Application Performance Management Market - Growth, Trends, and Forecast (2020 - 2025)

The Application Performance Management Market is segmented by Solution Type(Software, Service), Deployment(On-premise, Cloud, Hybrid), Enterprise Size(Small and Medium Business(SMB), Large Enterprise), Access Type(Web, Mobile), End User(BFSI, E-commerce, Manufacturing, Healthcare, Retail, IT and Telecommunication, Media and Entertainment, Academics, Government), and Geography.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

12 %

Major Players:

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Market Overview

The Application Performance Management Market was valued at USD 5.80 billion in 2019 and is expected to reach USD 11.43 billion by 2025, at a CAGR of 12% over the forecast period 2020 - 2025. The Global Application Performance Market (henceforth referred to the market studied) is witnessing a surge in the number of players since 2013, providing varied services and functionalities to clients. Besides, the market studied is shifting from on-premise deployment in large organizations to on-cloud or hybrid deployment models, due to the changing application usage, increasing awareness among smaller enterprises, and the demand for cost-effective systems.

  • However, the integration 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 - performance output at the user end (in terms of response time) and peak load handling, which have led to its considerable incorporation in public-facing services, such as social media and media and entertainment applications.
  • The latter focuses on the computational performance and requirements, which allow the employers of these systems to optimize the use of computing resources, identify bottlenecks, and perform predictive maintenance. Moreover, these systems are witnessing robust application integration, by requiring real-time access and association of heavy losses with downtime, for both public- and business-facing services.
  • For instance, 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.  

Scope of the Report

APM denotes to application performance management or application performance monitoring. APM or application performance management is principally an industry or vendor made term for anything that has to do with handling or monitoring the performance of code, application dependencies, transaction times, and overall user involvements.  

By Solution Type
Software
Service
By Deployment
On-premise
Cloud
Hybrid
By Enterprise Size
Small and Medium Business (SMB)
Large Enterprise
By Access Type
Web
Mobile
By End User
BFSI
E-commerce
Manufacturing
Healthcare
Retail
IT and Telecommunication
Media and Entertainment
Academics
Government
Other End Users
Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa

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Key Market Trends

Enhanced Security and Control Over Software Solutions Drive the Demand for Application Performance Management

  • The direct software solutions are appealing to large organizations, which have the capabilities of hosting these systems on their own, at 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 has to 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 enterprises, thus resulting in the on-premise 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 of trend is driven by the close relationship and inter-dependence between the separate segments. For instance, the performance of applications affects user experience, while the 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.

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North America Holds a Dominant Position in Application Performance Management Market

  • The Asia-Pacific countries are rapidly adopting predictive maintenance and cloud and mobile computing, owing to a spur in the demand for APM, in the region. For instance, in June 2017, Honeywell announced its plan to offer predictive maintenance for Cathy Pacific A330s.  
  • Further, the countries are conducting trials with artificial intelligence, for predictive maintenance. For example, in May 2017, Japan largest utility provider commenced trials of AI, for predictive maintenance. Moreover, in November 2017, the Indian government started trials of AI, for predictive maintenance in the railway sector, to prevent accidents and signaling failures.  
  • Notably, technology companies are investing rigorously in cloud computing, owing to the rapid utilization of mobile devices and rising acceptance of cloud services, among end consumers. For instance, in August 2018, Alibaba launched a new suite of cloud computing solutions, particularly for retail companies to adopt Big Data and digitization, in South Asia.  

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Competitive Landscape

The application performance management market is moderately competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. 

  • In March 2018, IBM Corporation launched a private Internet of Things (IoT) analytics cloud platform, which is expected to expand the cloud solution for consumers and enhance scalability, thereby boosting the company’s financials.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Emergence of Real-time Monitoring Enabling Analytics and Predictive Maintenance

      2. 4.3.2 Increasing Complexity of Applications Requiring Advanced APM Systems

      3. 4.3.3 Growth in Mobile and Cloud Computing

    4. 4.4 Market Restraints

      1. 4.4.1 Variability in the Quantification of Similar Factors by Different Providers

      2. 4.4.2 Lack of End User Awareness

      3. 4.4.3 High Initial Investments

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Solution Type

      1. 5.1.1 Software

      2. 5.1.2 Service

    2. 5.2 By Deployment

      1. 5.2.1 On-premise

      2. 5.2.2 Cloud

      3. 5.2.3 Hybrid

    3. 5.3 By Enterprise Size

      1. 5.3.1 Small and Medium Business (SMB)

      2. 5.3.2 Large Enterprise

    4. 5.4 By Access Type

      1. 5.4.1 Web

      2. 5.4.2 Mobile

    5. 5.5 By End User

      1. 5.5.1 BFSI

      2. 5.5.2 E-commerce

      3. 5.5.3 Manufacturing

      4. 5.5.4 Healthcare

      5. 5.5.5 Retail

      6. 5.5.6 IT and Telecommunication

      7. 5.5.7 Media and Entertainment

      8. 5.5.8 Academics

      9. 5.5.9 Government

      10. 5.5.10 Other End Users

    6. 5.6 Geography

      1. 5.6.1 North America

      2. 5.6.2 Europe

      3. 5.6.3 Asia Pacific

      4. 5.6.4 Latin America

      5. 5.6.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Hewlett Packard Enterprise Company

      2. 6.1.2 Compuware Corporation

      3. 6.1.3 IBM Corporation

      4. 6.1.4 AppDynamics (Cisco Systems Inc.)

      5. 6.1.5 Microsoft Corporation

      6. 6.1.6 Dell Inc.

      7. 6.1.7 Riverbed Technology Inc.

      8. 6.1.8 Splunk Inc.

      9. 6.1.9 New Relic Inc.

      10. 6.1.10 ManageEngine (Zoho Corp.)

      11. 6.1.11 BMC Software Inc.

      12. 6.1.12 Fujitsu Ltd

      13. 6.1.13 MuleSoft Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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