APPLICATION GATEWAY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Application Gateway Market Size and Trends

The global application gateway market is estimated to be valued at USD 2.53 Billion in 2024 and is expected to reach USD 4.82 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.6% from 2024 to 2031.

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Growing demand for internet security from numerous industry verticals is expected to drive the market growth. Increasing adoption of application gateways to prevent unauthorized access and ensure security of applications from outside networks is further expected to support the market growth. Additionally, rising need to control administrative tasks and optimize traffic will further augment the demand for application gateways. Implementation of application gateways help enterprises filter the inbound and outbound traffic which improves the network efficiency. This is anticipated to boost the acceptance of application gateways across various organizations during the forecast period.

Increasing adoption of cloud services and SaaS applications

With digitization coming into the forefront, businesses across various verticals are embracing cloud and SaaS based applications at a rapid pace. While cloud promises flexibility, scalability and cost benefits, it also introduces the challenges of managing traffic flow and securing organization's assets hosted in the cloud. As businesses deploy more cloud native applications, microservices and cloud APIs, there is a growing need to adopt an application delivery controller or gateway that can centrally manage traffic, provide visibility and enforce granular security policies across heterogeneous cloud environment.

Application gateways have emerged as a crucial component of modern application architecture spanning private data centers and public clouds. They offer capabilities like load balancing, acceleration, caching which help optimize the performance and user experience of cloud hosted applications. With an app gateway in place, IT teams now have granular control over traffic management without depending upon individual cloud vendor tools. They can define secure access rules, accelerate slow APIs, failover traffic during outages, etc. in a unified manner. This has become important as digital experiences are delivered through a complex mesh of both on-premise and cloud hosted application tiers. The app gateway sits at the edge and acts as a single point of management and security for the hybrid environment.

As software delivery is becoming more dynamic with microservices and serverless computing, developers need agile tools to deploy updates seamlessly. Application gateways are helping bridge this gap by supporting advanced traffic controls and policy workflows. They integrate tightly with CI/CD pipelines to enable zero downtime deployments through blue/green routing, canary releases etc. This speeds up innovation cycles while maintaining service level performance. Additionally, with app gateways enforcing access control at the edge, sensitive application code and data hosted in private clouds or data centers gain an extra layer of protection against external threats. All these factors are driving more and more enterprises to adopt application delivery controllers as the cloud footprint expands.

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Growing Importance of Data Security

With rise in data breaches and privacy issues, security of confidential data is now a top concern for organizations globally. Stricter regulations like GDPR have also made it imperative for enterprises to bolster protection of customer and employee information handled by their digital properties. However, as business applications evolve to leverage modern techniques like open APIs, microservices and serverless computing, the traditional network perimeter is collapsing. Also, migration of workloads to public clouds exposes networks to a whole new set of threats.

In such a dynamic threat landscape, organizations are looking for modern security solutions that can adapt on the fly. Traditional firewalls alone are no longer sufficient given the stateless and ephemeral nature of modern application traffic. There is a need for advanced gateways which can enforce granular access controls, signatures, and policies at the application layer instead of just at network/transport layers. Application gateways analyze HTTP/S traffic and enable admin to define rules based on URL paths, header values, source IP, etc. paired with identity/entitlement checks. This helps secure both known and unknown vulnerabilities.

Moreover, as businesses embrace cloud-native approaches, their digital properties are also distributed across public/private infrastructures. Having a centralized point of control for traffic management and security policies becomes imperative. Application gateways provide a single pane of glass to govern access and security compliance for hybrid cloud environments. They inspect all inbound and outbound traffic at the edge to detect and block anomalies and threats. Additionally, app gateways are also effective in insulating the internal network and application tiers from direct Internet access. Overall, growing security challenges associated with modern applications and infrastructure are increasing the demand for advanced application delivery capabilities.

For instance, in January 2020, Orange Business Services, a global telecommunications company, finalized its acquisition of SecureLink, a major Europe-based cybersecurity firm. This strategic transaction is designed to bolster Orange's global footprint and fortify its cybersecurity offerings, solidifying the company's status as a preeminent player in the European cybersecurity market.