Application Delivery Network Market - Forecast(2024 - 2030)

Application Delivery Network Market Overview

Application Delivery Network Market is projected to reach US$ 13.45 billion by 2026 at a CAGR of 15.23% during the forecast period 2021-2026. With the increasing penetration of Internet of Things (IoT) driven technologies, such as big data and analytics, Artificial Intelligence (AI) the demand for Application Delivery Network is anticipated to gain huge traction. Growing demand for cloud based applications and increasing number of data centers are set to drive the market. The recent global BYOD trend in workplaces and growing demand for over the top (OTT) devices and services are also analyzed to fuel the market growth. Rising adoption of Application Delivery Network products such as application delivery controller, WAN optimization controller, application gateways among enterprises to deliver visibility, security, optimum speed for internet applications have contributed to the growth of the market. The necessity to efficiently deliver the web applications quickly, securely and seamlessly to customers by accommodating massive traffic in applications is analyzed to significantly trigger the Application Delivery Network Market growth during 2021-2026.

Report Coverage

The report: “Application Delivery Network Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Application Delivery Network Market

By Product: Controller (Application Delivery Controller, WAN Optimization Controller), Application Gateway, Others.
By Deployment Model: On-Premises, Cloud.
By Organization Size: Small & Medium-Sized Enterprises, Large Enterprises.
By Industry Vertical: Banking, Financial Services, and Insurance (BFSI), Telecommunications and IT, Healthcare, Manufacturing, Retail & E-Commerce, Government Sector, Media & Entertainment, Others.
By Geography: North America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), South America(Brazil, Argentina and others) and RoW (Middle east and Africa)

Key Takeaways

• Cloud segment is estimated to dominate the market during 2021-2026 due to reduced operational costs as compared to on-premise infrastructure.
• BFSI sector is analyzed to witness the highest growth during 2021-2026 due to the increasing penetration of digitalization in this sector.
• North America is estimated to dominate the market during 2021-2026 owing to the presence of a large number of hyperscale data centers and high investments towards advanced technology.
• Increasing adoption of cloud computing and rising penetration of OTT platforms are analyzed to drive the market from 2021 to 2026.
• Cyber-attack is one of the challenges impeding the market growth.
  
  

  Application Delivery Network Market Share (US$M), By Region, 2020 (by %)

  

Application Delivery Network Market Segment Analysis – By Deployment

By deployment, Application Delivery Network Market has been segmented into Cloud and on premises. Cloud Segment held the major market acquiring a share of 56% in 2020 and is estimated to be the fastest growing market with a CAGR 16.45% during the forecast period 2021-2026 owing to reduced operational cost and higher scalability. The increasing adoption of cloud infrastructure in various business organizations has significantly triggered the growth of the market. Cloud based deployment removes the hassle of maintaining and updating systems to fulfill business strategies. In cloud deployment, data can be synchronized seamlessly from multiple sources as it provides the ability to communicate and share data more easily than on-premise. Moreover, advanced benefits of cloud deployment such as ease of deployment, and pay per usage model are analyzed to drive the market. According to reports, in February 2021, Ashling Partners and Indico announced partnership to simplify automation of critical business processes and accelerate the digitalization of document based workflow. Such partnerships are anticipated to boost the market during the forecast period 2021-2026.

Application Delivery Network Market Segment Analysis – By Industry Vertical

By industry vertical, Application Delivery Network Market has been segmented into Banking, Financial Services, and Insurance (BFSI), Telecommunications and IT, Healthcare, Manufacturing, Retail & E-Commerce, Government Sector, Media & Entertainment, and Others. IT and Telecommunications dominated the market in 2020 acquiring a share of 14% and is estimated to hold the major market share during 2021-2026 owing to a rapid increase in mobile data traffic and increasing penetration of remote working. BFSI sector is anticipated to be the fastest growing market with a CAGR 13.23% during 2021-2026 owing to the growing demand for protecting critical data against malicious contents ensuring faster delivery of the digital banking solutions. Retail and e-commerce sector is estimated to witness a significant growth during the forecast period owing to the increasing number of online users and growing demand for traffic management. For instance, in January 2021, Konica Minolta Business Solutions USA Inc., announced partnership with Loadbalancer.org for securely distributing data traffic, applications and providing optimal performance with zero downtime enhancing customer experience, Such partnerships are set to drive the market during 2021-2026.

Application Delivery Network Market Segment Analysis – By Geography

By geography, Application Delivery Network Market has been segmented under North America, Europe, APAC, South America and RoW. North America dominated the market acquiring a share of 25% in 2020 and is estimated to hold the major market share during 2021-2026 owing to the presence of large data centres, well-established IT infrastructure and high investments towards new and upgraded technologies. Several companies in this region have been investing heavily for the advancements in this technology. APAC is estimated to be the fastest growing market with a CAGR 14.56% owing to massive transition towards digitalization and increasing demand for cloud computing. For instance, in January 2021, Akamai Technologies announced the partnership with MX players to deliver a high-quality digital viewing experience for it’s increasing user base in India. Such partnerships are analyzed to drive the market.

Application Delivery Network Market Drivers

Rapid increase in number of data centres is set to drive the market

The transition of various enterprises towards digitalization to generate new business outcomes has resulted into deployment and development of large data centers and various cloud services to analyze, access and store large volume of data. The increasing migration towards cloud infrastructure to expand data storage facilities provide smooth and faster access to their customers for achieving enhanced user experience is analyzed to fuel the market growth during the forecast period 2021-2026. Application delivery network enable enterprises to monitor and control the web applications’ performance and traffic as Application Delivery Controllers handle caching, compression and offloading of SSL encryption. Application Delivery Controllers help in distributing web traffic over many servers by load balancing and WAN optimization controllers work on latency optimization resulting in lower bandwidth usage and reduced server cost. Such advanced capabilities and benefits are estimated to drive the market. For instance, India Data Centers raised a fund of USD 396 Million for establishing large hyperscale data centers spanning over 16 million square foot. Such investments are estimated to propel the market growth during 2021-2026.

Increasing penetration of OTT platform is elevating the market

Increasing penetration of smartphones and high speed internet have resulted in massive adoption of high quality streaming content and cloud based OTT services. OTT platforms offer higher accessibility, convenience, portability than traditional cable and satellite services and thus provision of customized content has accelerated the adoption. Application delivery network ensures high performance delivery of videos and web applications and thus the massive adoption of OTT services has contributed to the growth of market. The Application Delivery Network Market is analyzed to witness significant growth during the forecast period 2021-2026 owing to increasing VoIP services and apps offered by the OTT service providers. For instance, in January 2021, Lumen Technologies announced a partnership with J-Stream Inc. to deliver scalable, secure, high quality content delivery network services in Japan. Such partnerships are anticipated to boost the market during 2021-2026.

Application Delivery Network Market Challenges

Cyber-attacks and security issues is hampering the growth

Despite many benefits of Application Delivery Network, cyber-attacks and security threats are the biggest issues which are hampering the adoption. According to FBI report, financial losses caused by internet crime came to a total of US$ 4.2 Billion in US and the most common cyber-crimes were phishing, non-payment/non-delivery scams and extortion, with 28,500 complaints associated with COVID-19 fraud. Enterprises hold confidential and sensitive data which must be protected to avoid data breaches. Organizations which adopt Application Delivery Network face cyber-attacks weakening their business position. In December 2020, Citrix application delivery controllers witnessed a DDoS attack resulting in disruption of services.

Application Delivery Network Market Landscape

Product innovations, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Application Delivery Network Market. In 2020, the market of Application Delivery Network industry outlook has been fragmented by several companies. Application Delivery Network top 10 companies include

1. Cisco Systems Inc.
2. Hewlett Packard Enterprises
3. F5 Networks Inc.
4. Citrix Systems Inc.
5. Array Network
6. Verizon Communication Inc.
7. Radware Ltd.
8. Akamai Technologies Inc.
9. Dell Inc.
10. A10 Networks

Acquisitions/Product innovations

• In December 2020, Cisco, Quilt and Digital Alpha announced to work together with TIM Brazil to launch their application delivery network solution in Brazil to deliver high quality streaming experience based on open caching technology.
• In December 2020, Telecom service provider Kordia partnered with Cisco for Webex network delivery solution.

Relevant Report Titles:

Content Delivery Network Market
Report Code: ITR 0044

WAN Optimization Market
Report Code: ITR 25487

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