Network Monitoring Market Size, Share, Forecast, & Trends Analysis by Offering (Equipment, Software, Services), Technology (Ethernet, Fiber Optic), Bandwidth (10-100 GBPS, >100 GBPS), Organization Size, End User (Enterprises, Telecom Operators) and Geography—Global Forecast to 2031

The Network Monitoring Market was valued at $2.3 billion in 2023. This market is expected to reach $3.9 billion by 2031 from an estimated $2.4 billion in 2024, at a CAGR of 7.3% during the forecast period from 2024 to 2031.

Network Monitoring Market Size & Forecast

The growth of the network monitoring market is primarily driven by the increasing demand for cloud services, the need for network monitoring systems to mitigate downtime, and the escalating complexity of IT environments. Moreover, the rapid advancement of IoT, AI, and machine learning technologies and the rising adoption of network monitoring solutions among small and medium-sized enterprises (SMEs) are anticipated to create significant growth opportunities for players operating in this market.

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Network Monitoring Market Growth Drivers

Growing Complexity of IT Environments

The rapid evolution and growing complexity of IT environments have significantly propelled the network monitoring market's growth. As organizations adopt more sophisticated IT infrastructures—such as multi-cloud environments, hybrid systems, and intricate network topologies—the challenges of managing and monitoring these setups become increasingly pronounced. This complexity necessitates advanced network monitoring solutions to maintain performance, security, and reliability. The escalating volume of data traffic and the swift generation of data have increased the demand for real-time monitoring capabilities. In response, organizations are increasingly leveraging next-generation monitoring solutions that provide high scalability and real-time analytics. These advanced tools empower IT teams to quickly detect anomalies, identify performance bottlenecks, and ensure optimal network functionality, thereby preemptively addressing potential disruptions that could affect business operations.

Moreover, the demand for security in complex IT environments has intensified as cyber threats have become increasingly sophisticated. A single vulnerability can jeopardize entire networks, emphasizing the critical need for robust defenses. Network monitoring solutions now offer advanced threat detection and response capabilities, including anomaly detection and machine learning, to identify and mitigate potential security breaches. Consequently, the escalating complexity of IT environments is driving the evolution of network monitoring, necessitating more comprehensive, real-time, and security-focused solutions to effectively manage and protect intricate and dynamic network landscapes.

Rising Demand for Cloud Services

The rapid adoption of cloud services is a vital factor driving the growth of the network monitoring market. As organizations increasingly transition their operations to cloud environments—whether public, private, or hybrid—the complexity and scale of network infrastructures are also on the rise. This transformation necessitates advanced network monitoring solutions capable of effectively managing and overseeing these dynamic environments. Moreover, the shift toward hybrid and multi-cloud setups complicates network management further, increasing the demand for unified monitoring solutions that can seamlessly integrate diverse platforms. Concerns regarding cybersecurity and data breaches also elevate the need for real-time monitoring to detect and mitigate potential threats. Consequently, the surge in cloud service adoption is significantly enhancing the network monitoring market by creating a demand for sophisticated tools that can navigate the complexities of modern cloud-based infrastructures, improve performance, strengthen security, and manage costs efficiently.

Network Monitoring Market Analysis: Key Findings

The Network Equipment Segment to Dominate the Network Monitoring Market in 2024

By offering, the network monitoring market is segmented into equipment, software, and services. In 2024, the equipment segment is expected to account for the largest share of 56% of the network monitoring market. This segment's large market share is primarily attributed to the increasing need to manage and analyze network traffic, bandwidth utilization, and performance metrics. Additionally, the demand for continuous monitoring to safeguard against cyber threats, along with the exponential growth in data traffic and application usage, underscores the necessity for advanced network equipment.

However, the services segment is estimated to register the highest CAGR during the forecast period. The rising demand for consulting and advisory services, coupled with the increasing need for implementation services to optimize network performance, is expected to drive growth in this segment. Moreover, the growing need for network monitoring services to protect IT networks further supports its growth.

The Ethernet Segment to Dominate the Network Monitoring Market in 2024

Based on technology, the network monitoring market is segmented into ethernet, fiber optic, and InfiniBand. In 2024, the ethernet segment is expected to account for the largest share of over 45% of the network monitoring market. This segment's large market share is driven by the continuous evolution of Ethernet technology, the growing adoption of cloud-based Ethernet monitoring solutions, and the increasing demand for advanced Ethernet monitoring features such as real-time analytics, automated troubleshooting, and deep packet inspection.

However, the fiber optic segment is estimated to register the highest CAGR during the forecast period. The growing demand for fiber optics to support high-performance networks and enable real-time analytics, the rising need to manage and monitor data-intensive applications, and large volumes of network traffic are expected to support the growth of this segment.

The 10-100 GBPS Segment to Dominate the Network Monitoring Market in 2024

Based on bandwidth, the network monitoring market is segmented into <10 GBPS, 10-100 GBPS, and >100 GBPS. In 2024, the 10-100 GBPS segment is expected to account for the largest share of over 47% of the network monitoring market. This segment's large market share is driven by the growing demand for 10-100 GBPS bandwidth in modern applications such as cloud computing, data centers, and high-definition streaming. Additionally, the rising need for specialized high-bandwidth monitoring solutions to effectively manage these high-speed connections contributes to this growth.

However, the >100 GBPS segment is estimated to register a higher CAGR during the forecast period. The increasing demand for solutions exceeding 100 Gbps to effectively monitor and manage networks, along with the proliferation of data centers and the rising need for high-bandwidth solutions to support data processing and storage requirements, is expected to drive growth in this segment.

The Large Enterprises Segment to Dominate the Network Monitoring Market in 2024

Based on organization size, the network monitoring market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of over 70% of the network monitoring market. This segment's large market share is attributed to the robust IT infrastructure of large enterprises, the increasing adoption of advanced technologies such as AI and IoT, and the availability of skilled IT personnel to manage network platforms effectively.

However, the small & medium enterprises segment is estimated to register a higher CAGR during the forecast period. The growing need to enhance network performance, ensure real-time monitoring, and improve customer experience, along with an increased reliance on network monitoring solutions for upgrades and modernization, is expected to drive growth in this segment.

The Enterprises Segment to Dominate the Network Monitoring Market in 2024

Based on end user, the network monitoring market is segmented into enterprises, telecom operators, cloud service providers, and government organizations. In 2024, the enterprises segment is expected to account for the largest share of over 52% of the network monitoring market. This segment's large market share is driven by the increasing adoption of network monitoring solutions in the media and entertainment sector, the rapid growth in data traffic and demand for high-speed connections in the telecom industry, the growing complexity of IT environments, and the expansion of cloud computing services.

Moreover, this segment is estimated to register the highest CAGR during the forecast period.

Geographic Analysis

North America to Dominate the Network Monitoring Market

Based on geography, the network monitoring market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of over 34% of the network monitoring market. The presence of leading network monitoring players is anticipated to significantly contribute to the high revenue share of this region. Additionally, the increasing demand for network monitoring solutions in the IT and telecommunications sectors, coupled with a highly developed network infrastructure, advancements in monitoring technologies, and the growing need to oversee cloud environments, is driving demand for network monitoring in the area.

However, Asia-Pacific is estimated to register the highest CAGR of 8.5% during the forecast period. The infrastructural growth in APAC, particularly in China, South Korea, Japan, and India, along with the rapid development of regional economies, is driving significant growth in this market. The increasing adoption of cloud and hybrid cloud environments, coupled with ongoing digital transformation efforts, the integration of AI and machine learning into network monitoring solutions, the expansion of data centers, and the enhancement of telecom networks are all contributing factors. Furthermore, growing investments by market players in the development of network monitoring solutions further support the rapid growth of this regional market.

Network Monitoring Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the network monitoring market are Cisco Systems, Inc. (U.S.), IBM Corporation (U.S.), NETSCOUT Systems, Inc. (U.S.), Keysight Technologies, Inc. (U.S.), VIAVI Solutions Inc. (U.S.), Zenoss, Inc. (U.S.), Network Critical Solutions Ltd. (U.K.), LogicMonitor Inc. (U.S.), Colasoft (U.S.), ExtraHop Networks, Inc. (U.S.), SolarWinds Corporation (U.S.), Broadcom Inc. (U.S.), Paessler AG (Germany), Nagios Enterprises, LLC. (U.S.), and Juniper Networks, Inc. (U.S.).

Network Monitoring Industry Overview: Latest Developments from Key Industry Players

• In June 2024, NETSCOUT Systems, Inc. (U.S.) expanded its partnership with Vodafone Group Plc (U.K.) to enhance network performance for Vodafone's customers. This multi-year agreement utilizes NETSCOUT InfinistreamNG to deliver real-time, end-to-end visibility monitoring solutions across Vodafone’s physical and virtual network environments, including 5G Standalone.

• In February 2023, Tech Mahindra Limited (India) launched SANDSTORM, a remote-based real-time network monitoring service and smart device assurance solution designed for telecom operators and companies.

Network Monitoring Market Research Summary

Key questions answered in the network monitoring market report: