Application Performance Management (APM) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Application Performance Management Software Market Insights & Companies. The Market is Segmented by Deployment (on-Premise, Cloud), Enterprise Size (small and Medium Enterprises, Large Enterprises), and Geography (North America, Europe, Asia-Pacific, Latin America, The Middle East, and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Application Performance Management Market Size

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Major Players

*Disclaimer: Major Players sorted in no particular order

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Application Performance Management Market Analysis

The Application Performance Management Market size is estimated at USD 9.38 billion in 2024, and is expected to reach USD 35.84 billion by 2029, growing at a CAGR of 30.76% during the forecast period (2024-2029).

Application performance monitoring (APM) distributes software systems at different levels to increase efficiency and productivity. Also, it helps analyze big data to solve problems quickly.

• One of the primary strategies is significant data analytics, which is accelerating market growth along with business globalization, the proliferation of mobile and cloud computing, the increasing level of competition among companies to solve, analyze, and improve business processes, technological development in application performance monitoring, and rising consumer demand for cloud and mobile computing.
• APM aids application discovery and dependency mapping (ADDM), which identifies all servers and apps while alerting users and automating threat response procedures. It facilitates reporting and offers a personalized dashboard. Additionally, application management software products have great scaling potential and are less expensive to deploy.
• Additionally, growing log management, growing R&D, and developing advanced APM analytics will help the application performance monitoring market expand throughout the estimated period.
• However, the main factors limiting market growth include a need for end-user awareness, rising funding costs, and a lack of consumer awareness of application performance monitoring (APM). In the forecast period mentioned above, the application performance monitoring market will face challenges from rising and shifting business demand.

Application Performance Management Market Trends

Adoption in Large Enterprises to Drive Market Growth

• Organizations capable of hosting these systems independently and on a large scale are drawn to direct software solutions. The demand for this is driven by improved security and data control. APM systems that are directly supplied as software solutions can also be custom tuned to client needs, integrating seamlessly with the application that has to be controlled. Due to total access to parameters, this not only enables analytics enhancement and administration but also offers better capabilities.
• Additionally, as hybrid clouds' capabilities advance, more large businesses are integrating APM systems, which leads to the on-premises deployment of software solutions and their extension to public clouds. The software for APM systems is gradually moving towards unified models, which can analyze performance, business, and user experience simultaneously.
• The interconnectedness and intimate ties between the various segments have caused this trend to change. For instance, application performance impacts user experience, and business analysis can help identify peak hours or exit points. The application performance management systems' holistic approach has dramatically expanded their functionality, consequently significantly boosting the industry under study.
• Numerous programs provide application performance management, which has several benefits. For instance, solutions for monitoring an organization's web server can be found in this category. Additionally, it aids in app discovery and dependency mapping (ADDM), finds and classifies all servers and apps, alerts users, and automates threat-related activities. It facilitates reporting and offers a personalized dashboard. Additionally, application management software products have great scaling potential and are less expensive to deploy.
• When used effectively, APM tools offer significant insight into the customer experience when clients interact with a business on a technical level, providing a rare chance for companies to match their technical performance with their goals better. The growing demand to enhance the customer experience is anticipated to fuel market expansion.

Europe to Hold Significant Market Share

• The Central Europe region's APM service providers aggressively participate in mergers and acquisitions to support the sector's expansion. To become the industry leader in European managed services for sophisticated and mission-critical cloud applications, Sentia, a Netherlands-based Azure Expert MSP, has acquired Dutch-Danish MSP Ymir. While ExtraHop, AppDynamics, and Dynatrace are among the companies that regularly cooperate with Ymor, the latter is known as an expert in application performance.
• To increase efficiency and cut costs, many governments in the European region are migrating their IT services to the cloud. Government organizations can concentrate their IT resources on core business, increase data security, and prioritize human resources by replacing disconnected and outdated legacy systems with centralized shared services.
• Companies like Amazon provide S3 cloud storage classes for data preservation and application hosting to address increased cloud adoption. Lower costs make these solutions an attractive option for the region's SMEs. The expanding use of data centers and web servers to host applications has boosted the European market's demand for application performance management.
• The need to solve, assess, and improve business processes in this region is driven by growing company globalization, the spread of mobile and cloud computing, and rising levels of business competition.
• European APM companies have begun to exhibit interest in having their products considered as AIOps tools. Data is already abundant in IT operations and other organizations, and as microservices, the cloud, and the Internet of Things (IoT) develop, this situation is expected to get more complex.

Application Performance Management Industry Overview

The application performance management market is moderately competitive. Major players include New Relic Inc., Dynatrace LLC, and IBM Corp.

In February 2023, New Relic announced it would expand its market reach with the Microsoft Azure Alliance, where the availability of the Azure Native New Relic Service in the Microsoft Azure Marketplace will benefit developers and DevOps professionals who can access New Relic through the Azure portal.

In November 2022, Dynatrace extended advanced observability and AIOps to AWS Compute Optimizer. This service used customers' resource utilization data to recommend providing Amazon Web Services (AWS) resources for improved utilization. This support enabled the Dynatrace platform to automatically capture and analyze all Amazon Elastic Compute Cloud (Amazon EC2) instances in customers' AWS environments in near-real time and use Dynatrace causal AIOps and automation capabilities to continuously optimize Amazon EC2 consumption for cost, service reliability, and performance.

Application Performance Management Market Leaders

1. AppDynamics (Cisco Systems Inc.)
2. New Relic Inc.
3. Dynatrace LLC
4. IBM Corp.
5. Broadcom Inc.

*Disclaimer: Major Players sorted in no particular order

Application Performance Management Market News

• May 2023: New Relic Inc. announced the launch of Grok, its AI observability assistant, and plans to employ a big language model to assist engineers in performing numerous common activities using natural language. New Relic uses observability technologies to set up instrumentation, provide reports, and manage accounts for the DevOps and DevSecOps movements. Engineers employ observability tools to gather the information required to run and secure the software they create.
• April 2023: Dynatrace Application Security achieved dual FedRAMP and StateRAMP authorizations, enabling secure cloud transformation for public sector customers. As a result, federal, state, and local government agencies and public educational institutions can use Dynatrace Application Security to identify and prioritize vulnerabilities and protect against attacks continuously, in addition to using the Dynatrace platform for intelligent observability and DevSecOps automation.

Application Performance Management Market Report - Table of Contents

1. 1. INTRODUCTION
   1. 1.1 Study Assumptions and Market Definition
   2. 1.2 Scope of the Study
   1. 4.1 Market Overview
   2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis
      1. 4.2.1 Bargaining Power of Suppliers
      2. 4.2.2 Bargaining Power of Consumers
      3. 4.2.3 Threat of New Entrants
      4. 4.2.4 Intensity of Competitive Rivalry
      5. 4.2.5 Threat of Substitute Products
      1. 5.1 Market Drivers
         1. 5.1.1 Increasing need for End-user satisfaction for successful Digital Business Operations
         1. 5.2.1 Lack of End user Awareness and Variability in the Quantification of Similar Factors Provided by Different Providers
         1. 6.1 By Deployment
            1. 6.1.1 On-premise
            2. 6.1.2 Cloud
            1. 6.2.1 Small and Medium Enterprises
            2. 6.2.2 Large Enterprises
            1. 6.3.1 North America
            2. 6.3.2 Europe
            3. 6.3.3 Asia
            4. 6.3.4 Australia and New Zealand
            5. 6.3.5 Latin America
            6. 6.3.6 Middle East and Africa
            1. 7.1 Vendor Market Share Analysis
            2. 7.2 Company Profiles
               1. 7.2.1 AppDynamics LLC (Cisco Systems Inc.)
               2. 7.2.2 New Relic Inc.
               3. 7.2.3 Dynatrace LLC
               4. 7.2.4 IBM Corp.
               5. 7.2.5 Broadcom Inc.
               6. 7.2.6 Microsoft Corporation
               7. 7.2.7 Mic Focus International PLC
               8. 7.2.8 Datadog Inc.
               9. 7.2.9 SignalFX (part of Splunk Inc.)
               10. 7.2.10 Akamai Technologies Inc.
               **Subject to Availability

               ***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and Latin America and Middle East and Africa will be considered together as 'Rest of the World'

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               Application Performance Management Industry Segmentation

               Application Process Management (APM) software enables the organization to monitor the performance metrics of the organization's critical business applications that receive alerts in case of performance glitches and generate reports for analysis of the same. For the study, the revenues accrued from selling various software solutions deployed and running on the mainframe and distributed operating environments are considered in the scope. The revenue from APM solutions deployed via software-as-a-service (SaaS) has also been recognized as part of the study. The application performance management market is segmented by deployment (on-premise, cloud), by enterprise size (small and medium enterprises, large enterprises), and by geography (North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

               By Deployment
               	On-premise
               	Cloud

               By Enterprise Size
               	Small and Medium Enterprises
               	Large Enterprises

               By Geography***
               	North America
               	Europe
               	Asia
               	Australia and New Zealand
               	Latin America
               	Middle East and Africa