Application Infrastructure Middleware Market By Deployment (Cloud, On-Premise), By Organization Size (Small and Medium Enterprise, Large Enterprise), By End-User Industries (BFSI, IT and Telecommunication, Healthcare, Retail, Government, Other), and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027.

Application Infrastructure Middleware Market Definition and Estimation:

An application infrastructure middleware (AIM) is software that supports communication between applications or application components in a distributed network. It reduces a developer’s efforts to create a custom integration every time there arises a need to connect components, devices, resources, and others. There are two broad applications of this middleware i.e., enterprise and platform. The enterprise type acts as an intermediatory between the operating system and applications on either side of a computer network. The platform type is generally used in events such as merging or acquisition of firms.

The application infrastructure middleware market size was USD 34.88 Bn in 2019 and expected to reach USD 59.59 Bn by 2027; this converts into a compound annual growth rate (CAGR) of 8% for the forecast period.

Application Infrastructure Middleware Market Overview:

Middleware is a thin, independent integration layer that is crucial to the connectivity of devices. The expansion of businesses, in the form of mergers, acquisitions, or the growing number of employees, demands the use of middleware that connects devices or applications over a network. Also, to ensure security, resilience, and longevity of operations, organizations are actively embracing digital transformation, implemented by global governments which demand the use of middleware. The developments in IoT and cloud computing will act as an added incentive to adopt middleware. As a result, the middleware market is estimated to expand at a steady rate during the forecast period.

The Application Infrastructure Middleware Market is Segmented to include:

By Deployment

• Cloud
• On-premises

By Organization Size

• Small and Medium Enterprise
• Large Enterprise

By End-User Industries

• BFSI
• IT and Telecommunication
• Healthcare
• Retail
• Government
• Other End-user Industries

The on-premises segment accounted for over 60% of the market in 2019. In terms of revenue, it garnered over USD 20 billion. The cloud segment, on the other hand, is estimated to expand at a compound annual growth rate of close to 8.5% owing to benefits such as improved efficiency and the option to scale. Also, developments in the IoT field will help boost the cloud segment further.

The high cost of AIMs led to the dominance of the large enterprise segment in 2019. It captured approximately 70% of the market, contributing nearly USD 23 billion towards the technology. However, in recent times due to rising demand, higher investments into R&D, and affordability of middleware, small & medium-sized companies are investing in the technology. Therefore, the small & medium enterprise segment is estimated to witness a CAGR of more than 8% during the forecast years.

The IT & telecommunication industry, among various end-user industries, collected around USD 10 billion in revenue or close to 30% of the market share in 2019. Nevertheless, the retail segment is projected to register the highest compound annual growth rate of approximately 8.5% over the forecast period.

Application Infrastructure Middleware Market Geography Overview:

Based on geography market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

Asia-Pacific is home to a flourishing information technology (IT) sector. Also, the growing use of the internet coupled with numerous enterprises adopting cloud-based services, the application infrastructure middleware market is developing at the fastest rate in the region. Furthermore, the rising investments in cloud infrastructure is set to propel the market forward during the forecast period. Improvement in the quality of hardware, software, and services along with supportive government initiatives offer growth opportunities for the market.

The European market is estimated to expand at the second highest CAGR. One of the significant factors positively influencing the market is the implementation of cloud infrastructure by major organizations. Additionally, with the BFSI sector introducing directives such as Payments Service Directive 2 (PSD2) in the region, the market will witness a further boost.

The presence of well-established players in promoting the development of the market in the North American region. Banks are adopting digital technologies that assist in delivering new business efficiencies, enhancing customer services, and more. The I.T. sector in the United States will largely drive the market in the region. Moreover, the government sector is also investing in cloud computing to upgrade their technology infrastructure which will expand the market.

Application Infrastructure Middleware Market Dynamics

Drivers:

1. Technological advancements in IoT and surge in IoT compatible devices.

Mobility among businesses is an ongoing trend towards increasing operational efficiency across multiple devices. Hence, IoT is gaining traction across multiple industries. For the setup to function smoothly, IoT middleware is a crucial link. Also, the number of IoT devices is predicted to expand due to the development of 5G network. Therefore, the rising adoption of IoT and an increase in diversity of IoT compatible devices will fuel the demand for application infrastructure middleware market.

2. Rise in adoption of cloud services.

Cloud-based solutions provide benefits such as high scalability, low latency, and improved performance. Application infrastructure middleware can be used for cloud enablement of existing applications running using on-premise deployment method. It assists in a smooth transition to cloud-based deployment. Therefore, several large-scale businesses are encouraging the use of cloud services. The rising adoption of cloud services, hence, is expected to drive the market forward.

Restraints:

1. Availability of open-source AIMs.

Open-source solutions permit collection, transformation, governing and sharing of data. These solutions create a hinderance to the growing application infrastructure market as they pose security and data privacy threats. Furthermore, the availability of open-source middleware opens the market for several small-scale companies resulting in a fragmented market. Therefore, these factors may restraint the market expansion.

The market is studied by analyzing all the key market participants across the ecosystem. The key players in the market include, but not limited to:

• IBM Corporation
• Microsoft Corporation
• Amazon Web Services Inc.
• Salesforce.com Inc.
• SAP SE
• Software AG
• Fujitsu Ltd
• Unisys Corporation
• Oracle Corporation
• TIBCO Software Inc.

Recent News and Developments in the Application Infrastructure Middleware Market:

1. Pirelli, a leading producer of tires, selected TIBCO Software Inc. to assist the company’s digital transformation objectives in November 2020. TIBCO will be providing a new integrated operating model for Pirelli’s digital IT ecosystem.
2. In March 2020, Software AG partnered up with Swift Labs, Canada-based wireless and IoT product design company. The partnership will enable customers to access Software AG’s Cumulocity IoT platform and Swift Labs’ cellular hardware platform.

Why buy this Report?

How big is the application infrastructure middleware market?

The market size was USD 34.88 Bn in 2019 and expected to reach USD 59.59 Bn by 2027.

What is the estimated market growth?

The market is expected to grow at a compound annual growth rate (CAGR) of 8% during the forecast period.

Which geography accounted for the largest market share?

In the base year, North America held the largest geographic share in the application infrastructure middleware market.

Which geography is lucrative for investments in the market?      

With the highest growth rate, APAC is the most lucrative region for investments.

By deployment segmentation, which is the fastest-growing sub-segment?         

Cloud is the fastest-growing sub-segment when analyzing the market by deployment.

Who are the key players in the application infrastructure middleware market?

Key players include, but not limited to IBM Corporation, Microsoft Corporation, Amazon Web Services Inc., Salesforce.com Inc., SAP SE, Software AG, Fujitsu Ltd, Unisys Corporation, Oracle Corporation, TIBCO Software Inc., Informatica LLC.

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