Digital Experience Monitoring Market Research Report and Outlook by 2028

The global market for digital experience monitoring is projected to expand from US$ 2,156.71 million in 2021 to US$ 5,960.87 million by 2028, reflecting a compound annual growth rate (CAGR) of 15.9% from 2022 to 2028.

Technological advancements have significantly enhanced customer feedback mechanisms, which are vital for the operational success and profitability of various industries. Numerous organizations are now adopting advanced Customer Relationship Management (CRM) systems that facilitate online client feedback, leading to immediate updates and enhancements aimed at elevating software quality. For businesses transitioning to a digital framework, implementing digital experience monitoring systems is essential to optimize processes and establish a robust foundation for future innovations. The increasing integration of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data across multiple sectors is propelling the digital experience monitoring market, empowering companies to address challenges and enhance decision-making regarding device and application performance. Statista reports that the global count of installed IoT devices reached 35.82 billion in 2022, with projections suggesting an increase to 75.44 billion by 2025. From smartwatches to voice-activated assistants, IoT devices are transforming our interactions and communications. Key consumer IoT devices include smartphones, vehicles, IT infrastructure, and asset tracking systems, all of which are pivotal in the consumer market. The growing adoption of smart devices among end-users is expected to significantly drive the expansion of the digital experience monitoring market, thereby increasing the demand for monitoring user experiences.

Cloud computing and mobile technologies are instigating an extraordinary transformation in businesses, with 70% of the top ten global enterprises being newly established. Prominent companies like Amazon, Southwest Airlines, Apple, Disney, and TD Bank are focusing on enhancing their customers' end-user experiences to refine the software and applications they offer, which in turn influences the market share of digital experience monitoring. As digital services extend beyond traditional firewalls, the effectiveness of Application Performance Management (APM) diminishes, leading to a rise in the popularity of end-user or digital experience monitoring (DEM) technologies. Consequently, modern DEM solutions are specifically crafted to assess performance and availability from the user's perspective.

The finance sector is leveraging IoT to accurately assess risks, improve client engagement, and streamline the underwriting and claims processes. Traditionally, auto insurers relied on indirect indicators such as the driver's age, location, and credit score to set premiums. However, IoT technology now provides insights into driver behavior and vehicle usage, including speed and nighttime driving frequency, allowing insurers to introduce innovative services and maintain more frequent contact with clients. Since customers primarily interact with agents or brokers and only engage directly with insurers during policy renewals or claims, the digital experience monitoring market can enhance operational efficiency. Thus, DEM is crucial for optimizing the performance of IoT applications and systems.

Effects of the COVID-19 Pandemic on the Digital Experience Monitoring Market in Asia Pacific

The COVID-19 pandemic has profoundly affected the Asia-Pacific (APAC) region, which has seen a high incidence of cases. APAC is a vital hub for manufacturing and industrial production, leading the world in the volume of traded goods and excelling in various product categories. According to the Center for Strategic and International Studies, China's GDP growth experienced a decline in 2020. Other significant economies in the region, such as India, South Korea, Australia, and Japan, have also felt the pandemic's impact, resulting in a slowdown in the growth of the digital experience monitoring market. Nevertheless, the market was only slightly affected by the rising COVID-19 cases and high mortality rates in countries like India and certain Southeast Asian nations. The post-pandemic landscape is expected to see a surge in the adoption of advanced technologies like AI and IoT, which are essential for improving IT decision-making and helping organizations effectively tackle user experience and device performance challenges. Therefore, while the pandemic influenced various industries in the region, its effect on the growth of the digital experience monitoring market in 2020 was minimal.

The digital experience monitoring market is analyzed based on enterprise size, categorizing it into large enterprises and small to medium-sized enterprises (SMEs). Additionally, the market is segmented by deployment type into on-premises and cloud solutions. The end-user segmentation includes sectors such as banking, financial services, and insurance (BFSI), IT and telecommunications, retail and consumer goods, healthcare and life sciences, among others. Geographically, the global market is divided into five primary regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

The analysis of the digital experience monitoring market has been conducted using both primary and secondary research methodologies. The research process commenced with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach provided a foundational overview and forecast for the digital experience monitoring market across all segments. Furthermore, primary interviews were conducted with industry stakeholders to validate the data and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the digital experience monitoring market.

Key players in the digital experience monitoring market include BMC Software, Inc.; Broadcom Inc.; AppDynamics LLC; Dynatrace LLC; IBM Corporation; ControlUp Technologies LTD; Lakeside Software, LLC; Aternity LLC; Nexthink SA; and Catchpoint Systems, Inc.