Global Application Gateway Market Landscape 2030
In a recent report
released by Allied Market Research titled "Global Application Gateway
Market by Component, Enterprise Size, and Industry Vertical: Global
Opportunity Analysis and Industry Forecast, 2021–2030," the market for
application gateways reached a value of $1.75 billion in 2020. The forecast
indicates a projected growth to $4.24 billion by 2030, with a compound annual
growth rate (CAGR) of 9.5% from 2021 to 2030.
The
software sector is anticipated to witness rapid growth in the foreseeable
future. This can be attributed to the broad array of application gateway
software available for safeguarding servers against incoming traffic.
Additionally, there is a growing demand for application gateway software across
diverse industries to efficiently distribute web traffic to specific servers.
An
application gateway, also referred to as an application-level gateway (ALG),
functions as a firewall proxy for network security. It examines incoming node
traffic based on predefined criteria, ensuring that only data from network
applications undergo screening. Network applications such as File Transfer
Protocol (FTP), Telnet, Real-Time Streaming Protocol (RTSP), and BitTorrent are
examples of the types of data it handles. Additionally, an application gateway
facilitates secure connectivity at a high level within network systems. When a
client seeks access to server resources like files, web pages, or databases, it
initially connects to the proxy server, which then establishes a connection
with the primary server.
The
growth of the application gateway market is primarily driven by an increase in
the number of application layer attacks. Moreover, the rising demand for secure
networks positively influences market expansion. However, challenges such as
the absence of mandatory regulations for information security and a shortage of
technical expertise impede market growth. Conversely, opportunities for market
expansion are anticipated with the growing adoption of Internet of Things,
artificial intelligence, and software-defined network technologies during the
forecast period.
The
IT & telecom sector currently commands the largest market share in the
application gateway market, with its prominence attributed to bolstering
network and cybersecurity capabilities. This includes safeguarding applications
against common vulnerabilities such as SQL injection and cross-site scripting,
proficient management of cloud services, centralized SSL certificate
management, and more. Notably, the retail & e-commerce segment is poised
for the highest growth rate in the forecast period, fueled by a rapid shift in
consumer preferences towards digital shopping.
Geographically,
North America held a dominant position in the application gateway market in
2020 and is anticipated to maintain its stronghold due to the escalating number
of data breaches and cyber-attacks. Nevertheless, Asia-Pacific is forecasted to
experience substantial growth, driven by the widespread adoption of
work-from-home policies by a majority of companies.
In
2020, the software sector dominated the market, securing a significant share of
almost 60%. Conversely, the service sector is poised to demonstrate the most
rapid Compound Annual Growth Rate (CAGR) at 10.5% during the projected period.
Regarding
enterprise size, large enterprises took the lead in 2020, contributing to over
half of the global application gateway industry. Meanwhile, small and
medium-sized enterprises (SMEs) are anticipated to experience the swiftest CAGR
at 10.7% from 2021 to 2030.
Covid-19 Impact:
Due
to the COVID-19 pandemic, businesses have embraced the trend of remote work,
allowing employees to use their personal laptops and smartphones to access
company data. Simultaneously, companies are offering specialized web and mobile
applications for remote use. However, this has resulted in a complex network of
external devices, prompting the implementation of application gateways for
efficient routing.
The
proliferation of these external devices and applications has heightened the
risk of hacking, leading to potential leaks and misuse of enterprise data.
Consequently, there has been a surge in the adoption of application gateways to
bolster secure endpoint protection for both connected devices and applications,
effectively managing web traffic. This proactive approach to application
security has become crucial in safeguarding enterprises from cyber threats,
contributing positively to the growth of the application gateway industry.
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 application gateway
industry.
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