Application Performance Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Application Performance Management Market is segmented by Deployment (On-premise, Cloud), by Enterprise Size (Small and Medium Enterprises, Large Enterprises), and by Geography.

Application Performance Management Industry Overview

Application Performance Management Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 12 %

Major Players

Application Performance Management Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Application Performance Management Market Analysis

The Global Application Performance Management Market is expected to register a CAGR of 12% over the forecast period. The market is shifting from on-premises deployment in large organizations to on-cloud due to the changing application usage, increasing awareness among smaller enterprises, and the demand for cost-effective systems.

  • The monetary transaction applications in the BFSI industry have been incorporating APM (application performance management) systems at a robust pace due to the need for real-time processing and reducing mid-transaction failure chances.
  • APM helps in Application discovery and dependency mapping (ADDM) that discovers and categorizes all applications and servers, alerting and automizing threat actions. It provides a custom dashboard and eases reporting. Also, application management software tools come for less price for deployment and have significant opportunities for scalability.
  • Many organizations are rapidly adopting predictive maintenance and cloud computing owing to a rise in demand for APM. For instance, AppDynamics, with its expertise, played a pivotal role in the complex market for hybrid and multi-cloud, helping Cisco, its parent, to monitor performance at the application level by adapting to digital business needs by providing common tools across the technology stack.
  • The integrational and functional issues with generic solutions have challenged their widespread acceptance, and the demand for client-specific, tailored solutions is still high. The market studied is primarily dependent on two factors, i.e., performance output at the user's end (in terms of response time) and peak load handling, which have led to its essential incorporation in public-facing services, such as social media as well as media and entertainment applications.
  • With the recent outbreak of COVID-19, the application performance management market is expected to gain significant share due to increased demand, both inpatient needs and IT connectivity, or even network bandwidth. For many businesses, applications and services are the only potentials for revenue right now, with the shutdown of stores and events. Thus, application performance management solutions play a pivotal role in this pandemic hour.

Application Performance Management Industry Segments

Application Process Management or Monitoring (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 for 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.

By Deployment
On-premise
Cloud
By Enterprise Size
Small and Medium Enterprises
Large Enterprises
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle-East and Africa

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Application Performance Management Market Trends

This section covers the major market trends shaping the Application Performance Management Market according to our research experts:

Adoption in Large Enterprises to Drive Market Growth

  • The direct software solutions are appealing to large organizations which have the capabilities of hosting these systems on their own, on a large scale. Enhanced security and control over data drive this demand. Further, APM systems that are directly sold as software solutions can be tailored specifically to client needs, with close integration of the application that must be managed. This not only allows analytics improvement and management but also provides higher capabilities due to complete access to parameters.
  • In addition, the improving capabilities of hybrid clouds are facilitating the incorporation of APM systems into large enterprises, thus resulting in the on-premises deployment of software solutions, with extension to public clouds. The software solutions in APM systems are quickly shifting toward unified models, which have the capability of simultaneous analysis of performance, business, and user experience.
  • This shift in trend is driven by the close relationship and interdependence between the separate segments. For instance, the performance of applications affects user experience, while business analysis might help to determine peak times or exit points. The holistic approach toward application performance management systems has increased the functionalities manifold and thus provided a major boost to the market studied.
  • Application performance management offers various advantages, such as being supported by a wide range of applications (for example - application performance management tools may help monitor an organizational webserver). It also helps in Applications Discovery and Dependency Mapping (ADDM), discovers, and categorizes all applications and servers, alerting and automizes threat actions. It provides a custom dashboard and eases reporting. Also, application management software tools come for less price for deployment and have significant opportunities for scalability.
  • When properly deployed, the APM tools provide deep visibility into the customer experience when customers interact with a company on a technical plane, offering a unique opportunity for organizations to align their tech performance with their objectives better. The increasing need for improving customer experience is expected to propel market growth.
Application Performance Management Market : Enterprise Management (EPM) Software Application Market Revenues Worldwide From 2015 to 2022 (in Million US Dollars)

Europe to Hold Significant Market Share

  • APM Service providers in the Central Europe region are actively participating in mergers & acquisitions to contribute to market growth. For instance, Sentia, the Netherlands-based Azure Expert MSP, has acquired Dutch-Danish MSP Ymir, intending to become the market leader in the European Managed Services for complex and business-critical cloud applications. Ymor, on the other hand, is regarded as an application performance specialist, actively engaged in partnerships with ExtraHop, AppDynamics, and Dynatrace, among others.
  • Across the European region, many governments are moving IT services to the cloud to enhance efficiency and reduce costs. By replacing isolated and aging legacy systems with centralized shared services, government organizations can focus their IT resources on core business, strengthen data security, and focus on human resources as their primary objectives.
  • To address such high cloud adoption, companies such as Amazon offer S3 cloud storage classes for data archiving and application hosting. Moreover, lesser cost enables the SMEs in the region to opt for such solutions. The increasing adoption of data centers and web servers to host applications has increased the demand for application performance management in the European market.
  • In addition, Raiffeisen Switzerland is in the process of building a digital workplace environment that leads to improved customer advisory services and increased efficiencies. It is the third-largest bank in Switzerland, has 1.9 million cooperative members, 880 locations, and 3.8 million clients throughout Switzerland.
  • APM vendors in the Europe region have started to express interest in their solutions being considered as an AIOps tool. IT operations and other organizations are already loaded with data, and this situation is likely to become more challenging with the growth of microservices, the cloud, and the Internet of Things (IoT).
Application Performance Management Market : Growth Rate by Geography

Application Performance Management Market Competitor Analysis

The Application Performance Management market is moderately competitive. Major players include New Relic Inc., Dynatrace LLC, and IBM Corp., among others. A few recent developments are:

  • January 2022 - Kong Inc., a cloud connectivity company, announced the availability of Kong Enterprise 2.7, a cloud-native service connectivity platform that enables companies to efficiently and reliably manage APIs and microservices at scale across any underlying architecture.
  • June 2021 - Netreo, a provider of IT infrastructure and application performance monitoring solutions, has formed a formal partnership with Silxo, a systems integrator specializing in digital and business transformation services in highly regulated industries. Silxo is situated in London, and the agreement may enable Netreo to expand its presence in the United Kingdom by developing a top-tier channel partner that will provide strategic business services geared to C-level executives. Silxo may offer Netreo’s advanced on-premises, cloud, and hybrid infrastructure management, application performance management, and code profiling solutions due to this partnership.
  • April 2021 - IBM announced a definitive agreement to acquire Turbonomic, an Application Resource Management (ARM) and Network Performance Management (NPM) software provider based in Boston, MA.

Application Performance Management Market Top Players

  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 Concentration

Application Performance Management Market Recent Developments

  • September 2022 - The VMware Aria multi-cloud management portfolio, which offers a collection of end-to-end solutions for controlling the cost, performance, configuration, and delivery of infrastructure and cloud-native apps, has just been launched by VMware. VMware Aria Graph, a graph-based data storage solution that captures the complexity of users' multi-cloud settings is the core of VMware Aria.
  • June 2022 - With a new AppDynamics cloud service and open-source development tools, Cisco aims better to control the performance and development of essential apps. A cloud-native service called AppDynamics Cloud was created to enable businesses to monitor applications and take corrective action when performance issues arise.

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

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    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

    3. 4.3 Assessment of the Impact of COVID -19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing need for End-user satisfaction for successful Digital Business Operations

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of End user Awareness and Variability in the Quantification of Similar Factors Provided by Different Providers

    3. 5.3 Assessment of Impact of Covid-19 on the Industry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment

      1. 6.1.1 On-premise

      2. 6.1.2 Cloud

    2. 6.2 By Enterprise Size

      1. 6.2.1 Small and Medium Enterprises

      2. 6.2.2 Large Enterprises

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia-Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle-East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    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.

    3. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability
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Application Performance Management Market Research FAQs

The Application Performance Management Market is studied from 2018 - 2028.

The Application Performance Management Market is growing at a CAGR of 12% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

Europe holds highest share in 2021.

AppDynamics (Cisco Systems Inc.), New Relic Inc., Dynatrace LLC, IBM Corp., Broadcom Inc. are the major companies operating in Application Performance Management Market.

Application Performance Management Industry Reports

In-depth industry statistics and market share insights of the Application Performance Management sector for 2020, 2021, and 2022. The Application Performance Management research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Application Performance Management report PDF.

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