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Application Server Market

Application Server Market Size, Share, Competitive Landscape and Trend Analysis Report by Application Server, by Deployment Model, by End-Use Vertical : Global Opportunity Analysis and Industry Forecast, 2021-2031

IC : Software and Services

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Author's: Ankit Mahesh Gupta | Onkar Sumant
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Application Server Market Research, 2031

The global application server market was valued at $17 billion in 2021, and is projected to reach $53.3 billion by 2031, growing at a CAGR of 12% from 2022 to 2031.

Application Server Market

The application server market is segmented into application server, deployment model, end-use vertical and region.

Application servers are created particularly to host, operate, and install web - based applications. They operate as server environments for executing applications, tools for developing web applications, middleware services for security and maintenance, and simple data access.

The spectrum of application servers is further expanded by other fields including mobile device systems, data distribution, and fast changes in wireless networks. Web application servers are widely used by businesses to manage their databases and back-end operations. Additional features offered by contemporary application servers include security, scalability, database administration, end-user traffic control, and others.

The application server market is expected to witness notable growth during the forecast period, owing to increase in spending on data center infrastructures. Furthermore, rising adoption of seamless P2P networks along with increasing dependency on smart device applications have driven the growth of the market. However, high initial cost of installation and maintenance is the prime factor restraining the market growth. On the contrary, surge in rapid development in IT and cloud-computing solutions is expected to propel the application server market growth during the forecast period.

Application Server Market by Application Server

A web information server is one that does not need a receiver to retain session state from earlier queries. Sender delivers relevant session state to the receiver in such a way that each request may be understood without reference to the session state of previous requests, which the receiver retains. HTTP (hypertext transfer protocol) is an example of a web information server since each request is performed independently of ones that came before it. This means that after a transaction is done, connection between browser and server is automatically deactivated. Web information server often known as stateless servers are largely used for generating pages from database by employing HTML templates.

Application Server Market by Deployment Model

Due to the practical options and substantial customization provided by on-premise software deployment, many businesses increasingly embrace this type on-premises model. On-premise setup offers superior data protection while allowing businesses to comply with various regulatory standards. The on-premise implementation also enables big businesses to manage who has access to private information. Hence, adoption of on-premise-based application server is fuelled by the fact that on-premise deployments provide targeted users, enhanced control on how security is established, monitored, and contained. In addition, on-premise deployment models are frequently simpler for new users of HTTP and TFTP server.

Application Server Market by End-Use Vertical

The primary drivers for the market growth in the BFSI industry include increase in requirement to optimize banking processes such as maintaining current accounts, on boarding new customers, and servicing mortgages. In addition, rise in consumer demand for retail banking services such as rapidity, civility, and correctness is anticipated to boost the market expansion. Other significant aspects that contribute toward the market expansion in the BFSI sector include expanding need for tools necessary to meet these demands and desire to forge closer bonds with consumers. Moreover, surge in demand for complete, sector-specific solutions to optimize back- and front-office operations and enhance customer service in various branches propel the market growth.

Application Server Market by Region

Region-wise, the application server market trends are analyzed across North America (U.S. and Canada), Europe (Germany, Italy, France, Spain, UK, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America, specifically U.S. and Canada, remains a significant participant in the global application server industry. Major organizations and government institutions in the country are have been actively using application servers.


Significant factors that impact the growth of the global application server market share include rapid cloud computing solutions, rising adoption of digitalization along with dependency on smart device applications. Growing demand for effective data center infrastructure and surge in adoption of seamless P2P networks have positively impacted the market’s growth. However, high initial cost of integration and deployment, hampers the growth of this market. On the contrary, surge in development in IT and cloud-computing solutions have provide potential rise in prevalence for cloud-based application servers that is expected to provide lucrative market opportunity during the forecast period.


Competitive analysis and profiles of the major application server industry players, such as 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. are provided in this report.


  • This study comprises analytical depiction of the application server market size along with the current trends and future estimations to depict the imminent investment pockets.

  • The overall application server market analysis is determined to understand the profitable trends to gain a stronger foothold.

  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.

  • The current application server market forecast is quantitatively analyzed from 2021 to 2031 to benchmark the financial competency.

  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.

  • The report includes the market share of key vendors and application server market trends.

Application Server Market Report Highlights

Aspects Details
Market Size By 2031

USD 53.3 billion

Growth Rate

CAGR of 12%

Forecast period

2021 - 2031

Report Pages


By Application Server
  • Active Application Server
  • Web Information Server
  • Component Server
By Deployment Model
  • On-Premises
  • Cloud Based
By End-Use Vertical
  • BSFI
  • IT and Telecom
  • Healthcare and Life Sciences
  • Government and Public Sector
  • Retail and Consumer Goods
  • Others
By Region
  • North America  (U.S., Canada)
  • Europe  (Germany, Italy, France, Spain, UK, Rest Of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest Of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players

TIBCO Software Inc., Microsoft Corporation, SAP SE, Dell Technologies Inc., Oracle Corporation, VMware, Inc., Adobe Inc., International Business Machines Corporation, Hitachi,Ltd, the apache software foundation

Analyst Review

Application servers are located physically or electronically, between database servers containing application data and web servers interacting with clients. Application servers are middleware are the operating systems enabling an application’s development and delivery. Application servers are essential for enabling the connection of a vast array of devices, whether they be desktop, mobile, or online apps.

Global application server market is highly competitive, owing to strong presence of existing vendors. Application server distributors, who have access to extensive technical and financial resources are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.

Rise in demand of smart device applications is anticipated to propel the application server market share during the forecast period. The industry has expanded as a result of increase in spending on data center infrastructure, as well as adoption of seamless P2P networks. However, the primary challenge limiting market growth are the high initial cost of setup and maintenance. On the other hand, increased reliance on cloud-based application servers and rapid IT infrastructure development is anticipated to increase market penetration, which will fuel the expansion of the application server market during forecast period.

Among the analyzed regions, North America exhibits highest adoption rate of application server and has been experiencing massive expansion of the market. On the other hand, Asia-Pacific and Europe is expected to grow at a faster pace, predicting lucrative growth, owing to emerging countries, such as UK, China, Germany, Japan and India investing in these technologies. Regions, such as the LAMEA, are also expected to offer new opportunities for the application server market in future.

The 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.  To promote organic growth and solidify their positions in the application server industry, all of these market participants are investing a significant amount into R&D activities. In order to produce technologically innovative products and acquire a competitive edge in the market, they are also placing a major focus on mergers and acquisitions and strategic alliances.

Author Name(s) : Ankit Mahesh Gupta | Onkar Sumant
Frequently Asked Questions?

Rapid digitalization, increase in spending on data center infrastructure, adoption of seamless P2P networks, and dependency on smart device applications are the upcoming trends of the Application Server Market in the world.

BFSI and IT & Telecom are the leading End-Use Vertical of the Application Server Market.

North America is the largest regional market for Application Servers.

$16,954.0 million is the estimated industry size of Application Server

Microsoft Corporation, VMware, Inc., Adobe Inc., SAP SE and International Business Machines (IBM) Corporation are the top companies to hold the market share in Application Server

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Application Server Market

Global Opportunity Analysis and Industry Forecast, 2021-2031