The software-centered competitive advantage approach is gaining industry acceptance, which is expected to drive the growth of the application hosting market.
The application hosting market size is estimated to be valued at USD 40.81 billion in 2017 and is projected to reach USD 72.50 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 12.2% during the forecast period. The major factors expected to drive the growth of the application hosting market include the availability of comprehensive hosting solutions with an array of complementing services over the core offering, and the software-centered competitive advantage approach. However, regional IT developments posing an infrastructural challenge for implementing the hosting technology may limit the market growth in the coming years.
The managed hosting segment is expected to have the largest market share during the forecast period.
Among the hosting types, the managed hosting segment is expected to have the largest market share during the forecast period, as managed hosting services provide a single-tenant dedicated environment for enterprises’ business-critical applications in a cost-effective manner. Managed hosting services enhance the performance, control, and security of applications and enable enterprises to focus on their core business activities. By transferring the workload to managed hosting providers, enterprises can reduce costs and get maximum uptime for their applications.
The mobile-based application type is expected to grow at a higher CAGR during the forecast period.
The mobile-based application type is expected to register a faster growth rate during the forecast period, due to the increasing adoption and deployment of applications in the mobile environment. The rising number of smartphones across the globe has compelled organizations to invest in mobile applications. Mobile applications are now one of the main components of enterprises’ strategies. Furthermore, mobile applications in various verticals, such as banking and eCommerce, help increase the sales of products and also enhance customer services. These applications require high security and maximum uptime. Therefore, companies are investing heavily in application hosting services.
Asia Pacific (APAC) is expected to grow at the fastest rate during the forecast period.
Among the regional segments, APAC is expected to grow at the highest CAGR during the forecast period, as this region is rapidly adopting new digital technologies in its ecosystem. Furthermore, the region has a well-developed cloud infrastructure. Competitive pricing with a list of delivery models and myriad websites is expected to drive the growth of the application hosting market in APAC.
The break-up of the profiles of the primary discussion participants is given below:
- By Company Type: Tier 1 (38%), Tier 2 (32%), and Tier 3 (30%)
- By Designation: C-Level (68%), Director Level (8%), and Manager Level (24%)
- By Region: North America (34%), APAC (26%), Europe (22%), and RoW (18%)
The following key application hosting market vendors are profiled in the report:
• AWS (US)
• IBM (US)
• Rackspace (US)
• Google (US)
• Liquid Web (US)
• Microsoft (US)
• Sungard AS (US)
• DXC (US)
• Apprenda (US)
• Navisite (US)
The global application hosting market has been segmented by hosting type, service type, application type, vertical, organization size, and region. A detailed analysis of the regions has been done to provide insights into the potential future business opportunities across the major regions. In addition to this, the strength of service portfolio and business strategy excellence are some of the other MarketsandMarkets analysis included in the report.
Reasons To Buy the Report
The report will help the market leaders/new entrants in the application hosting market in the following ways:
- The report segments the application hosting market comprehensively and provides the closest approximations of the revenue numbers for the overall market and subsegments across different regions.
- The report helps stakeholders understand the pulse of the market and provides them information on the key market drivers, restraints, challenges, and opportunities.
- The report helps stakeholders understand their competitors and gain more insights to better their position in the market.