Global Application Server Market By Type (JAVA, Microsoft Windows, and Other Types), By Deploymenmt Mode (Cloud and On-Premise), By End-Use (BFSI, Government, Healthcare, IT & Telecom, and Other End-Use), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Application Server Market Overview:

The global application server market was valued at USD 15,912 million in 2021. It is expected to grow at a CAGR of 14.6% between 2022 and 2032. Market growth has been moderately affected by the COVID-19 pandemic.

This is due to a decrease in end-user spending on new servers, and changes in demand from different IT buyers around the world.

App servers use the most recent software delivery models, emerging methodologies for developing mobile apps, and open-source code to provide an excellent experience when running multiple apps on smartphones and tablets.

They also allow access to various cloud-based services. With the increasing popularity of mobile apps and the ongoing rollout of high-speed internet networks, the growth is expected to continue.

Global Application Server Market Analysis

Type Analysis

In 2021, the Java segment was the most dominant with around 50%. This is due to the continuing adoption of application servers in the e-commerce industry.

Over the forecast period, Java will also be the fastest-growing segment. Java application servers can be used as virtual machines to run applications and simultaneously handle database connections.

Microsoft Windows application servers offer COM+ to allow application-type communication, .NET Framework for providing application support, ASP.NET for server-side scripting, Internet Information Services to support web server support, Internet Information Services to provide server-side scripting, Internet Information Services to support application communication, and Windows Communication Foundation (WCF for message queuing and multithreaded processing.

Over the forecast period, the Microsoft Windows segment will see a rise in adoption by medium- and small-sized businesses (SMBs).

Deployment Mode Analysis

The application server market can be further divided into two segments based on deployment. The cloud segment was the dominant market with a 70% share in 2021. It is expected to grow at 13.5% CAGR over the forecast period.

The development of advanced applications for data management and delivery of services is expected to be encouraged by the advancements in information sharing technologies as well as the increased use of mobile devices.

Cloud deployment increases accessibility, integrates quickly, reduces maintenance, and lowers operational workforce requirements.

Many companies prefer on-premise installation due to the many customizations and possibilities offered by on-premise software deployment. Companies can comply with different government regulations while having high-end data security.

Large organizations can also control who has access to their confidential data through on-premise deployment. On-premise deployment allows organizations to customize the solution to their business processes, which is a boon for the on-premise segment.

End-use Analysis

The market can be further divided by end-use into IT and telecom, BFSI and healthcare, as well as IT and telecom and manufacturing. In 2021, the market share for BFSI was around 20%.

BFSI industry incumbents use application servers to create banking applications that can support multiple user sessions simultaneously.

The healthcare vertical is utilizing mobile applications aggressively to provide medical assistance to patients at remote locations in real-time, driving growth. The other segment includes various end-use segments such as defense, education and media, and entertainment.

This segment is expected to grow due to the increasing preference for and increased adoption of application servers in organizations working in other industries and verticals.

Market growth will be driven by the increasing adoption of connected devices, Internet of Things devices (IoT), and connected sensors by incumbents from different industries and verticals.

The growth is also supported by key applications such as real-time data analytics for businesses, personal communication apps, and work collaboration apps.

Key Market Players

By Type

• Java
• J Boss
• Jetty
• Tomcat
• Others
• Microsoft Windows
• Other Types

By Deployment Mode

• Cloud
• On-premise

By End-use

• BFSI
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Retail
• Other End-Use

Market Dynamics

The rapid advancements in mobile device technology and wireless networks have created enormous opportunities to expand the reach of application servers into new areas such as the digitalization of government services and information dissemination.

The market’s growth is also expected to be influenced by the increasing preference for mobile commerce and e-commerce over the forecast period.

Application servers are middleware services that provide security and maintenance, as well as tools to create web applications and allow access to data over the internet.

As IT systems enable effective and efficient management of backend databases and processes, organizations are becoming more dependent on them.

Over the forecast period, the market will grow due to the increasing dependence of businesses on IT infrastructure.

Other factors expected to drive the market growth include the increase in online sales channels and the increasing demand for applications that remotely access sales records and sales data.

Software developers can use application servers to host and build new web applications that are compatible with the server environment.

Application servers provide services that improve the security and diagnostic capabilities of web applications. Web developers are able to quickly identify and fix issues in their web applications.

Application servers allow remote access to business records in real-time and streamline business processes. The application server is flexible and easy to use, which helps avoid the complexity and costs associated with developing e-commerce apps.

The market will grow due to the increasing competition in the e-commerce industry and the need for applications that can remotely access records to support sales.

Regional Analysis

North America was the dominant market for application servers in 2021, accounting for over 40% of all revenue. North America is well-known for its early adoption of new technologies and high penetration of mobile communication devices.

Canada and the United States are mature markets when it comes to the early adoption of new and emerging technologies. Businesses based in North America have a high adoption rate for application servers. Many market leaders are also found in North America.

The Asia Pacific will be the fastest-growing regional market. The Asia Pacific is well-known for its multifold growth in e-commerce, manufacturing, and the widespread use of smartphones. It also has the rollout of high-speed wireless internet networks and the proliferation of smartphones.

Other key factors expected to drive the region’s growth include the growing number of IT service providers and startups that offer service-based solutions, as well as the increased adoption of new technologies, especially in India and China.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Companies & Market share Analysis:

Microsoft Corporation, International Business Machines Corp., Oracle Corporation, Red Hat, Inc., and TIBCO Software Inc. are the key players in this market. To improve and expand their product and service offerings, they are actively involved in product development.

To drive organic growth and strengthen their market position, all market participants are investing heavily in R&D. They also place a lot of emphasis on strategic partnerships and mergers and acquisitions to create technologically advanced products and be competitive in the market.

Key Market Players:

• Microsoft Corporation
• International Business Machines Corp.
• Oracle Corporation
• Red Hat, Inc.
• The Apache Software Foundation
• FUJITSU
• VMware, Inc.
• NEC Corporation
• SAP SE.
• Other Key Players

For the Application Server Market research study, the following years have been considered to estimate the market size: