Cloud Network Monitoring Market Report Scope & Overview:

The cloud network monitoring market size was valued at USD 2.0 billion in 2024 and is expected to reach USD 6.6 billion by 2032, growing at a CAGR of 16.29% during 2025-2032.

The cloud network monitoring market growth is driven by the growing complexity of cloud environments, a boost in demand for real-time network visibility, and integration of AI/ML within monitoring platforms. The hybrid and multi-cloud infrastructure teams in enterprises need to continuously optimize their performance, find anomalies, and ensure compliance. AI-Powered Unified Monitoring Platforms Gain actionable insights, automation, and root cause analysis with unified monitoring platforms that have AI capabilities built into them. With cyber threats becoming more sophisticated over time, the need for secure, scalable, and intelligent monitoring tools is on the rise.

The cloud network monitoring market trend in the U.S. is due to high enterprise cloud adoption including remote working environment and need for AI-based Network observability. The U.S. market was valued at USD 1.4 billion in 2024 and is projected to reach USD 3.6 billion by 2032, growing at a CAGR of 12.3%. Ongoing investments in digital transformation, cloud-native technologies, and performance monitoring are driving this robust growth.

Cloud Network Monitoring Market Dynamics:

Drivers:

• Surge in Multi-Cloud Adoption Drives Demand for Unified Cloud Network Visibility and Performance Optimization

Businesses are adopting multi-cloud and hybrid cloud to provide enhanced flexibility, scalability, and cost-effectiveness. This complexity, on the other hand, made cloud network monitoring tools essential to manage multiple environments among private, public, and on-premise infrastructures. With enterprises splitting workloads across disparate platforms, visibility, performance assurance, and real-time troubleshooting become essential. Cloud network monitoring solutions simplify performance data aggregation, end-to-end bottleneck identification, and enable continuous application delivery across heterogeneous environments. The increasing complexity is a key driver for the demand for solutions that would enable seamless network operations, SLA compliance, and security in a multi-cloud environment. Furthermore, it aids in ensuring scalability and cost control by assisting in proactive resource management and anomaly detection.

According to Flexera’s 2024 State of the Cloud Report, 97% of IT professionals plan to adopt a multi‑cloud strategy within the next 12 months

Restraints:

• High Implementation and Integration Costs Limit Adoption Among Small and Mid-Sized Enterprises

Although the growth potential is strong, the initial integration costs of advanced cloud network monitoring tools can scare away small and mid-sized enterprises (SMEs). This is because licensing costs, along with training, system customization, and perpetual maintenance costs, add to the overall cost burden. Moreover, it can be tricky and time-consuming to integrate monitoring solutions with legacy systems, many cloud providers, and third-party tools. This typically needs expertise of IT pros and customized APIs as well, which leads to spending more time in deployment & more expensive operational costs. This can also negatively affect adoption, especially for organizations with constrained budgets, which prevents proliferation over the long term. These pain points need to be solved by vendors conveying scalable, simple, and cost-effective solutions to expand access and acceptance.

In a 2024 survey by Cybersecurity Insiders, 53% of organizations cited budget constraints as the primary barrier to adopting cloud security and monitoring solutions — reflecting similar financial resistance in SMEs 

Opportunities:

• Rise of AI and ML in Monitoring Tools Enables Predictive Insights and Automation in Cloud Network Management

AI is an opportunity that is transforming businesses across the globe, and AI integrated with ML into the Cloud Network Monitoring Market offers big opportunities. By using AI-powered tools, organizations can detect anomalies, predict potential failures, and automate routine tasks such as log analysis and incident resolution. Shifting from reactive to predictive monitoring can thus improve uptime, improve the user experience, and decrease operational overhead. They also learn from the network behavior steadily over a period of time, and hence they get better and efficient in ML models and can provide the alerts by minimizing the number of false positives. With companies looking for advanced insights on how to fine-tune performance and security, the vendors with AI embedded in their solutions have a huge competitive advantage. This addresses new market segments and drives innovation across IT operations.

In 2025, 55% of cloud service providers use AI‑driven network analytics to ensure optimal performance, while 65% automate resource allocation tasks via AI 

Challenges:

• Complex Data Privacy and Compliance Requirements Increase Risk and Hinder Seamless Global Deployment

One of the major challenges faced by the cloud network monitoring landscape is protecting data privacy and aligning with international regulations such as GDPR, HIPAA, and CCPA. Monitoring tools analyze huge amounts of network data, which necessarily includes sensitive data and can lead to regulatory violations or security violations if abused. Deployment and operation are also made complicated by the need to keep data encrypted, anonymized, and stored according to regional laws. In addition, cloud providers follow different standards of compliance, which only makes it more difficult for enterprises that are functioning globally. To address these concerns: Monitor vendors to ensure a trustworthy environment through solid data governance, transparent policies, and architecture that enables compliance.

Cloud Network Monitoring Market Segmentation Analysis:

By Monitoring Type:

Network traffic monitoring dominated the market in 2024 and accounted for a significant revenue share, as it plays a critical role in secure ongoing data transfer in complex multi-cloud and hybrid environments. Its adoption is being driven by mounting cybersecurity threats, greater utilisation of remote applications, and mission-critical networking. This segment will remain the largest as enterprises continue to focus on detecting threats and optimizing networks.

In December 2024, AWS launched Network Flow Monitor as part of Amazon CloudWatch on December 1, 2024, offering near real-time visibility into traffic between EC2, EKS, and managed AWS services, enhancing cloud network monitoring capabilities via passive monitoring and network health indicators.

Application monitoring is expected to register the fastest CAGR., as a result of the explosion of cloud-native apps, microservices, and workloads running in containers. With the evolution of businesses towards SaaS models, in turn towards DevOps pipelines, performance, uptime, and user experience of applications pretty much become a mandate. The rapid propagation of intelligent monitoring of applications with real-time insights and proactive detection of errors will drive rapid growth through the year 2032.

By Cloud Type:

Public Cloud dominated the market in 2024 and accounted for 42% of revenue share, owing to enterprises opting for collective solutions, on-demand features, and budget-friendly pricing offerings. The demand is driven by integrated monitoring tools supplied by major providers, including AWS, Azure, or Google Cloud. This trend will continue to dominate the space till 2032, driven by high adoption of SaaS applications, digital transformation, and availability of cloud-native monitoring solutions among startups & mid-sized businesses.

In November 2024, OpenText rolled out Core Cloud Network Observability CE 24.4, offering end‑to‑end visibility into AWS public cloud traffic and connectivity monitoring across cloud and off‑cloud environments.

The hybrid cloud is expected to register the fastest CAGR, as businesses are increasingly in need of the flexibility to mix on-premise infrastructure with cloud infrastructure. The growing need to have unified visibility, seamless flow of data, and secure connectivity across heterogeneous systems is fueling the adoption. With regulatory compliance, control over latency, and data sovereignty issues becoming increasingly critical, hybrid network monitoring tools will start gaining real momentum across the world.

By Deployment Mode:

Agent-based monitoring dominated the market in 2024 and accounted for 72% of the cloud network monitoring market share. Due to the well-established ability of agent-based monitoring to provide granular and in-depth visibility into the performance of systems and behavior of applications. It allows for real-time data collection and extensive diagnostics, both of which are required to run complicated cloud-native and hybrid infrastructures.

Agentless monitoring is projected to witness the fastest CAGR, owing to its lightweight, non-intrusive nature of deployment, lower maintenance, and easy scalability. Agentless solutions ensure seamless integration without needing any endpoint installations, as more organizations demand automation, agility, and swift onboarding in the cloud. This is being driven by the tremendous need for real-time, centralized and API enabled visibility.

By Industry:

IT & Telecommunication dominated the cloud network monitoring market in 2024 and accounted for a significant revenue share, due to the rising need for low-latency services, integration of 5G networks, and real-time performance monitoring across data centers globally. As the network structures in the industry are intricate, deep visibility and automated diagnostics are critical to efficient operations, and these functionalities will continue to be a priority.

E-commerce is expected to register the fastest CAGR, which is attributed to the growing online traffic, omnichannel engagement, and omnichannel engagement that requires a dependency on cloud-based platforms. As e-commerce companies grow their business and application needs, they are leveraging cloud network monitoring at scale to deliver seamless user experiences, secure transactions, and availability during peak demand. The real-time threat detection, traffic optimization, and cost-efficiency are accelerating adoption at a rapid pace till 2032.

Cloud Network Monitoring Market Regional Outlook:

North America dominated the cloud network monitoring market in 2024 with over 38% revenue share, driven by its lead in cloud adoption, the existence of major tech giant firms, and advanced digital infrastructure. High cybersecurity awareness, swift deployment of AI-based monitoring tools, and enterprise cloud utilization are the top-notch factors benefiting the region. Significant investments maintained in hybrid cloud and real-time monitoring technologies shall prolong its leadership to 2032.

According to a cloud network monitoring market analysis, Asia-Pacific is projected to register the fastest CAGR owing to the rapid adoption of cloud technologies, rising digital transformation, and growing ecommerce and telecom sectors. And in countries like China, India, and Southeast Asia, governments and enterprises are investing in scalable cloud infrastructure. The rising need for low-latency services and real-time analytics is expected to speed up the implementation of a cloud network monitoring solution within this region.

Europe’s growth is driven by increasing adoption of hybrid cloud models, growing regulatory compliance needs such as through the General Data Protection Regulation, or GDPR, in Europe, and rising IT modernization investments. Through 2032, demand for secure and real-time monitoring solutions will remain focused on BFSI, government, and telecom.

Germany dominates the European market due to its extensive digital infrastructure and stringent data protection laws. The combination of increasing demand for network visibility within manufacturing and finance and support for AI-driven automation, will drive more adoption of these tools, driven by cloud network monitoring tools investment.

Key Players:

Major companies in the cloud network monitoring market include Cisco Systems, Inc., IBM Corporation, Amazon Web Services (AWS), Microsoft Corporation (Azure Monitor), Google LLC (Google Cloud Operations Suite), Datadog, Inc., New Relic, Inc., Dynatrace LLC, SolarWinds Corporation, Splunk Inc., LogicMonitor, Inc., Nagios Enterprises, LLC, ManageEngine (Zoho Corp.), Broadcom Inc. (via CA Technologies), AppDynamics (a Cisco company), Zabbix LLC, Paessler AG (PRTG Network Monitor), ThousandEyes (a Cisco company), Kentik, Riverbed Technology.

Recent Developments:

• June 2025: Cisco’s ThousandEyes launched "Traffic Insights" at Cisco Live 2025, enhancing real-time network flow visibility.

• June 2025: Datadog unveiled AI-powered capabilities including GPU Monitoring and Dev Agent at DASH 2025.

• May 2025: Datadog acquired Eppo and increased its 2025 revenue forecast citing cloud monitoring growth.