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Key Factor Supporting Application Hosting Market Development in 2025: Rising Demand For Physical Security Drives Growth In The Application Hosting Market

07-03-2025 12:17 PM CET | IT, New Media & Software

Press release from: The Business Research Company

Application Hosting

Application Hosting

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How Large Will the Application Hosting Market Size By 2025?
The market size for application hosting has experienced notable expansion lately, and it is projected to surge from $95.06 billion in 2024 to $102.5 billion in 2025, with a compound annual growth rate (CAGR) of 7.8%. Factors that have contributed to this growth during the past period include heightened demand for scalability, cost-effectiveness, emerging global enterprises, security challenges, the surge of e-commerce, and the incorporation of DevOps practices.

How Big Is the Application Hosting Market Size Expected to Grow by 2029?
In forthcoming years, the market size of application hosting is projected to witness a swift expansion onwards to "$181.15 billion by 2029 with a compound annual growth rate (CAGR) of 15.3%. The surge during this forecast period can be attributed to the embrace of edge computing, hybrid cloud strategies, growing trends of a remote workforce, enhanced focus on cybersecurity, and solutions tailored to specific industries. Key trends to watch out for during this period include the uptake of cloud-native technologies, integration of edge computing, strategies encompassing hybrid and multi-cloud, a pivotal focus on security and compliance, and an uptick in serverless computing.

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https://www.thebusinessresearchcompany.com/report/application-hosting-global-market-report

Which Key Market Drivers Powering Application Hosting Market Expansion and Growth?
The anticipation of the application hosting market is to expand in the future, which is propelled by the escalating requirement for physical security. Physical security encompasses the protection of individuals, hardware, programs, networks, and data from physical implications and occurrences that could potentially lead to extensive losses or damage to a corporation, institution, or organization. Measures for improving an application's security at the coding level are known as application security controls, as they reduce the likelihood of a breach by hackers. For instance, The International Trade Administration (ITA), an agency in the U.S, reported in November 2023 that the physical security market in the UK in 2022 was estimated to be $14 billion and could continue to remain steady in the upcoming years. The growth of this market is expected to be influenced by the escalating digitization. Therefore, the increasing imperative for physical security is fueling the progression of the application hosting market.

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Which Fast-Growing Trends Are Poised to Disrupt the Application Hosting Market?
The primary trend gaining traction in the application hosting sector is the innovations in products. Large corporations in this market are honing on creating game-changing products to solidify their market standing. To illustrate, Kinsta, an American provider of application and database hosting, launched their own versions of Application Hosting and Database Hosting in November 2022. This novel and trusted Platform-as-a-Service (PaaS) provides a payment system calculated on usage, charging customers based on runtime and database size.

What Are the Emerging Segments in the Application Hosting Market?
The application hosting market covered in this report is segmented -

1) By Type: Managed Hosting, Cloud Hosting, Colocation Hosting
2) By Service: Application Monitoring, Application Programming Interface Management, Infrastructure Services, Database Administration, Backup And Recovery, Application Security
3) By Organizational Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprise

Subsegments:
1) By Managed Hosting: Dedicated Managed Hosting, Shared Managed Hosting, Managed Application Hosting
2) By Cloud Hosting: Public Cloud Hosting, Private Cloud Hosting, Hybrid Cloud Hosting
3) By Colocation Hosting: Retail Colocation, Wholesale Colocation, Private Suite Colocation

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Who Are the Global Leaders in the Application Hosting Market?
Major companies operating in the application hosting market include International Business Machines Corporation, Amazon.com Inc., Rackspace Hosting Inc., Microsoft Corporation, Alphabet Inc., Sungard Availability Services Inc., Liquid Web LLC, DXC Technology Company, Navisite Inc., Apprenda Inc., Charter Communications Inc., Oracle Corporation, Red Hat Inc., TIBCO Software Inc., The Apache Software Foundation, Fujitsu Limited, DigitalOcean Inc., Salesforce Inc., VMware Inc., Endurance International Group Inc., HostGator.com LLC, A2 Hosting Inc., Linode LLC, Joyent Inc., Pantheon Systems Inc., Media Temple Inc., SiteGround Hosting Ltd., DreamHost LLC, NeXcess LLC, Vultr Holdings LLC, Contegix Inc., Atlantic.Net Inc., Arvixe LLC, InMotion Hosting Inc., UKFast.net Limited, iWeb Technologies Inc.

Which are the Top Profitable Regional Markets for the Application Hosting Industry?
North America was the largest region in the application hosting market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global application hosting market report during the forecast period. The regions covered in the application hosting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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4. Consultants & Analysts - To support market entry, expansion strategies, and client advisory work.

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