Application Performance Management Market Size, Share, Opportunities, And Trends By Deployment Model (On-Premise, Hybrid, Cloud), By Access Type (Mobile APM, Web APM), By Industry Vertical (BFSI, Government, Retail, Travel And Transport/Logistics, Healthcare, Communication And Technology, Others), And By Geography - Forecasts From 2024 To 2029

The application performance management market is expected to grow at a compound annual growth rate of 15.72% over the forecast period, reaching a market size of US$19.023 billion in 2029, up from US$6.844 billion in 2022. 

Application performance management (APM) is the managing and monitoring of the respective performance of various software applications. The companies use this solution to detect and diagnose difficult and complex application and software problems. The market is expected to surge in the coming years due to the increasing demand for application performance management solutions and systems from various industries and sectors, such as banking, retail, healthcare, and others.

Major firms and corporations have been making significant developments in the market, launching novel and advanced application performance management systems. These developments and trends are expected to play a major role in market growth in the coming years.

Application Performance Management Market Drivers:

• Rising growth in the BFSI sector is expected to boost the application performance management market.

The market is expected to surge in the coming years due to the rising demand for APM in the banking and financial sectors. The sector relies on and is dependent on business-critical and imperative customer-facing applications. With the growth of fast and seamless online transaction systems, the banking industry has been adopting DevOps measures to make the system more user-friendly.

For instance, in November 2022, Dynatrace integrated its advanced observability and AIOps capabilities into AWS Compute Optimizer, a service that uses customer data to recommend resource provisioning. The Dynatrace platform can analyze all Amazon Elastic Compute Cloud instances in real-time, using Dynatrace causal AIOps and automation capabilities to optimize Amazon EC2 consumption for cost, service reliability, and performance. The APM products and tools encourage and promote DevOps goals of faster time-to-market discharge and development in critical applications. These are some of the key factors that are expected to drive market growth.

• Increasing demand in the retail sector is anticipated to propel the application performance management market expansion.

The market is expected to surge in the coming years due to the increasing demand for APM products and solutions in the retail sector worldwide. In the past few years, there has been a rise in the growth of mobile applications and e-commerce. Application performance management tools help retailers enhance and improve their digital strategies by offering efficient e-commerce and mobile performance. For Instance, in April 2023, Dynatrace Application Security obtained dual FedRAMP and StateRAMP authorizations, ensuring secure cloud transformation for public sector customers. This certification demonstrates Dynatrace's compliance with strict security requirements set by the U.S. General Services Administration's FedRAMP Program Management Office and the StateRAMP PMO. This enables government agencies and public educational institutions to use Dynatrace for intelligent observability and DevSecOps automation.

By enabling development and ops, businesses can collaborate automatically and easily and combine technical performance with various business results. AppDynamics, a part of CISCO, one of the key firms, has been providing APM tools and products for retailers worldwide. The company offers seamless retail performance.

Application Performance Management Market Geographical Outlook

• The North American region is expected to dominate the marketplace.

North America is predicted to play a major role in the market growth due to the presence of key players in the region. The rising advancement in technological infrastructure, the development of cutting-edge technologies, and the monitoring and optimization of application performance platforms will drive the APM market in the region.

The region has prominent tech companies making significant developments to provide optimal APM services. For instance, in November 2023, New Relic, a US-based web tracking and analytics company, introduced the first AI monitoring solution, New Relic AI monitoring (AIM). AIM offers engineers data and insights to optimize AI performance, quality, cost, and responsible use. With over 50 integrations and features like e large language models (LLLMs) response tracing and model comparison, AIM helps teams build and run LLM-based applications confidently. There is an increasing demand for APM solutions from various industries like finance, healthcare, manufacturing, and retail to ensure smooth performance, enhance the experience of customers, and grow their business. Thus, the regional application performance management market will increase in the years ahead.

Application Performance Management Market Key Development:

• January 2024- Cisco launched Smart Agent for Cisco AppDynamics, transforming application instrumentation by simplifying agent lifecycle management, enabling full-stack observability. This allows customers to quickly be onboard new applications by identifying out-of-date agents and upgrading them using an easy-to-use interface.
• May 2023 – New Relic introduced New Relic AI, the industry's first generative AI observability assistant. This assistant enabled engineers to use natural language and AI to monitor, debug, secure, and improve their software stack, reducing manual data sifting and promoting observability adoption.
• January 2023- Microsoft Azure launched the Azure Native New Relic Service, a tool that collects and stores telemetry data for applications and infrastructure. The service allows Azure customers to allocate their spending for all-in-one observability, enabling faster troubleshooting of performance issues, optimizing multi-cloud resources, and ensuring smooth application performance.

Application Performance Management Market Players and Product:

• Instana- Instana is a comprehensive APM solution by IBM that offers automated observability with AI, making it accessible to anyone in various fields like DevOps, SRE, platform engineering, ITOps, and development. It provides 1-second granularity for quick problem detection and 100% traces for easy issue fixation. It contextualizes data from all sources, including OpenTelemetry, to provide insights and intelligent action, ensuring the pace of change is kept up.
• Davis® AI- Dynatrace Davis CoPilot™ is a hypermodal AI that combines predictive, causal, and generative features for observability, security, and business use cases. It provides continuous forecasting, anomaly prediction, and generative AI-powered recommendations. It simplifies analytics, creates queries, provides workflow and automation recommendations, and offers automatic root-cause analysis and auto-coded workflows. Its predictive operations ensure reliable operations, allowing for automatic anomaly prediction, report generation, and action-taking.
• PowerEdge servers- Dell provides PowerEdge servers. PowerEdge R6615 servers are ideal for compute-intensive applications like artificial intelligence and real-time data processing. These two-socket, 2U servers have AMD EPYC processors, allowing them to handle large jobs with smaller energy bills. OpenManage Power Manager allows users to manage power consumption and fit AMD-powered servers into existing footprints without overheating.

 

• APM Advanced for SaaS - Micro Focus' Application Performance Management (APM) Advanced for Software as a Service (SaaS) is an on-demand solution for application performance management, run from data center facilities with 24x7 remote support. This offering enables realizing value from APM initiatives in days, improving application performance by monitoring end-user experience and aligning IT performance with business goals.

Market Segmentation:

The Application Performance Management Market is segmented and analyzed as below:

• By Development Model
  • On-premise
  • Hybrid
  • Cloud
• By Access Type
  • Mobile APM
  • Web APM
• By Industry Vertical
  • BFSI
  • Government
  • Retail
  • Travel & Transport Logistics
  • Healthcare
  • Communication & Technology
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. APPLICATION PERFORMANCE MANAGEMENT MARKET, BY DEVELOPMENT MODEL

5.1. Introduction

5.2. On-premise

5.2.1. Market Opportunities and Trends

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Hybrid

5.3.1. Market Opportunities and Trends

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Cloud

5.4.1. Market Opportunities and Trends

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

6. APPLICATION PERFORMANCE MANAGEMENT MARKET, BY ACCESS TYPE

6.1. Introduction

6.2. Mobile APM

6.2.1. Market Opportunities and Trends

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Web APM

6.3.1. Market Opportunities and Trends

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. APPLICATION PERFORMANCE MANAGEMENT MARKET, BY INDUSTRY VERTICAL

7.1. Introduction

7.2. BFSI

7.2.1. Market Opportunities and Trends

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Government

7.3.1. Market Opportunities and Trends

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Retail

7.4.1. Market Opportunities and Trends

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

7.5. Travel & Transport Logistics

7.5.1. Market Opportunities and Trends

7.5.2. Growth Prospects

7.5.3. Geographic Lucrativeness

7.6. Healthcare

7.6.1. Market Opportunities and Trends

7.6.2. Growth Prospects

7.6.3. Geographic Lucrativeness

7.7. Communication & Technology

7.7.1. Market Opportunities and Trends

7.7.2. Growth Prospects

7.7.3. Geographic Lucrativeness

7.8. Others

7.8.1. Market Opportunities and Trends

7.8.2. Growth Prospects

7.8.3. Geographic Lucrativeness

7.8.4. Geographic Lucrativeness

8. APPLICATION PERFORMANCE MANAGEMENT MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Development Model

8.2.2. By Access Type

8.2.3. By Industry Vertical

8.2.4. By Country

8.2.4.1. USA

8.2.4.1.1. Market Opportunities and Trends

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Opportunities and Trends

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Opportunities and Trends

8.2.4.3.2. Growth Prospects

8.3. South America

8.3.1. By Development Model

8.3.2. By Access Type

8.3.3. By Industry Vertical

8.3.4. By Country 

8.3.4.1. Brazil

8.3.4.1.1. Market Opportunities and Trends

8.3.4.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1. Market Opportunities and Trends

8.3.4.2.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1. Market Opportunities and Trends

8.3.4.3.2. Growth Prospects

8.4. Europe

8.4.1. By Development Model

8.4.2. By Access Type

8.4.3. By Industry Vertical

8.4.4. By Country

8.4.4.1. UK

8.4.4.1.1. Market Opportunities and Trends

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Opportunities and Trends

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Opportunities and Trends

8.4.4.3.2. Growth Prospects

8.4.4.4. Spain

8.4.4.4.1. Market Opportunities and Trends

8.4.4.4.2. Growth Prospects

8.4.4.5. Others

8.4.4.5.1. Market Opportunities and Trends

8.4.4.5.2. Growth Prospects

8.5. Middle East and Africa

8.5.1. By Development Model

8.5.2. By Access Type

8.5.3. By Industry Vertical

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.1.1. Market Opportunities and Trends

8.5.4.1.2. Growth Prospects

8.5.4.2. South Africa

8.5.4.2.1. Market Opportunities and Trends

8.5.4.2.2. Growth Prospects

8.5.4.3. Others

8.5.4.3.1. Market Opportunities and Trends

8.5.4.3.2. Growth Prospects

8.6. Asia Pacific

8.6.1. By Development Model

8.6.2. By Access Type

8.6.3. By Industry Vertical

8.6.4. By Country

8.6.4.1. Japan

8.6.4.1.1. Market Opportunities and Trends

8.6.4.1.2. Growth Prospects

8.6.4.2. China 

8.6.4.2.1. Market Opportunities and Trends

8.6.4.2.2. Growth Prospects

8.6.4.3. India

8.6.4.3.1. Market Opportunities and Trends

8.6.4.3.2. Growth Prospects

8.6.4.4. South Korea

8.6.4.4.1. Market Opportunities and Trends

8.6.4.4.2. Growth Prospects

8.6.4.5. Taiwan

8.6.4.5.1. Market Opportunities and Trends

8.6.4.5.2. Growth Prospects

8.6.4.6. Thailand

8.6.4.6.1. Market Opportunities and Trends

8.6.4.6.2. Growth Prospects

8.6.4.7. Indonesia

8.6.4.7.1. Market Opportunities and Trends

8.6.4.7.2. Growth Prospects

8.6.4.8. Others

8.6.4.8.1. Market Opportunities and Trends

8.6.4.8.2. Growth Prospects

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. International Business Machines (IBM)

10.2. Dynatrace (Compuware)

10.3. Dell

10.4. AppDynamics (Cisco Systems Inc.)

10.5. Riverbed Technology (Vector Capital)

10.6. New Relic

10.7. Microsoft Corporation

10.8. Splunk (Cisco)

10.9. Broadcom (Avago Technologies)

10.10. Micro Focus

International Business Machines (IBM)

Dynatrace (Compuware)

Dell

AppDynamics (Cisco Systems Inc.)

Riverbed Technology (Vector Capital)

New Relic

Microsoft Corporation

Splunk (Cisco)

Broadcom (Avago Technologies)

Micro Focus