Load Balancer Market Size, Share & Trends Analysis Report By Components (Hardware, Software, Services, Training and Consulting, Integration and Deployment, Support and Maintenance), By Type (Local Load Balancers, Global Load Balancers), By Deployment (On-Premise, Cloud), By Organization Size (Large Enterprises, Small and Medium Enterprises (SMEs)), By Industry Vertical (BFSI, IT and Telecom, Retail, Government, Manufacturing, Media and Entertainment, Healthcare, Others), By Services (Training and Consulting, Integration and Deployment, Support and Maintenance) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global load balancer market size was valued at USD 4.29 billion in 2021. It is projected to reach USD 13.32 billion by 2030, growing at a CAGR of 13.40% during the forecast period (2022–2030).

A load balancer spreads network or application traffic among multiple servers in a cluster. Its primary function is to regulate the traffic or information flow between the server and an endpoint device by balancing the load. With the aid of this gadget, servers may transport data more effectively, make the best use of the resources available for delivering applications, and avoid server overload. Additionally, the load balancer continuously monitors networks on servers to ensure proper request handling and, if necessary, removes unreliable servers until they are repaired. Handling the growing client demand on a server also demonstrates the capacity to initiate the formation of new virtualized application servers.

Market Dynamics

Global Load Balancer Market Drivers

High Use of Cloud-based Load Balancing in Data Centers

The information technology and telecommunications industry is seeing rapid growth, leading to the widespread use of cloud computing. Due to rising interconnectivity, many firms concentrate on providing quick responses to the user or customer requests. Increased internet users have accelerated cloud usage, notably for apps and storage, and has increased demand for balancing workloads on multi-load servers. As a result, increasing cloud use is a critical driver driving the expansion of the worldwide load balancer market. Due to a growth in global connections via digital platforms by people, industries have recently shifted toward multi-cloud and cloud computing.

Global Governments' Ongoing Digital Transformation Initiatives

Industries now place a higher priority on gathering large amounts of data as a result of data-driven organizations that analyze data to reveal insights. Thus, creating a significant amount of data centers is essential to the success of the digital transformation. Governments worldwide, particularly in developing nations, have established digital transformation projects to support the rapid transformation of sectors. For instance, the Indian government launched the Digital India program to assist businesses in enhancing the country's digital infrastructure and internet connectivity.

The ICT-enabled advances in organizational structure, documentation, services, and systems are expanded through digital transformation. Investments in the transition from legacy to digital networks are another important factor anticipated to fuel the market's expansion. The digital transformation has increased the need for load balancing. The demand for quicker deliveries was also heightened by introducing content distribution networks, application delivery networks, and service delivery networks.

Global Load Balancer Market Restraints

Lack of Infrastructure

One of the main barriers to the global market is the lack of IT and telecommunications infrastructure in emerging economies. Although many nations strive to survive in the fierce competition by modernizing their infrastructure, financing restrictions and the complexity of legacy design restrict market expansion. Additionally, the sale of hardware networking solutions in the telecommunications industry has been constrained by the rise in the popularity of connection-based load balancers. Major telecommunications firms have implemented out-of-date or antiquated traditional load balancing technologies. These systems have a history of being expensive and labor-intensive to install.

Global Load Balancer Market Opportunities

Growing Use of IoT, AI, and Software-Defined Networking Technologies

The market is anticipated to rise in the coming years due to the surge in demand for load balancing caused by the increased prevalence of connected devices. Additionally, load balancer utilization proliferates in IoT because device interconnectivity necessitates strong request processing capabilities. The global deployment of sensors by numerous sectors and the development of multi-access edge computing are both contributing to the growth of the load balancer market. The demand for load balancing components is increasing significantly due to the requirement for high responsiveness and models in artificial intelligence solutions.

Additionally, it is anticipated that the arrival of software-defined networking technologies and advancements in platform-independent applications would present a lucrative potential for market growth. Load balancers are also expected to have increasing popularity as network infrastructure continues to evolve since they simplify architecture and boost system performance. Due to their simplicity of use and excellent performance, load balancers in networking solutions are anticipated to acquire significant momentum during the forecast period.

Regional Analysis

The global load balancer market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the largest global load balancer market shareholder and is expected to grow at a CAGR of 11.9% during the forecast period. Every industry in the region has adopted cloud-based services, making North America the region that adopted cloud computing services the earliest. The market is expected to increase due to more businesses integrating load balancers into their infrastructure and systems to maintain flexibility and scalability. In addition, this region's early adoption of cutting-edge technology and high ICT spending are the main drivers of load balancer market expansion.

Europe is anticipated to grow at a CAGR of 12.30%, generating USD 3,518.71 million during the forecast period. First implemented in Europe, load balancers have now spread around the globe. In the region, sophisticated load balancing has become an essential component of contemporary business operations. Even though many businesses already use load balancers, new technologies are forcing load balancer manufacturers to develop novel features and compatibility fixes. The growth of diverse software applications and the size and architecture of data centers have accelerated the adoption of load balancers across all industries worldwide.

Vendors of load-balancing services and products find the Asia-Pacific region a lucrative market. This is explained by the existence of significant emerging economies and by the large client bases in numerous businesses. The increase in server virtualization, cloud-based load balancing services, and data center traffic among organizations in that region is one of the significant reasons projected to fuel the market's growth there. The region is projected to rule in the foreseeable future due to the continuous digitization activities.

The analysis of the load balancer market for LAMEA includes Latin America, the Middle East, and Africa. Due to the need for data storage capacities, cloud computing technologies are widely used in gulf countries, propelling the market's expansion. Due to the expanding demands of the IT sector, Africa is anticipated to increase shortly. Cloud computing services are being used in Saudi Arabia's educational system. To bolster information security in the education sector, the Saudi Arabian Ministry of Education has chosen a collaboration between IBM and Etisalat.

Segmental Analysis

The global load balancer market is segmented by component, type, deployment, enterprise size, and industry vertical.

Based on Components, the global market is bifurcated into hardware, software, and services.

The software segment is the highest contributor to the market and is expected to grow at a CAGR of 15.40% during the forecast period. A program known as a software-based load balancer can either be purchased as a load balancer as a service or installed directly on a server. Its primary duties include traffic distribution across the network and traffic monitoring. The famous software load balancers Nginx, Varnish, HAProxy, and LVS, are just a few examples. Demand for software load balancers is expected to grow alongside the adoption of software as a service (SaaS) since they are scalable, flexible, and reliable.

A physical device called a hardware load balancer device (HLD) is used to distribute web traffic among various network servers. HLD performs routing at random or following variables like the number of open connections to servers, resource usage, and server processing power. HLD is frequently used between the server and the client. This is explained by the fact that depending on the task it is intended to handle, HLD is specifically designed to offer load balancing. Numerous companies employ HLD when replacing historical infrastructure because of its fundamental scalability feature.

Based on Type, the global market is bifurcated into local and global load balancers.

The global load balancers segment owns the largest market share and is expected to grow at a CAGR of 17.90% during the forecast period. Network traffic is divided among a collection of networks or data centers dispersed across multiple geographical regions with the aid of global server load balancing (GSLB). The main objective of GSLB is to divert traffic to websites with quick response times by monitoring each website's effectiveness and responsiveness. In the event of the site or regional-level failures, cloud-based GSLB aids in providing mission-critical business continuity and global disaster recovery support. This is a significant driver of GSLB usage in data centers.

A local load balancer is installed at the server end as either hardware or software. As a full proxy, the local load balancer reacts to incoming requests and routes traffic to various hosts. These balancers enhance the performance of servers, networks, and applications. On-premises businesses primarily use local load balancers. Local load balancers are only available on the network to which the server is connected. The market for local load balancers is expanding primarily due to the development of data centers and the desire for quick application delivery.

Based on Deployment, the global market is bifurcated into on-premise and cloud.

The cloud segment is the most significant contributor to the market and is anticipated to grow at a CAGR of 15.20% during the forecast period. Dividing client requests for a server among several application servers operating in a cloud environment is called "cloud-based load balancing." Increased application performance and reliability are made possible by cloud-based load balancing. A significant factor anticipated to propel the growth of the load balancer market is the rise in cloud use along with the spike in cloud computing adoption across various industry verticals.

Many load balancers operate on various OSI network model layers, primarily on L4 (the transport layer) and L7 (the application layer), where TCP and HTTP are examples of the transport layer. The majority of load balancer adoption occurs on on-premise hosts. On-premises application servers frequently use load balancers to manage resource distribution and traffic monitoring. The servers benefit from quick response times as a result. Many on-premise load balancers are software-based devices that are implemented to provide load balancing for applications running on a specific network or data center.

Based on Enterprise Size, the global market is bifurcated into large enterprises and small and medium enterprises.

The large enterprise segment owns the largest market share and is anticipated to grow at a CAGR of 12.50% during the forecast period. Successful industrial interoperability, modularity, and revolutions give huge businesses a competitive advantage in the market. Large businesses are utilizing solutions that assist them in delivering quick and dependable content across various servers due to the necessity to manifest in the digital era. Large businesses have increasingly adopted load balancers due to this expanding necessity.

Small and medium-sized businesses (SMEs) have frequently adopted load balancers to get around traffic and resource bottlenecks and lessen resource complexity problems. SMEs are looking for solutions to get a competitive edge over their rivals as they become more sophisticated in managing and deploying infrastructure and apps. SMEs are using modern technologies to maintain efficient and cost-effective business operations. Additionally, a surge in SME-provided business apps and services has accelerated load balancer adoption.

Based on Industry Vertical, the global market is bifurcated into BFSI, IT and telecom, retail, government, manufacturing, media and entertainment, healthcare, and others.

The IT and telecom segment is the highest contributor to the market and is expected to grow at a CAGR of 12.1% during the projected period. The operational backbone of all industry verticals is the IT and telecom sectors. Resource allocation is vital in the IT industry for managing workloads, where load balancers are integrated on a big scale. Additionally, the telecommunications sector depends heavily on networking, where load balancers are essential for traffic distribution. Due mainly to the widespread deployment of load balancers in data centers worldwide in 2019, the IT and telecom segments dominated the market.

Servers are relied on substantially by BFSI firms to facilitate rapid transactions. This industry is revolutionizing how banks and transactions were done in the past. The number of internet users has recently increased due to the rising trends in digital banking, net banking, application banking, and mobile banking. Financial service organizations offer application and desktop delivery options, among which server-side solutions are overwhelmingly preferred, to meet the needs of changing employee and customer expectations.

Impact of covid-19

When the world witnessed the noble Coronavirus breakout, it disrupted all nations' economies. The government imposed lockdowns to slow the disease's rapid spread. Productions were stopped, all workplaces were closed, public interactions were limited, and temporary manufacturing and trading operations suspensions were implemented globally. Implementing the lockdown and public exchange caused interruption causing a cutting down of the market's operations. The social distancing norms of the government also disrupted the supply chain. Because of lockdowns imposed by the government, businesses and employees could not use the equipment. This forced the farmers to lean towards the help provided by autonomous tractors pushing the autonomous tractor market growth further.

The South Korean nation faced many problems due to the social distancing and public interaction restrictions imposed by the government, which resulted in a workforce shortage. Travel restrictions imposed also restricted the movement of emigrant laborers into the nation. So the country had to ultimately shift towards using autonomous machines to continue their production and operations, to generate income during tough times. But still, during the era of covid, the market had to face a few bumps, such as the level of participation by the companies in the market declined, suppliers and distributors also slowed down their operations, and this negatively affected the farm machinery industry supply chain, resulting in a delay of deliveries of agricultural machinery.

Recent Developments

• May 2022- A10 Networks- The epidemic is known to have increased the number of cyberattacks, including malware, ransomware, and DDoS attacks. Threat actors have targeted essential infrastructures, such as food supply chains, utilities, and governmental organizations, in addition to the services people depend on daily, such as healthcare, education, and finance. As a result, the number of weapons employed to launch these strikes has dramatically increased.
• August 2022- Since the pandemic outbreak, essential infrastructures, such as gas pipelines and food supply, have become the nature and target of cyberattacks, moving quickly away from detailed data and applications. Threat actors have also intensified their targeting of organizations significantly touched by the pandemic, such as healthcare and educational institutions.