Market Insight

RESEARCH NOTE - Network Monitoring Equipment Market Jumps 24 Percent Year-over-Year; SDN based Solutions Gain Traction

May 24, 2016

Matthias Machowinski Matthias Machowinski Directing Analyst, Enterprise Networks and Video
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IHS Technology analysis and commentary on the Network Monitoring Equipment Annual Market Report follows. 


Network monitoring equipment revenue, including switches and taps, jumped 24 percent in 2015, reaching $513 million. The strong performance came after muted growth in 2014, when vendors integrated acquisitions and service providers reduced spending. Now, the fundamental drivers of making networks more secure and reliable are driving network monitoring equipment to a new high. In addition, software-defined networking (SDN) and bare metal switch-based monitoring solutions gained traction, expanding the market by cost-effectively enabling more pervasive monitoring.

Advanced switches—those with additional packet processing capabilities—made further gains in 2015, accounting for the vast majority of monitoring switch sales (78 percent).

10G ports are the most common type of monitoring switches, but 40G is the new high‑growth market, with port shipments more than doubling in 2015. 100G will take off in 2016, buoyed by 100G deployments in production networks.

Driven by the need for robust network monitoring capabilities to ensure smooth operations of mission-critical network infrastructure, the network monitoring equipment market is projected to grow at a five-year (2015–2020) compound annual growth rate (CAGR) of 14 percent.

Additional Network Monitoring Equipment Market Highlights

  • North America is the largest region for network monitoring equipment, accounting for over two-thirds of total revenue and driving the highest growth among the top three regions in 2015
  • Going forward, growth is anticipated to pick up in EMEA (Europe, Middle East, Africa) and Asia Pacific as currency effects fade, mission-critical networks drive companies to deploy network monitoring equipment and vendors look to grow beyond their home markets
  • The top four vendors in the networking monitoring space are, in alphabetical order, APCON, Giagmon, Ixia and NetScout


Network Monitoring Report Synopsis

The annual IHS Network Monitoring Equipment Annual Market Report tracks the network monitoring equipment market, which consists of network monitoring switches and associated taps/bypass switches. The report provides worldwide and regional market size, market share, forecasts through 2020, analysis and trends. Vendors tracked include APCON, Gigamon, Interface Masters, Ixia, NetScout, Viavi and others.

For information about purchasing this report, contact the sales department at IHS in the Americas at (844) 301-7334 or [email protected]; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or [email protected]; or Asia-Pacific (APAC) at +604 291 3600 or [email protected].

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