Application Hosting Market - Trends and Forecast, Future Demand 2020-2023

Enterprises of all sizes rely on highly advanced business tools to streamline their business operations. For this purpose, the enterprises require continuous and reliable access to execute or run business applications. Cloud-based application hosting services offer greater accessibility to run business applications compatible with all devices, web browsers, and operating systems. However, based on the hosting type, the application hosting is categorized into cloud-based, managed, and colocation. The colocation hosting and managed hosting offer significant benefits to the enterprise that requires high-quality internet connectivity. It offers high security and scalability to run its business applications. Whereas, managed hosting is a form dedicated environment which offers a more cost-effective solution as compared to colocation hosting regardless of ownership of the servers. It improves the performance, control, and security of applications and enables enterprises to streamline their business operations. Managed hosting type is presumed to gain a significant growth during the assessment period. Furthermore, increasing number of smart devices and a rapid number of e-commerce applications such as Amazon, e-Bay, and Flipkart has led to a surge in digital transactions that eventually increases the market share of the BFSI segment of the application hosting market during the assessment period.

On the flip side, limited functionality and control of cloud-based application due to dependence on third-party vendors for managed hosting application services and rising security concerns are some of the limiting factors of the application hosting market.

The application hosting market is differentiated by hosting type, service type, application type, organization size, and vertical.

By hosting type, the application hosting market is sub-segmented as managed hosting, colocation hosting, and cloud hosting. The service-type is categorized into application monitoring, application security, backup and recovery, database administration, and others. The application type includes web application and mobile application. Furthermore, based on the organization size, the market is segmented into large enterprise and small and medium enterprises. Lastly, depending on industrial vertical, the market is categorized into BFSI, IT & telecommunication, media & entertainment, retail & e-commerce, healthcare, manufacturing, and others

According to Market Research Future, the application hosting market is expected to reach approximately USD 82 billion with a CAGR of 13.4% over the forecast period.

Key Players

Some of the prominent players of Application Hosting Market include Amazon Web Services, IBM Corporation (US), Rackspace (US), Google LLC (US), LiquidWeb (US) Microsoft Corporation (US), Sungard AS (US, DXC technology (US), Spectrum Enterprise (US), and Apprenda (US).

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