Application Server Market Growth & Trends

The global application server market size is estimated to reach USD 40.96 billion by 2028, registering a CAGR of 13.2% over the forecast period, according to a new report by Grand View Research, Inc. The growth of the market can be attributed to the proliferation of laptops, smartphones, and tablets. The widespread use of computer systems and the growing preference for mobile internet applications among end users are expected to contribute to the growth over the forecast period.

Application servers offer tools for creating web applications, a server environment to run applications, and middleware services for security and maintenance while helping in ensuring easy data access. They also allow developers to handle the transactions between end users and the backend databases.

Intensifying competition in the e-commerce industry and the growing demand for applications that can potentially support sales and improve processes bode well for the growth of the market over the forecast period. Unlike web servers, application servers can serve business needs through multiple protocols and help in simplifying the development of client applications, thereby contributing to the growth of the market.

The application server market is witnessing rapid growth at present. Key market players, such as Microsoft Corporation, International Business Machines Corp., and Oracle Corporation, have established a strong global presence and are controlling a significant share of the market, thereby discouraging new entrants contemplating a market foray. At the same time, application server solution providers are aggressively deploying technical and financial resources to develop additional functionalities and improve their respective application servers.

The outbreak of the COVID-19 pandemic has prompted organizations to reconfigure and revamp their business operations. At this juncture, the measures being implemented to contain the spread of coronavirus, such as lockdowns, restrictions on travel, and work from home and remote working policies, among others, coupled with the changing behavior of customers are expected to play a vital role in driving the growth of the market over the forecast period.

Application Server Market Report Highlights

  • The Java segment accounted for the largest market share in 2020. The higher adoption level of Java application servers, especially by the incumbents of the manufacturing, e-commerce, and healthcare industry verticals, is expected to propel the growth of the segment
  • J Boss is expected to emerge as the fastest-growing segment over the forecast period. It is a fully Jakarta EE application server that comprises Enterprise JavaBeans, a platform-independent Java application, and other technologies that allow developers to develop large-scale Java applications
  • The hosted segment is expected to witness a CAGR of 13.5% over the forecast period. Hosted deployment offers various benefits, such as lower costs, convenience, flexibility, and improved security
  • The manufacturing segment is projected to register a CAGR of 14.3% from 2021 to 2028. The growing adoption of Industrial Internet of Things (IIoT) applications by the incumbents of the manufacturing industry is expected to drive the growth of the segment
  • The Asia Pacific regional market is anticipated to grow significantly and reach USD 9.25 billion by 2028. The growing number of software and IT service providers in developing nations, such as India and China, and the continued adoption of the latest technologies by these service providers bode well for the growth of the regional market over the forecast period