Application Server Market Expected to Reach $53.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Application Server Market," The application server market was valued at $17 billion in 2021, and is estimated to reach $53.3 billion by 2031, growing at a CAGR of 12% from 2022 to 2031.

A server that hosts applications or software that transmits business applications through a communication protocol is known as an application server. A service layer model is a framework for an application server. Application servers use cutting-edge software delivery methods, emerging mobile app development processes, and open-source software to provide the optimal user experience when running multiple mobile apps on smartphones and tablets and accessing numerous cloud-based services.

According to application server market research, the IT & telecom and BSFI segments are expected to witness considerable CAGRs of 15.0% and 13.0%, respectively, during the forecast period. The active application server and web information server segments are expected to witness considerable CAGRs of 13.0% and 12.0%, respectively, during the forecast period.

The COVID-19 pandemic has significantly triggered market growth, attributed to the decline in end-users expenditures on new servers and shifts in demand from multiple organizations of IT purchasers globally. The growing desire for contactless payments and remote working in the face of the COVID-19 pandemic is predicted to push the demand for high-speed data processing and storage capacity across a wide range of industrial verticals. Since modern technologies have opened the way for connected appliances and self-driving cars, IT infrastructure firms are opting for the most advanced storage options, such as flash memory and solid-state drives (SSD), to store critical corporate data. Meanwhile, the need for application servers is being driven by the demanding and changing settings demanded by cloud service providers.

Region wise, North America held a significant global application server market share, owing to presence of private and government IT organizations aided for advanced application server in this region. The demand is mostly being driven by early technological adoption and a considerable mobile device penetration. Devices in application server industry is expected to propel growth in this region. Moreover, rapid urbanization and increase in spending on data center infrastructure to upgrade the virtual networks in various sector are the primary factors that drive growth of the application server industry in Asia-Pacific and Europe.

KEY FINDINGS OF THE STUDY

• By application server, in 2021, active application server is considered to hold the maximum Application Server Market Size, with $7,988.0 million. However, the web information server segment is expected to witness significant CAGR of 12.0% during the forecast period.

• By deployment model, cloud-based segment was the highest revenue contributor to the market, with $12,702.0 million in 2021. However, the on-premises segment is estimated to reach is estimated to reach $11,459.0 million by 2031, at a significant CAGR of 10.0% during the forecast period.

• By end-use vertical, IT & telecom segment was the highest revenue contributor in 2021. However, the BSFI segment is expected to witness highest growth rate in the Application Server Market Forecast period.

• Region wise, the application server market growth was dominated by North America region. However, Asia-Pacific and Europe is expected to witness significant growth rate during the forecasted period.

Key players profiled in the report include Adobe Inc., Apache Software Foundation, Dell Technologies, Inc., Hitachi Ltd., International Business Machines (IBM) Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, TIBCO Software Inc. and VMware, Inc. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the Application Server Market analysis.