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Application Delivery Network Market Size Estimated to Grow at a Cagr of 12.1% During 2020-2025

06-16-2021 07:46 AM CET | Advertising, Media Consulting, Marketing Research

Press release from: IndustryARC

Application Delivery Network Market

Application Delivery Network Market

Application Delivery Network Market value was $7.2 billion in 2019 growing at a CAGR of 12.1% and is anticipated to see an upsurge during the forecast period 2020- 2025. Use of big data, virtualization and cloud computing has increased in the past few years due to rising demand for highly secured and efficient corporate webbing grids. Video, voice, and unstructured data usage has changed the web traffic from transaction-oriented solutions to bandwidth-intensive solutions. This has called for the need of application delivery network solutions. Moreover, increasing numbers of data centers around the world are driving the demand for network application delivery market.

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Deployment Type - Segment Analysis

The Application delivery network market is segmented into cloud and on - premise by deployment. Cloud segment held the major share accounting to around 53% in 2019. Cloud systems improve dynamic business models and aid in controlling control multiple networks of convergence. In addition to having the same functionality as an on-premises system, cloud systems are very versatile to meet evolving business needs continuously. While the traditional on-premise delivery network solutions still hold a significant share of the market, the on-going trends of cloud computing, SaaS platforms, and use of the public, private clouds have been driving the adoption of cloud-based application delivery networking. Cloud adoption for application delivery improves the potential to hit latency peaks, thus allowing corporate IT departments who often lack the security knowledge to offload security management to the cloud, saving the enterprises’ both time and resources.

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End User Industry - Segment Analysis

High-Tech segment is the dominant end user industry of Application delivery network market accounting for 30% share of the market in 2019. The increasing demand for performing various tasks, such as SSL encryption, web application firewall, DDoS protection, authentication, and SSL VPN, among others are now integral elements to application delivery. Thus, the application delivery network has gained vital importance across the end-user industries that are undergoing rapid digital transformation. High-tech and media & entertainment verticals are expected to register extensive growth over the forecast period. Increasing number of individual internet consumers is expected to trigger media & entertainment market growth while increasing need for sophistication is expected to fuel the high technology segment.

Geography - Segment Analysis

Asia - Pacific held the prominent share of 39% of global application delivery network market in 2019. Growing cloud computing implementation and the emergence of BYOD policy is expected to drive the market in this region. In China, the increasing adoption of public cloud computing is leading to many enterprises re-allocating their business systems to cloud platforms. Issues related to data protection, tenant isolation, access control, have increasingly become a major focus of these businesses. These factors have led to enhanced network solutions for the cloud delivery. In 2017, the State Bank of India, for its 23,000 branches chose Office 365, a cloud-powered productivity solution from Microsoft to improve communication and collaboration among its workforce, aiming to transform it into a modern workplace. With other financial institutes expected to follow the trend, the demand for cloud-based application delivery services is expected to increase. Similarly, government regulations are considered as a channel through which authorities have stimulated cloud services growth.

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Drivers – Application delivery network market

Growth in number of applications hosted in cloud

A significant driver for the market is the growth in the number of applications hosted in the cloud, which poses the challenges of deployment and management for the organizations involved, for a vast portfolio of applications in multi-cloud environments. Cloud adoption for application delivery increases the capability to fulfill peaks in bandwidth, while helping enterprise IT teams that often lack the security expertise, to offload security management to the cloud, saving both time and resources for the enterprise. Many organizations are shifting their computing processes to “cloud-based” infrastructures. Therefore, large data centers and related cloud services are deployed and developed by various organizations to store enormous amounts of data, and enable easy data access as well as computations on the data.

Emergence of BYOD Policy due to Covid-19

Due to Covid-19 situation, there is an increase in work from home options, which can directly and indirectly lead to higher media consumption. Remote classes and training plans will also contribute to increased IP traffic, which will lead to higher utilization of ADNs across countries. Enterprises are embracing innovations such as Bring-Your-Own-Device (BYOD), where workers can share vital business data, among others, from their own smartphones, iPads, and laptops. However, the current business networks are not designed to accommodate massive traffic in applications. Thus, ADN is being used by network vendors in order to address these requirements, which offload application provisioning to a secure external network that offers dependable application delivery without load and latency.

Challenges – Application delivery network market

High deployment and maintenance costs

As consumers demand ever-greater amounts of high-quality applications over the Internet, service providers (SPs) are finding it difficult to increase revenues while containing costs. This is due mainly to two trends: (1) over-the-top (OTT) content providers have outsourced the delivery of content to pure-play Application delivery network (CDN) companies, and (2) traffic growth (with no resulting revenue benefit) is increasing network build-out and maintenance costs for service providers. In addition, increasing internet data traffic and complexity in delivering application due to presence of large number of users are key factors restraining growth of the global application delivery network market.

Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Application delivery network market. Application delivery network market is expected to be dominated by major companies such as F5 Networks Inc., Citrix Systems, Inc., Radware, A10 Networks, Aryaka Network, Array Network, Blue coat systems, Brocade, Dell, Inc. Cisco Systems, Inc. Synercomm, Sangfor, Coyote Point, Networx, Australia Network Instruments, ProceraNetworks, Quosmos, Fortinet, Edgecast Networks, Barracuda Networks, Verizon, Radware, Oracle Corporation and Hewlett-Packard (HP) among others.

Acquisitions/Technology Launches/Partnerships

In October 2019, Cisco announced its first set of 400G data center network switches. Two of the switches are aimed at hyperscale cloud platforms, while the other two are for technology enabler enterprises and service providers.
In June 2018, Cisco and NetApp announced the launch of the new FlexPod solutions. FlexPod combines Cisco UCS integrated infrastructure with NetApp data services to help organizations accelerate application delivery and transition to a hybrid cloud with a trusted platform for innovation.

Key Takeaways

Cloud segment held the major share accounting to around 53% in 2019 as cloud systems improve dynamic business models and aid in controlling networks of convergence.

Asia - Pacific held the prominent share of 39% of global application delivery network market in 2019 due to growing cloud computing incorporations and the BYOD trend in this region.

A significant driver for the ADN market is the growth in the number of applications hosted on the cloud in multiple end user verticals.

High deployment and maintenance cost is a factor expected to hamper growth of the global application delivery network market over the forecast period.

Related Reports :

A. Network Cameras & Video Analytics Market
https://www.industryarc.com/Report/15588/network-camera-video-analytics-market.html

B. Optical Communication And Networking Market
https://www.industryarc.com/Research/Optical-Communication-And-Networking-Market-Research-505338

For more Electronics related reports @ https://www.industryarc.com/Domain/9/electronics-market-research-report.html

Venkat Reddy
Sales Director
Email: venkat@industryarc.com
Website: https://www.industryarc.com
Phone: (+1) 970-236-3677

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

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