Enterprise Service Bus Software Market

Market Overview

Enterprise Service Bus Software Market Set to Soar: 7% CAGR Forecast for the Coming Period

An enterprise bus system software is a software architecture, which integrates several applications together over a bus-like infrastructure. It acts as a communication medium by linking multiple systems, applications, and data, and connects multiple systems with no disruption. To increase organizational efficiency by reducing the ‘Time to Market’ is one of the most common reasons why companies implement ESB software as the backbone of their IT infrastructure.

Segmental Analysis

The Operations and Management Segment — the Supervisor of ESB Software

The operations and management module facilitates the reliable operation and management of the enterprise service bus. It consists of several tools such as message tracking, alerting, endpoint failover, message redelivery, and logging and reporting. It works as a centralized coordinator (broker) that keeps tabs on the dedicated services and regulates the execution of various operations. It also helps in sending alert messages, identify the number of errors, track the messages, and also checks the message redelivery status. In the wake of the rapid ESB software market growth, the operations and management module recently evolved drastically to strengthen and expand various applications with a better quality of services and cost-efficiency. The user, in the operations and management module, can add, modify, or delete information contained in a message to make it more compatible with the service provider. For instance, with this feature, the bus can convert the format of the date or provide information that was

Safe and Sound Communication Among ESB Components

The security and transport segment supports both the transport-level and message-level security by dint of various components, including authentication, authorization, auditing, and administration, for the enterprises. It also delivers the protection services for non-authorized access, thereby allowing authorized and authenticated users to have administrative access to the ESB software. Moreover, messages containing sensitive information can be encrypted as they transit their routes. The foreboding cybersecurity and data breach threats among the enterprises are expected to fuel the security and transport segment’s growth during the forecast period. The implementation of the ESB system with security and transport enhances the organization’s communication, as well as transformational capabilities. For instance, an ESB software that offers a patient’s insurance coverage can be called by applications such as policy underwriting system, claims management system, or agency management system to update or view an insured’s policy profile as part of a business operation performed by an end-user.

Simplified Data Management

The mediation segment takes the message and performs one or more than one transformation on that message, such as it can be cloned, aggregated, or data format of that message may change. Besides, users can write their own message mediation in the ESB software. It also provides multiple interfaces supporting multiple versions of a service for backward compatibility, facilitating multiple channels the same underlying component implementation. Mediation components offer support for the enterprise bus system features and establish and manage a streamlined interaction medium between service consumers and service providers. The demand for mediation-based ESB software is on the rise due to its capability of splitting the data, and further, it takes the back up of that data. Information systems are growing more complex day by day, thus presenting a strong demand for expeditious system development.

ESB Software Reduce Integration Complexity of the IT and Telecom Services

The IT and telecom industry witnessed tremendous changes in the last few years as consumers are increasingly demanding an enhanced experience than ever before. To address the increasing demand from customers, IT and telecom enterprises are chasing after advanced technologies to streamline their operational efficiency and minimize ‘Time to Market’ for their products and services while maximizing the profitability of the business. This has prompted the adoption of the ESB software across IT and telecom companies that enable quicker integration among their platforms. The ESB software plays a vital role in meeting customer expectations, and several notable vendors are providing ESB software services primarily for the IT and telecom industry. For instance, MuleSoft ESB provides a quicker integration platform for enterprise’s service portfolios in standalone and cloud-based deployments. Presently, many leading telecom companies have deployed the ESB software to deliver messages on a daily basis across complex and distributed workflows in 24x7 environments. Bharti Airtel, an Indian communication and ICT service provider, implemented enterprise service bus on Oracle Middleware to connect heterogeneous applications and reduce integration complexity, allowing the telecom provider to reuse services across the enterprise and support new business demands.

Seamless Information Exchange for the Healthcare Sector

Modern healthcare organizations are confronting challenges in sharing data across geographically distributed healthcare systems and non-healthcare systems due to regulations, compliance, and complex distributed platforms. Sharing insurance claim data among healthcare organizations is a complex and onerous task, which further impacts healthcare institutions’ operational efficiencies. Thus, seamless information exchange between various entities in the healthcare industry is imperative to empower and engage patients, deliver visibility, and facilitate improved health outcomes. The demand for advanced technology solutions to establish seamless data flow among the healthcare systems across the internet and cloud is on the upward trajectory. The ESB software provides integration patterns to complement interoperability across healthcare institutions. Further, it also aids healthcare domain-specific standards such as HL7, MLLP, DICOM, and EDI. Typically, ESB solutions come with flexible infrastructure to share and process the data with a variety of entities. The Epilepsy Institutes of the Netherlands Foundation (Stichting Epilepsie Instellingen Nederland, or SEIN), recently incorporated Yenlo’s open-source WSO2 ESB solution running on the SUSE Linux Enterprise Server operating system. As a result of the implementation of WSO2 and SUSE, SEIN is now able to expeditiously exchange data between organizations and information systems using less than 60% of the time and budget previously required.

Congruity Among Bank Servers

In the banking system, there is a pressing requirement of an ESB software for carrying out communication across several enterprise software applications such as internet banking server, EDC/POS server, mobile banking server, SMS banking server, ATM server, core banking server, or HSM (hardware security module). All these servers and systems are developed by different programming languages and on different operating systems. The ESB software helps to establish communication between these software applications in the bank. Besides, it facilitates seamless communication within all internal bank servers, including payment gateway server for multipurpose transactions such as bill electricity, phone bill, TV cable, or any other payment methodology. Bank leaders have eagerly implemented the ESB software to save time and cost over manual processing and to create a unified view of the customer portfolio and lend data across the eCredita system, third-party credit bureaus, and their backend systems. Canadia Bank, one of the largest banks in Cambodia, implemented the Fiorano ESB software in 2016. Canadia bank saved almost 80% of the development time, and close to 30%-40% reduction in overall costs, unveiling services at a 300% faster rate. Suva, Switzerland's leading provider of federal insurance for companies and their employees, deployed WSO2 Enterprise Service Bus to facilitate the central integration platform for delivering web services across various platforms engaged in providing services to policyholders.

Regional Analysis

North America’s Staggering Technological Advancement 

North America is expected to hold the largest share for the enterprise service bus software market among the other regions worldwide. This is mainly attributed to the fact that the region has been witnessing disruptive technological advancement once in every decade. Several organizations, including SMEs and large enterprises across different industry verticals, are migrating their critical business infrastructures to the cloud on the grounds of increased adaptability of hybrid IT solutions. This crucial shift toward the cloud is further boosting the regional market growth. In the U.S., banks were the early adopters of service-oriented architecture (SOA) and integration technology such as Enterprise Service Bus (ESB). Banks such as Federal Reserve Bank of NY, Bank of America, and JPMorgan-Chase, have already implemented the enterprise service bus system. Besides, companies such as Google, Yahoo, Walmart, eBay, Verizon, Xerox, Motorola, Inc., T-Mobile, and Adobe Inc. have incorporated the ESB software solution to centralize the organization’s work practices. For instance, NCR Corporation has deployed the MuleSoft’s ESB software in the year 2018.

Europe’s Thriving Cloud Computing Technology 

The rising demand for efficient IT infrastructure and the rapid adoption rate of cloud computing among the various European organizations are fueling the growth of the Europe ESB software market. More medium and large-scale enterprises are seeking to integrate solutions such as enterprise service bus technology to strengthen business processes, management, centralizing the communication process in the organization. For instance, Nestle's Nespresso division, a Switzerland-based global leader in coffee, has implemented the MuleSoft’s open-source Enterprise Service Bus (ESB) technology to aid its corporate architecture team by defining and implementing a new middleware architecture called Nespresso Open Architecture or NesOA. Besides, several European companies such as DHL and Nokia have integrated the ESB software in their IT infrastructure to facilitate new distribution channels, improve business agility, quickly introduce new applications, and manage the increased transaction volumes.

Asia-Pacific’s Increasing Inclination Toward IoT Infrastructure

Asia-Pacific is foreseen to be the fastest-growing region for the enterprise service bus technology due to the increasing focus toward cloud and IoT infrastructure in countries such as India, China, Japan, South Korea, and Southeast Asian countries. In the region, organizations are turning more mature and striving to reshape their digital vision and methodologies to achieve tangible results. They are adopting more advanced technologies to get clarity of what the future enterprise (FE) will look like and are increasingly focusing on incorporating digital technologies to address the prospect of work culture, customer engagement, intelligence, operations, and leadership. The government spending in IT infrastructure is on the rise, helping the middleware software market to flourish. Federal Bank, a notable commercial bank listed on the Bombay and London stock exchanges, partnered with the Fiorano Software and Affiliates to implement ESB software for the flexible and agile IT infrastructure, facilitating expedite responses for the growing business demands of an expanding banking conglomerate.

Saudi Arabia — the Largest Market Shareholder in the Middle East

The Middle East enterprise service bus software market is expected to grow at a considerable growth rate due to the rising demand for real-time data access, pressing need for cost reduction integration platforms, continuously mounting up data across enterprises, technological advancements, and modern age business dynamics. Saudi Arabia holds the largest market share in the Middle East region, followed by the UAE. These countries are technologically advanced, and the implementation of infrastructure middleware is high due to the rising IT investment across various business sectors.

Enterprise Service Bus Software Market Segmentation

By Product

• Operations and Management
• Mediation
• Security and Transport
• Others

By Application

• BFSI
• Government
• Manufacturing
• IT & Telecom
• Healthcare
• Others

By Regions

North America

• U.S.
• Canada
• Mexico

Europe

• U.K.
• Germany
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia-Pacific

LATAM

• Brazil
• Argentina
• Columbia
• Rest of LATAM

Middle East

• Saudi Arabia
• Oman
• Qatar
• Bahrain
• UAE
• Rest of Middle East

Africa

• Nigeria
• Tanzania
• South Africa
• Ghana
• Rest of Africa