Integration & Orchestration Middleware Market Is Estimated To Witness High Growth Owing To Cloud Adoption & Increasing Demand For Real-time Process
The Integration & orchestration middleware market is estimated to be valued at US$ 21.36 Bn in 2024 and is projected to expand at a CAGR of 5.7% over the forecast period (2024-2031). The increasing adoption of cloud-based middleware solutions and the rising need for real-time business processes across various industry verticals are expected to drive the market growth during the forecast period. Furthermore, the growing importance of integration platforms-as-a-service (iPaaS) is also expected to support the market growth.
Market Dynamics:
The growth of the global integration & orchestration middleware market is driven by the increasing demand for cloud-based middleware solutions and the need for real-time business processes. Cloud-based middleware provides various advantages such as scalability, flexibility, and pay-per-use option which has resulted in its rising adoption across Small and Medium Enterprises (SMEs). Furthermore, the growth of industries such as BFSI, IT & telecom, healthcare, and retail is also driving the need for the real-time integration of various applications and systems. Middleware solutions help businesses to automate, streamline, and accelerate the integration of complex systems and applications, thereby boosting operational efficiency.
Increasing Demand for API Management Driving the Market Growth
Application Programming Interfaces (APIs) have become a core part of how software applications communicate with each other in today's digitally transforming world. As the number of APIs used by organizations multiplies, the need for centralized API management is surging. Integration & orchestration middleware provides a unified platform to publish, secure, monitor, and scale APIs across on-premise and cloud-based systems. Major players in this market like Oracle, Microsoft, and IBM are investing heavily in strengthening their API management capabilities on their middleware products. As software increasingly becomes a key differentiator for businesses, API management will continue powering digital innovations, driving more organizations to adopt integration & orchestration middleware.
Rising Need for Application Integration Fueling Adoption
With microservices and cloud-native architectural styles gaining prominence, modern applications are distributed across multiple platforms and geographic locations. This distributed nature complicates integration between different application components from different vendors. Integration & orchestration middleware addresses this challenge by providing tools to easily connect diverse applications regardless of their location, programming languages or data formats. It allows real-time sharing of data and functions between separate systems. As applications become more distributed and interdependent, the importance of seamless integration will rise significantly. This growing need for robust application integration functionality is a major growth driver for the middleware market.
Compliance Issues Limiting Wider Adoption
The lack of standardized protocols for cloud-based integration poses compliance challenges for organizations, especially in regulated industries. Industries like healthcare and financial services have rigorous data security, privacy, and regulatory compliance requirements that cloud-native integration architectures may not fully address. Integrating on-premise systems with cloud platforms also impacts compliance. These regulatory ambiguity and security concerns around public cloud computing are limiting the wider adoption of integration middleware solutions to some extent. Vendors need to build solutions that provide end-to-end visibility, control and policy-based access for regulated workloads to accelerate market growth.
Customization Requirements Increasing Implementation Costs
Integration & orchestration middleware products require extensive customization and configuration to suit an organization's specific IT environment, business processes, and regulatory needs. This results in substantial professional service costs and longer implementation cycles. Standard packaged solutions may not be sufficient for many complex enterprise integration requirements. The need for heavy customization also makes it harder to scale implementations across multiple domains and geographical regions. While customization enables deep functionality, it increases Total Cost of Ownership (TCO) which can restrain organizations, especially smaller ones, from fully leveraging integration middleware platforms.
Growing Microservices Adoption Opening Opportunities
The adoption of microservices architecture is growing rapidly as organizations embrace more agile and scalable application development approaches. Microservices enable modular, independently deployable services that improve efficiency, but managing the communications between various microservice components distributed across environments poses challenges. Integration & orchestration middleware is well-suited to tackle these orchestration requirements through features like service discovery, API management, message routing, and monitoring of microservices. The increasing shift to microservices-based architectures will drive greater demand for middleware platforms optimized for microservices integration.
Rapid APIs and Serverless Computing Gaining Traction
Emerging architectures like API-first and serverless computing are gaining immense popularity due to their ability to rapidly deploy code and services. While these new patterns enhance agility, integrating serverless APIs and functions with traditional applications and data platforms still requires robust middleware. Serverless integration, events-driven architectures, and API pipes can be natively supported through integration & orchestration platforms' abilities to connect event-driven and serverless workloads with back-end systems. The rise of serverless is opening up a major market opportunity for vendors to incorporate these new integration styles.
Key Developments:
- In July 2023, NovoPayment, a mission-critical financial and payments infrastructure provider, released Orchestra 2.0, an advanced cloud-based middleware orchestration layer of its industry-leading BaaS platform. This solution is designed to help financial institutions quickly modernize their infrastructure in a more secure, scalable, and cost-effective way.
- In July 2023, Zvolv, a leading global enterprise hyperautomation company, released version 3.0 of its microservices-based Low-Code No-Code (LCNC) platform. Zvolv's new middleware component, Z-Wall, extends the platform's enterprise automation and app-building capabilities by integrating built-in features that enable the use of generative AI in developing next-generation enterprise AI applications.
- In August 2020, IBM announced the launch of IBM Cloud Orchestrator, a comprehensive cloud management platform that empowers enterprises to automate the provisioning, management, and scaling of cloud-based applications and infrastructure.
- In July 2020, Microsoft announced the integration of Azure Logic Apps and Azure Functions, further enhancing the capabilities of the Azure integration platform. This integration enables developers to seamlessly incorporate custom code into their Logic Apps workflows by leveraging Azure Functions.
Key Players:
Axway, Boomi, Broadcom, Cisco Systems, Fujitsu, Hewlett Packard Enterprise, IBM, Informatica, Microsoft, MuleSoft, Oracle, Red Hat, SAP, Software AG, and TIBCO Software
