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Application Gateway Market

Application Gateway Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Organization Size and Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2021-2030

IC : Software and Services

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Author's: Pramod Borasi| Shadaab Khan| Beesetty Yogendra | Onkar Sumant
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Application Gateway Market Statistics: 2030

The global application gateway market size was valued at $1.75 billion in 2020, and is projected to reach $4.24 billion by 2030, growing at a CAGR of 9.5% from 2021 to 2030. A security component that supplements a firewall or NAT in a computer network is an application gateway. It is also known as application layer gateway, app gateway, application proxy, or application-level proxy. It enables custom NAT traversal filters to be inserted into the gateway to provide address and port translation for particular application layer "control/data" protocols including FTP, BitTorrent, SIP, RTSP, and file transfer in instant messaging apps. To make these protocols operate over NAT or a firewall, the application must either know about an address/port number combination that enables incoming packets, or the NAT must monitor control traffic and dynamically open up port mappings as needed.

Growth in number of different application layer attacks is boosting the growth of the global application gateway market. In addition, increase in demand for secure networks positively impacts the growth of the market. However, lack of mandatory regulations for information security and lack of technical expertise hamper the market growth. On the contrary, rise in adoption of Internet of things, AI, and software defined network technologies are expected to offer remunerative opportunities for expansion of the market during the forecast period.


In terms of component, software segment holds the largest share of the application gateway market. As a critical component of modern-day corporate IT infrastructure, software-based application gateway solutions assist organizations in controlling precise log-in network traffic roadmaps that specify what flows in and out of the network. However, the service segment is expected to grow at the highest rate during the forecast period, owing to rise in COVID-19 pandemic which increased the demand for aiding employees working remotely to be able to access their work network more securely and conveniently. 

Region wise, the application gateway market was dominated by North America in 2020 and is expected to retain its position during the forecast period, owing to abundance of application gateway solutions vendors such as Microsoft Corporation, Palo Alto Networks, Cisco Systems, Inc., and others aiding the growth of the application gateway market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in technological investments in sectors such as cloud and digital technologies.

The report focuses on growth prospects, restraints, and analysis of the global application gateway market trend. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global application gateway market share.

Segment review

The application gateway market is segmented on the basis of component, organization size, industry vertical and region. By component, the market is bifurcated into software and service. By organization size, the market divided into large enterprises and SMEs. By industry vertical, the market is fragmented into BFSI, IT & telecom, manufacturing, government and public sector, retail & e-commerce, healthcare, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Application Gateway Market
By Component
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Software segment is projected as one of the most lucrative segments.

The key players profiled in the application gateway market analysis are Aculab, Akamai Technologies, Barracuda Networks, Inc., Citrix Systems, Inc., Forcepoint, F5, Inc., Microsoft Corporation, Palo Alto Networks, SAP SE, Zscaler, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the app gateway industry.

COVID-19 impact analysis

The application gateway industry has witnessed stable growth during the COVID-19 pandemic, owing to rise in investments in emerging technologies, like AI and machine learning, are expected to create scope for the application gateway industry. In addition, the U.S. has a strong foothold of application gateway vendors, which contributes to the market's growth. Some of them include Microsoft, SAP, Orange, and others. Moreover, during the COVID-19 many small and medium-sized enterprises (SMEs) started adopting application gateway to secure their applications with latest cybersecurity technology and infrastructure. The COVID-19 pandemic has made digital transformation an urgent necessity for organizations, pushing the adoption of a hybrid work model marked by remote connection and enabled by the convergence of the Internet of Things (IoT) and cloud computing. In addition, sudden increase in IoT devices during the pandemic increased the demand for app gateways.

Application Gateway Market
By Industry Vertical
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IT & Telecom segment is projected as one of the most lucrative segments.

Top impacting factors

Growth in number of different application layer attacks

The application gateway market size is growing at a significant pace in the past few years as organizations have started realizing that the energy to swiftly forestall utility-layer DDoS assaults that focus on Internet-going through offerings is vital for commercial enterprise continuity and achievement. Aforementioned factor results in creating numerous market opportunities for application-level gateway market during the forecast period. Moreover, when Internet-facing offerings are compromised due to DDoS attacks, the effect can be excessive and feature good sized business consequences. The precise cost of downtime relies upon on the company’s reliance on its online offerings. When figuring out the price of downtime, companies need to think about at the least the subsequent as when online offerings pass down, the productivity of employees and/or companies that utilize or depend upon those services can be notably decreased. 

Increasing demand for secure networks

Damaging of highbrow property is also one of the impacts of defective networks protection systems. Hacking offers unauthorized access to employer’s or individual’s records. In addition, as the internet grows and global computer networks become bigger, and records integrity has become one of the most important elements for businesses to recollect. The overall safety and security of the network is one of the most critical considerations while operating remotely for both small and large enterprises. Furthermore, the majority of cyberattacks performed against an organization can result in network failures and downtimes. Due to such prolonged network downtimes, businesses can be forced to cease their business operations, resulting in a loss of sales. The longer the network is down, the more revenue is lost, and the organization begins to appear untrustworthy and can lose credibility in the long run. These concerns have resulted in increasing investment toward strengthening network security associated with app gateway solutions.

Application Gateway Market
By Region
North America 

Asia-Pacific would exhibit the highest CAGR of 11.1% during 2021-2030.

Key Benefits For Stakeholders     

  • The study provides an in-depth analysis of the global application gateway market forecast along with current & future trends to explain the imminent investment pockets.
  • Information about key drivers, restraints, & opportunities and their impact analysis on global deep learning market trend is provided in the report.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • The quantitative analysis of the market from 2021 to 2030 is provided to determine the market potential.

Application Gateway Market Report Highlights

Aspects Details
By Component
  • Software
  • Service
By Organization Size
  • Large Enterprises
  • SMEs
By Industry Verticals
  • BFSI
  • IT & Telecom
  • Manufacturing
  • Government and public sector
  • Retail & E-Commerce
  • Healthcare
  • Others
By Region
  • North America  (U.S., Canada)
  • Europe   (UK, Germany, France, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific   (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
By Key Market Players
  • Aculab
  • Akamai Technologies
  • Barracuda Networks, Inc.
  • Citrix Systems, Inc.
  • Forcepoint
  • F5, Inc.
  • Microsoft Corporation
  • Palo Alto Networks
  • SAP
  • Zscaler, Inc.

Analyst Review

An application gateway is a sort of firewall that allows you to regulate network traffic at the application level. Application gateways can be used to deny users with a bad reputation access to private network resources over the Internet. Application gateways analyze incoming packets at the application level and establish secure sessions with remote users through the use of proxies. When an external user using a Web browser wants to access the company's internal web server, for example, the application gateway launches a proxy application that acts as a stand-in for the internal web server.

Key providers of application gateway market such as Microsoft Corporation, Palo Alto Networks, and SAP SE account for a significant share in the market. With the larger requirement from the application gateway, various companies are launching net product to increase the application gateway capabilities. For instance, December 2021, Barracuda Networks, Inc., a trusted partner and leading provider for cloud-enabled security solutions, announced the launch of three new Email Protection plans, which scale to meet customers’ evolving threat protection needs. Barracuda’s comprehensive solutions combine gateway and API-based AI technology to detect and remediate threats and reduce the risk that a malicious attack succeeds by immediately and automatically eliminating the user’s ability to view or launch flagged emails.

In addition, with the increase in demand for gateway solution, various companies are expanding their current partnership to continue with the rise in demand. For instance, in September 2021, Palo Alto Networks expanded its partnership with Wipro, a recognized global leader in deploying, managing, and operationalizing network infrastructure. With this expansion, Wipro now enhances their managed services offering by adding Prisma Access to their existing managed SD-WAN offering, Prisma SD-WAN, to deliver managed Secure Access Service Edge (SASE) security services to organizations around the world. In addition, through this partnership, organizations can take advantage of a managed service powered by the industry’s most comprehensive SASE platform, uniquely positioned to protect all application traffic.

Moreover, market players are expanding their business operations to meet the increase in market demand and diversity. For instance, in May 2021, Forcepoint, a global leader in data-first cybersecurity solutions that protect critical information and networks for thousands of customers throughout the world, today announced the company has acquired Cyberinc. Cyberinc delivers intelligent remote browser isolation (RBI) technology that gives administrators granular control that enables them to minimize risk without impeding user productivity. 

Author Name(s) : Pramod Borasi| Shadaab Khan| Beesetty Yogendra | Onkar Sumant

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Application Gateway Market

Global Opportunity Analysis and Industry Forecast, 2021-2030