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

Synthetic Monitoring Market Growth

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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Key Trends and Developments

Synthetic Monitoring Market Trends

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 Share

Market Insights by Type

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.

API monitoring is also crucial for tracking the performance of APIs and ensuring seamless communication between different software systems. Companies like New Relic and Dynatrace offer synthetic monitoring solutions that simulate API calls to ensure reliability and performance under various conditions. The U.S. Department of Defense has been implementing API monitoring tools for secure communication between military systems. Government reports, such as from the EU Commission, highlight the growing importance of secure and efficient API monitoring in digital government services, especially as public sector services become more digitally connected.

Mobile monitoring segment in the synthetic monitoring market, on the other hand, involves tracking app performance, load times, and user experience on mobile devices. Organisations use synthetic monitoring to simulate mobile interactions, helping ensure optimal performance on various devices and networks. For example, Google Firebase provides tools for mobile app developers to monitor app performance in real time. In India, the government’s push for the Digital India initiative has led to an increase in mobile-based public services, making mobile monitoring essential to ensure app reliability and user engagement. Similarly, the UK Government is exploring mobile-first solutions for public services and using mobile monitoring tools to track app usage and performance in real time.

Market Insights by End Use

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 synthetic monitoring demand in this market.

In the BFSI sector, synthetic monitoring helps financial institutions ensure that their digital services, such as online banking and insurance portals, perform seamlessly. For example, JPMorgan Chase uses synthetic monitoring to check the responsiveness of its online banking services, ensuring that customers can access accounts without delays. Government regulations, such as those outlined by the U.S. Federal Reserve and the EU’s PSD2 directive, highlight the importance of secure, efficient digital banking services. In India, the RBI (Reserve Bank of India) has advocated for robust digital infrastructure in the banking sector, making synthetic monitoring essential to maintaining operational stability and customer trust.

Retailers use synthetic monitoring to track the performance of their e-commerce platforms, ensuring seamless online shopping experiences. Major retailers like Amazon and Walmart rely on synthetic monitoring to simulate user transactions and detect performance issues before they affect customers. The UK Government has been encouraging retailers to improve their digital platforms to enhance online consumer experience, with initiatives under the Digital Services Framework. Synthetic monitoring market is also key in tracking inventory systems, as seen in Target, which uses it to ensure its real-time stock updates are reliable, particularly during high-demand seasons like Black Friday.

The media and entertainment industry relies on synthetic monitoring to ensure content delivery platforms, streaming services, and mobile apps perform optimally. Netflix and Spotify use synthetic monitoring to simulate user sessions and check streaming quality, ensuring a smooth experience for millions of users. Government reports such as those from the U.S. Federal Communications Commission and the European Commission highlight the importance of high-quality digital content delivery and user experience, particularly with the rise in demand for OTT services and live streaming. The EU Digital Single Market Strategy encourages the adoption of digital tools that improve service delivery and content distribution efficiency, pushing the media industry to embrace synthetic monitoring.

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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.

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 infr...

Micro Focus International LLC

Micro Focus International LLC was a multinational software and information technology business based in Newbur...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

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