Application Delivery Controllers Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Application Delivery Controllers Market Analysis
The Application Delivery Controllers (ADC) Market size was valued at USD 2.65 billion in 2022, and is expected to reach USD 4.61 billion by 2028, growing at a CAGR of 9.63% during the forecast period (2023-2028).
Due to the increasing adoption of cloud-based services, investment in the market studied rose. The market investments have been mainly targeted toward innovations, investments by venture capitalists, and strategic partnerships. Vendors launched innovative activities to launch new products for different kinds of enterprises.
- Service providers and enterprises have considered ADC a crucial enabler driving digital transformation and unlocking operational efficiencies. Advances in ADC hardware and solution platform enable exponential growth efficiencies generated by cloud computing, and cloud-based applications are expected to shape ADC adoption throughout the forecast period.
- Moreover, market vendors continuously invest in R&D activities to introduce innovative product offerings to gain more market presence and customer base. For instance, in August 2022, F5 announced the launch of new traffic management and security solution designed to offer better control over its customers' fleets of NGINX instances. The newly launched F5 NGINX Management Suite 1.0 has a centralized dashboard to provide high visibility and control of NGINX instances, API management workflows, application delivery services, and security solutions.
- Furthermore, with the increase in distributed denial-of-service (DDoS) attacks disrupting enterprise servers, companies can rely upon ADCs to set limits on requests and traffic hitting a single internal server resource. According to the Cisco Visual Networking Index, DDoS attacks were anticipated to reach around 14.5 million by 2022. Technology evolutions and digitalization across the end-user industries drove the demand for ADC globally.
- In addition, several market vendors are working on innovative solutions to tap into the growing SME sector globally, looking for cost-effective cloud-enabled solutions for their businesses. Such instances are further expected to drive the demand for investments in the market studied for cost-effective solutions. For instance, in August 2021, Snapt, an application security, visibility, and control company, launched Nova Version 2, the second generation of Snapt's centralized ADC platform. The new cloud-based ADC includes a load balancer, WAF, GSLB, and web accelerator. Nova is a hyper-scale-ready, centralized platform for deploying, controlling, and monitoring ADCs at scale.
- Additionally, with the COVID-19 pandemic, application visibility and management took on even more importance as remote workers quickly changed their working environments to maintain staff productivity from any place. This is expected to boost the market for application delivery controllers over the forecast period.
Application Delivery Controllers Industry Segmentation
The application delivery controller provides application services and controls communications between the application and client servers. The controller manages or controls the flow of data between computing systems, such as client devices and application services, optimizing application security, availability, and performance. With the explosion in business applications, internet traffic, and the number of internet-enabled devices, application delivery controllers deliver the front-end intelligence that enhances and supplements business application flow.
The application delivery controllers (ADC) market is segmented by deployment (cloud, on-premise), enterprise size (large enterprises, small and medium enterprises), end-user vertical (BFSI, retail, IT and telecom, healthcare, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, and the Rest of the World). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|By Enterprise Size|
|Small and Medium Enterprises (SMEs)|
|By End-user Vertical|
|IT and Telecom|
|Other End-user Verticals|
|Rest of the World|
Application Delivery Controllers Market Trends
This section covers the major market trends shaping the Application Delivery Controllers Market according to our research experts:
BFSI is Expected to Hold Significant Share
- The demand for ADCs in the BFSI sector is witnessing an upward trend as the BFSI industry is rapidly embracing digital transformation and updating its legacy infrastructure. The increasing technological penetration, combined with digital channels, such as internet banking, mobile banking, digital wallets, and real-time payments, is becoming a preferred choice for banking services. There is a more critical requirement for banks to leverage advanced authentication and access control processes.
- The digital ecosystem surrounding a bank is increasing at a rapid pace. With the constant change in consumer demand, there has been pressure on the banks to customize their product offerings according to their needs. Moreover, consumers embracing a mobile lifestyle and socializing on digital platforms expect banks to connect with them on the same media. This is increasing the demand for application delivery controllers in the BFSI sector.
- As financial organizations worldwide are increasingly adopting hybrid cloud, public cloud, and multi-cloud strategies to meet the need for compliance, competition, and modernization, the demand for application delivery controllers is anticipated to grow in the coming years. According to F5's the State of Application Strategy Report- Financial Services Edition for 2022, 69% of financial services organizations in the Asia-Pacific region have deployed multi-cloud strategies.
- Moreover, the increasing number of cyber attacks in the BFSI industry worldwide induced the need for an application delivery network for better visibility and enhanced security. To cater to such demands, vendors in the market, such as Citrix, offers ADC to integrate with web applications' firewall and ensure protection against cyberattacks. The solution depends on high SSL performance with TLS 1.3 to meet the strict security regulations worldwide.
- WhiteSight said the most valued independent neobank in 2021 was Brazilian Nubank, at USD 45 billion, thus stealing the position from Chime - the highest-valued independent digital bank in 2020. Chime was valued at around USD 14.5 billion in 2020, while Nubank was second that year, with USD 10 billion. Chime also increased its value in 2021 to USD 25 billion, making it the third most-valued independent neobank, after Nubank and Revolut.
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Asia-Pacific is Expected to Witness Highest Growth
- The Asia-Pacific region is expected to register the highest growth rate over the forecast period. The rapid increase in cloud computing in this region is expected to be a significant driver for cloud-based application delivery controllers.
- Government organizations and financial institutions are spending on ADCs, owing to the increasing digitalization in the banking ecosystem and the digital payments space, to support the ever-expanding traffic. Moreover, with the rapid cloud migration and the shift to remote work in countries like India, organizations need protection beyond traditional firewalls, boosting the need for ADC.
- Moreover, the best healthcare system in the Asia-Pacific area is available in Singapore, which is regarded as the region's medical and healthcare center. Over 23 hospitals and healthcare facilities in Singapore have received accreditation from the Joint Commission International (JCI). More than 350,000 individuals go to Singapore annually to receive high-quality medical care. Such potential would boost cloud applications' use and fuel market expansion during the anticipated term.
- In addition, the increasing internet users and data traffic in countries like China, India, and Indonesia further augment the growth of ADC solutions in the region. With the evolving digital era, market vendors are offering more innovative network solutions and products for end users, ensuring they have the best technology experience, thereby driving the market segment.
- For instance, in June 2022, Cyber security and application delivery solutions provider Radware and managed security service provider OneSecure announced the expansion of their collaboration agreement. To enhance OneSecure's Webyith defacement and domain phishing monitoring service for the ASEAN enterprises, the MSSP announced the development of the cyber security suite to include Radware's Application Protection-as-a-service offering and Cloud DDoS Protection Service. OneSecure's security suite includes Radware's DefensePro solution for automated DDoS protection and Radware's Alteon application delivery controller, which protects applications while optimizing application performance and delivery.
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Application Delivery Controllers Industry Overview
The competitive rivalry in the application delivery controllers market is high due to significant players like Array Networks Inc., Barracuda Networks, Citrix Systems, Fortinet, etc. The demand in this industry is dominated by end-user verticals such as healthcare, retail, etc. Players in the ADCs market are continuously innovating and making various product innovations, acquisitions, and strategic mergers to gain competitive advantages over other players.
In September 2022, AppViewX, the leader in automated machine identity management (MIM) and application infrastructure security, announced that the company joined F5's Technology Alliance Program (TAP). Through the partnership, F5 and AppViewX will jointly promote enterprise application security and delivery solutions focused on managing applications and ensuring cybersecurity across on-premises, cloud, and edge locations.
In April 2022, Akamai launched the Linode Managed Database service powered by Linode with support for MySQL, PostgreSQL, Redis, and MongoDB. Akamai's Linode Managed Database simplifies database deployment, helping developers reduce risk, increase efficiency, and minimize the complexity of manual management of production database clusters.
Application Delivery Controllers Market Leaders
F5 Networks, Inc.
Juniper Networks, Inc.
Citrix Systems, Inc.
Barracuda Networks, Inc.
*Disclaimer: Major Players sorted in no particular order
Application Delivery Controllers Market News
- May 2022: Advanced Energy Industries Inc., a global leader in highly engineered, precision power conversion, measurement, and control solutions, announced a comprehensive RF power delivery solution that combines advanced digitally-controlled power supplies with an accurate digital impedance matching network. Designed for thin-film industrial applications, the ALTA platform ensures versatile, precise, and repeatable control that enhances process stability and provides best-in-class yield.
- January 2022: NGINX released new versions of its NGINX Controller Application Delivery Module, a control plane solution for NGINX Plus load balancers. The new features contain enhanced workload health checks, improvements to caching configuration, and many other additions. NGINX Controller primarily offers a centralized orchestration and analytics platform for managing fleets of NGINX Plus instances. NGINX Plus is an integrated load balancer, server, and content cache. The Application Delivery Module offers a control plane solution for NGINX Plus instances. This provides an interface for configuring, securing, monitoring, and troubleshooting load balancing for the applications.
Application Delivery Controllers Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Reliable Application Performance
5.1.2 Increasing Cyberattacks
5.2 Market Restraints
5.2.1 Increasing Network Complexity and Higher Costs of ADCs
6. MARKET SEGMENTATION
6.1 By Deployment
6.2 By Enterprise Size
6.2.1 Large Enterprises
6.2.2 Small and Medium Enterprises (SMEs)
6.3 By End-user Vertical
6.3.3 IT and Telecom
6.3.5 Other End-user Verticals
6.4.1 North America
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 F5 Networks Inc.
7.1.2 Fortinet Inc.
7.1.3 Juniper Networks Inc.
7.1.4 A10 Networks Inc.
7.1.5 Array Networks Inc.
7.1.6 Citrix Systems Inc.
7.1.7 Radware Corporation
7.1.8 Akamai Technologies Inc.
7.1.9 Barracuda Networks Inc.
7.1.10 Piolink Inc.
7.1.11 Sangfor Technologies Inc.
7.1.12 HAProxy Technologies LLC
7.1.13 Loadbalancer.org Inc.
7.1.14 Kemp Technologies Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Application Delivery Controllers Market Research FAQs
What is the study period of this market?
The Application Delivery Controllers (ADC) Market is studied from 2018 - 2028.
What is the growth rate of Application Delivery Controllers (ADC) Market?
The Application Delivery Controllers (ADC) Market is growing at a CAGR of 9.16% over the next 5 years.
Which region has highest growth rate in Application Delivery Controllers (ADC) Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Application Delivery Controllers (ADC) Market?
North America holds highest share in 2021.
Who are the key players in Application Delivery Controllers (ADC) Market?
Fortinet, Inc., F5 Networks, Inc., Juniper Networks, Inc., Citrix Systems, Inc., Barracuda Networks, Inc. are the major companies operating in Application Delivery Controllers (ADC) Market.
Application Delivery Controllers (ADC) Industry Report
Statistics for the 2023 Application Delivery Controllers (ADC) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Application Delivery Controllers (ADC) analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.