Cloud Monitoring Market Size, Share & Trends Analysis Report By Type (Cloud Storage Monitoring, Database Monitoring, Website Monitoring), By Service Model, By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Cloud Monitoring Market Size & Trends

The global cloud monitoring market size was valued at USD 2.08 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 20.9% from 2023 to 2030. Factors such as the growing complexity of cloud environments, the increasing size of datasets, and the need for better visibility and control over cloud resources are expected to drive market growth. Moreover, the growing adoption of hybrid and multi-cloud environments presents significant growth opportunities for the market. The increasing demand for IoT devices and the rising complexities in monitoring databases are expected to provide significant growth opportunities for the market.

The COVID-19 pandemic had a positive impact on market. The uptrend of remote work resulted in more organizations adopting distributed enterprise networks. It also prompted many companies to invest in additional tools, such as network monitoring, to effectively manage their distributed networking infrastructure. Also, open source software experienced significant growth in the B2B tech sector, particularly in areas such as networking, where customizable code is crucial for effectively managing hybrid infrastructure, leading to increased demand for virtual network monitoring.

Integrating artificial intelligence (AI) and machine learning (ML) into cloud monitoring solutions further improves their capabilities. AI and ML algorithms can analyze vast amounts of data and identify complex patterns, enabling cloud monitoring solutions to provide deeper insights into performance trends, resource utilization, and potential threats. This intelligent monitoring approach helps businesses optimize their IT operations, improve decision-making, and reduce the risk of outages and security incidents. For instance, in November 2023, Datadog, a cloud application monitoring and security solutions provider, expanded its partnership with Google Cloud to provide enhanced observability and security for cloud-native and hybrid applications. This integration empowers AI operators and developers to monitor, analyze, and optimize the performance of their machine-learning models in production, effectively.

Industry Vertical Insights

The IT & telecom segment held the largest revenue share of 45.3% in 2022. The growth of cloud monitoring in the IT and telecom sector is driven by increased cloud adoption, complexity in infrastructure, performance, security, compliance requirements, network optimization, and the evolution of 5G and edge computing. Developing the 5G network and expanding edge computing led to monitoring such advanced technologies, ensuring efficient operations and reliable connectivity. For instance, in July 2023, RADCOM Ltd. made its 5G assurance solution available on Google Cloud. This innovative solution aims to enable telecom operators to benefit from an automated, cloud-native assurance offering that smoothly integrates with Google Cloud. The solution is expected to help enhance the customer experience and proactively improve the quality of 5G service through sealed, zero-touch operations on the cloud.

The healthcare segment is anticipated to grow at a significant CAGR of 22.1% during the forecast period. Cloud monitoring tools play an essential role in remote patient monitoring solutions due to the increasing adoption of telemedicine and remote monitoring devices. According to the Centers for Disease Control and Prevention, in 2021, 35.3% of adults aged 18 to 64 had a telemedicine visit with a healthcare professional in the past 12 months.

Type Insights

The cloud storage monitoring segment accounted for the largest revenue share of 28.3% in 2022. The growth of the cloud storage monitoring segment is attributed to many businesses' increased adoption of cloud storage solutions. The need to monitor and optimize these resources becomes essential to ensure efficient and cost-effective operations. The 2023 Global Networking Trends Report indicates that an enormous number of organizations are turning towards cloud platforms. Around 78% of survey respondents claimed that their organizations plan to move over 40% of their workloads to the cloud by 2025. It is a significant increase from the earlier percentage of 63% of organizations already using cloud hosting.

The website monitoring segment is anticipated to grow at the fastest CAGR of 25.4% during the forecast period. Website monitoring is experiencing growth due to factors such as increased reliance on online presence, growing complexity of online processes, e-commerce and its transactions, and global accessibility of companies. Many online platforms are shifting to cloud-based infrastructure, making monitoring essential to track the performance and availability of distribution systems and services.

According to Organization for Economic Cooperation and Development (OECD) statistics, as of November 2023, customer relationship management (CRM) is used by most businesses in OECD countries, with usage ranging from 10% to 55% of all businesses currently running. Website monitoring tools provide insights into user behavior, website performance, and user issues. Integrating the data with CRM systems allows businesses to understand customer interaction, preferences, and issues better. Website monitoring identifies technical glitches, downtime, or errors affecting user experience.

Regional Insights

North America dominated the market with a share of 60.7% in 2022 and is anticipated to dominate the market over the forecast period. The cloud monitoring market in North America is growing significantly due to the high adoption of cloud-based solutions across industries. The region's emphasis on digital transformation across various industries is driving the adoption of cloud-based services, including cloud monitoring, to optimize operations and improve efficiency. Businesses in the region are also increasingly migrating their operations and services to the cloud, leading to a higher demand for cloud monitoring tools to ensure the reliability, security, and performance of cloud-based infrastructure. According to the Artificial Intelligence Index Report  2022, the U.S. is the leader in total private investment in AI globally. As of 2022, the country received an investment of USD 47.4 billion, around 3.5 times more than the investment made in China (USD 13.4 billion). The U.S. is also ahead in terms of the total number of newly funded AI companies, surpassing the combined number of companies funded in the European Union and the UK by 1.9 times and in China by 3.4 times.

Asia Pacific is anticipated to grow at the highest CAGR of 23.7% during the forecast period. Several countries in the region are experiencing rapid digital transformation across various industries. The region is witnessing notable growth in cloud adoption across enterprises of all sizes and varying technological advancement levels, including SMEs that utilize cloud monitoring solutions. An increase in spending on cloud infrastructure and technology is also one of the essential factors driving the demand for cloud monitoring services. The ongoing evolution of IT infrastructure and adoption of hybrid and multi-cloud strategies in the region requires monitoring solutions capable of managing diverse cloud data smoothly. According to Alibaba Cloud's study' Next-Generation Cloud Strategy in Asia', 84% of cloud user enterprises plan to increase investment and fully migrate to the cloud in Asia by 2025.

Service Model Insights

Based on a service model, the global market is sub-segmented into SaaS, IaaS, PaaS, and others. The SaaS segment held the largest revenue share of 50.5% in 2022. The Software as a Service (SaaS) model allows customers to pay only for the required software service and access it via a web browser on their computer or mobile devices. As users are not required to look for the hosting & maintenance of the product, backend database, and security, it has become a popular choice for monitoring resources among businesses.

The preference for automation over traditional manual processes and legacy software has driven the SaaS industry's unprecedented growth in recent decades. In 2022, early-stage SaaS companies received more than USD 30 billion in V.C. investment, indicating a promising future for this sector. The IaaS segment is anticipated to grow at a significant CAGR of 22.6% during the forecast period. Growth in demand for low-cost IT infrastructure and faster data accessibility fuels the growth of IaaS. The adoption of cloud computing in various industries is also one of the key factors for the demand for IaaS, as it offers fast data accessibility regardless of the data center's location.

IaaS has a low-cost investment requirement as it does not need on-premise capabilities to be built up and maintenance costs are low. Business sectors such as BFSI, retail, banking, and telecommunication are rapidly adopting such services due to cost savings, data security, and disaster management. For instance, in April 2022, NTT DOCOMO, one of the biggest mobile operators in Japan, adopted Oracle Cloud Infrastructure (OCI) to build a new development system for ALl Around DoCoMo Information System (ALADIN), one of the world's largest customer information management systems. OCI system's 300 developers build modern applications faster and cost-efficiently, allowing DOCOMO to benefit from highly available and secure computing resources, which is crucial as the company expands to broader internet, telecom, and smart life services.

Enterprise Size Insights

The SME segment held the largest revenue share of 71.6% in 2022. SMEs use cloud monitoring tools for various essential functions, including cost-effective infrastructure management, scalability, performance optimization, gaining competitive advantage, and security compliance. Utilizing cloud monitoring tools enables SMEs to compete effectively by providing better services, maintaining high uptime, and delivering consistent customer performance.

According to the Organization for Economic Co-operation and Development (OECD) report, as of 2022, around 42% of small and medium-sized companies in OECD countries have purchased cloud services. In the UK, cloud technology has been increasingly adopted by businesses over the past few years, with an estimated 53% of all businesses in the country now purchasing cloud services, including cloud monitoring tools for data protection and smooth functioning.

The large enterprises segment is anticipated to grow at the fastest CAGR of 23.6% during the forecast period. Large enterprises use cloud monitoring tools due to several factors such as scalability, complexity management, optimization of performance, cost efficiency, optimal resource utilization, and security compliance assurance. Large enterprises' vast and complex IT infrastructure often rely on cloud monitoring to manage the scalability of their systems. These tools offer insights into resource allocation, performance management, and system health, ensuring the smooth scalability of the infrastructure.

Key Companies & Market Share Insights

The market has a consolidated competitive landscape featuring several global and regional players. Industry players are undertaking strategies such as new developments related to product launches, product updates, partnerships, mergers & acquisitions, and collaborations to survive the highly competitive environment and expand their business footprints. For instance, in November 2023, the Oracle Cloud Infrastructure (OCI) Monitoring team announced updates to the RetrieveDimensionStates and ListAlarmStatus APIs. These enhancements empower users to filter alarms based on resource I.D. and status. These modifications streamline the process of generating visualizations, offering a holistic perspective of alarms and their status within the framework of a specific resource or the entire resource stack.

Cloud Monitoring Market Report Scope

Global Cloud Monitoring Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global cloud monitoring market report based on type, service model, enterprise size, industry vertical, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Cloud Storage Monitoring

  • Database Monitoring

  • Website Monitoring

  • Virtual Network Monitoring

  • Virtual Machine Monitoring

  • Others

• Service Model Outlook (Revenue, USD Million, 2018 - 2030)

  • SaaS

  • IaaS

  • PaaS

  • Others

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Enterprises

  • SMEs

• Industry Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • BFSI

  • IT & Telecom

  • Healthcare

  • Government

  • Retail & Consumer Goods

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa