-cloud and hybrid cloud architectures, businesses require monitoring solutions that can seamlessly monitor and manage networks across different cloud platforms and on-premises infrastructure.
• Developing monitoring solutions that specifically focus on cloud security, such as monitoring for unauthorized access attempts, data breaches, or anomalous behaviors, can address the growing demand for robust cloud security solutions.

Latest Trends in the Cloud Network Monitoring Market:

• The cloud monitoring solutions are construct in a way to collect performance data in real time using advanced monitoring tools to govern the workflow and mitigate any possible threat.
• Cloud monitoring helps in identifying the minor as well as major failures and security gaps to assist developers in taking preventive majors prior to the actual system failure.
• In terms of application performance monitoring, the major components of the monitoring tools are to measure the performance and the availability of those application to run seamlessly.
• Easy-to-understand data visualizations are provided by hybrid cloud monitoring solutions through seamless integrations with performance data from cloud vendors.

2018 to 2022 Cloud Network Monitoring Demand Outlook Compared to 2023 to 2033 Forecast

From 2018 to 2022, the global cloud network monitoring market experienced a CAGR of 13.7%, reaching a market size of US$ 2,044.2 million in 2023.

Businesses across various industries were moving their applications and data to the cloud during this period. As cloud computing’s adoption grew, the need for effective monitoring solutions to ensure network performance, security, and availability became paramount.

Cloud infrastructures became more complex with the rise of hybrid and multi-cloud architectures. Managing and monitoring these diverse environments required specialized tools and expertise. Organizations sought comprehensive cloud network monitoring solutions to gain visibility and control over their distributed networks.

As businesses relied heavily on cloud services to support their operations, ensuring optimal network performance became crucial. Cloud network monitoring helped organizations identify bottlenecks, optimize bandwidth utilization, and troubleshoot performance issues, enabling them to deliver a better user experience and meet service-level agreements (SLAs).

Future Forecast for Cloud Network Monitoring Solution

Looking ahead, the global cloud network monitoring industry is expected to rise at a CAGR of 15.8% from 2023 to 2033. During the forecast period, the market size is expected to reach US$ 8,889.0 million.

Hybrid and multi-cloud architectures are becoming the norm as organizations leverage multiple cloud providers and combine on-premises infrastructure with cloud services. This trend presents a significant opportunity for cloud network monitoring solutions that can provide unified visibility and control across diverse environments, enabling seamless management and monitoring capabilities. Cloud networks are becoming increasingly complex, distributed, and dynamic.

The rapid growth of technologies like edge computing, IoT, and 5G further adds to the complexity. As a result, there will be a greater need for advanced monitoring solutions that can handle the scale, diversity, and real-time nature of these networks, providing deep insights and actionable intelligence. Therefore, the market for cloud network monitoring is likely to grow to cater the advancement of cloud technology.

Sudip Saha

Principal Consultant

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Country-Wise Insights

Cloud Network Monitoring Market to flourish in the United States with Strong Cloud Infrastructure

The cloud network monitoring in the United States is expected to reach a market share of US$ 1,066.7 million by 2033, expanding at a CAGR of 15.5%. The United States has been at the forefront of technological advancements, particularly in the field of cloud computing. Many of the major cloud service providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are based in the United States.

These companies have played a pivotal role in shaping the cloud computing landscape and have offered cloud network monitoring services as part of their offerings. Moreover, there are detailed factors expected to drive the growth for cloud network monitoring in the country are:

• The United States has a strong IT infrastructure and demand for monitoring this massive infrastructure.
• The United States is one of the early adopters of cloud computing and has grown its reach in cloud technology with innovative practices.

Stringent Cybersecurity Concerns are driving the Growth in the United Kingdom's Cloud Network Monitoring Market

The cloud network monitoring industry in the United Kingdom is expected to reach a market share of US$ 862.2 million, expanding at a CAGR of 14.7% during the forecast period. The United Kingdom faces cybersecurity threats and data breaches.

Organizations in the United Kingdom prioritize network security and compliance with data protection regulations. Cloud network monitoring solutions help identify vulnerabilities, detect unauthorized access attempts, and provide real-time insights into network traffic, enhancing overall security posture and enabling prompt incident response.

Notable Growth Expected in China's Cloud Network Monitoring Market Due to Increasing Demand of Server Monitoring for Continuous Operation

The cloud network monitoring industry in China is anticipated to reach a market share of US$ 986.7 million, moving at a CAGR of 16.1%during the forecast period.

China's massive data centers are among the largest in the world, housing a vast amount of infrastructure, servers, and network equipment. These data centers operate at a massive scale, serving millions of users and processing enormous amounts of data. The scale and complexity of these data centers require robust network monitoring tools to ensure continuous operation, identify performance bottlenecks, detect anomalies, and maintain overall network health.

Japan’s Transition to Cloud-based Systems is driving the Growth for Cloud Network Monitoring Market

The cloud network monitoring market in Japan is estimated to reach a market share of US$ 791.1 million by 2033, thriving at a CAGR of 15.1%. During the COVIID-19 outbreak, there was an increased reliance on technology. Hence, the transition to cloud-based systems from on-premises was inevitable due to the demand of remote communication. The cloud-based systems are the aggregation of cloud-based applications, platforms and websites. Therefore, there is assured demand for monitoring these cloud infrastructures to maintain the workflow and mitigate possible threat.

Demand for Cloud Network Monitoring Due to Growing Cloud Adoption and Digitalization is driving the Market Growth in India

The cloud network monitoring industry in India is expected to reach a market share of US$ 915.6 million, expanding at a CAGR of 17.8% during the forecast period. India has witnessed a growing trend of cloud adoption as businesses and organizations embrace digital transformation initiatives.

Cloud computing offers scalability, cost-efficiency, and flexibility, driving the need for effective network monitoring solutions. Cloud network monitoring ensures the performance, security, and availability of cloud-based services, supporting the digital transformation efforts of Indian businesses. The rising digitization in businesses and cloud adoption has helped India to propel in the cloud network monitoring market.

Category-Wise Insights

How Application Monitoring Will Propel the Cloud Network Monitoring Market Over the Forecasted Period?

The application monitoring segment is expected to dominate the cloud network monitoring market with a CAGR of 17.2% from 2023 to 2033. In the cloud environment, ensuring optimal application performance is crucial for user satisfaction and business success. Application monitoring focuses specifically on monitoring the performance, availability, and responsiveness of cloud-based applications.

It provides insights into application response times, transaction success rates, error rates, and other performance metrics. By monitoring applications in real-time, organizations can identify performance bottlenecks, optimize application behavior, and enhance the overall user experience.

Application monitoring takes a user-centric approach by monitoring application performance from the end-user perspective. It captures user interactions, tracks response times, and identifies any issues that could influence user experience. With the increasing emphasis on user satisfaction and customer-centricity, organizations recognize the importance of monitoring application performance to ensure seamless and engaging user experiences. Application monitoring enables organizations to proactively detect and resolve performance issues, improving customer satisfaction and retention.

How the Infrastructure Monitoring is driving the Cloud Network Monitoring Market?

The infrastructure monitoring segment is expected to dominate the cloud network monitoring market with a market share of 34.9% for 2033. Infrastructure monitoring serves as the foundation for effective cloud network monitoring.

It focuses on monitoring the underlying infrastructure components such as servers, network devices, storage systems, and databases. As the backbone of any cloud environment, monitoring the infrastructure is essential to ensure its optimal performance, availability, and reliability.

Infrastructure monitoring provides holistic visibility into the health and performance of the entire infrastructure stack. It enables monitoring of key performance indicators (KPIs) such as CPU usage, memory utilization, network latency, disk I/O, and bandwidth consumption. By monitoring these metrics, organizations can proactively identify potential issues, detect bottlenecks, and optimize resource allocation, resulting in improved overall performance.

How Key Players Stay Competitive in the Cloud Network Monitoring Market?

Key players in the cloud network monitoring market are staying competitive with continuous innovation and enhancement of their monitoring solutions with advanced features and capabilities. Vendors are establishing strategic partnerships and collaborations to expand their market reach and offer integrated solutions.

Key Strategies Adopted by the Players

• Product Innovation

Companies focus on product innovation to enhance their cloud network monitoring solutions. They invest in research and development to introduce advanced features and capabilities that address evolving customer needs. This includes AI and ML integration for intelligent analytics, automation of monitoring processes, enhanced visualization and reporting, and support for new cloud technologies. By offering innovative and differentiated products, companies can attract new customers and retain existing ones.

• Strategic Partnerships and Collaborations

Collaboration with strategic partners is a common strategy in the Cloud network monitoring market. Companies form partnerships with cloud service providers, network infrastructure vendors, and technology integrators to strengthen their offerings. These collaborations allow them to integrate their monitoring solutions with complementary products or services, expand their customer reach, and enhance the overall value proposition. Strategic partnerships also help companies stay abreast of emerging trends and technologies in the cloud ecosystem.

• Expansion into Emerging Markets

Companies recognize the growth potential in emerging markets and focus on expanding their presence in these regions. They establish partnerships or open offices in countries with growing cloud adoption to cater to local customers. By customizing their solutions for specific regional requirements and preferences, companies can tap into new customer segments and gain a competitive advantage in emerging markets. This expansion strategy helps them diversify their revenue streams and reduce dependence on specific regions.

• Mergers and Acquisitions

Mergers and acquisitions play a significant role in the Cloud network monitoring market. Companies acquire or merge with other players to gain access to new technologies, customer bases, or geographic markets. M&A activities help companies strengthen their market position, expand their product portfolios, and accelerate their growth. By consolidating resources and capabilities through acquisitions, companies can achieve economies of scale, enhance competitiveness, and achieve market leadership.

Key Players in the Cloud Network Monitoring Subscriber

• NetApp
• Google
• Microsoft Corporation
• Amazon
• Oracle

Key Developments in the Cloud Network Monitoring Market:

• New Relic, has announced an innovative, deeply integrated experience for its abilities that corresponds the performance of applications as well as hosts in real-time. Engineers & DevOps can swiftly diagnose infrastructure performance issues while avoiding context switching and missing critical insights caused by siloed infrastructure monitoring tools.
• Virtana, a leading IT operations company working for multi-vendor, hybrid, and multi-cloud infrastructure innovations along with artificial intelligence for the IT operations, has acquired a cloud observability platform, OpsCruise.
• Cisco Systems has announced a new OpenTelemetry-based combination of Cisco and AppDynamics application for observability and ThousandEyes network intelligence, allowing partners and end customers to determine whether the network or the application causes a performance issue more quickly and with fewer tools.

Segmentation Analysis of the Cloud Network Monitoring Market

By Monitoring:

• Infrastructure Monitoring
• Application Monitoring
• Network Traffic Monitoring

By Cloud Type:

• Private Cloud
• Public Cloud
• Hybrid Cloud

By Industry:

• IT & Telecommunication
• BFSI
• Government
• Healthcare
• E-commerce
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia Pacific
• Middle East & Africa