Global Synthetic Monitoring Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Synthetic Monitoring Market Analysis

Synthetic monitoring is defined as a monitoring technique which involves web browser script recordings or web transactions, wherein behavioural scripts are created to simulate a path that a user would take on a site. It helps monitor ongoing IT service performance. Synthetic monitoring, by tracking simulated user transactions, ensures that the problems and issues can be quickly identified and resolved, ideally before users complain or notice.

The global market for synthetic monitoring is driven by its growing demand in various end-use industries, including the BFSI sector. There has been a significant increase in efforts of major financial and banking institutes to counter challenges such as mobile or net banking outages and the need to bolster accountability. This is driving the demand of synthetic monitoring market in the BFSI sector. Furthermore, the growing utilisation of application-based services through smartphones for various purposes is anticipated to propel the demand for mobile application monitoring to analyse customer behaviour and enhance user experience, which is expected to aid the market in the forecast period. In addition, the growing dependence of millennials on gadgets such as smartphones, laptops, tablets, and others is expected to further aid the market. These gadgets are nowadays used for purchasing, streaming, and advertising. As synthetic monitoring is compatible with smart devices, it is expected to provide significant growth opportunities to the market.

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Synthetic Monitoring Market Trends

Integration with AI and Machine Learning

Companies are incorporating AI and ML into synthetic monitoring tools to enhance predictive capabilities, automate anomaly detection, and provide deeper insights into performance metrics. For instance, Datadog, a cloud monitoring firm, integrated AI into its monitoring tools to enhance cybersecurity and performance monitoring which can boost the synthetic monitoring market value. In November 2024, the company raised its annual revenue forecast, anticipating increased demand for its AI-supported offerings. Datadog's AI capabilities enable real-time anomaly detection and predictive analytics, allowing businesses to identify and resolve issues before they impact users.

Selector, another AI-driven observability platform, leverages machine learning to monitor and analyse network performance. Their solution provides real-time insights and predictive analytics, helping organizations detect anomalies and optimise network operations. By leveraging AI, Selector enables proactive issue resolution, reducing downtime and improving user experience.

Growing Adoption of Cloud-Based Solutions

The shift towards cloud computing has led to the development of scalable and flexible synthetic monitoring services, allowing businesses to monitor applications across diverse environments efficiently, and contribute to the synthetic monitoring market revenue. As per O’Reilly’s Cloud Adoption report from 2021, Around two-thirds of the respondents are relying on a public cloud, while 45% are employing a private cloud solution, in contrast to 55% who continue to depend on traditionally managed on-premises systems. Furthermore, 48% of respondents are planning to transition at least half of their applications to the cloud within the next year, and 20% aim to migrate all of their applications to the cloud.

Moreover, companies are increasingly recognising the cost-saving benefits of cloud computing. In 2023, it was reported that over 50% of small and medium-sized enterprises (SMEs) allocated a significant portion of their technology budgets to cloud spending, which can further contribute to the demand for flexible synthetic monitoring.

Industry News

October 2024

Datadog announced that it has been recognised as a leader in Gartner's new Magic Quadrant for Digital Experience Monitoring (DEM), achieving the top position in Ability to Execute. Its DEM offering includes Synthetic Monitoring and Testing, Real User Monitoring (RUM), Product Analytics, Session Replay, and Error Tracking, among others, for both browser and mobile applications.

July 2024

Checkly, a major provider of synthetic monitoring, announced that it has raised around €18.4 million in a Series B funding round which was led by Balderton Capital. This funding can aid the expansion of its team as well as its market reach.

Opportunities in Synthetic Monitoring Market

With the proliferation of digital platforms, there is a growing emphasis on monitoring across web, mobile, and Internet of Things (IoT) applications to ensure consistent performance and user experience. According to a report by Datadog, their IoT monitoring solution offers advanced and customisable alerting capabilities, enabling operators to build alerts that trigger only on sustained or widespread device failures, thereby preventing alert fatigue, and further aiding synthetic monitoring demand.

As per a recent survey, 88% of organisations have become more inclined towards adopting full-stack observability solutions in the past year. This trend reflects a growing recognition of the importance of monitoring tools that provide comprehensive insights into application performance across various environments, including web, mobile, and IoT applications. Additionally, tools like those offered by AppDynamics provide real-time visibility into IoT app performance across connected devices, allowing businesses to swiftly diagnose and resolve issues.

Synthetic Monitoring Market Restraints

Deploying synthetic monitoring solutions often requires substantial investment in software, hardware, and skilled personnel. These expenses can be prohibitive, especially for small and medium-sized enterprises (SMEs), limiting widespread adoption.

Synthetic monitoring can sometimes generate false positives such as alerts indicating issues where none exist. This can lead to unnecessary troubleshooting efforts and resource allocation, reducing operational efficiency and impacting synthetic monitoring demand forecast. For instance, a report by Dotcom-Monitor explained that false-positive checks are initiated when an active monitoring location detects an unsuccessful result. While these checks aim to verify errors, they can lead to unnecessary troubleshooting efforts and resource allocation, ultimately reducing operational efficiency.

Unlike real-user monitoring, synthetic monitoring may not capture real-time user interactions, potentially missing issues that occur under specific conditions or user behaviours. This limitation can affect the accuracy of performance assessments.  For example, a Dynatrace blog post pointed out that synthetic monitoring operates in a controlled environment and may miss unpredictable variables that affect user experience.

Synthetic Monitoring Market Dynamics

Businesses are prioritising synthetic monitoring to proactively identify and resolve issues, thereby enhancing user satisfaction and reducing churn rates. For instance, Elastic introduced new synthetic monitoring features designed to simulate user journeys and proactively identify issues on websites. The service offers a managed testing infrastructure, allowing users to conduct lightweight and full-browser tests with ease, which can boost the growth of the synthetic monitoring market. This development aims to enhance the observability of applications by providing insights into user experiences across various digital platforms.

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Synthetic Monitoring Industry Segmentation

“Synthetic Monitoring Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• API Monitoring
• Website Monitoring
• Mobile Application Monitoring

Market Breakup by End Use

• BFSI
• IT and Telecommunication
• Retail
• Media and Entertainment
• Travel and Hospitality
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Synthetic Monitoring Market Share

By Type Insights

Based on type, the website monitoring segment accounts for a significant synthetic monitoring market share and is anticipated to grow at a steady rate in the forecast period. The segment growth can be attributed to a significant increase in the website traffic of e-commerce, educational, and brochure and catalogue websites, among others.

Through website monitoring, a business can be bolstered as one can keep an eye on website traffic and judge the purchasing pattern of potential customers. Meanwhile, the growing utilisation of mobile apps is expected to enhance the demand for mobile application monitoring over the forecast period, thus, aiding the market.

By End Use Insights

The IT and Telecommunications sector accounts for a major market share due to the sector's reliance on complex, interconnected systems and applications that require continuous monitoring to ensure optimal performance and user satisfaction. Synthetic monitoring enables IT and telecom companies to proactively detect and address potential issues, maintaining seamless service delivery. The increasing adoption of cloud computing, DevOps practices, and the need for real-time performance insights further drive the demand for synthetic monitoring solutions in this market.

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Synthetic Monitoring Market Regional Insights

North America Synthetic Monitoring Market Trends

The growing significance of cloud computing, BYOD, the Internet of Things (IoT), and e-commerce in countries like the United States and Canada is likely to be a major factor driving the growth of the synthetic monitoring industry in North America. Over the forecast period, the market is anticipated to be fuelled by the growing technological advancements and rapid digitalisation, particularly in emerging nations.

Companies in North America are increasingly investing in synthetic monitoring solutions to enhance their application performance management strategies. For example, New Relic, a San Francisco-based firm, offers a comprehensive suite of monitoring tools, including synthetic monitoring, to help businesses proactively identify and resolve performance issues in their applications.

Asia Pacific Synthetic Monitoring Market Drivers

Countries like India and China are witnessing a surge in demand for synthetic monitoring solutions as businesses seek to optimise their digital platforms to enhance customer engagement and satisfaction. The increasing adoption of IoT devices in this region also contributes to the need for effective monitoring tools. As per the synthetic monitoring industry analysis, Overdrive specialises in real-time asset monitoring, providing end-to-end IoT solutions that automate data sensing for various assets, including vehicles, machinery, facilities, and personnel. Their platform enables businesses to monitor and manage their assets efficiently, ensuring seamless operations.

Europe Synthetic Monitoring Market Opportunities

The region is focusing on improving digital infrastructure and enhancing user experience, particularly in industries such as banking, financial services, and insurance (BFSI), where monitoring solutions are essential for maintaining service quality. European companies are also motivated by compliance with stringent data protection regulations like GDPR, which necessitates robust monitoring solutions to ensure that applications meet required standards for performance and security and further contribute to synthetic monitoring demand growth. For instance, the NIS2 Directive aims to strengthen cybersecurity across EU member states, particularly for essential services and digital service providers. It mandates enhanced monitoring to detect cybersecurity threats and requires companies to follow stringent incident-reporting guidelines.

Latin America Synthetic Monitoring Market Growth

The regional market is witnessing significant growth as businesses increasingly migrate to cloud-based environments. Companies are beginning to adopt these solutions to improve their operational efficiencies and enhance user experiences, further increasing the synthetic monitoring market opportunities. For instance, Movistar, a major telecommunications provider in the region, has implemented synthetic monitoring to enhance the performance of its digital services and applications.  Another company known as B2W Digital employs synthetic monitoring solutions to test website availability and transaction processes.

Middle East and Africa Synthetic Monitoring Market Dynamics

In the Middle East and Africa, there is a gradual but steady increase in the adoption of synthetic monitoring solutions as organisations recognise the importance of maintaining application performance amidst rapid digitalisation efforts. For instance, Etisalat, one of the leading telecommunications operators in the Middle East, has been proactive in enhancing its digital services which impacted synthetic monitoring market dynamics and trends.  By leveraging synthetic monitoring tools, Etisalat can simulate user interactions with its mobile and web applications. This proactive approach allows them to identify potential performance issues before they affect real users.

Innovative Startups in Synthetic Monitoring Market

Startups in the market are developing innovative tools that simulate user interactions with websites and applications to identify performance issues proactively. For instance, some companies in synthetic monitoring market offer a comprehensive monitoring solution that includes synthetic monitoring to test website performance from multiple locations. Similarly, few others provide synthetic and real-user monitoring, enabling businesses to visualise their entire stack and detect performance problems early.

Sematext

Sematext offers a comprehensive monitoring solution that includes synthetic monitoring to test website performance from multiple locations. Their platform allows businesses to monitor APIs and websites, measuring performance across various devices, browsers, and connection types. This proactive approach aids organisations to detect and resolve issues before they impact real users, ensuring a smooth and reliable user experience.

Better Stack

Better Stack provides a unified platform that combines synthetic and real-user monitoring. Their synthetic monitoring features include uptime checks, SSL monitoring, and performance tracking, enabling businesses to visualise their entire stack and detect performance problems early. By integrating synthetic monitoring with real-user data, Better Stack helps companies maintain optimal performance and quickly address potential issues.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global synthetic monitoring market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Companies in the market are actively enhancing their offerings to meet the evolving needs of businesses seeking to ensure optimal performance and user experience of their digital services.  Companies are incorporating AI and machine learning into their monitoring tools to automate complex processes and improve accuracy in detecting anomalies. This allows for proactive identification and resolution of potential issues before they impact end-users.

Key Industry Players

Dynatrace LLC

Dynatrace LLC is a global technology company specialising in software intelligence solutions. Their platform leverages artificial intelligence (AI) and automation to provide observability across applications, infrastructure, and user experiences. This enables organisations to monitor, optimise, and secure their digital ecosystems effectively.

Broadcom, Inc.

Broadcom Inc. is a leading designer, developer, and global supplier of a broad range of semiconductor and infrastructure software solutions. Their products serve the data centre, networking, software, broadband, wireless, and storage markets.

Micro Focus International LLC

Micro Focus International LLC was a multinational software and information technology business based in Newbury, Berkshire, England. The company provided software and services for enterprise digital transformation, helping organisations leverage existing IT investments while embracing new technologies.

Other major players in the market are Catchpoint Systems Inc., and AppDynamics LLC, among others.

Recent Developments

May 2024

Grafana announced the launch of a revamped Grafana Cloud Synthetic Monitoring which I powered by Grafana k6 and features two new check types known as MultiHTTP and Scripted Synthetic Monitoring which allows the simulation of even the most complex transactions and user journeys.

November 2023

Google Cloud announced the general availability of its synthetic monitoring feature. This service allows users to proactively assess application performance by simulating user interactions, enabling the detection and resolution of issues before they impact real users.