The global application delivery controller market size is expected to be USD 3.007 billion in 2023. Due to remote workers' flexible work hours and increased access to personal devices such as laptops, desktops, or mobile, organizations are investing in IT infrastructure to manage access and load of growing applications.
The overall demand for application delivery controllers is projected to record a CAGR of 18.3% between 2023 to 2033, totaling around USD 34.349 billion by 2033.
The Application Delivery Controller (ADC) is the network component used as a part of an application delivery network (ADN) in a data center. It is primarily a load balancer that helps manage server traffic flow. ADCs help enhance end-user performance and application deployment and accelerate application acceleration by providing security.
Increasing internet traffics coupled with the growth in applications resulted in rising demand for maintaining uninterrupted communication channels among diversified business operations. This has further driven the implementation of ADCs. Therefore, it helps in optimizing the traffic among the networks.
Application Delivery Controllers Industry (From 2018 to 2022)
| Attributes | Details |
|---|---|
| Market HCAGR (From 2018 to 2022) | 16.2% |
| Market Size - 2018 | USD 1.411 billion |
| Market Size - 2022 | USD 2.577 billion |
Application Delivery Controllers Industry (From 2023 to 2033)
| Attributes | Details |
|---|---|
| Market CAGR (From 2023 to 2033) | 18.3% |
| Market Size - 2023 | USD 3.007 billion |
| Market Size - 2033 | USD 34.349 billion |
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The global demand for application delivery controllers is projected to increase at a CAGR of 18.3% during the forecast period between 2023 to 2033, reaching a total of USD 34.349 billion in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 16.2%.
During the historic outlook, the demand for data storage platforms witnessed tremendous growth due to swiftly increasing global data traffic. This, in turn, has resulted in unprecedented growth in cloud-based services and technologies driven by data centers.
Several organizations are expanding their customer base, which burgeons the demand for alternative storage, which has nurtured the cloud infrastructures in developed and emerging economies like the United States, China & India.
The service providers develop and deploy large-scale data centers and associated cloud services to compute large amounts of data. These factors are anticipated to boost the application delivery controller demand globally.
Exponential Growth in the IT Industry & Increasing Internet Penetration to Act as Prominent Growth Drivers
Evolving digital infrastructure worldwide and the changing business and working structure make modernization a key to success. During the COVID-19 pandemic, application visibility and management have gained demand for an increase in working from their home.
This is predicted to bolster the market growth in upcoming years. The rise in data traffic with the increasing use of cloud applications has secured the requirement for content and application delivery systems, supporting the Growth of ADCs.
The growth in distributed denial-of-service (DDoS) attacks, disrupting enterprise servers and overloading the companies rely on the ADCs to set limits on requests and traffic hitting an internal server. The above factors are responsible for the market growth and are anticipated to drive the market during the forecast period.
Principal Consultant
Death of Tech Experts May Hamper the Market Expansion
Crucial challenges exist to fulfill business requirements and uphold the efficiency of the data center. They are sustaining the application availability, keeping networks protected, consolidating resources and staff requirements, and scaling current infrastructure demands for an efficient solution. These factors are estimated to hinder the market expansion of application delivery controllers.
| Attributes | Details |
|---|---|
| North America Market Share - 2023 | 28.5% |
| United States Market Share - 2023 | 19.7% |
| Australia Market Share - 2023 | 3.7% |
Rising Internet Users & Availability of Well-developed Infrastructure Have Fuelled the Market Growth
North America captures the dominating share, accounting for 35.7% of the Application Delivery Controller (ADC) in 2023. The growth in the region is primarily owing to the well-established IT & telecom sector. Trends such as the rise in the adoption of cloud and SDN devices, virtualization, and network security are predicted to influence the market growth during the forecast period positively.
North America is the most rapidly changing and competitive market across the globe. Besides, the region is also expected to adopt new technologies at a faster pace as compared to other countries around the world.
As per the recent analysis by Future Market Insights, the increasing internet traffic in countries like the United & Canada is one of the prominent market drivers of the application delivery controllers. In August 2021, the United States had 313 million active internet users, and 90% of Americans have internet access.
| Attributes | Details |
|---|---|
| Japan Market Share - 2023 | 5.4% |
| China Market CAGR (From 2023 to 2033) | 20.3% |
| India Market CAGR (From 2023 to 2033) | 22.5% |
Swelling Adoption of Advanced Technologies to Propel the Regional Market
Asia Pacific is the robust-growing region registering a significant CAGR for the Application Delivery Controller (ADC) during the forecast period, followed by North America. The key factor responsible for the growth in this region is a rise in internet penetration coupled with technological advancement.
Several government initiatives, including Make in India, by the Government of India and OpenNet by the Chinese government, to progress the performance of web applications and services are the supporting factors driving the market growth in this region.
| Attributes | Details |
|---|---|
| Europe Market Share - 2023 | 24.3% |
| Germany Market Share - 2023 | 8.1% |
| United Kingdom Market CAGR (From 2023 to 2033) | 19.3% |
Soaring Investments & Encouraging Governments Policies to Foster the Demand for Application Delivery Controllers
Based on the geographies, European is the second-leading region, acquiring a 24.2% share in the Application Delivery Controllers market as of 2022. During the forecast period, the area is estimated to witness moderate growth, backed by soaring investments in the IT & Telecom industry for better connectivity during work from home. The United Kingdom contributes a huge revenue share of the regional market.
Europe is likely to showcase substantial growth during the forecast period. Government Initiatives such as the Local Digital Declaration, Technology Code of Practice, Cloud First Policy, and Digital Market Place across the United Kingdom are driving cloud adoption.
The increasing incidence of cyber-attacks and cloud adoption by small & medium enterprises may cultivate the demand for application-based controller solutions across the region.
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| Category | Deployment Type |
|---|---|
| Leading Segment | Application Delivery Controllers Software/Virtual |
| Market Share | 67.60% |
| Category | End User |
|---|---|
| Leading Segment | Application Delivery Controllers for Large Enterprises |
| Market Share | 56.70% |
Small & Medium Enterprises (SMEs) are Expected to Register Significant Growth.
Based on enterprise size, the Application Delivery Controller (ADC) market is segmented into SMEs and large enterprises. Of these, SMEs are the swift-growing segment and are anticipated to continue with the same growth pace during the forecast timeframe.
ADCs, help the applications adapt to the networks and protocols in place today, which are broadly deployed as a key fixture in the enterprise. Also, they ensure that apps execute optimally, are available, and there are no security risks either to the user or the business.
Most SMEs rely upon web-based apps and web-enabled services for running the business. These apps are prone to intrusions, viruses, and DoS attacks. ADCs help reduce IT security risks and ensure compliance with privacy regulations and data security.
With a CAGR of 8.5% between 2023 and 2033, the virtual application delivery controller sector is the market's most significant segment by type. The demand for this area has grown excessively due to less expensive options that provide more control than conventional application delivery controllers.
Application delivery controllers can now be implemented more flexibly thanks to software-defined networking and virtualization, enabling them to offer more capability on a tighter budget. How businesses run their data centers is evolving due to the development of multi-cloud platforms and microservice environments, including containers. The advantages of a virtual application delivery controller include multi-tiered architecture, sophisticated design, and thorough packet inspection.
Virtual application delivery controllers have greatly increased the ADC market's growth compared to hardware application delivery controllers. Virtual application delivery controller market participants have acquired this applicability by enhancing application visibility and enabling a more user-friendly experience for clients.
The product's features include threat intelligence, service analytics, management, etc. The clients include Handle, Uber, Leaseweb, SK Telecom, and Klein ISD. The firm has collected total funding of USD 118 million.
The solution comprises a modern web-based UI to access the controller. The controller controls using integrated analytics, and the service engines collect the application-related metrics. Since its foundation, the firm has acquired total funding of 93 million.
The application delivery controller market is highly competitive. Healthcare, retail, and other end-user verticals dominate the demand in this sector. Players in the market are constantly coming up with new ideas and implementing different product innovations, acquisitions, and strategic mergers to get an advantage over rivals.
The application delivery controller market has a vibrant, competitive environment, but there needs to be more room for new entrants. Competitors concentrate on implementing cutting-edge technologies like artificial intelligence (AI) and machine learning that may broadly support the application delivery controller market solutions.
Vital Players:
Recent Innovations and Advancements
| Company | Radware |
|---|---|
| Strategy | Radware Secures a Deal with Leading Carrier to Safeguard Expanding Cloud Network |
| Details | Radware announced a multimillion-dollar partnership with a Tier-one carrier in January 2022. The leading carrier in the market is bolstering its Radware security defenses to safeguard and manage it is expanding worldwide cloud infrastructure. |
| Company | NGINX |
|---|---|
| Strategy | NGINX Controller Application Delivery Module Upgraded with Advanced Features |
| Details | NGINX, a control plane solution for NGINX Plus load balancers, updated its NGINX Controller Application Delivery Module in January 2022. Improved workload health checks, caching configuration upgrades, and instance groups are new features. |
| Company | F5 Networks, Inc. |
|---|---|
| Strategy | F5 Networks Enhances Management and API Solutions with NGINX Acquisition |
| Details | In March 2021, F5 Networks, Inc. announced an acquisition with NGINX with a total enterprise value of approximately US$ 670 million, subject to certain adjustments. This acquisition helps F5’s application services portfolio to enhance performance, management, and availability, together with NGINX’s leading software application delivery and API management solutions. |
| Company | A10 Networks |
|---|---|
| Strategy | A10 Networks Introduces Innovative Solutions for Hybrid-Cloud Environments |
| Details | In June 2020, A10 Networks announced a set of solutions that deliver application security and availability for its customers facing the safety and operational complexities of hybrid-cloud infrastructures. |
The growth potential of the market is 18.3% through 2033.
Small and medium enterprises (SMEs) register significant growth.
The virtual application delivery controller sector is the most significant.
The growing need for real-time app delivery fuels the market growth.
Growing emphasis on security and scalability fuels the demand.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Type 5.1. Software/Virtual 5.2. Hardware 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 6.1. Small and Medium Enterprises 6.2. Large Enterprises 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-user 7.1. BFSI 7.2. Retail 7.3. Healthcare 7.4. IT and Telecom 7.5. Government sector 7.6. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. F5 Networks Inc. 18.2. CISCO SYSTEMS INC 18.3. A10 Networks Inc. 18.4. Array Networks Inc. 18.5. Brocade Communications Systems Inc. 18.6. Citrix Systems 18.7. Dell Inc. 18.8. Barracuda Networks Inc. 18.9. Fortinet Inc. 18.10. KEMP Technologies Inc. 19. Assumptions & Acronyms Used 20. Research Methodology
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Application Delivery Controllers Market
