Digital Experience Monitoring Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Digital Experience Monitoring Market Report is Segmented by Type (Synthetic and STM Tools, Real-User Monitoring Tools, and More ), Component (Software, Services), Deployment (Cloud, On-Premises), Enterprise Size (Small and Medium-Sized Enterprises, Large Enterprises), End-User (IT and Telecom, BFSI, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Digital Experience Monitoring Market Size and Share

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Digital Experience Monitoring Market Analysis by Mordor Intelligence

The digital experience monitoring market stands at USD 3.55 billion in 2025 and is set to grow to USD 7.81 billion by 2030, reflecting a 17.08% CAGR. Escalating cloud-native adoption, mounting application-network interdependencies, and rising customer-experience expectations are reshaping enterprise monitoring priorities. Organizations are consolidating point tools into unified platforms that correlate user journeys with infrastructure telemetry. AI-driven automation, 5G and edge rollouts, and ESG-linked performance metrics are accelerating solution upgrades, while persistent skills shortages and data-privacy rules temper the pace of large-scale deployments. Competitive intensity is moderate as established APM vendors, cloud hyperscalers, and network specialists converge around experience-centric observability. 

Key Report Takeaways

  • By component, software held 71.13% revenue share in 2024; services are expanding at a 20.20% CAGR to 2030.
  • By deployment, cloud models captured 68.46% of the digital experience monitoring market share in 2024 and are growing at a 22.10% CAGR.
  • By enterprise size, large enterprises led with 63.77% share in 2024, while SMEs record the fastest 24.15% CAGR through 2030.
  • By type, synthetic and STM tools commanded 34.75% of the digital experience monitoring market size in 2024; API monitoring is projected to advance at 19.60% CAGR.
  • By end-user, IT and telecom accounted for 31.90% share of the digital experience monitoring market size in 2024; retail and e-commerce is growing at a 25.35% CAGR.
  • By geography, North America dominated with 42.85% share in 2024; Asia Pacific is the fastest region at 24.90% CAGR to 2030. 

Segment Analysis

By Type: API Monitoring Drives Innovation

Synthetic and STM tools held 34.75% share of the digital experience monitoring market size in 2024 thanks to their preventative testing coverage. API monitoring, however, is expanding at 19.60% CAGR as organizations migrate to micro-services and treat APIs as revenue generators. Real-user monitoring remains vital for live journey insights, while network performance diagnostics ensure transport-layer visibility.

API-first strategies expose uptime vulnerabilities: one study recorded a year-over-year API availability decline from 99.66% to 99.45%, equating to 18 hours of annual downtime. Investment is therefore shifting toward deep API trace analytics, contract testing, and automated rollback triggers to protect customer interactions.

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Note: Segment shares of all individual segments available upon report purchase

By Component: Services Acceleration Reflects Complexity

Software dominated at 71.13% in 2024 as platforms consolidated data ingestion, analytics, and visualization layers. The services segment, advancing at 20.20% CAGR, signals rising demand for design, integration, and managed operations expertise. Professional-service teams craft observability roadmaps, while managed-service providers run 24×7 command centers for clients lacking internal talent. Organizations adopting managed DEM report faster value capture, with some compressing deployment cycles to under 90 days and cutting incident backlogs by double-digit percentages once continuous optimization is outsourced to specialist partners.

By Deployment: Cloud Dominance Accelerates

Cloud options captured 68.46% of the digital experience monitoring market share in 2024 and are growing at 22.10% CAGR as enterprises favor scalability and quick onboarding. On-premises installations persist for regulated workloads but are trending downward.

Rapid lift-and-shift projects often bundle SaaS-based DEM to maintain visibility across transient container clusters. Field evidence shows enterprises completing full-stack cloud DEM rollouts in 90 days, versus year-long timelines for on-prem equivalents. 

By Enterprise Size: SME Growth Signals Democratization

Large enterprises retained 63.77% revenue share in 2024, yet SMEs are clocking a 24.15% CAGR as subscription models and low-touch deployment wizards lower entry barriers. Cloud-native tools that auto-instrument code without agent installs appeal to resource-constrained teams.

Despite progress, SMEs cite cost, skills, and awareness gaps as lingering obstacles. Industry associations advise vendors to package training modules and outcome-based pricing to sustain SME momentum.

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By End-User: Retail Transformation Drives Adoption

IT-telecom led with 31.90% of the digital experience monitoring market size in 2024, reflecting complex multi-cloud estates and stringent SLA targets. Retail and e-commerce, expanding at 25.35% CAGR, treats page-load latency and checkout errors as direct revenue drains.

Retailers that embed DEM analytics into merchandising dashboards have correlated 1-second load-time gains with 2% conversion uplifts, reinforcing budget prioritization for full-journey telemetry. 

Geography Analysis

North America led with a 42.85% slice of the digital experience monitoring market in 2024, powered by deep cloud penetration, high SaaS spending, and vendor headquarters concentration. United States enterprises demand cross-domain analytics that bridge network and application layers, while Canadian firms emphasize compliance-aligned monitoring for cross-border data flows. Mexico’s manufacturing digitization and surging e-commerce activity are spawning niche opportunities for localized service providers.

Asia Pacific, expanding at 24.90% CAGR, is reshaping global growth patterns. China’s large-scale cloud migrations, Japan’s smart-factory investments, India’s fast-growing digital-health ecosystem, and South Korea’s 5G leadership each create fertile ground for DEM. Regional data-center capacity build-outs and government-backed digital-economy programs further spur adoption.

Europe remains a sizable market where GDPR drives demand for privacy-aware session analytics. The United Kingdom, Germany, and France pioneer GDPR-aligned observability blueprints. Eastern European banks and telcos are ramping spending on omni-channel experience metrics to stay competitive. South America and the Middle East and Africa are earlier in the curve but show steady momentum, led by Brazil’s fintech boom and the UAE’s e-government initiatives.

Digital Experience Monitoring Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The digital experience monitoring market is moderately fragmented. Dynatrace, Datadog, and New Relic anchor the leader quadrant, while Cisco’s USD 28 billion acquisition of Splunk in March 2024 forged a heavyweight combining network, security, and observability assets. Riverbed, Catchpoint, and Aternity focus on network and endpoint specialization, whereas cloud-native entrants like Grafana Labs and Honeycomb emphasize open telemetry.

Strategic themes center on AI-enhanced troubleshooting, platform unification to curb tool sprawl, and edge-aware instrumentation. Vendors are embedding natural-language interfaces and anomaly-explainability features to widen user adoption across business and ops teams. SME-targeted SaaS tiers and sector-specific accelerators (healthcare, manufacturing) are emerging as white-space plays.

Partnership momentum is growing between DEM vendors and cloud providers, CDNs, and SASE platforms to deliver integrated service-level assurances. Competitive pressure is likely to intensify as hyperscalers bundle native observability add-ons and as open-source projects mature.

Digital Experience Monitoring Industry Leaders

  1. Broadcom Inc.

  2. Dynatrace LLC

  3. GlassBox

  4. AppDynamics LLC

  5. New Relic Inc

  6. *Disclaimer: Major Players sorted in no particular order
Digital Experience Monitoring Market Concentration
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Recent Industry Developments

  • October 2024: Datadog positioned as a Leader in Gartner’s inaugural Digital Experience Monitoring Magic Quadrant.
  • June 2024: New Relic integrated with NVIDIA NIM, adding full AI-stack observability.
  • June 2024: Cisco ThousandEyes launched AI-powered Digital Experience Assurance to predict internet outages.
  • March 2024: Cisco closed its USD 28 billion Splunk acquisition, creating a joint observability-security platform.

Table of Contents for Digital Experience Monitoring Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Proliferation of mobile and web applications
    • 4.2.2 Cloud-native and micro-services complexity
    • 4.2.3 DevOps and SRE observability adoption
    • 4.2.4 AI-driven autonomous remediation
    • 4.2.5 5G and edge-computing last-mile visibility
    • 4.2.6 ESG-linked digital sustainability metrics
  • 4.3 Market Restraints
    • 4.3.1 Diverse digital ecosystem complexity
    • 4.3.2 High cost and integration effort of DEM suites
    • 4.3.3 Data-privacy limits on session capture
    • 4.3.4 Talent scarcity in experience engineering
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Impact of Macroeconomic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Type
    • 5.1.1 Synthetic and STM Tools
    • 5.1.2 Real-User Monitoring (RUM) Tools
    • 5.1.3 Application Performance Monitoring (APM) Tools
    • 5.1.4 Network Performance Monitoring and Diagnostics (NPMD) Tools
    • 5.1.5 Endpoint Monitoring Tools
    • 5.1.6 API Experience Monitoring Tools
  • 5.2 By Component
    • 5.2.1 Software
    • 5.2.2 Services
    • 5.2.2.1 Professional Services
    • 5.2.2.2 Managed Services
  • 5.3 By Deployment
    • 5.3.1 Cloud
    • 5.3.2 On-premises
  • 5.4 By Enterprise Size
    • 5.4.1 Small and Medium-sized Enterprises (SMEs)
    • 5.4.2 Large Enterprises
  • 5.5 By End-User
    • 5.5.1 IT and Telecom
    • 5.5.2 BFSI
    • 5.5.3 Healthcare
    • 5.5.4 Retail and E-commerce
    • 5.5.5 Government
    • 5.5.6 Media and Entertainment
    • 5.5.7 Travel and Hospitality
    • 5.5.8 Manufacturing
    • 5.5.9 Other End-Users
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 United Kingdom
    • 5.6.3.2 Germany
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Russia
    • 5.6.3.7 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 South Korea
    • 5.6.4.5 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 Saudi Arabia
    • 5.6.5.1.2 United Arab Emirates
    • 5.6.5.1.3 Turkey
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Kenya
    • 5.6.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Broadcom (CA Technologies)
    • 6.4.2 Dynatrace
    • 6.4.3 Cisco ThousandEyes
    • 6.4.4 AppDynamics (Cisco)
    • 6.4.5 Datadog
    • 6.4.6 New Relic
    • 6.4.7 Riverbed
    • 6.4.8 Catchpoint
    • 6.4.9 Aternity
    • 6.4.10 Glassbox
    • 6.4.11 Nexthink
    • 6.4.12 Zscaler
    • 6.4.13 SolarWinds
    • 6.4.14 ManageEngine (Zoho)
    • 6.4.15 Fortinet
    • 6.4.16 Splunk
    • 6.4.17 Akamai
    • 6.4.18 IBM
    • 6.4.19 Microsoft
    • 6.4.20 Oracle

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Digital Experience Monitoring Market Report Scope

Digital experience monitoring (DEM) is an IT management technology that measures performance and helps IT and IT operations teams resolve issues by monitoring the health of all systems between end users and applications.

The digital experience monitoring market is segmented by type (synthetic monitoring and synthetic transaction monitoring (STM) tools, real user monitoring (RUM) tools, application performance monitoring (APM) tools, network performance monitoring and diagnostics (NPMD) tools, endpoint monitoring tools), offering (software, services [managed services, professional services l]), deployment type (on-premises, cloud), enterprise size (SMES, large enterprises) end-user (BFSI, media and entertainment, government, IT and telecommunication, healthcare, retail and E-commerce, travel & hospitality, other end users), geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Type Synthetic and STM Tools
Real-User Monitoring (RUM) Tools
Application Performance Monitoring (APM) Tools
Network Performance Monitoring and Diagnostics (NPMD) Tools
Endpoint Monitoring Tools
API Experience Monitoring Tools
By Component Software
Services Professional Services
Managed Services
By Deployment Cloud
On-premises
By Enterprise Size Small and Medium-sized Enterprises (SMEs)
Large Enterprises
By End-User IT and Telecom
BFSI
Healthcare
Retail and E-commerce
Government
Media and Entertainment
Travel and Hospitality
Manufacturing
Other End-Users
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Kenya
Rest of Africa
By Type
Synthetic and STM Tools
Real-User Monitoring (RUM) Tools
Application Performance Monitoring (APM) Tools
Network Performance Monitoring and Diagnostics (NPMD) Tools
Endpoint Monitoring Tools
API Experience Monitoring Tools
By Component
Software
Services Professional Services
Managed Services
By Deployment
Cloud
On-premises
By Enterprise Size
Small and Medium-sized Enterprises (SMEs)
Large Enterprises
By End-User
IT and Telecom
BFSI
Healthcare
Retail and E-commerce
Government
Media and Entertainment
Travel and Hospitality
Manufacturing
Other End-Users
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Kenya
Rest of Africa
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Key Questions Answered in the Report

What is the current size of the digital experience monitoring market?

The market is valued at USD 3.55 billion in 2025.

How fast is the digital experience monitoring market expected to grow?

It is forecast to register a 17.08% CAGR and reach USD 7.81 billion by 2030.

Which region is growing the fastest for digital experience monitoring solutions?

Asia Pacific leads with a projected 24.90% CAGR through 2030.

Why is API monitoring gaining importance within digital experience monitoring?

API-first architectures increase dependency on interfaces whose downtime directly affects user journeys; specialised API monitoring is growing at 19.60% CAGR.

Page last updated on: July 3, 2025