The Application Server Market - An Overview

Application servers are a key component of many enterprise IT environments, providing the logic and services needed to support complex business applications. The global application server market has seen steady growth in recent years, driven by factors like increasing adoption of cloud computing and microservices architectures. The Application Server market industry is projected to grow from USD 19.19 Billion in 2023 to USD 50.66 billion by 2032

Key Segments of the Application Server Market

The application server market can be segmented based on various factors:

By Type

• Java-based application servers
• Microsoft application servers
• Others (PHP, Ruby, Python etc.)

Java-based servers like WebLogic, WebSphere, JBoss dominate the market with a combined share of over 50%.

By Deployment Model

• On-premise
• Cloud-based

While on-premise deployments still account for a significant portion of the market, cloud-based application servers are seeing higher adoption and growth rates.

By Organization Size

• Small and Medium Enterprises (SMEs)
• Large enterprises

Large enterprises make up the bulk of application server spending currently, but increasing adoption by SMEs provides growth opportunities.

By Industry Vertical

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

BFSI and IT telecom are top verticals driving application server market demand. Healthcare, retail and government are emerging high-growth verticals.

Key Players in the Application Server Market

Leading vendors in the application server market include:

• IBM
• Microsoft
• Apache Tomcat
• Oracle
• RedHat
• SAP
• Adobe Systems
• VMware
• Salesforce
• NEC

IBM leads the market with its WebSphere platform. Other top vendors include Microsoft, RedHat, Oracle and SAP. Open-source Java application servers like Apache Tomcat also have significant market share.

Browse In-depth Market Research Report (111 Pages, Charts, Tables, Figures) on Application Server Market

Market Drivers and Trends

• Migration to microservices architectures - Microservices allow breaking down large monolithic applications into independent modular services. This drives demand for new age application platforms.
• Adoption of cloud computing - Cloud-native application development is a key trend driving demand for cloud-based application servers.
• Internet of Things (IoT) - Application servers will play an important role in supporting IoT applications and services.
• Real-time data/analysis - Growing need for enabling real-time data processing and analysis is a factor boosting application server capabilities.
• Containerization - Container platforms like Docker and Kubernetes are increasingly being used in conjunction with application servers to enable portability.

Regional Insights

North America accounted for the largest share of the application server market in 2018. Asia Pacific is expected to witness the fastest growth over the forecast period. Rapid development in countries like China, Japan, India will drive APAC application server demand. Europe is the second largest market currently. Latin America, MEA offer significant growth opportunities as well going forward.

Latest Industry News

• IBM announced the release of WebSphere Liberty Version 20.0.0.6 in July 2019, touting improved security, compliance and developer experience capabilities.
• Microsoft acquired jClarity, a Java performance tuning firm, in August 2019 to enhance its Azure app service offerings for Java workloads.
• Red Hat announced the general availability of JBoss EAP 7.2 in May 2018. The latest version focuses on improved security, compliance and container deployment capabilities.

The application server market is poised for strong continued growth as enterprises modernize their application infrastructures and adopt cloud-native development models. Leading vendors are rapidly innovating with capabilities like containers, microservices and real-time data analytics to enable the next-generation of intelligent, scalable enterprise applications.