The market for Application Performance Management is analysed to be $4.97 billion in 2019, and is estimated to grow at a CAGR of 8.98% during the forecast period 2020 to 2025. APM software enables the organization to monitor the performance metrics of the critical business applications. The shift of the large organizations from on-premise to cloud and the increasing awareness in the small enterprises is set to boost the market growth rate during the forecast period 2020-2025.
- North America has dominated the market share in 2019, however APAC is analysed to grow at highest rate during the forecast period owing to the adoption of Application Performance Management, deployed in critical business applications.
- BFSI sector is analysed to hold highest market share in 2019 owing to the high cyber-attacks reported in the sector.
- The increasing trend of the DevOPS automation is significantly driving the market growth rate.
By Organization Size
Large scale enterprises are dominating the market in 2019 as they deal with large amount of data. The implementation of customer analytics and business analytics with the enormous amount of data generated in these firms is certainly impacting the market growth rate. Furthermore, the large scale enterprises prioritize the location intelligence, data governance, and enterprise planning, thereby driving the adoption of the advanced analytics in the segment. Adding to this, the Australian government has announced plans to provide funds for the adoption of cloud-based advanced analytics solutions in start-ups under Digital Australia 2020 initiative. These factors are analysed to boost the adoption rate of advanced analytics and contribute to the market growth rate.
BFSI is analysed to be the hold highest market share in 2019, followed by the retail sector. The gradual shift of deploying cloud models for data storage in banks is certainly contributing to the increasing adoption of cloud models. However, cloud storage brought additional security concerns for which the banks rely on the hybrid model for data management. In November 2019, IBM launched a public cloud platform especially to meet the banking requirements that meet the regulatory compliances. Therefore the growing product launches alongside the adoption of the hybrid model adoption in the banking hybrid, it is set to impact the market growth rate.
Geography – Segment Analysis
North America is analysed to be the dominant region in 2019, followed by APAC and Europe. This is mainly attributed to the high adoption of the advanced technologies and the high economy of the country and affordability of the Application Performance Management in majority of the firms. APAC is analysed to grow at the highest rate during the forecast period majorly attributed to the rapid industrialization, infrastructure development, and growing corporate sector. Australian government has announced that the country is investing in the development and the implementation of industry 4.0 in various sectors, hence the growing trend towards the automation is set to contribute to the growth of the market during the forecast period 2020-2025.
Drivers – Application Performance Management market
The increasing trend of hybrid cloud deployment is significantly impacting the market growth rate. The cloud based deployment model is set to grow at higher rate owing to the presence of major players including SAP, Oracle, and so on for the provision of the cloud based models alongside the growing product launches thereby impacting the market growth rate during the forecast period 2020-2025. Hybrid cloud models facilitate the large scale enterprises in simplifying the processes thereby impacting the adoption rate.
Big Data Analytics:
As the demand for the big data analytics is rising, the significant deployment of application performance management is set to drive the market growth rate. As high number of enterprises are adopting the distributed computing system, the modern APM is set to play a crucial role to support analytical, machine learning and so on running on various platforms. With the rising adoption of AI, automation in production processes, the APM is highly deployed in data analytics thereby escalating the market growth rate during the forecast period 2020-2025.
Challenges – Application Performance Management market
Lack of end-user awareness
The lack of end user awareness regarding the application performance management is set to a challenge for the market during the forecast period. Adding to this, Many firms are unaware of the cyber threats caused with the deployment of cloud technologies and the advantages of the monitoring the data through APM, hence the attacks are significantly rising thereby hindering the market growth rate.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Application Performance Management market. Application Performance Management driver market is expected to be dominated by major companies such as New Relic Inc., IBM Corp., Dynatrace LLC, HP, CA Technology, Microsoft, among others.
- In April 2020, Ensono has launched a new Application Performance Monitoring to provide clients with a key of business applications.