Network monitoring market to reach $3 bn by 2027

The network monitoring market is projected to grow from USD 2.2 billion in 2022 and is projected to reach USD 3.0 billion by 2027; it is expected to grow at a CAGR of 6.9 % from 2022 to 2027, according to Research and Markets.

The rise in demand for cloud services, surging demand for resilient network monitoring systems to quickly resolve downtime issues along with need for continuous monitoring due to rise in network complexities and security concerns is expected to fuel the growth of the network monitoring market. However, availability of free network monitoring tools is a prominent factor limiting the growth of the network monitoring market.

Network monitoring equipment with 1 & 10 Gbps bandwidth to hold largest share of network monitoring market during the forecast period
The network monitoring market for equipment with 1 and 10 Gbps bandwidth held the largest market share in 2021 and is expected to retain its dominant position throughout the forecast period. Monitoring equipment with 1 and 10 Gbps bandwidth is widely deployed across various end-users such as enterprises, telecom, government organizations, and service providers. Currently, network monitoring equipment with higher bandwidths is gaining traction in the market. As a result, the prices for monitoring equipment with 1 and 10 Gbps bandwidth have been declining, which, in turn, drive the adoption of these type of equipment for optimum network development.

Market for software & services segment is expected to witness higher growth during the forecast period
The software & services segment is expected to witness significant growth in the network monitoring market during the forecast period. Network monitoring software systems are used to perform some of the functions of monitors and analyzers, identify errors, run diagnostic tests, monitor an entire network, compile statistics, and prepare real-time management reports. Network performance monitoring software improves IT operations by reducing the consequences of performance issues, processes, policy creation, and network operations and resolving network performance issues. The expanding popularity of monitoring solutions, the widespread use of IoT and BYOD devices, and the growing demand for long-lasting network monitoring systems to fix downtime issues swiftly contribute to the market’s growth.

Market for ethernet technology to dominate during the forecast period
Ethernet held the largest share of the said market in 2021 and is expected to retain its dominant position throughout the forecast period. The expansion of data centers and an increase in the adoption of virtualization technology boost the demand for network monitoring equipment with higher bandwidths. Ethernet-based networks deliver more agile and low-latency solutions with increased scalability. The migration from low bandwidth to high bandwidth with Ethernet technology is not only cost-effective but is also possible without any disruption. Thus, it is widely adopted by several industries for data transfer, which, in turn, drives the growth of Ethernet-based networking equipment.

CT Bureau