Network Monitoring Market Size, Share and Growth

According to MarketsandMarkets, the network monitoring market is projected to grow from USD 3.56 billion in 2023 to reach USD 10.23 billion by 2028; it is expected to grow at a CAGR of 23.5% from 2023 to 2028.

Cybersecurity threats have increased the demand for network monitoring solutions as organizations seek robust threat detection and compliance with data protection regulations. The increasing number of data centers and reliance on remote work and digital services have also increased the need for scalable and cost-effective monitoring tools. Another driver that significantly improves the network monitoring capabilities of technologies is advanced AI and machine learning, enabling predictive analytics and automation of issues. Network monitoring systems are increasingly gaining importance in industries such as IT and telecom, financial services, healthcare, and retail. Together, this increase in technology and the demand for enterprise place the network monitoring market at the forefront of continuous growth.

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Impact of AI/Gen AI on the Network Monitoring Market

Gen AI is revolutionizing the network monitoring market by developing more intelligent and better ways of managing and securing their networks. The real-time monitoring and analysis of large-sized data enables organizations to identify and address problems early before they become major issues. AI/ gen AI helps in edge computing integration, predictive analytics and anomaly detection, enhanced security measures, automation of network operations, and many others.

Market Dynamics:

Driver: Growing demand for robust network monitoring systems to prevent downtime

Network device failure can cause downtime and may negatively influence the smooth running of operations, increase workload, and pose serious threats to companies' security. For instance, network congestion, hardware malfunctioning, or high CPU loads can shut down an entire infrastructure or cause delays at a significant cost. Such issues may be prevented by finding the trouble early with help from network monitoring systems, thereby reducing downtime and its cost. These modern solutions have surpassed just simple monitoring capabilities with auto-discovery of devices in the network, network topology mapping, and even some potential security breach detection, which further helps increase the overall efficiency of operation and assists with business continuity.

Not all companies aim for fully redundant networks, eliminating single points of failure, due to architectural constraints, insufficient redundancy, or budget limitations. Such situations call for network monitoring, which helps mitigate the risks and optimize network performance. Proactive detection of failures or service disruptions will keep business network devices up to date, protect expenses, and ensure smooth running. Besides preventing costly outages, advanced network monitoring tools improve productivity by resolving problems before they become worse. This deepening reliance on proactive remedies highlights the urgency and need for robust and resilient network monitoring systems in today's interconnected business world.

Restraint: Rising accessibility of free network monitoring tools

Network monitoring has become an important practice for organizations to identify valuable insights from network traffic, bandwidth, and overall operational efficiency. These tools address critical problems such as reducing operational costs and downtime, mitigating security vulnerability, optimizing interconnectivity routes, resolving configuration errors, and managing large volumes of network performance data. In addition, they help identify and alleviate issues like latency and bandwidth constraints while providing precise information on data flow within the network.

Traditionally, larger corporations only used network monitoring software. The technological context has changed, and today, such solutions are also available to SMBs, non-profits, and other small organizations. Business administrators of all sizes can have devices like network taps and data monitoring switches to ensure better service reliability and improved network performance.

In addition, the market provides several free network traffic monitoring tools that are highly efficient and easily accessible. These popular options include Wireshark, Ntopng, NetFlow Analyzer, SolarWinds Response Time Viewer, GlassWire, Paessler PRTG Network Monitor, Iperf, and EtherApe. All these cost-effective alternatives allow organizations to run a network infrastructure with smooth operations to improve service delivery.

Opportunity: Rising impact of IoT and the BYOD trend on network monitoring

The BYOD trend has caused an immense impact on the digital landscape of organizations, where workers can use personal mobile devices to perform both business and personal tasks. Such an approach has rapidly raised the penetration of mobile devices with the diverse applications, services, and functionalities offered by mobile devices. With BYOD becoming increasingly mainstream, a considerable amount of sensitive information, including usernames, passwords, and other financial information, gets stored and exchanged through the same devices, resulting in new security challenges. As organizations increasingly depend on mobile devices, intense monitoring and analytics solutions have become extremely important.

Concurrent to this is the rampant increase of IoT devices and shifting trends toward working remotely; therefore, network administrators face challenges of increased complexities. Devices at home that are connected to the corporate world, for example, a work machine connected to the home network and devices of employees connected to the systems in the company, have brought together vulnerabilities to be monitored. These increases in connected devices and data flows require sophisticated monitoring tools in businesses with sensitive information that can maintain reliability.

As remote work becomes the new normal, organizations need to advance their network management strategies. These monitoring solutions must be extensive and proactive in addressing what the BYOD trend and constantly increasing IoT connections bring to play to ensure that businesses sustain their operational efficiency and security over critical data and counter the risks of security loss in a highly complex networking environment.

Challenge: High costs associated with network monitoring

As many businesses rely on the networks for critical functions, the demand for upgrading infrastructure to provide higher capacity and capabilities rises. Modern networks need support from traditional IT applications to advanced services such as telephony and video conferencing and multimedia applications that require more bandwidth and specialized protocols like multicasting and autoconfiguration. Also, adding IP virtualization increases the cost. Despite the expense, sound network management is a need for a successful business. Saving cost by skimping on monitoring can lead to more significant loss due to downtime or data breaches or operating inefficiency. However, smaller and even medium-sized firms face considerable budgetary pressure that compromises robust network security and adequate performance. The increasing complexity of modern networks deteriorates the situation, requiring companies to dedicate considerable time and resources to monitoring activities. This further shifts attention and investment from core business operations, thus creating a trade-off between maintaining network reliability and pursuing growth objectives. These demands have to be balanced in business firms by making cost-effective measures and scalable network monitoring suitable for their operational as well as budgetary needs.

Market Ecosystem:

Keysight Technologies (US), Gigamon (US), NETSCOUT (US), Viavi (US), and Apcon (US) are prominent players in the network monitoring market. The top five players accounted for a share of 30-40% in the network monitoring market in 2022. The network monitoring market ecosystem includes equipment manufacturers, software providers, and service providers.

Growing demand for 40 Gbps network monitoring equipment to drive market expansion

Network monitoring hardware with 40 Gbps is increasingly deployed in data centers and core networks, illustrating the increasing demand for speedy and efficient solutions. An explosion of data centers and the widespread introduction of servers and virtualization technologies create a massive demand for broader bandwidth capabilities. These cutting-edge monitoring solutions provide best-in-class and cost-efficient switching, reducing the number of switches in the same network infrastructure.

Following up on these developments, Garland Technology has widened its global footprint by the unveiling of its latest passive TAP. The 40 Gbps SR4 fiber network TAP assures absolute visibility through 100%, preventing SPAN Ports from imposing restrictions on any form of network security and performance monitoring systems. The device aims to manage OM3 and OM4 types of multi-mode fibers to provide easy network monitoring for greater system efficiency. The adoption of this sophisticated equipment highlights the approach in developing networks to optimize them since high bandwidths are quite challenging to deal with. Going by this pattern of progression, there is a chance that demand for 40 Gbps network monitoring solutions will have great speed within the forecasted period.

Network monitoring equipment market for data monitoring switches (network packet brokers) is projected to grow at the highest CAGR from during forecast period

The network monitoring equipment market, especially for data monitoring switches (network packet brokers), is expected to witness the highest CAGR during the forecast period. This growth is driven by increasing investments in advanced network packet broker technologies to meet the rising demand for efficient network management. Key demand drivers for this are the requirement for automated and simplified data centers, high penetration of cloud service, rising adoption of bare metal switches, and increased bandwidth in a data center.

Furthermore, advancements in network packet brokers (NPBs) due to increasing multimedia content, web applications, and the rise in its consumption are fueling the growth of the network data provider market. These trends are making organizations use innovative NPB solutions to effectively handle complex environments in the network. Top market companies are targeting developing high-class Network Packet Broker technologies suitable for applications involving different industries. The thrust towards innovation and efficiency enables the network packet broker market to grow well in the forthcoming years. The growth drivers also include growing needs for efficient traffic management, enhanced network visibility, and the increased volume of data going through networks because of increasing IoT devices, cloud services, and remote work environments. Network packet brokers are also critical in aggregating, filtering, and directing data traffic to monitoring tools, hence ensuring seamless network performance and robust security.

Network Monitoring Market by Region

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Asia Pacific to lead network monitoring market growth during the forecast period

The Asia Pacific region will witness the fastest growth in the network monitoring market during the forecast period. Digital technologies are increasingly being adopted by companies in countries such as China, Japan, and India, thereby creating a significant demand for network monitoring solutions. Internet penetration and the new population entering the internet in the region are producing significant volumes of data, which in turn is fueling demand for cloud-based services.

The improved digital activity calls for implementing high-performance network monitoring solutions to effectively manage network infrastructure, especially in data centers. To this end, monitoring companies are strategically spreading across the region to leverage the growing demand for advanced monitoring tools that would enhance the evolving digital ecosystem. These factors combine to position Asia Pacific as a source of growth for the network monitoring market.

These also include widespread adoption of cloud computing, 5G deployment, and penetration of lot devices that are together demanding robust network management and monitoring solutions. With an expanding e-commerce sector and the increased need for remote working and online education, the region also needs efficient network performance monitoring and enhanced cybersecurity measures. International technology players and regional cloud providers continue to grow data centers in the Asia Pacific region.

Key Market Players:

Major players in the network monitoring market include Gigamon (US), NETSCOUT (US), Keysight Technologies (US), Viavi (US), APCON (US), Garland Technology (US), Cisco (US), Broadcom (US), Arista Networks (US), Juniper Networks, Inc. (US), Zenoss (US), Network Critical (UK), CALIENT Technologies (CALIENT) (US), Netgear (US), Motadata (US), Riverbed Technology (US), Datadog (US), Kentik (US), Auvik Networks (Canada), LogicMonitor (US) and Paessler (Germany) are among a few emerging companies in the network monitoring market.

Network Monitoring Market Report Scope:

This research report categorizes the network monitoring market share based on offerings, bandwidth, technology, end-user, and region.

Based on Offerings, the Network Monitoring Market been Segmented as follows: 

• Equipment
• Network TAPs
• Data Monitoring Switches
• Software & Services

Based on Bandwidth, the Network Monitoring Market been Segmented as follows:

• 1&10 Gbps
• 40 Gbps
• 100 Gbps

Based on Technology, the Network Monitoring Market been Segmented as follows:

• Ethernet
• Fiber Optic
• InfiniBand

Based on End User, the Network Monitoring Market been Segmented as follows:

• Enterprises
• Telecommunications Industry
• Government Organisations
• Cloud Service Providers

Based on Region, the Network Monitoring Market been Segmented as follows:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Rest of the World (RoW)
  • Middle East & Africa
  • South America

Recent Developments:

• In March 2022, Viavi has launched a fiber test solution that can replace six instruments. FiberComplete PRO reduces the time and effort for almost every aspect of the test and reliability of network certification.
• In February 2022, Gigamon has launched its ThreatINSIGHT GuidedSaaS NDR as the first NDR solution, which provides 365-day rich network metadata retention.
• In February 2022, NETSCOUT announced the availability of nGeniusEDGE Server. This comprehensive, plug-and-play solution provides customers with the visibility and insights they need to ensure a high-quality end-user experience regardless of where employees work.
• In February 2022, Garland Technology has signed a partnership with Iris Networks to bring its network TAP and packet broker solutions to more companies across the UK and increase its presence in the country.
• In October 2021, Keysight Technologies announced the launch of a new series of Industrial Visibility solutions, which include a network packet broker and taps that enable electric utilities to meet North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) monitoring requirements.

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