How Big is the APM Market in 2020?

In this chapter, we apply our analysis of our global database to bring you the total addressable market for APM.

Since APM is all about monitoring infrastructure behavior, the size of the APM market is, therefore, directly proportional to the growth of infrastructure. At a micro-level, APM’s growth aligns with: 

1) the number of servers an organization operates 

2) the size of their engineering operations team who tasked with managing that infrastructure. 

At a macro-level, it’s riding the coattails of cloud and infrastructure growth to become one of the faster-growing markets in this space. 

However, it’s less about infrastructure and more about applications — The rate at which developers are building applications is exponentially increasing; thus, the need for APM is greater every year.

According to our recent analysis, we estimate the total addressable market to be 400K businesses worldwide. While you can argue that any business with an application needs APM, our focus is on the TAM for enterprise APM providers - the providers discussed throughout the ebook. We classify a business as a company with a physical address, employees, and enterprise cloud infrastructure deployed.

Our analysis is based on the Intricately platform data, derived from our robust network of sensors in over 150 locations around the globe. Intricately maps and monitors the comprehensive digital infrastructure of 7+ million businesses.



Further segmenting, we look at the number of businesses that spend a minimum of $50,000 per month on cloud infrastructure. This group represents a significant market upside for Datadog, New Relic, and others.

The data paints a clear story that is reinforced by industry experts: The APM market is exploding and will continue to do so.

There are hundreds of startups coming online every year that are doing something with APM, and there are clear winners in the space — more on that in chapter four.



The data paints a clear story that is reinforced by industry experts: The APM market is exploding and will continue to do so.

There are hundreds of startups coming online every year that are doing something with APM, and there are clear winners in the space — more on that in chapter four.


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