Application Server Market Report

Application Server Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2016 To 2024

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  • Report ID: GVR2807
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The global application server market was valued at around USD 24 billion by 2024 and is projected to grow at a CAGR of 17% from 2016 to 2020, to be valued at around USD 24 billion in 2024. The increasing demand for applications to support smartphones, tablets, and integrate with the Internet of Things (IoT) is expected to drive the app server market growth over the forecast period.

An application server offers tools to create web applications, server environment to run applications, middleware services for security & maintenance, and easy data access.

The primary drivers that are expected to boost market growth for application servers are the growing dependence of companies on systems that help in efficient management of a company’s database & back end processes. Increasing competition in e-commerce market and growing need for sales support applications that can access record from remote sites are other factors that positively impact the market growth.

An application server handles application operations between a user and the organizations backend business applications or databases. Advancement in information sharing technologies through the use of gadgets is expected to lead to the development of more sophisticated applications to helps companies in data management. The increasing demand for tools used in writing applications is anticipated to drive the market from 2016 to 2024.

Some of the factors that are expected to hinder the market growth are high maintenance costs of application servers, system integration problems, and high server costs. The need for continuous upgradations of servers for fast and reliable transactions increases the server cost which puts tremendous stress on the IT budget of an enterprise. System integration is also a major concern as a lot of data has to be consolidated across the organization.

The application server market is segmented by types into Java-based, Microsoft Windows-based, and others (using open source technologies, PHP application servers). Java-based application servers, also known as Enterprise Edition or Java EE are divided into Web Logic application servers by Oracle, Web Sphere application servers by IBM, and Open source JBoss Enterprise Application platforms (JBoss EAP) by Red Hat.

Microsoft-based application servers have positioned itself as a middle-class service & application server provider in the.NET framework technologies.

Open source technologies use a source code in which the copyrighter provides a license to study, change, and distribute the software across the organization. Some of the major open source technologies are GlassFish, Resin, Jonas, Tomcat, JBoss, and Jetty. Other application servers, apart from the ones using open source, are PHP application servers which are used for running and managing PHP applications.

The application server market is segmented by deployment models, includes four divisions, namely, on-premises, cloud, private cloud, and Platform as a Service (PaaS).

According to 2015 estimates, Tomcat installation base exceeded 50% of the market share, which was followed by JBoss, Oracle Weblogic, Jetty, and GlassFish among other open source technologies and Java-based application servers. Oracle Web Logic and Tomcat are expected to grow at a high CAGR over the forecast period.

JBoss is the anticipated to be the most widely used Java application server among enterprises that influence application server technologies. JBoss is supported and resold by partners such as HP, Sun, Unisys, Dell, Novell, CA, Nokia, Siemens, KPMG, Goldman Sachs, and Vodafone. The demand for JBoss is expected to increase over the forecast period on account of its features such as free download, use, and embedding.

The cloud segment is also one of the fastest growing segments as it helps real-time information sharing with accuracy, more efficiently, and with zero infrastructural cost.

The application server market is segmented by geography into North America, Asia Pacific, Europe, Central & South America, and the Middle East & Africa. North America is expected to witness tremendous growth in the application server industry and is projected to continue this trend over the forecast period, on account of technological advancement and early adoption.

The growing service and manufacturing industry in Asia Pacific is predicted to contribute to the market growth of economies such as India and China. Rapid technological advancements and growing software & IT service providers in these countries are factors that are expected to boost the app server market demand in over the forecast period.

Oracle partnered with iWay to provide continuous connectivity to users from Oracle applications & databases to other enterprise information systems. Solace and HostBridge have developed Simplified Integration of Mainframe Assets to provide large volume real-time data transfer without modifying the mainframe.

Key players in the application server market are IBM, Microsoft, Apache, Cisco, RedHat, SAP, Adobe Systems, Oracle, Attachmate, NEC, Software AG, and Fujitsu. Other market participants and competitors are BonitaSoft, CA Technologies, Hewlett Packard, HostBridge, Nastel Technologies, Compuware, Java, Linux, and Web analytics among others.

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