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Global Application Gateway Market Landscape 2030

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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