Load Balancer Market Size, Share, & Trends Analysis Report By Component, By Service, By Type, By Deployment, By Enterprise size, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global load balancer market was valued at USD 4.82 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.8% from 2022 to 2030. The current growth of the market can be attributed to the increasing adoption of cloud load balancing services along with rising awareness among enterprises about the benefits of cloud and networking technologies plus the growing adoption of connected devices and remote working models.

The outbreak of COVID-19 and the restrictions across the globe had a moderate impact on the load balancer market. Several businesses are moving toward digital transformation. This is attributed to increasing government spending on network infrastructure. In addition, it is anticipated that the demand for load balancing worldwide would rise due to the increased internet traffic, brought on by the remote working trend. Factors including the increasing spread of internet access, server virtualization, rising use of linked devices, and the remote working paradigm are expected to boost the market growth. The industry is also expanding due to the spike in data center traffic, brought on by growing Machine-to-Machine (M2M) communication in developing economies. In April 2020, F5 and Red Hat announced a partnership to manage and protect application workloads within hybrid cloud environments.

This partnership is aimed to create integrations between F5 technologies, Red Hat Open Shift Container System, and Red Hat Ansible Automation Platform. The partnership paves the way for non-traditional users of F5 services and ensures businesses transition to cloud-native operations.

The surge in network traffic can affect server performance; however, load-balancing offers the opportunity to put in additional servers to the group to handle the expanding incoming requests. Users can add more load balancers when necessary rather than switching to an entirely new environment. In addition, the server can be changed based on demand for the business and the traffic volume of the site.

For instance, a retail website may receive high traffic during a sales season; in this case, adding more load-balanced web servers will help reduce latency. If one server stops responding, other back-end servers will take over the burden of ensuring incoming traffic and maintaining the services.

Internet of Things (IoT) device interconnectivity needs powerful request processing capabilities, leading to widespread load balancer usage. The market for load balancers is expanding due to several companies’ global sensor deployment programs and the multi-access edge computing revolution. For instance, in November 2020, Amazon Web Services launched the Gateway Load Balancer, which scales and manages third-party virtual appliances, including firewalls, intrusion detection, prevention systems, and deep packet inspection devices in the cloud.

The continued rollout of IoT networks and the subsequent increase in IoT traffic also bodes well for the growth of the market. The Bring Your Own Device (BYOD) policy being pursued aggressively by various organizations is also expected to boost the adoption of load-balancing solutions.

Load balancing solutions are being integrated into business environments through tools such as Azure Application Gateway, which offers improved and structured accessibility in communication within the security and network levels. Load balancing services are also pivotal owing to increased cyberattacks, such as malware, phishing, and Denial of Service (DoS) attacks that target company networks.

However, cyberattacks and the high costs associated with load-balancing network solutions are expected to restrain the market's growth during the forecast period. Several countries are taking steps to prevent data breaching, such as China. The Cyberspace Administration of China (CAC) released a draft regulation on network data security management in January 2022.

Component Insights

The hardware segment accounted for the largest market share of 56.6% in 2021. The segment growth can be attributed to its ability to handle the most resource-intensive functions, such as Secure Sockets Layer (SSL) offload, distributed denial of service protection, and processing User Datagram Protocol (UDP) traffic. Hardware load balancers provide significant advantages since large businesses want to share a multitenant device among business units. Hardware-based Application Delivery Controllers (ADCs) allow enterprises to accomplish compliance on a large scale, which is essential for local and state government sectors. These factors are predicted to augment the market growth during the forecast period.

The software segment is expected to expand at a CAGR of 15.8% during the forecast period. The growing need for advanced network management systems to handle network traffic complexities and rapidly increasing cybercrime is driving demand for the load balancer. The dire need to ensure transparency in communication at both device and system levels is another factor driving the growth of the market.

A software load balancer provides scalability, flexibility, ease of deployment, and security. These benefits contribute to the market growth owing to responding immediately and promptly to changes in network traffic by adding or removing virtual servers as needed. Moreover, load-balancing software used between the server and the client might deny suspicious signals before they reach the server, adding an extra layer of security, which is driving the expansion of software usage in the forecasted period.

Service Insights

The integration and deployment segment accounted for the largest market share of 47.0% in 2021. The segment growth is attributed to the rise in the adoption of load-balancing techniques across various business sectors. Additionally, the market growth is also driven by its simple method used for decrypting data meant for security experts. Data security is a crucial element of every company in the constantly evolving corporate dynamics, and load balancing assists in end-users' threat analysis.

Furthermore, centralized management makes it easier to control website congestion and offers a space for combining insights from various environments and geographies for improved analytics. These benefits offered by the integration and deployment services will enhance segment growth.

The support and maintenance segment is expected to grow at a CAGR of 18.3% during the forecast period. Internal IT professionals provide continuous support and maintenance for updating solutions to improve management and reduce network downtime of load balancers. In-house IT staff manage top-down network devices, security defenses, traffic monitoring, database storage and retrieval, hardware quality, user controls, compliance, scalability, and more on-site facilities at the company premises with the help of original equipment manufacturers. These capabilities will supplement the growth of the segment during the forecast period.

Type Insights

The global load balancing segment accounted for the largest market share of 69.0% in 2021. The segment growth can be attributed to the benefit of offering support for the site- or regional-level disruptions, mission-critical continuity of operations, and global catastrophe recovery. Additionally, it helps network architects to serve a global user base in a way that complies with governmental rules for many highly regulated industries, such as defense, telecommunications, and healthcare.

For instance, a global load balancer can be designed to only transmit requests to data centers in Canada if they originate from Canadian customers and not users from any other country. Due to the expansion of the connected data center structures that require effective load balancing to offer optimal performance, global load balancers are expected to experience crucial adoption.

The local load balancers segment is expected to grow at a CAGR of 13.7% during the forecast period owing to the local load balancer's quick response times and speed for a better user experience. Load balancing eliminates server overload to maintain network speed and dependability irrespective of where or when users access it. It provides the dynamic addition or removal of the servers in response to traffic peaks and may do this without incurring downtime or changing the current systems.

Additionally, programs, websites, databases, and other computing resources work more efficiently and are more readily available due to the local load balancers. It also facilitates efficient and accurate processing of customer requests offering lucrative opportunities for segment growth.

Deployment Insights

The on-premise segment accounted for the largest market share of 54.1% in 2021. On-premises load balancers are software-based load balancers deployed to provide load balancing for applications running in the data center on-premises. Businesses want to place load balancers in the same environment as the resources they are balancing to achieve the best application performance.

On-site workers can access storage without a strong internet connection. However, placing all the data on a server limits access to only those working in the office, limiting the server access to remote workers. These factors will supplement the growth of the segment during the forecast period.

The cloud segment is expected to expand at a CAGR of 17.0% during the forecast period. The segment growth can be attributed to the increasing advantages, including cheaper costs and flexibility in scaling up to meet the demand. Due to a growth in global interconnections through digital platforms and cloud computing, industries have just migrated towards multi-cloud computing.

The present trend toward cloud usage has produced a vast volume of data silos and continues to do so. It has become essential to communicate and exchange data across networks. As a result, several software companies are strengthening their capitalization to support large network technologies and infrastructure investments. For instance, in March 2022, Kyndryl announced a partnership with Cloud era to set up a joint innovation center to help customers transition and migrate more quickly to the cloud platform and environments, such as Amazon Web Components, Google Cloud, and Microsoft Azure. These benefits provided by cloud computing would further supplement the growth of the market during the forecast period.

Enterprise Size Insights

The large enterprises segment accounted for the largest market share of 65.5% in 2021. Over the past few years, hackers have affected several large size businesses. In addition, the rising popularity of remote work in the wake of COVID-19 has increased the threats of cyberattacks and data breaches. Hence, several incumbents of various industries and industry verticals are aggressively adopting load-balancing solutions.

For instance, in November 2021, IBM and Single Store extend their partnership through investment. With the help of the investment from IBM Ventures, IBM and Single Store will work together more closely, giving customers access to their data no matter where it is stored, whether on-premises, in the cloud, or across hybrid cloud settings, and elsewhere. Increasing adoption of load-balancing solutions by large enterprises is expected to drive segment growth during the forecast period.

The small and medium-size enterprises segment is expected to expand at a CAGR of 15.1% during the forecast period. The segment growth is attributed to the increased flexibility in managing website traffic by the availability of multiple server load-balancers. Several server maintenance procedures can be carried out without affecting the website's uptime.

Uptime maintenance and process performance monitoring are essential for SMEs, and they can ensure that the systems and websites function correctly by making database load balancing a crucial component. For instance, in September 2021, Progress acquired Kemp, a virtual load balancer provider. The acquisition aimed to deliver high performance and availability while monitoring application performance to distribute and balance workloads across servers, clouds, and locations. These factors will supplement the growth of the segment during the forecast period.

End-Use Insights

The IT & telecom segment held a market share of 22.1%in 2021 and is expected to dominate the market by 2030. The IT &telecom sectors serve as the operational foundation for all industry verticals. When it comes to managing workloads, resource allocation is crucial in the IT sector, where load balancers are heavily integrated. Additionally, networking is a vital component of the telecommunications industry, and load balancers are essential for traffic distribution.

Numerous public and corporate organizations regulate the telecoms infrastructure nationally and internationally. International organizations include the World Trade Organization (WTO), which has been instrumental in the liberalization of telecom markets, globally, and the International Telecommunication Union (ITU), which advances regulations for the cooperation between national telecommunications systems, the distribution of wireless spectrum, and the management of satellite positioning.

The healthcare segment is expected to enlarge at a CAGR of 16.6% during the forecast period. Healthcare records contain sensitive data, including personal health information, bank details, and the social security numbers of the patients. The need to protect healthcare records is particularly significant in the wake of the outbreak of the pandemic. Hence, incumbents of the healthcare industry vertical are expected to aggressively adopt load-balancing solutions as part of the efforts to secure confidential patient data.

On the other hand, prominent players in the healthcare industry vertical are increasingly adopting the latest technologies, such as the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI), and natural language processing, to reduce operational costs and enhance healthcare services; they are encountering hardships in managing the resultant complex network infrastructure, thereby driving the need for the efficient data traffic analysis and management solutions.

Regional Insights

The North American regional market dominated the load balancer market in 2021 and accounted for a share of 33.4%. Every sector of the economy in the area has accepted cloud-based solutions, making North America the region with the earliest adoption of cloud computing services.  Several companies are integrating load balancers into their infrastructure systems to maintain performance and adaptability, which is expected to propel market expansion.

Additionally, North America's early adoption of advanced technology and high ICT expenditure is the primary factors, propelling the growth of the load balancer market. For instance, AmazonWebb Services (AWS) Gateway Load Balancer is a service that makes it simple and affordable to scale and manage the availability of third-party virtual appliances, such as firewalls, intrusion detection, prevention systems, and deep packet inspection systems. Such developments contribute to the growth of the market in the region.

The Asia Pacific is anticipated to rise as the fastest-developing regional market at a CAGR of 16.8%. The market is expanding due to companies abandoning traditional management methods, increasing demand for automated solutions and systems, and optimizing all elements of business management. For instance, during the next five years, India will invest USD 1.0 billion in several programs to strengthen its capabilities in quantum information, meteorology, quantum technologies & materials, and quantum communications. These key factors are creating demand for the load balancer within the region.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of the existing products to acquire new customers and obtain more market shares.

For instance, in June 2020, A10 Networks released a set of solutions named Turnkey Original Equipment Manufacturer (OEM) Application Delivery and Security Services that provide software security and availability for customers increasingly dealing with the operational and security complexity of the hybrid-cloud infrastructures.

To deploy encrypted applications, perform sophisticated load balancing, and provide SSL visibility, the new set of solutions combines A10's hybrid-cloud-ready software with Dell Technologies hardware that was created especially for these purposes. The solutions provide multi-tenant or single-service virtual platforms for the IT firms' CAPEX and OPEX optimization. Some of the prominent players in the global load balancer market include

• A10Networkss, Inc.

• Amazon web services, Inc.

• CitrixSystemss, Inc.

• F5, Inc.

• IBM

• Hewlett Packard Enterprise Development LP

• Microsoft Corporation

• Palo Alto Networks Inc.

• Cisco Systems, Inc.

• Google LLC

Load Balancer Market Report Scope

Global Load Balancer Market Segmentation

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 2017 to 2030. For this study, Grand View Research has segmented the global load balancer market based on the component, service, type, deployment, enterprise size, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Training and Consulting

  • Integration and Deployment

  • Support and Maintenance

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Local Load Balancer

  • Global Load Balancer

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• Enterprise size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises (SMEs)

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Retail

  • Government

  • Manufacturing

  • IT & Telecom

  • Healthcare

  • Others (Media & Entertainment, Energy and Logistics, and Transportation, among others)

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa