Application Server Market to Reach Around $56.34 Billion by 2030: Grand View Research Inc.

 Application Server Market Growth & Trends

The global application server market size is anticipated to reach USD 56.34 billion by 2030, expanding at a CAGR of 13.9% from 2023 to 2030, according to a new report by Grand View Research, Inc. The increasing smartphone penetration has significantly boosted the demand for application servers due to the increased functionalities of smartphones for using various mobile apps. Remote applications displayed on mobile devices enable memory, storage, processor, and software resources available on servers for mobile users. The execution of server applications for display on smartphones requires a constant and reliable network connection. These aspects have resulted in an immediate increase in the application servers for mobile apps. Moreover, the need for application servers has increased as smartphone penetration increases.

The virtualization of application servers is another technological advancement expected to drive the growth of the market for application server in the coming years. Various benefits are connected with the virtualization of the application server, including resource optimization, increased flexibility, scalability, improved security, and improved reliability. Moreover, companies in the market have been developing virtual servers with enhanced capabilities. For instance, in July 2022, IBM announced the availability of the Hyper Protect Virtual Servers for VPC (Virtual Private Cloud), designed to protect the cloud-native application with OCI (Open Container Initiative) deployments that make use of confidential computing.

Some of the significant features of the solution include secure execution, malware protection, multiparty contract and attestation of deployment, and flexible deployment, among others. Using application servers for communication contributes to its adoption in all devices. Multiple companies in the application market offer enhanced communication application servers. For instance, Intelligent Business Communication - AGNITY offers Communication Application Server (CAS), a virtualized service delivery platform designed for service providers to meet high capacity and throughput needs. The platform's architecture is layered and modular, facilitating smooth expansion when new network connectivity is required for additional applications.

High maintenance cost is a significant factor challenging the growth of the global market. The labor costs accrued through the application server life cycle account for a significant share of the total cost of ownership of application servers after the initial acquisition of the software. Hence, it is essential to understand the critical stages of the application server life cycle. The complexity level increases as product capabilities and application server deployments are advanced. The table below highlights the five-year cost summary for WebLogic and JBoss EAP application servers.

Application server platforms have developed over the years to incorporate features and capabilities once considered add-ons and were integrated only for advanced deployments. The application server architecture, product capability, and management and development tools account for a substantial share of the total ownership cost. The total ownership cost includes the initial design, deployment, and recurring costs. The initial design and deployment costs cover the cost incurred for hardware, software, installation & setup, integration & testing, and initial deployment. The recurring costs include the costs incurred for technical support and consultancy, implementation, management & administration, monitoring and diagnostics, server downtime, and upgrades.

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Application Server Market Report Highlights

• The java segment of the business process management market is expected to register the highest CAGR from 2023-2030, more than 14%. The growth of the java segment can be credited to the growing implementation and adoption of application servers by enterprises, mainly in the e-commerce and retail sectors
• The hosted segment is expected to witness the highest CAGR of more than 14% in the market during the forecast period. The growth of the hosted segment can be credited to advancements in information-sharing technologies and the increasing use of mobile devices. Larger enterprises are shifting their focus towards hosted application servers owing to their capability to handle workloads from multiple sites typically from the same database
• The IT & Telecom segment of the market by end-use is expected to occupy the largest market share of more than 25% in 2022. The IT & telecom industry has seen a transformation, where the telecom industry has witnessed the implementation of fixed to mobile broadband services, which has been contributing to the growth of the segment
• The Asia Pacific region is projected to witness the highest growth rate in the market, reaching more than 15% during 2023-2030. The region is the world's manufacturing capital, with much of the credit being held by China and India. The region is also home to some significant companies in the market, including Fujitsu and NEC Corporation

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Application Server Market Segmentation

Grand View Research has segmented the global application server market based on type, deployment, end-use, and region:

Application Server Type Outlook (Revenue, USD Billion, 2018 - 2030)

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

Application Server Deployment Outlook (Revenue, USD Billion , 2018 - 2030)

• Hosted
• On-premise

Application Server End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• BFSI
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Retail
• Others

Application Server Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US.
  • Canada
• Europe
  • UK.
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • UAE
  • Saudi Arabia
  • South Africa

List of Key Players in Application Server Market

• Adobe
• FUJITSU
• F5, Inc.
• Hewlett Packard Enterprise Development LP
• International Business Machines Corporation
• Microsoft Corporation
• Nastel Technologies.
• NEC Corporation
• Oracle Corporation
• Payara Services Ltd
• Red Hat, Inc.
• SAP SE
• TIBCO Software, Inc.
• The Apache Software Foundation
• VMware, Inc.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.