Application Server Market 2023 | Present Scenario and Growth Prospects 2032 MRFR
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Application Server Market: An Overview
Application servers are vital middleware software tools used to host, manage and execute applications. They sit between client-side user interfaces and backend databases in modern multi-tier applications. Leading vendors in the application server market include IBM, Microsoft, Oracle, Red Hat and SAP.
The Application Server market industry is projected to grow from USD 19.19 Billion in 2023 to USD 50.66 billion by 2032
Key Application Server Market Segments
The application server market is segmented based on product type, deployment, organization size, industry vertical and region:
By Product Type
Java-based application servers command the largest market share, owing to benefits like platform independence, community support and widespread Java adoption.
Microsoft application servers like IIS hold the second largest share given the popularity of Windows servers.
Other proprietary application servers from vendors like IBM, Oracle, SAP and Red Hat make up the rest of the market.
By Deployment Mode
On-premise application servers account for the largest revenue share, providing enhanced oversight and control for large enterprises.
Cloud-based application servers are expected to grow at a higher CAGR over the forecast period, driven by flexibility, scalability and lower costs.
By Organization Size
Large enterprises are the top adopters and major market share holders of application servers due to complex IT requirements.
SMEs segment is projected to grow at a faster rate through 2030, enabled by affordable SaaS-based servers.
BFSI, telecom, retail and government are major industry verticals driving adoption due to high dependencies on client-server applications.
Manufacturing, healthcare and media verticals will also positively influence market growth in the coming years.
North America holds the largest market share presently and houses key vendors like IBM, Microsoft and Oracle.
Asia Pacific will exhibit the fastest CAGR, propelled by rising investments in IT infrastructure, smart factories and e-governance initiatives.
Major Companies Offering Application Servers
Key players in the application server market include:
IBM: WebSphere application server has a strong foothold in large enterprises.
Microsoft: Windows Server and IIS are widely used across industries.
Red Hat: JBoss is a leading open-source Java application server.
Oracle: WebLogic suite is popular for critical app deployments across verticals.
SAP: SAP NetWeaver application server integrates with other SAP offerings.
NEC: NEC WebOTX is a Java EE-compliant server focused on reliability and security.
Fujitsu: Interstage application server supports mission-critical workloads and APIs.
Key Factors Driving Market Growth
Migration of enterprise apps to cloud environments is accelerating adoption of cloud-native application servers.
Development of web apps, REST APIs and microservices that need to be hosted on servers.
Demand for scalable and reliable server infrastructure due to rising mobile apps and internet traffic.
Need for servers that support latest technologies like containers, DevOps and Kubernetes.
Surge in e-commerce, digital payments and online services requiring robust application hosting.
Large untapped small business market suited for SaaS-based inexpensive servers.
Browse In-depth Market Research Report (111 Pages, Charts, Tables, Figures) on Application Server Market -
North America leads the market, driven by early technology adoption and presence of key IT vendors. Asia Pacific is set for rapid growth due to rising enterprise digital transformation in India, China and SEA. Europe accounts for a significant share with demand centered in UK, Germany and Nordics. Latin America, MEA and Japan offer future expansion opportunities.
Recent Industry Developments
Amazon Web Services launching containerized and serverless application deployment options.
Microsoft enhancing Azure App Service with auto-scaling, deployment slots and security features.
IBM’s acquisition of Red Hat strengthens its cloud application server offerings like WebSphere.
Google Cloud App Engine delivering fully managed serverless environment for web and mobile apps.
Trend towards microservices architecture, Kubernetes and containerization impacting server technology.
The application server market outlook remains positive driven by cloud adoption, Internet of Things and real-time data processing needs. Vendors are incorporating new computing paradigms like containers and serverless to stay competitive.
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