Application Delivery Controller Market

Market Study on Application Delivery Controller Market: Hybrid Cloud Adoption and Development of 5G Networks are driving Market Growth

Application Delivery Controller Market Segmented By Hardware-Based, Virtual Application Delivery Controller Type with Integration and Implementation, Training, Support and Maintenance Service in SME and Large Enterprises Size

Application Delivery Controller Market Outlook

According to the market study, the global application delivery controller market size was valued in 2021 at US$ 2.9 Bn, and it is expected to grow at a compound annual growth rate of 8.7% by 2032, reaching US$ 7.4 Bn from US$ 3.2 Bn in 2022.

“The growth in data center traffic, the evolution of a digital infrastructure, and the increased demand for ADCs at SMEs is pushing the market for application delivery controllers to grow in the future.”

Increasing cloud-based applications, data traffic at data centers, DDoS attacks, disruption to enterprise servers, and the evolution of technology are contributing to the upward trend in the application delivery controller market. The increasing adoption of business applications and the availability of devices with internet access such as smartphones, tablets, and other devices have all contributed to the increase in the demand for application delivery controllers in the market.

Attributes

Details

Application Delivery Controller Market CAGR (2022-2032)

8.7%

Application Delivery Controller Market Value (2022)

US$ 3.2 Bn

Application Delivery Controller Market Value (2032)

US$ 7.4 Bn

Find Out More about the Report Coverage

Companies

  • F5 Network
  • Citrix Systems
  • A10 Networks,
  • Radware
  • Fortinet
  • Webscale
  • Barracuda Networks
  • Total Uptime Technologies
  • Array Networks
  • Cloudflare

How has COVID-19 impacted the Application Delivery Controller Market?

The digital transformation accelerated as many juggled stay-at-home orders and at-home schooling of children, especially since COVID-19 came into effect. The pandemic however had only a slight impact on some markets.

With the emergence of the COVID-19 pandemic, more focus is being placed on application visibility and management due to the increase in remote work, and businesses are transforming their work environments to ensure that staff remains productive wherever they are located. As a result of this, it is expected that the market will experience a further boost over the forecast period.

Consumer habits and preferences regarding their online banking, healthcare, retail, media, and entertainment transactions underwent a major shift in recent years. As a result, the spread of novel coronavirus did not negatively impact the global application delivery controller market.

The need for stable wireless networking was still evident in many regions after the outbreak of COVID-19, many companies realized positive outcomes as a result of the pandemic. The number of devices requiring wireless connectivity will continue to grow, as will the variety of digital data streams. In terms of internet technology, 5G will represent a major shift and it's going to be much faster than the 4G network in the technology market.

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What are the Key Dynamics Governing the Growth of the Application Delivery Controller Market?

“Growing adoption of wireless communication within the telecom industry, combined with increased digitization by businesses across the globe, will further push the market upwards over the next few years.”

The major drivers that give a push to the application delivery controller market are rising demand for cloud-based services, data traffic, and growth of the 5G network.

With the advancement of online banking, concerns over wireless network security and connectivity, and the Internet of Things, the application delivery controller market is expected to see an upgrade in the coming years. With the evolution of technology across the globe along with the number of changes in business, modernization has become a key to success as a result of technological advances in the coming years. Various businesses have been affected by the increasing proliferation of personal devices and the adoption of remote work culture. With DDOS protection and central authenticating, ADC mitigates the risk associated with cyberattacks and security threats. The growing concern over security among organizations will drive the adoption of ADCs in the market.

To manage traffic and application deployment, application delivery controllers (ADCs) were traditionally used to load balance application servers. With the next generation of ADCs, they will provide a variety of new capabilities including SSL offloading, business intelligence, visibility, support for multiple clouds, rate shaping, web application firewalls, and TCP optimizations which will significantly boost growth for ADC in the market. With the growth of internet traffic and the increasing number of applications, businesses have become forced to implement ADCs to ensure seamless communication between diversified operations. Increased communication and coordination complications for the companies, and the need to keep up with business units are also driving the implementation of ADCs.

Application delivery controller market growth is being constrained by the requirement of upfront investment in ADC implementation, and the requirement for organizations to analyze ADCs on a regular basis. Furthermore, corporate spaces lack skilled employees with the knowledge and experience to manage application delivery controllers in the market. A global study on the application delivery controller market at persistence market research explains the inflexibility and inefficient architecture of application delivery controllers, which are required to operate in today's environment, in order to maintain efficiency will likely hinder the growth for ADCs in the market.

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Comparative View of Adjacent Application Delivery Controller Market

Attributes

Application Delivery Controller Market Market

CAGR

(2022-2032)

8.7%

Market Value

(2024)

US$ 3.9 Bn

Growth Factor

Market growth for ADC is closely tied to the use of cloud-based systems, adoption of new data centers, and the management of traffic flow to servers.

Opportunity

Attacks relating to cybersecurity, DDoS attacks, disruptions, and overloads can be addressed using ADCs to set limits on requests and traffic to a single internal server resource which provides opportunities for the ADC market.

Key Trends

ADC solutions by manufacturers are supposed to gain traction in the forecast period, with advanced capabilities to balance workloads and the high availability of applications in the market.

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Comparative View of Adjacent Virtual Application Delivery Controller Market

Attributes

Virtual Application Delivery Controller Market

CAGR

(2022-2032)

8.3%

Market Value

(2024)

US$ 3.1Bn

Growth Factor

Introduction of new-gen technologies, the growing need for virtualization from both the business segment as well as the end-user segment are key growth factors for VADC in the market.

Opportunity

The virtual application delivery controller market has ample opportunity to upgrade its traditional capabilities to incorporate cloud technologies and security. 

Key Trends

Due to the availability of deployment options in both virtualized environments and cloud environments, market players are making full use of upcoming technologies in order to improve the quality of their virtual application delivery controller products.

Comparative View of Adjacent Virtual Application Delivery Controller Market

Attributes

BFSI End-Use Application Delivery Controller Market

CAGR

(2022-2032)

8%

Market Value

(2024)

US$ 2.8 Bn

Growth Factor

Among the key growth factors that are driving this market are technological advancements combined with web services such as internet banking, mobile banking, etc.

Opportunity

Introducing new technologies to data centers offers an excellent opportunity for IT companies to improve their competitive position by significantly increasing the efficiency of IT systems and reducing the risk of storing, transferring, and processing data.

Key Trends

the Use of AI, Big Data Analytics, blockchain technology, cybersecurity by key developers in the market to gain traction in the market.

Cloud-based systems, AI, data centers, and the Internet of Things (IoT) are helping companies penetrate large organizations and SMEs with data centers. The explosion of cloud applications, combined with the increase in internet-enabled devices, has led to an increase in security threats and distributed denial-of-service (DDoS) attacks. In addition, ADC will offer networking features within data centers that protect and give access to applications at peak times.

In the study conducted by persistence market research, small and mid-scale companies received the largest benefits from these concepts. One of the basic trends defining the technologically advanced application delivery controller market systems is that market players follow a problem-solving approach that is meant to minimize the complexities that are commonly associated with data traffic and cybersecurity threats, and to offer solutions for small problems when they occur.

Fintech has taken the banking industry to the next level. Future technology trends are transforming the banking industry into a business that has plenty of advantages for customers. These exciting new technologies are helping banks cut costs, become more efficient, and improve customer satisfaction, so they can make a place for themselves in the digital future. Essentially, implementing and enforcing these tech trends will speed up the digital transformation in banking.

With the proliferation of cloud technology, virtual application delivery controllers are providing effective solutions that enable flexible and secure delivery of critical applications in a highly reliable and secure manner.

application-delivery-controller-market

What are the Growth Prospects for the Virtual Application Delivery Controller Market?

The application delivery controller market is categorized into type, service, organization size, and vertical. The type is segmented into hardware-based application delivery controller and virtual application delivery controller, while the service is segmented into integration and implementation and training, support, and maintenance.

Small and medium-sized enterprises account for the largest market share in the ADC market. The high penetration of IoT devices and cloud-based services has further added to the growth of this segment in the market.

ADC verticals are divided into BFSI, IT & telecom, government and public sector, consumer goods & retail, manufacturing, energy and utilities, media and entertainment, healthcare and life sciences, and others. All over the world, these segments have a prominent place in different markets.

By Type, Which Segment of the Application Delivery Controller Market will Lead the Market?

By Type, the virtual application delivery controller segment is the most significant segment in the global market, growing at an astounding CAGR of 8.3% between 2022 and 2032 during the forecast period. Due to cost-effective alternatives for this segment that offer greater control than traditional application delivery controllers, the segment has experienced an excessive amount of growth.

Using software-defined networking and virtualization, application delivery controllers can now be deployed in more flexible ways, allowing them to provide more functionality within a tighter budget. In the same way, introductions of multi-cloud platforms and microservice environments, including containers, are changing the way enterprises operate their data centers. A virtual application delivery controller offers improvements like multi-tiered architecture, advanced design, and comprehensive packet inspection.

In comparison to hardware application delivery controllers, virtual application delivery controllers have significantly contributed to the growth of the ADC market. The virtual application delivery controller market participants have gained this applicability by offering better visibility of applications and facilitating a more intuitive experience for customers.

Which Segment is Likely to Lead the Application Delivery Controller Market by Service?

By service, the most lucrative segment is training, support, and maintenance. This segment is likely to hold prominence in the forecast period with a strong growth rate.

This segment is experiencing excessive growth due to the constantly changing dynamics of software updates and technological advancements in the sector. Constant lookups by skilled employees are growing in demand to add to the success of these services in the market. Additionally, organizations invest heavily in the training and support of ADC in order to move forward with this service in the ADC market.

Which Organization Size will lead the Market for Application Delivery Controllers Market?

By organization type, small & medium enterprise is expected to hold prominence in the forecast period with a CAGR of 8%. Increasing penetration of ADC in network security systems and server firewalls contributes to the growth of this segment.

Web-enabled services and apps are increasingly being used by small and medium-sized businesses (SMBs). CRM software and e-commerce transactions are accessed locally and remotely. The traffic entering the network through different firewalls and ports without inspection makes them vulnerable to DDoS attacks. Moreover, ADCs assure compliance with data security and privacy regulations, thus reducing the risks associated with IT security. Hence the market SMEs are stimulating growth for ADC in the market.

Which Vertical Segment is expected to lead the Application Delivery Controller Market?

By vertical, BFSI is expected to surpass all other industries with an 8% CAGR in the forecast period. In the growing demand for this segment, multiple developments and reforms in the BFSI sector are driving the growth of the ADC market.

It is becoming increasingly evident that the rapid technological advancement, combined with the widespread use of digital means, such as online internet banking systems is making this technology the preferred choice for banking services. A greater need exists for banks to implement multifactor authentication and access control systems in order to increase security.

As business models change across the globe, digital infrastructure has grown and developed, which is why digitization is considered a crucial key to success in business today. As a result, the market is expected to grow even faster over the forecast period.

The banking industry is also susceptible to cyber-attacks and anonymous security threats due to the rapid growth of the industry. New technologies introduced in the ADC market have made transactions much easier and have contributed to higher growth for the BFSI market.

How has the Regional Analysis for the Application Delivery Controller Market Changed over Time?

The Application Delivery Controller Market is divided into regions; North America, Latin America, Asia Pacific, Middle East and Africa (MEA), and Europe. The biggest market is the United States, which is growing at an 8.5% CAGR from 2022 to 2032.

The region is expected to hold a market revenue of US$ 319.8 Mn by the end of 2032. The growth in the region is majorly owing to the well-established IT & telecom sector. Market trends such as rise in the adoption of cloud computing and software-defined networking (SDN) devices, virtualization, and network security are expected to have a positive impact on the market growth over the forecast period.

High government and private sector investment as well as the adoption of new technologies at a faster rate than in other regions is another factor driving the rapid growth in the application delivery controller market in this region.

Application Delivery Controller (ADC) is expected to expand most rapidly in the Asia Pacific, followed by North America over the forecast period. Several factors have contributed to the development of this region, including a rise in internet penetration and technological advancements. Additional factors assisting the market growth in this region include several government initiatives, including Make in India launched by the government of India and OpenNet launched by the Chinese government, both of which aim to improve the performance of web applications and services.

China is the second highest growing market for the application delivery controller market. This region is likely to hold US$ 528.3 Mn by the end of 2032 with a CAGR of 8% between 2022 and 2032. United Kingdom (UK) also grows along with China with a forecasted value of US$ 319.8 Mn (2032) at a CAGR of 7.8% between 2022 and 2032.

Regions

CAGR (2022-2032)

United States

8.5%

United Kingdom

7.8%

China

8%

Japan

7%

South Korea

6.3%

The United States holds the majority share of the application delivery controller market. Furthermore, the US is the fastest-growing market in North America, making it the fastest-growing region. While China is the second highest growing market for application delivery controller market with a CAGR of 8% (2022-2032).

Frequent upgrades and advancements in corporate spaces and new startups opening up in developed countries like the US and UK are pushing the demand for the application delivery controller market in the region.

How is the Competition in the Application Delivery Controller Market?

The competitive landscape of the application delivery controller market is dynamic but has only limited scope for competitors. The competitors are involved in mergers and collaborations. Through these mergers, companies expand their distribution channels and increase their market spaces in new regions. Competitors focus on adopting new generation technologies like AI and machine learning that are going to help the application delivery controller market solutions at large.

Recent Developments in the Application Delivery Controller Market

  • In January 2022, Radware has announced a multimillion-dollar agreement with a U.S. Tier-one carrier. To secure and manage its growing global cloud infrastructure, the industry leading carrier is increasing its Radware security defenses.
  • In January 2022, NGINX has released a new version of its NGINX Controller Application Delivery Module, a control plane solution for NGINX Plus load balancers. These new features include enhanced workload health checks, improvements to caching configuration, and instance groups.

Report Scope

Attributes

Details

Forecast period

2022-2032

Historical data available for

2015-2021

Market analysis

USD Bn for Value

Key Countries Covered

  • U.S
  • Canada
  • Brazil
  • Mexico
  • Germany
  • France
  • U.K
  • Italy
  • BENELUX
  • Nordics
  • China
  • Japan
  • South Korea
  • GCC
  • South Africa

By Market Segments

  • Type
  • Service
  • Organization Size
  • Vertical
  • Region

Key Companies Profiled

  • F5 Networks
  • Citrix Systems
  • A10 Networks
  • Fortinet
  • Radware
  • Webscale
  • Barracuda Networks
  • Total Uptime Technologies
  • Array Networks
  • Cloudflare

Pricing

Available Upon Request

Key Segments Covered

By Type

  • Hardware-Based Application Delivery Controller
  • Virtual Application Delivery Controller

By Service

  • Integration and Implementation
  • Training, Support and Maintenance

By Organization Size

  • Small and Medium-Sized Enterprises
  • Large Enterprises

By Vertical

  • Banking, Financial Services, and Insurance
  • IT and Telecom
  • Government and Public Sector
  • Retail and Consumer Goods
  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Other

By Region

  • North America
  • Latin America
  • Europe
  • APAC
  • Middle East & Africa

Media Release

- FAQs -

Application Delivery Controller Market is set to grow at a CAGR of 8.7% during the forecast period.

United States is the biggest region in Application Delivery Controller Market market with a CAGR of 8.5% during the forecast period.

Vertical Application Delivery Controller is the leading segment in the Application Delivery Controller Market by type.

The Application Delivery Controller Market is set to reach US$ 7.4 Bn by 2032.

The US is likely to have the highest growth rate at a CAGR of 8.5% during the forecast period.

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