Application Server Market Size, Share, Growth Analysis, By Type(Java (J Boss, Jetty, Tomcat, Others)), By Deployment(Hosted, On-premise), By End use(BFSI, Government, Healthcare, IT & Telecom), By Region - Industry Forecast 2024-2031

The hosted segment accounted for the largest application server market share.

IBM WebSphere Hybrid Edition (Application Server & Liberty),Plesk,Nginx,Tomcat,OracleWebLogic,Payara Server,Apache,
Parallels RAS are the various application servers available in the market.

Global Application Server Market size was valued at USD 14.9 billion in 2019 and is poised to grow from USD 16.82 billion in 2023 to USD 50.14 billion by 2031, growing at a CAGR of 12.9% in the forecast period (2024-2031).

The global application server market is fragmented, with a prominent market player acquiring a sizable portion. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective. 'Microsoft Corporation', 'IBM Corporation', 'Oracle Corporation', 'Red Hat, Inc. (a subsidiary of IBM)', 'Fujitsu Limited', 'Apache Software Foundation', 'Hewlett Packard Enterprise Development LP', 'SAP SE', 'NEC Corporation', 'Cisco Systems, Inc.', 'Pivotal Software, Inc.', 'TIBCO Software Inc.', 'WSO2, Inc.', 'CA Technologies (a subsidiary of Broadcom Inc.)', 'VMware, Inc.', 'iWay Software (a subsidiary of Information Builders, Inc.)', 'Hitachi Vantara Corporation', 'Progress Software Corporation', 'Nuxeo Corporation', 'Apprenda, Inc.'

Application servers provide middleware services for security and maintenance, as well as tools for developing web applications and accessing data over a network. Organizations are becoming increasingly reliant on IT systems, which ensure the efficient and effective management of backend processes and databases. The increasing reliance of businesses on IT infrastructure is expected to drive market growth over the forecast period. Other factors expected to contribute to market growth include the increase in online channels and the growing need for applications that can potentially support sales and help in accessing sales records remotely.

The growing trend of e-commerce and mobile commerce necessitates the use of sales support applications at remote locations. As a result, significant growth in the e-commerce marketplace would have a positive impact on market growth. The growing popularity of smartphones and internet-based applications is driving up demand for application servers. Several businesses have begun to replace their traditional computer-based native web applications with advanced mobile apps. The application server provides memory and processing power for these real-time applications. As a result, unprecedented demand for mobile-based applications will drive market growth over the forecast period.

Based on region, global application server market is segmented into North America, Asia Pacific, Europe, Latin America and Middle East Africa North America dominated the global application server market in 2020, accounting for more than 40% of revenue. North America is well-known for its early adoption of cutting-edge technologies and high penetration of mobile communication devices. In terms of early adoption of new and emerging technologies, the United States and Canada are considered highly mature markets. As a result, application servers are widely used by North American businesses. North America is also home to a number of market leaders. The Asia Pacific region is expected to be the fastest-growing regional market. Asia Pacific is known for its rapid growth in the e-commerce and manufacturing industries, as well as the widespread use of smartphones and the deployment of high-speed wireless internet networks. Other key factors expected to contribute to the growth of the regional market include an increase in the number of software and IT service providers, an increase in the number of service-based start-ups, and aggressive adoption of the latest technologies, particularly in India and China.