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.
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.
Middleware is a thin, independent integration layer that supports the expansion of businesses by connecting devices or applications over a network. Since organizations are actively embracing digital transformation, implemented by global governments, the middleware market graph is estimated to display a positive slope. The developments in IoT and cloud computing will act as an added incentive to adopt middleware. Therefore, overall, the middleware market is anticipated to expand at a steady rate during the forecast period.
IoT is gaining traction across multiple industries due to the mobility it provides within businesses. Since IoT middleware is an essential link that connects devices over a network, the widespread use of IoT is impossible without a middleware. AIMs, further, offer a smooth transition from on-premise deployment to cloud deployment methods. The growing adoption of cloud-based deployment, due to benefits such as scalability, low latency, and improved performance, within large-scale businesses will boost the market growth.
Open-source solutions poses security and data privacy issues since these are accessible to any individual to collect, transform, govern, or share data. Furthermore, the availability of open-source middleware opens the market for several small-scale companies resulting in a fragmented market. These factors, hence, can hamper the market growth.
The application infrastructure middleware market is differentiated on the basis of deployment type into cloud and on-premise. The on-premise segment accounted for over 60% of the market in 2019. However, the cloud segment 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.
The market is bifurcated into small & medium enterprises and large enterprises. Up until 2019, the large enterprise segment dominated the market capturing approximately 70%, due to the high costs involved in procurement and maintenance. However, in recent times due to rising demand and affordability, small & medium-sized companies are estimated to witness a CAGR of more than 8% during the forecast years.
The various end-user industries of the application infrastructure middleware market are BFSI, IT & Telecommunication, Healthcare, Retail, Government and Others. Among these, the IT & Telecommunication industry accounted for 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.
The application infrastructure middleware market is estimated to develop at the fastest rate in Asia-Pacific owing to a flourishing Information Technology (IT) sector, the growing use of the internet, and the higher adoption of cloud-based services by numerous enterprises. The European application infrastructure middleware market is estimated to expand as a result of several major organizations investing in cloud infrastructure. The presence of well-established players is one of the factors that have led to the dominance of the application infrastructure middleware market by the North American region. The I.T. sector in the United States is projected to drive the market in the region.
Some of the key players operating in the application infrastructure are IBM Corporation, Microsoft Corporation, Amazon Web Services Inc., Salesforce.com Inc., SAP SE, Software AG, Fujitsu Ltd., Unisys Corporation, Oracle Corporation, TIBCO Software Inc., and Informatica LLC.