Digital Experience Monitoring Market Overview

Digital experience monitoring (DEM) is a performance analysis discipline that supports the optimization of the operational experience and behavior of a digital agent, human or machine, with the application and service portfolio of enterprises.

 

• According to SMR analysis, in 2023, 60% of digital business initiatives depend on Infrastructure and Operations (I&O) teams to monitor and report on users' digital experience

 

The market estimates are based on a comprehensive research methodology that includes primary research, secondary research, and expert advice. The report takes into account current market dynamics, economic, social, and political factors, as well as regulations, government spending, and research and development growth. Positive and negative changes to the market are also considered.

 

The growth of the market is attributed to the increased demand for Digital Experience Monitoring (DEM) by large enterprises and SMEs worldwide. It also includes the cost, segments, trends, region, and commercial development of the major key players globally for the projected period.

 

The report also includes an analysis of both quantitative and qualitative data, with a forecast period extending from 2024 to 2030. The report takes into consideration various factors such as product pricing and penetration at both country and regional levels, country GDP, market dynamics of parent market and child markets, end application industries, major players, consumer buying behavior, and economic, political, and social scenarios of countries.

 

The report is divided into various segments to provide a detailed analysis of the market from every possible aspect. The market outlook section gives a detailed analysis of market evolution, growth drivers, restraints, opportunities, and challenges, Porter's 5 Forces Framework, macroeconomic analysis, value chain analysis, and pricing analysis that directly shape the market at present and over the forecasted period. The drivers and restraints cover the internal factors of the market, while opportunities and challenges are the external factors affecting the market. The market outlook section also indicates the trends influencing new business development and investment opportunities.

 

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Digital Experience Monitoring Market Dynamics

Growth in Mobile App Monitoring

The global Digital Experience Monitoring market offers great opportunities with the rise in mobile app usage, especially in mobile app monitoring. Monitoring mobile apps helps companies improve performance, optimize interfaces, and enhance functionality, leading to positive user experiences and lower churn rates. Businesses are embracing cutting-edge mobile app monitoring solutions that provide instant insights into app performance and user behavior to take advantage of this trend. These tools empower companies to conduct a comprehensive feasibility analysis of their mobile app offerings, aiding them in making well-informed choices regarding enhancements and new features. Market penetration strategies focusing on mobile app monitoring involve continuous performance tracking and active development practices.

 

Companies implement quick updates and refinements by monitoring app usage patterns and user feedback, leading to higher app retention rates and increased profit margins. These strategies also contribute to enhanced customer loyalty and brand reputation driving the digital experience monitoring market. The demand for robust monitoring tools grows as industries such as e-commerce, finance, and healthcare increasingly rely on mobile apps to engage with customers and deliver services. This drives further innovation and investment in the global Digital Experience Monitoring market, fostering a dynamic and competitive ecosystem. 

 

Advanced mobile app monitoring solutions, equipped with AI(Artificial Intelligence) and ML(Machine Learning) capabilities, provide predictive analytics and deep insights into app performance. These functionalities enable businesses to detect potential problems early on, leading to smoother operations and increased profit margins fueling the digital experience monitoring market growth.

Keeping Pace with Technological Change

With the proliferation of new technologies like artificial intelligence, machine learning, and cloud computing, leading players in the market need to continuously innovate and adapt their offerings to remain relevant. Failure to do so leads to market saturation and reduced differentiation among products, which ultimately drives down profit margins and growth opportunities. The Digital Experience Monitoring market has witnessed the influence of technological advancements in the healthcare industry. With the growing adoption of telemedicine and digitalization of healthcare operations, healthcare organizations now demand advanced monitoring solutions to ensure smooth service delivery and patient care. 

 

Additionally, market consolidation leads to the acquisition of smaller or less adaptable firms to merge their market position and gain access to cutting-edge technologies that create market barriers to entry for new players, as established companies gain control over key technologies and customer bases. The pace of technological change affects the longevity of existing products and solutions. Leading players continuously evaluate and update their offerings to remain relevant, which demands substantial time, effort, and financial resources. This ongoing process strains company resources and diverts focus from other strategic priorities. In this dynamic market, adapting to technological advancements is crucial for companies to maintain a competitive edge and ensure continued success.

 

Digital Experience Monitoring Market Segment Analysis

By Deployment Type, According to SMR research, the digital experience monitoring market is segmented into Cloud based and on-premise types. The cloud-based segment dominance in the global Digital Experience Monitoring market is driven by its adaptability, cost-effectiveness, and alignment with current innovation trends. The market segmentation has shifted in favor of cloud-based solutions as businesses desire scalability and flexibility in managing their digital experiences. Cloud-based monitoring tools are typically less expensive to manufacture and produce than on-premises alternatives, which allows providers to offer competitive pricing to their customers.

 

The digital landscape is volatile, and cloud-based solutions provide rapid response and adaptability, making them the preferred choice in the digital experience monitoring market. The dominance of the cloud-based segment is also owed to their ability to scale production up or down quickly, allowing providers to meet fluctuating demand efficiently. Cloud-based solutions are easily distributed through various channels, such as online platforms and direct sales, expanding their reach and accessibility. Cloud technologies, including artificial intelligence (AI) and machine learning (ML), are heavily centered around innovation trends in the industry.

 

These advancements enable cloud-based monitoring tools to offer more sophisticated and positive insights into digital experiences, solidifying their position as market leaders. Cloud-based solutions offer a distinct advantage with their ease of deployment and use, appealing to a wide range of clients, from small businesses to large enterprises. The leading choice for businesses worldwide is cloud-based solutions owing to their ability to respond to market demands quickly and offer advanced monitoring tools further marking the segment dominance and driving the digital experience monitoring market.

 

• According to SMR, as of 2022, 35.82 billion IoT devices are installed worldwide, and by 2025, there will be 75.44 billion devices.

Digital Experience Monitoring Market Regional Analysis

North America dominates the Digital Experience Monitoring market because of its advanced digital infrastructure, innovation culture, and strong economic foundation. Companies such as Riverbed Technology, AppDynamics (a Cisco subsidiary), and Dynatrace lead the way in developing cutting-edge digital monitoring solutions for various industries, including finance, e-commerce, healthcare, and telecommunications. These companies have built well-established brands that have gained loyalty across domestic and international markets. The region's robust trade network supports the global reach of North American companies, enabling them to cater to clients from different continents.

 

The United States is the top-selling region, with Silicon Valley being the global hub for tech innovation marking the dominance of the region in the digital monitoring market. Additionally, Canada follows closely behind, with Toronto and Vancouver emerging as tech hotspots, driven by a growing startup and government support for technology investment.

North America's dominance is further strengthened by strategic partnerships and collaborations among industry giants. For instance, partnerships between software providers and cloud services enhance the delivery and scalability of monitoring tools.  Customer-centric strategies are another key aspect of North American companies' success. They prioritize understanding and improving user experiences, offering customized and efficient solutions tailored to individual client needs. This approach builds brand loyalty and fosters long-term relationships with customers driving the digital experience monitoring market. Companies dominate the Digital Experience Monitoring market with advanced tech, partnerships, and a focus on customer satisfaction in the region.

 

Digital Experience Monitoring Market Competitive Landscape

The global digital experience monitoring market is characterized by the presence of leading software developer companies and service providers. Key players in the market include BMC Software, Inc., Broadcom Inc., Dynatrace LLC , GlassBox, AppDynamics LLC, New Relic Inc. , Riverbed Technology, Inc., ThousandEyes, Catchpoint Systems, inc., Aternity LLC, Datadog among others. The market is characterized by competitive dynamics, market share, and strategies employed by these key players to maintain their position and drive growth in the industry.

 

1. In 2022, Nexthink SA, a global leader in digital employee experience management (DEEM) software, entered into a partnership with Qualtrics to deliver a premier digital employee experience to joint customers. This partnership is expected to lead to improved workplace technology experiences for joint employees.
2. In 2022, BMC announced new capabilities and integrations across its BMC AMI (automated mainframe intelligence) and BMC Compuware portfolio quality and accelerated software delivery by providing greater data visibility and context-based insights across their IT environments.
3. In 2021, CoStrategix Ltd entered into a partnership with Optimizely, a leading provider of digital experience platforms (DXP), to provide a better digital customer experience to its clients.
4. In 2021, Broadcom Inc. acquired AppNeta to bolster network performance monitoring across the internet and hybrid cloud-based applications. By combining AppNeta's end-to-end visibility with Broadcom's award-winning and proven Infrastructure and AlOps capabilities, the world's largest enterprises running the most complex networks will now have access to a single source of truth to support their cloud journey.
5. In 2021, Martello Technologies Group Inc., a provider of enterprise digital experience monitoring (DEM) solutions, launched the cloud-based multi-tenant Microsoft 365 monitoring platform. The platform enables MSPs (managed service providers) to manage multiple small and medium-sized enterprise (SME) clients from a single Martello Microsoft 365 monitoring instance. This multi-tenant architecture is a key deliverable in the company's expansion plan.

Digital Experience Monitoring Market Scope
Market Size in 2023	USD 2.89 Bn.
Market Size in 2030	USD 12.21Bn.
CAGR (2024-2030)	18.20%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	by Deployment Type On-Premises Cloud
	by Enterprise Size Large Enterprises Small Medium Sized Enterprises
	by End-User BFSI IT and Telecommunications Retail and Consumer goods Healthcare Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Key Player in the Digital Experience Monitoring Market

1. BMC Software, Inc. (United States)
2. Broadcom Inc. (California)
3. Dynatrace LLC (United States)
4. GlassBox (Israle)
5. AppDynamics LLC (San Francisco)
6. New Relic Inc. (United States)
7. Riverbed Technology, Inc. (United States)
8. ThousandEyes (San Francisco)
9. Catchpoint Systems, inc. (New York)
10. Aternity LLC (Cambridge)
11. Datadog (United States)
12. Micro Focus (United Kingdom)
13. SolarWinds (United States)
14. Instana (United States)
15. Correlsense (United States)
16. Pingdom (Sweden)
17. Stackify (United States)
18. Nexthink (Switzerland) 
19. ExtraHop (United States)
20. LogicMonitor (United States)