Performance monitoring is significant in application development as it ensures that apps run optimally and meet user expectations. Through continuous assessment of performance metrics, developers can identify bottlenecks, detect bugs, and monitor system health. This proactive approach minimizes downtime, enhances user experience, and facilitates timely updates. Effective performance monitoring also supports scalability, allowing applications to handle increased loads without sacrificing functionality. Ultimately, consistent monitoring leads to improved app quality, higher user satisfaction, and a stronger competitive edge in the market.