The global application hosting market was valued at USD XX Bn in 2018 and is expected to reach USD XX Bn by 2026, growing at a CAGR of 11.8% during the forecast period.

Application hosting, also known as web applications, online applications, and internet-based applications, is a software-as-a-service (SaaS) solution that allows users to carry out and run a software application from remote cloud infrastructure on a periodic subscription. It is a cloud-based on-demand software that helps enterprises run their business applications on an online platform with continuous software updates, monitoring, and continuity in services.

The rising need for application hosting solutions to reduce the burden from IT management and the benefits associated with the deployment of these solutions, such as minimal integration requirements, no upfront installation cost, low risk of local system corruption, ease of use, etc., are some important factors that are expected to drive the growth of the global application hosting market throughout the forecast period.

Additionally, rising penetration of IoT has forced various businesses to invest in mobile application hosting across the globe, which is also driving the demand for application hosting solutions. The main factors boosting the growth of the application hosting market are the availability of a wide range of hosting solutions with an assortment of complementing services over the core offering and the software-centered competitive advantage approach.

However, market growth is expected to be hindered by lack of control over applications, limited bandwidth, and concerns regarding privacy and security of applications.

By Deployment On-premise Cloud By Application Type Mobile-Based Web-Based By Hosting Type Managed Hosting Cloud Hosting Infrastructure as a Service Platform as a Service Software as a Service Colocation Hosting By Service Type Application Monitoring Application Programming Interface Management Infrastructure Services Database Administration Backup and Recovery Application Security By Organization Size SMEs Large Enterprises By End-use Industry BFSI Telecommunications and IT Media and Entertainment Retail and Ecommerce Travel and Tourism Healthcare Others (Manufacturing and Utility) By Region North America (US and Canada) Europe (UK, Germany, France and Rest of Europe) Asia Pacific (China, Japan, India and Rest of Asia Pacific) Latin America (Brazil, Mexico and Rest of Latin America) Middle East & Africa (GCC and Rest of Middle East & Africa)

Based on Deployment, the on-premise segment is expected to have the highest market share during the forecast period.

Based on Deployment, the application hosting market has been segmented into on-premises and cloud segments. The on-premises deployment segment is expected to have the highest market share during the forecast period due to its wide range of functionalities, such as easy deployment, complete access to hosted applications, and high-end security. Further, it also offers flexibility, reliability, scalability, and location-independent services, which is anticipated to drive the growth of this segment.

Based on the Application Type, the mobile-based segment is expected to hold the largest share in the application hosting market during the forecast period.

Based on the Application Type, the market has been segmented into mobile-based and web-based. The mobile-based segment is expected to have the highest market share during the forecast period, owing to the rising adoption and implementation of applications in the mobile environment. Mobile applications are one of the main parts of enterprises’ tactics. Mobile applications have helped in increasing the sale of products and enhancing customer services in various verticals, including retail and e-commerce and BFSI. Therefore, companies are investing heavily in mobile-based applications to meet the growing requirement for high security and maximum uptime. This is expected to fuel the demand for this segment.

Based on the Hosting Type, the managed hosting segment is expected to hold the largest share in the application hosting market during the forecast period.

Based on the Hosting Type, the market has been segmented into managed hosting, cloud hosting, and colocation hosting. Cloud hosting includes infrastructure-as-a-service, platform-as-a-service, and software-as-a-service. The managed hosting segment is expected to have the highest market share during the forecast period, owing to various benefits provided by managed hosting services such as enhanced performance, security of the application, enabling enterprises to focus on their core business activities, and ensuring better control. Further, it provides a single-tenant dedicated environment for enterprises’ business-critical applications in a cost-effective way, which is anticipated to drive the demand for the managed hosting segment.

Based on the Service Type, the backup and recovery segment are expected to hold the largest share in the application hosting market during the forecast period.

Based on Service Type, the market has been segmented application monitoring, application programming interface management, infrastructure services, database administration, backup and recovery, and application security. The backup and recovery segment are expected to have the highest market share during the forecast period, owing to increased reliability and better IT resource management.

Based on the Organization Size, the large enterprises segment is expected to hold the largest share in the market during the forecast period.

Based on the Organization Size, the market has been segmented into SMEs and large enterprises. The large enterprises segment is expected to have the highest market share during the forecast period. As large enterprises are very much centered on data security and related compliances, they are investing heavily in securing the external hosting structure and related services. Further, large enterprises are also deploying various business-centric and customer-centric applications to gain competitive advantage over other application hosting market players. These factors are expected to drive the demand for application hosting solutions in large enterprises.

Based on the End-use Industry, the BFSI segment is expected to hold the largest share in the application hosting market during the forecast period.

Based on the End-use Industry, the market has been segmented into BFSI, telecommunications and IT, media and entertainment, retail and eCommerce, travel and tourism, healthcare, and others. The other segment includes manufacturing and utility. The BFSI segment is expected to have the highest market share during the forecast period owing to the rising adoption of omnichannel business models within the modern banking systems and growing requirement for 100% uptime along with high data security. For this, BFSI is entering into partnerships with leading hosting service providers to transfer their workload to the cloud environment, which is expected to fuel the demand for this segment.

Global Application Hosting Market, 2016-2026, (US$ Bn)

Based on Regions, North America is anticipated to capture a significant portion of the global market during the forecast period.

The North America application hosting market is anticipated to capture a significant portion of the global market during the forecast period. The market is growing due to the large-scale deployment of cloud hosting solutions by organizations and the presence of key application hosting providers in this region. Further, the region has many collocation data centers, which is expected to drive the demand for application hosting solutions.

Company Profiles and Competitive Intelligence:

The major players operating in the global application hosting market are, Amazon Web Services, IBM Corporation, Rackspace Inc., Google LLC, Liquid Web, Microsoft Corporation, Sungard Availability Services, DXC Technology, NaviSite, Inc., and Apprenda Inc., among others.