Application Server Market Size, Share & Trends Report

Application Server Market Size, Share & Trends Analysis Report By Type, By Deployment, By End Use (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-241-9
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 149

Industry Insights

The global application server market size was valued at USD 13.13 billion in 2018 and is expected to register a CAGR of 12.1% from 2019 to 2025. Application servers leverage emerging mobile application development methodologies, evolving software delivery models, and open source software to design mobiles, tablets, and cloud applications.

An application server performs the role of hosting web applications and enables software developers to build new applications that are supported by the server environment. Some application servers also provide services to improve the security of web applications and diagnostic capabilities, thereby enabling web developers to efficiently identify and troubleshoot issues of their web applications.

U.S. application server market

The market is witnessing high growth owing to the increasing demand and extensive use of computer and mobile internet applications. Rapid improvements in wireless networks and mobile device technologies have created numerous opportunities for expanding the scope of application servers in other areas such as information dissemination. The growing trend of e-commerce and mobile commerce is anticipated to further drive the demand for application servers.

Numerous enterprises are expected to replace native personal computer applications with mobile applications. Mobile communication enables organizations to extend the reach of their services to remote areas. Application servers provide immediate access to enterprise records from multiple remote locations and help streamline business processes such as resource migration and human resourcing.

Additionally, an application server offers tools for creating web applications, a server environment to run them, middleware services for security & maintenance, and easy data access. The growing dependence of companies on systems, which enable efficient management of databases and backend processes, is expected to act as a key factor driving the growth of the market. Other factors boosting the market growth include the growing use of online channels and need for sales support applications that help access sales records from remote sites.

Type Insights

Based on type, the market has been classified into Java, Microsoft Windows, and others. Java application servers act as virtual machines that run applications and simultaneously handle connections to the database and web clients. The Java segment has further been categorized into J Boss, Jetty, Tomcat, and others. The segment accounted for over 50% of the global market share in 2018. Moreover, it is expected to emerge as the fastest-growing segment over the forecast period. The growth of this segment can be attributed to the increasing penetration and adoption of these servers by e-commerce companies.

Microsoft Windows application server includes .NET Framework for application support, Internet Information Services (IIS) for web server support, COM+ for application type communication, ASP.NET for server-side scripting, message queuing for multithreaded processing, and Windows Communication Foundation (WCF) for application communication. The Microsoft Windows segment is expected to witness significant growth owing to the increasing preference for Windows-based applications by small-scale and medium-scale companies.

Deployment Insights

Based on deployment, the application server market has been segregated into hosted and on-premise. The hosted segment accounted for the largest market share in 2018 and is anticipated to register the highest CAGR over the forecast period. Advancements in information sharing technologies and increasing use of mobile devices are anticipated to lead to the development of sophisticated applications for effective data management and service delivery.

The increasing demand for application development tools is anticipated to drive the growth of the market over the forecast period. A hosted server is a Software-as-a-Service (SaaS)-based solution that enables users to operate and execute various applications over the cloud through a subscription-based model. The hosted deployment model also offers convenience to companies and benefits such as rapid integration, reduced maintenance, and low operational manpower requirement. 

End Use Insights

Based on end use, the market has been segregated into BFSI, healthcare, IT & telecom, government, manufacturing, retail, and others. The BFSI segment accounted for approximately 20% of the global market share in 2018. In the BFSI sector, an application server is used to develop banking applications with multi-tier functionality to support concurrent user sessions. Furthermore, in the healthcare sector, the increasing demand for offering immediate medical assistance to patients located in remote areas, using mobile apps, is anticipated to drive the growth of the applications servers market. Other end-use verticals include education, defense, and media & entertainment. The growth of the others segment can be attributed to the increasing preference and growing adoption of application servers by organizations operating in these segments.

Europe application server market

The manufacturing segment is anticipated to emerge as the fastest-growing segment over the forecast period. The rapidly growing adoption of Internet of Things (IoT), connected devices, and sensors is expected to play a major role in driving the demand for application servers in the manufacturing segment. Business and personal communication apps, real-time data analytics, and work collaboration apps are some of the major applications anticipated to drive the growth of the segment over the forecast period.

Regional Insights

North America dominated the market in 2018 owing to the presence of well-established businesses, increased penetration of mobile communication devices, and the growing adoption of technologies. Additionally, the U.S. market is a mature market, which implies that the adoption rate of application servers is higher. Companies in the North American region are the early adopters of emerging technologies and this is also expected to contribute to the growth of the regional market over the forecast period.

Asia Pacific is expected to emerge as the fastest-growing market over the forecast period owing to the growth of the service, e-commerce, and manufacturing sectors in the region. Furthermore, increasing penetration of smartphones and the development of high-speed wireless internet network infrastructure are anticipated to contribute to the regional market growth.

The advancements in cloud computing and networking technologies and increasing number of software & IT service providers in Asia Pacific countries such as India and China are also expected to boost the demand for application servers over the forecast period. Additionally, the increasing number of technology and service-based startups in these countries are further contributing to the growth of the regional market.

Application Server Market Share Insights

Key players operating in the market include IBM Corporation; Microsoft; Oracle; Red Hat, Inc.; TIBCO Software Inc.; The Apache Software Foundation; Fujitsu; NEC Corporation; VMware Inc.; SAP SE; and NGINX Inc.

These players focus on product innovation, development of secure data transmission solutions, and enhancement of integration capabilities to meet customer expectations. Currently, the market is in the growth stage and leading industry players are concentrating on the addition of advanced functionalities such as distributed computing and microservices. Major providers of application servers are focusing on acquiring analytics companies to expand their product portfolio, customer base, and geographical presence.

Companies such as Oracle; Red Hat, Inc.; Microsoft; and The Apache Software Foundation have marked a strong global market presence owing to the availability of a well-established R&D division, high-tech software development facilities, and skilled workforce. These companies mainly focus on product innovation and have a well-established global network of partners in countries such as the U.S., India, China, and Brazil.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global application server market report based on type, deployment, end use, and region:

  • Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • Java

      • J Boss

      • Jetty

      • Tomcat

      • Others

    • Microsoft Windows

    • Others

  • Deployment Outlook (Revenue, USD Billion, 2014 - 2025)

    • Hosted

    • On-premise

  • End Use Outlook (Revenue, USD Billion, 2014 - 2025)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa (MEA)

Key questions answered by the report
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