Application Server Market

Market Overview

The global application server market size was valued at USD 14.9 billion in 2020 and is projected to reach USD 52.12 billion by 2030 at a CAGR of 13.34% from 2022 to 2030.

The platform called an application server is typically used for cloud-based apps for mobile devices like tablets and smartphones. While allowing the right to access and the functionality of the corporate application, the application server serves as the host for the user's business logic. The memory and processing power needed to run programmes in real-time is provided by an application server. Additionally, it provides the environment needed to operate specific programmes. For instance, a cloud service application needs a Windows PC to analyse the data. According to the nature of the business application and the norms in the specific industry for which the application has been created, the application server also supports a variety of application design patterns. Numerous programming languages and distribution systems are supported by this software.

Market Dynamics

Drivers for the Global Application Server Market

• BFSI Sector Is Driving the Market

The banking, financial services, and insurance (BFSI) industry are always dealing with new regulations, cybersecurity concerns, an increase in the volume of data being generated, and an increase in the number of transactions. Secure, scalable solutions that allow for effective service delivery are constantly needed in the BFSI sector. Additionally, in order to keep up with technological advancements and have up-to-date security features that guard against continually growing cyberthreats, these apps must be updated at fairly regular intervals. As a result, the BFSI industry is predicted to see a rise in demand for application servers.

• T. Infrastructure will Drive the Market

Application servers provide tools for building online applications and middleware services for security and upkeep available, as well as network data access. Because IT systems allow efficient and effective management of databases and backend processes, organisations are becoming more and more dependent on them. Over the projection period, it is anticipated that organisations' increasing reliance on IT infrastructure would fuel market expansion. A few additional variables that are anticipated to influence market expansion include the rise in online distribution channels, the rising demand for software that may support sales, and the ability to access sales records from a distance.

Restraints for the Global Application Server Market

• The High Cost Involved Is A Major Restraint For The Market

In order to maintain proper IT infrastructure, one needs an updated application server, the development of which requires a high cost. Moreover, these technologies need to be updated from time to time for which again certain cost is involved so all in all we can say that its a costly process.

Furthermore, with the development of application servers, there comes a threat of privacy breach also posts a major concern and hence hinders the market.

Opportunities for the Global Application Server Market

• E-Commerce And Government Initiatives Will Bring In New Opportunities

Rapid advancements in wireless networks and mobile device technology have created a wealth of possibilities for applying application servers in previously untapped fields like information dissemination and the digitisation of public services. Additionally, e-commerce and mobile commerce are becoming more and more popular, which is encouraging for the market's expansion over the projection period. As workload and accompanying complexity have increased, government agencies have been utilising technology more and more. Government agencies must also continually assess the functionality and effectiveness of their current applications and, where necessary or in order to keep up with the difficulties posed by technology, transition to new, better-suited platforms. As new government programmes and initiatives are introduced, new platforms must also be developed in lockstep with them.

Regional Analysis

With a revenue share of more than 40%, North America dominated the application server market in 2020. North America is renowned for its early adoption of cutting-edge technologies and for having a high mobile device penetration rate. When it comes to early adoption of the newest and most innovative technology, the United States and Canada are regarded as having extremely mature marketplaces. As a result, North American-based companies use application servers at a significant pace. Many of the top market participants are based in North America.

The fastest-growing regional market is anticipated to be in the Asia Pacific. The Asia Pacific is renowned for the expansion of high-speed wireless internet networks, the proliferation of smartphones, and the exponential growth of the manufacturing and e-commerce sectors. Some of the additional important aspects that are anticipated to support the expansion of the regional market are the rising number of software and IT service providers, the rise in service-based startups, and the aggressive adoption of cutting-edge technologies, notably in China and India.

Segmental Analysis

This application server market share can be segmented on the basis of type, deployment, end-use, regions and competitors. According to the ongoing adoption of application servers by the established players in the e-commerce business, the Java category held the highest share of almost 50% in 2020. Over the course of the prediction, Java is also anticipated to show the quickest growth. Java application servers have the ability to function as virtual machines that execute programmes while concurrently managing database connections on one end and web clients on the other.

Microsoft Windows application servers include Windows Communication Foundation (WCF) for application communication, message queuing for multithreaded processing, ASP.NET for server-side scripting, Internet Information Services (IIS) for web server support, COM+ for application-type communication, and.NET Framework for application support. Over the projection period, the Microsoft Windows segment is expected to rise due to the increasing adoption of software platforms by small and medium-sized businesses (SMBs).

The application server market has been further divided into hosted and on-premise based on deployment. Around 70% of the market in 2020 belonged to the hosted category, which is predicted to grow at the highest CAGR of 13.5% throughout the forecast period. The development of sophisticated apps for efficient data management and service delivery is projected to be facilitated by improvements in information-sharing technologies and the rising popularity of mobile devices. In addition to decreasing maintenance, enabling quick integration, and cutting operating labour requirements, the hosted implementation also improves accessibility.

The market has been further divided into subgroups based on end-use, including BFSI, IT and telecom, healthcare, government, retail, manufacturing, and others. Around 20% of the global market in 2020 was accounted for by the BFSI category. Employers in the BFSI sector utilise application servers to create banking applications that may provide multiple capabilities to support several user sessions at once. On the other hand, market leaders in the healthcare sector are aggressively embracing mobile applications to provide real-time medical help to patients in remote regions. This is what is causing the healthcare segment to flourish. Defence, education, media, and entertainment are just a few examples of the end-use segments covered in the other segment. The other category is expected to develop as a result of firms working in many different industries and industrial verticals showing a growing preference for and use of application servers.

Recent Developments

• In June 2019, IBM Corporation improved WebSphere Application Server (WAS) version 9.0.5 with the addition of new operational modernisation components that assist application developers with their WebSphere-centric modernisation. Across container-based and conventional deployments, the innovation provides visibility for the apps.
• The release of a new angular-based web application framework in the Magic xpa 4.0 was announced by Magic Software Enterprises Ltd in August 2018. The ability to create feature-rich, cross-platform web applications is made possible by this new application framework, which is available to angular developers and magic developers.