New Relic has been ranked #1 in application performance management (APM) , with 12.2 percent of the market share in 2020, according to a recent IDC report.

The report, IDC, Worldwide Application Performance Management Software Market Shares, 2020: Substantial Growth Amid Pandemic Disruptions, discusses 2020 market share and activity in the context of the global APM market. According to Stephen Elliot, Program Vice President, Enterprise System Management Software at IDC, “Growth in APM is being driven by the need to manage application performance throughout the application life cycle from DevOps to production operations to ensure that end-user experience meets competitive quality standards. End-user satisfaction with application performance and reliability is critical for successful digital business operations.”

The report describes New Relic’s leadership: “New Relic has made significant changes to its pricing and simplified packaging models to enable customers to adopt more platform capabilities and extract value faster. The company made significant advancements in achieving FedRAMP authorization and enhancing New Relic One platform capabilities aimed at a number of buyers and with an increasing focus on the software development life cycle via DevOps SREs and developers, as well as with IT operations and application support teams.”

IDC data shows that New Relic ranked #1 for application performance management, with 12.2 percent of the market share.

Market developments

IDC estimates that the global APM software market totaled $5.3 billion in 2020. Despite the challenges posed by COVID-19, the APM market grew 9.1 percent in 2020.

The IT industry saw an increase in complex, scalable, and cloud-native applications in 2020. These changes in application architecture drove up APM software revenue, as organizations needed to identify, repair, and monitor software incidents. Successful businesses strive for systems working with fast performance and 100 percent uptime, and these mission-critical goals demand modern observability tools for ensuring best-in-class digital experiences for customers, employees, partners, and suppliers.

New Relic’s market leadership

The report confirms that New Relic surpassed all others to become the APM market share leader with 12.2 percent of the market share on revenue of $646.7 million and 14.5 percent year-over-year growth.

The IDC market share report highlights a range of developments that allowed New Relic to be ranked #1 for 2020 APM market share. 

New Relic has acquired Pixie Labs, a machine intelligence observability solution for developers using Kubernetes. The IDC report notes that this move has expanded New Relic’s product portfolio, which enabled the company to expand its support for multiple public cloud infrastructures. 

New Relic develops capabilities for full-stack monitoring, advanced machine learning, log analysis, and broader analytics. These initiatives drive more automated actions based on APM through streamlined interface designs.

New Relic also supports various cloud platforms, containers, and open-source technologies to expand its presence. New Relic supports Docker and Amazon Web Services (AWS) EC2 and provides visibility into additional AWS services, including CloudFront, DynamoDB, ElastiCache, and ELB. And, New Relic has made significant investments in supporting open-source tools with its developer-first focus and serving as a champion for open source, OpenTelemetry, and open ecosystems.

IDC, “Worldwide Application Performance Management Software Market Shares, 2020: Substantial Growth Amid Pandemic Disruptions”, #US47989021, June 2021.