|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Application Delivery Controllers market is expected to register a CAGR of 9.63% over the forecast period 2021 to 2026. This market was valued at USD 2.15 billion in 2020 and is expected to reach a value of USD 3.78 billion by 2026. Digital infrastructure has been significantly evolving across the globe along with the change in business, thereby, making modernization a key to success. Moreover, with the emergence of COVID-19 pandemic, the application visibility and management have gained even more prominence as the employees that are working from their home and businesses that have been rapidly transforming their environments in order to keep their staff productive from any location. This is anticipated to provide further boost to the growth of the market over the forecast period.
- More users have been surfing the web on smartphones, tablets, and other mobile devices than a typical laptop or desktop machine, leading to the generation of large amounts of data. According to the GSM Association, by 2025, the United States may have the highest smartphone adoption globally (49% of connections). According to Consumer Technology Association (CTA), ‘the US Consumer Technology Sales and Forecast’ study, CTA expects that 5G-enabled smartphone devices will reach 2.1 million units and cross USD 1.9 billion in revenue triple-digit increases through 2021. This has created a performance and experience gap for mobile users since they have been accessing web sites and applications designed for high-speed internet networks and application delivery controllers to help optimize performance on mobile networks.
- Moreover, increasing data traffic with a rapid rise in cloud applications has also fastened the need for adequate content and application delivery systems, aiding the growth of application delivery controllers. Thus, with the explosion in Internet traffic, business applications, and the number of Internet-enabled devices, application delivery controllers provide the front-end intelligence that supplements and enhances business applications flow. Furthermore, regarding the application security, organizations can take user access credentials previously stored in the cloud and store them in their on-premises active directory. The ADC only needs to validate each requesting user’s identity, without storing each member of the active directory.
- Additionally, with the rise in distributed denial-of-service (DDoS) attacks, overloading, and disrupting enterprise servers, the 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 (VNI), the estimated number of DDoS attacks is anticipated to reach 14.5 million by 2022. An ADC can be deployed physically as a hardware appliance or virtually as a software. Virtual application delivery controllers are particularly useful in large enterprise data centers and cloud computing environments. Customers need to be able to scale the capacity up and down as application demand fluctuates.
- The lag in ADC is impacting application rollouts as well. Since a new load balancer takes anywhere from days to months, the user of hardware-based ADCs has been reporting significantly slowed application rollouts corresponding to ADC change, as compared to cloud-native users. Infrastructure has been evolving along with the change in business, thereby, making infrastructure modernization the key to success With the COVID-19 pandemic lurking around, the application visibility and management have gained even more prominence as employees work from home and businesses rapidly transform their environments to keep their staff productive from any location. This could provide further impetus to the growth of the market during the forecast period.
Scope of the Report
The application delivery controller delivers application services and controls communications between clients and application servers. The controller is the function of managing (or controlling) the flow of data between computing systems, such as client devices and application services, optimizing application performance, availability, and security. With the explosion in internet traffic, business applications, and the number of internet-enabled devices, application delivery controllers provide the front-end intelligence that supplements and enhances business applications flow.
|By Size of Enterprises|
|Small and Medium Enterprises (SMEs)|
|By End-user Vertical|
|IT and Telecom|
|Other End-user Verticals|
|Rest of the World|
Key Market Trends
BFSI is Expected to Hold Significant Share
- The demand for application delivery controllers in banking is on the rise due to various development and reforms. The growing technological penetration, coupled with the digital channels, such as internet banking, mobile banking, etc., is becoming the preferred choice for banking services. There is a greater need for banks to leverage advanced authentication and access control processes.
- Digital infrastructure has been significantly evolving across the globe along with the change in business, thereby, making modernization a key to success. Moreover, with the emergence of the COVID-19 pandemic, the application visibility and management have gained even more prominence as the employees that are working from their home and businesses that have been rapidly transforming their environments in order to keep their staff productive from any location. This is anticipated to provide a further boost to the growth of the market over the forecast period.
- This rise in the banking sector also makes it prone to anonymous security threats and cyber-attacks. Thus, to avoid these cyberattacks, the application delivery network demands efficient management spurring the demand for ADCs. For instance, NGINX Plus is widely used by banking, insurance, asset management, brokerage, fintech, and other financial services companies. NGINX enables the customers to deliver outstanding end-user experiences and to extend the functionality of existing colossal applications. NGINX Plus is being used to deliver reliably across all channels and devices.
- Further, the introduction of new technological solutions using the Cisco Nexus Series at the data center has given Alfa-Bank, one of Russia’s largest private banks, the opportunity to gain a competitive advantage by significantly improving the IT system’s efficiency and reducing risks associated with the storage, processing, and transfer of information.
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Asia-Pacific is Expected to Witness Highest Growth
- The Asia-Pacific region is expected to grow lucratively supported by increasing internet penetration in densely populated countries like China and India. Increasing IT spending of China government and India's IT initiatives, such as the Digital India program, is expected to drive the demand for application delivery controllers for web applications and services.
- The government of India has increased the funding for the digital India program by 23% to INR 39.58 billion for 2020-21 compared to the actual allocation in the current fiscal year, according to the finance ministry. The increase in the funding was necessary to allocate for the incentives to be given for electronic manufacturing, R&D, development of a workforce for the segment, cybersecurity, and promotion of IT and IT-enabled services.
- Owing to technological advancements, there is an increase in the number of connected devices in the studied market. Moreover, Strong government backing and substantial private sector investment are behind the growth of China's cloud computing industry. Furthermore, 5G and 5G enabled devices will exponentially increase the devices' interconnectivity. As a result, it increases connected devices, thereby directly augmenting the need for controlling the data traffic and security of the cloud-based applications.
- Singapore is being considered the medical and healthcare hub of the Asia-Pacific region and offers the region’s best healthcare system. The Joint Commission International (JCI) has accredited over 23 hospitals and healthcare facilities in Singapore. Over 350,000 patients visit Singapore to avail healthcare services each year with high quality. Such potential would increase the use of cloud applications and, very likely, drive the market growth during the forecast period.
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The competitive rivalry in the application delivery controllers market is high, due to the presence of significant players like Barracuda Networks, Citrix Systems, Array Networks Inc., Fortinet, etc. The demand in this industry is dominated by end-user verticals such as retail, healthcare, etc. These end-user verticals are working round the clock to provide hassle-free services, easy, and convenient services to the customer. Players of the ADCs market are continuously innovating and making strategic mergers and acquisitions to gain competitive advantages over other players.
- May 2021 - Kemp announced the launch of its Zero Trust Access Gateway architecture in order to simplify the introduction of a zero-trust model for securing published workloads and services. The ZTAG solution is comprised of a suite of proxy, authentication, access logic, and automation capabilities that will help customers in applying zero trust logic to load balanced web-based applications.
- May 2021 - Array network announced a software version (version 10.2.x) and innovative hardware platforms (the x800 Series) for its APV Series application performance controllers. APV x800 Series physical appliances (APV1800, 2800, 5800, etc.) offer production across multiple metrics, 40 Gig-E interfaces, and improved SSL performance.
- March 2021 - Radware has announced that it has integrated additional application security into its Alteon line of Application Delivery Controllers (ADCs) to provide comprehensive protection in one platform across all environments. Alteon’s new Integrated Application Protection includes a Web Application Firewall (WAF) to protect from web-based attacks, Bot Manager to block malicious automated threats, and Application Programming Interface (API) protection to secure APIs and provide complete visibility on API targeted threats.
- April 2021 - OneMain established flexible and hybrid work styles and gained the agility to manage constantly changing business requirements with Citrix's cloud-based digital workspace products, such as Citrix Virtual Apps and Citrix ADC.
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 Size of Enterprises
6.2.1 Small and Medium Enterprises (SMEs)
6.2.2 Large Enterprises
6.3 By End-user Vertical
6.3.3 IT and Telecom
6.3.5 Other End-user Verticals
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
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.
8. VENDOR MARKET SHARE ANALYSIS
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Application Delivery Controllers (ADC) Market market is studied from 2019 - 2026.
What is the growth rate of Application Delivery Controllers (ADC) Market?
The Application Delivery Controllers (ADC) Market is growing at a CAGR of 9.63% 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 2021- 2026.
Which region has largest share in Application Delivery Controllers (ADC) Market?
North America holds highest share in 2020.
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.