Application Gateway Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Application Gateway Market is Segmented by Offering (Solutions and Services), Deployment Mode (On-Premise, Cloud, and Hybrid), Organization Size (Small and Medium Size Enterprises and Large Enterprises), End-User Industry (BFSI, IT and Telecommunications, Retail and E-Commerce, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Application Gateway Market Size and Share

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Application Gateway Market Analysis by Mordor Intelligence

The Application Gateway Market size is estimated at USD 3.03 billion in 2025, and is expected to reach USD 4.83 billion by 2030, at a CAGR of 9.80% during the forecast period (2025-2030). The upward trajectory is propelled by a sharp rise in automated Layer-7 DDoS attacks, wider deployment of Zero-Trust and SASE architectures, and accelerated cloud-native application rollouts. Enterprises seek low-latency, policy-driven traffic management for hybrid multicloud environments, placing application gateways at the center of security and performance strategies. Growing investment in edge computing and quantum-resistant encryption further enlarges the addressable opportunity, while managed service models help enterprises overcome skills shortages.

Key Report Takeaways

  • By offering, solutions retained 70.3% revenue share of the application gateway market in 2024, whereas services are on course for the fastest 12.6% CAGR through 2030. 
  • By deployment mode, cloud implementations held 58.8% of the application gateway market share in 2024; hybrid deployments are projected to register an 11.3% CAGR by 2030. 
  • By organization size, large enterprises commanded 65.3% of the application gateway market size in 2024, while the SME segment is expanding at a 12.8% CAGR. 
  • By end-user industry, IT and telecommunications generated 28.2% revenue in 2024; retail and e-commerce is forecast to accelerate at an 11.6% CAGR to 2030. 
  • By geography, North America contributed 38.1% of 2024 revenue, whereas Asia-Pacific is predicted to advance at a 12.4% CAGR through 2030. 
  • F5, Cloudflare, and Akamai collectively accounted for slightly above 40% of 2024 revenue, indicating a moderately consolidated environment.

Segment Analysis

By Offering: Services Surge Despite Solutions Dominance

Solutions generated 70.3% of 2024 revenue as enterprises implemented Web Application Firewalls, API gateways, and load balancers to counter escalating Layer-7 threats. The application gateway market size tied to services is projected to climb at a 12.6% CAGR, outpacing product growth as organizations outsource complex multicloud configurations. Managed services covering threat analytics and policy tuning attract firms grappling with lean internal teams. Cardinal Health leveraged professional services around F5 Advanced WAF to cut malicious traffic by 40% while enhancing visibility.

Enterprises increasingly buy outcomes such as risk reduction and SLA uptime rather than discrete features, prompting vendors to wrap consulting, deployment, and ongoing SOC support within subscription plans. Consumption-based billing aligns spend with usage, lowering barriers for SME entry and unlocking cross-sell opportunities into Zero-Trust and SASE bundles.

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By Deployment Mode: Hybrid Gains Momentum Amid Cloud Leadership

Cloud deployment held 58.8% of 2024 revenue, favored for its elastic scale and native integration. Microsoft Azure Application Gateway achieved a 99.95% SLA, making platform services attractive for greenfield applications. The hybrid segment, however, is forecast for the highest 11.3% CAGR as enterprises retain sensitive workloads on-premises. The application gateway market share for hybrid models climbs as firms seek uniform policy orchestration from edge to core while avoiding wholesale re-platforming.

Partnerships such as F5–NetApp–Red Hat simplify overlay networks that span data centers and multiple clouds. Enterprises rely on policy-driven traffic steering to balance latency, compliance, and cost, cementing gateways as the connective tissue in distributed architectures.

By Organization Size: SME Acceleration Challenges Enterprise Dominance

Large enterprises represented 65.3% of the application gateway market in 2024, thanks to complex portfolio needs and regulatory mandates. The application gateway market size attributable to SMEs, though smaller, is poised for a 12.8% CAGR as affordable SaaS gateways remove hefty capital outlays. VMware’s SD-WAN-as-a-service illustrates tailored bundles delivering bandwidth optimization and built-in security for resource-constrained firms.

SMEs nevertheless face budget headwinds and limited staff; 71% already host workloads in public clouds yet lack comprehensive gateway governance, underscoring a growing managed-service opportunity.

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By End-user Industry: Retail E-commerce Drives Digital Commerce Security

IT and telecommunications drove 28.2% of 2024 spend, benefiting from inherent demand for carrier-grade application delivery. Retail and e-commerce is projected for the fastest 11.6% CAGR as omnichannel platforms expose extensive APIs that require granular security. BFSI maintains robust adoption because transaction integrity is critical and regulatory audits are stringent. Healthcare providers accelerate investment in response to FDA guidance on medical device cybersecurity; Medcrypt’s Guardian integrates with RTI Connext to protect authentication and data integrity across hospital networks.

Industrial verticals—manufacturing and energy—expand uptake to safeguard OT networks merging with IT systems under Industry 4.0 initiatives. Government agencies invoke Zero-Trust mandates, making gateways essential for user-centric access to citizen services.

Geography Analysis

North America sustained 38.1% revenue leadership in 2024, underpinned by expansive enterprise IT footprints and regulatory frameworks that favor rapid security refresh cycles. Federal directives on Zero-Trust and quantum-ready encryption accelerate purchase orders, while high breach costs sharpen C-suite focus on Layer-7 protections. The region contends with the deepest cyber-talent shortage, nudging buyers toward managed service models to close operational gaps.

Asia-Pacific represents the fastest expanding block with a 12.4% CAGR to 2030. Nations such as India, China, and Japan launch substantial public–private cloud and data-center investments that spur adoption of advanced traffic-management and security stacks. An AI language-model uptake of 60% across enterprises intensifies bandwidth demand, increasing reliance on gateways that optimize east-west and north-south traffic while enforcing API governance. Fragmented regulatory landscapes across APAC necessitate flexible policy engines that segment data residency and privacy requirements on a per-country basis, favoring vendors capable of granular, rule-based routing.

Europe follows with steady growth tied to GDPR compliance and data-sovereignty mandates. Application gateways that offer built-in geo-fencing and granular cross-border controls gain preference among enterprises coping with divergent interpretations of privacy law after Brexit. Industrial economies in Germany and France integrate gateways into OT networks to protect connected machinery, while Nordic countries add quantum-safe encryption to critical-infrastructure rollouts. Edge data centers proliferate, prompting demand for distributed policy enforcement to keep latency below 20 ms for real-time analytics.

Latin America and the Middle East & Africa remain nascent but strategic. Digital-first banks in Brazil and Saudi Arabia adopt cloud-native gateways to secure open-banking APIs, while 5G build-outs create fertile ground for telecom-centric gateway services. Limited cyber-talent pools and economic volatility suppress immediate scale, yet managed-security models lower upfront spending hurdles. As local compliance regimes mature, vendors that bundle advisory and implementation services position themselves for accelerated uptake beyond 2027.

Application Gateway Market
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Competitive Landscape

Established vendors pursue platform consolidation to integrate load balancing, WAAP, and observability in a single control plane. F5 posted USD 731 million revenue in Q2 2025, with systems revenue up 27%, reflecting success in hybrid multicloud orchestration. Cloudflare pairs its global network with Kyndryl’s managed-services expertise to win transformation deals that embed Zero-Trust policies across multi-cloud estates.

Akamai deepens cloud-infrastructure capabilities after acquiring Linode and select Edgio assets, adding 4,200 points of presence to support AI inference workloads at 3× throughput with 60% lower latency. Concurrently, the firm exited China CDN operations, opening whitespace for regional providers to capture local-compliance-focused clients. Strategic moves highlight how regional regulation shapes go-to-market tactics.

Disruptive entrants bet on API-first and edge-native architectures. Start-ups emphasize developer-friendly policy-as-code and AI-driven anomaly detection. Patent filings reveal innovation in low-latency path failover and offloaded AI/ML traffic steering, aiming to differentiate on performance and resilience. Competitive intensity intensifies as hyperscale clouds expand proprietary gateway services with bundled economics, pressuring independent suppliers to focus on open standards, deep observability, and value-added managed offerings.

Application Gateway Industry Leaders

  1. Akamai Technologies Inc.

  2. Amazon Web Services Inc.

  3. A10 Networks Inc.

  4. Barracuda Networks LLC

  5. Check Point Software Technologies Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • June 2025: Akamai launched an industry-first DNS posture-management service with agentless detection and 24/7 managed SOC support, targeting enterprises seeking integrated prevention and compliance.
  • March 2025: Akamai introduced Cloud Inference, leveraging 4,200 PoPs to deliver 3× higher throughput and 60% lower latency for AI workloads.
  • March 2025: Honeywell partnered with Verizon to embed 5G in smart meters, adding real-time grid telemetry protected by gateway-driven encryption.
  • February 2025: Akamai signed a USD 100 million multi-year cloud-computing contract with a global technology company that includes managed Kubernetes and application-gateway security.
  • January 2025: Akamai discontinued CDN services in China, shifting its regional focus to edge security portfolios.
  • December 2024: Akamai acquired select Edgio customer contracts and patents, expecting USD 80–100 million in additional 2025 revenue.

Table of Contents for Application Gateway Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surge in automated Layer-7 DDoS and bot attacks
    • 4.2.2 API-centric digital transformation among enterprises
    • 4.2.3 Rapid shift toward Zero-Trust and SASE architectures
    • 4.2.4 Cloud-native application explosion
    • 4.2.5 Edge computing adoption demands distributed gateways
    • 4.2.6 Quantum-resistant encryption R&D shaping roadmap
  • 4.3 Market Restraints
    • 4.3.1 Skills gap in full-stack application security operations
    • 4.3.2 Interoperability issues across multi-cloud and hybrid environments
    • 4.3.3 Budget compression in SMBs is delaying gateway refresh
    • 4.3.4 Emerging privacy regulations complicating cross-border traffic
  • 4.4 Regulatory Landscape
  • 4.5 Technological Outlook
  • 4.6 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry
  • 4.7 Impact of Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Offering
    • 5.1.1 Solutions
    • 5.1.1.1 Web Application Firewall (WAF)
    • 5.1.1.2 API Gateway / WAAP
    • 5.1.1.3 Load Balancer / ADC
    • 5.1.1.4 Secure Access Service Edge (SASE) Gateway
    • 5.1.2 Services
  • 5.2 By Deployment Mode
    • 5.2.1 On-Premise
    • 5.2.2 Cloud
    • 5.2.3 Hybrid
  • 5.3 By Organization Size
    • 5.3.1 Small and Medium Enterprises
    • 5.3.2 Large Enterprises
  • 5.4 By End-user Industry
    • 5.4.1 BFSI
    • 5.4.2 IT and Telecommunications
    • 5.4.3 Retail and E-commerce
    • 5.4.4 Healthcare and Life Sciences
    • 5.4.5 Government and Public Sector
    • 5.4.6 Manufacturing
    • 5.4.7 Energy and Utilities
    • 5.4.8 Education
    • 5.4.9 Other End-user Industries
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Russia
    • 5.5.3.7 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 India
    • 5.5.4.3 Japan
    • 5.5.4.4 South Korea
    • 5.5.4.5 Singapore
    • 5.5.4.6 Malaysia
    • 5.5.4.7 Australia
    • 5.5.4.8 Rest of Asia-Pacific
    • 5.5.5 Middle East
    • 5.5.5.1 United Arab Emirates
    • 5.5.5.2 Saudi Arabia
    • 5.5.5.3 Turkey
    • 5.5.5.4 Israel
    • 5.5.5.5 Rest of Middle East
    • 5.5.6 Africa
    • 5.5.6.1 South Africa
    • 5.5.6.2 Nigeria
    • 5.5.6.3 Egypt
    • 5.5.6.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Akamai Technologies Inc.
    • 6.4.2 Amazon Web Services Inc.
    • 6.4.3 A10 Networks Inc.
    • 6.4.4 Barracuda Networks LLC
    • 6.4.5 Check Point Software Technologies Ltd.
    • 6.4.6 Citrix Systems Inc.
    • 6.4.7 Cloudflare Inc.
    • 6.4.8 Cisco Systems Inc.
    • 6.4.9 Fastly Inc.
    • 6.4.10 F5 Inc. (incl. NGINX)
    • 6.4.11 Forcepoint LLC
    • 6.4.12 Fortinet Inc.
    • 6.4.13 Imperva Inc.
    • 6.4.14 Kemp Technologies (Progress Software)
    • 6.4.15 Kong Inc.
    • 6.4.16 Microsoft Corporation
    • 6.4.17 Netskope Inc.
    • 6.4.18 Orange Business Services SA
    • 6.4.19 Palo Alto Networks Inc.
    • 6.4.20 Radware Ltd.
    • 6.4.21 SAP SE
    • 6.4.22 Snapt (Amplify) Inc.
    • 6.4.23 Tyk Technologies Ltd.
    • 6.4.24 WSO2 LLC
    • 6.4.25 Zscaler Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Application Gateway Market Report Scope

The study of the application gateway market has considered the varied offerings for both solutions and services by vendors in the market. Additionally, these vendors are focusing on offering end-user specific application gateway solutions for a wide range of end-user verticals, globally.

By Offering Solutions Web Application Firewall (WAF)
API Gateway / WAAP
Load Balancer / ADC
Secure Access Service Edge (SASE) Gateway
Services
By Deployment Mode On-Premise
Cloud
Hybrid
By Organization Size Small and Medium Enterprises
Large Enterprises
By End-user Industry BFSI
IT and Telecommunications
Retail and E-commerce
Healthcare and Life Sciences
Government and Public Sector
Manufacturing
Energy and Utilities
Education
Other End-user Industries
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Singapore
Malaysia
Australia
Rest of Asia-Pacific
Middle East United Arab Emirates
Saudi Arabia
Turkey
Israel
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
By Offering
Solutions Web Application Firewall (WAF)
API Gateway / WAAP
Load Balancer / ADC
Secure Access Service Edge (SASE) Gateway
Services
By Deployment Mode
On-Premise
Cloud
Hybrid
By Organization Size
Small and Medium Enterprises
Large Enterprises
By End-user Industry
BFSI
IT and Telecommunications
Retail and E-commerce
Healthcare and Life Sciences
Government and Public Sector
Manufacturing
Energy and Utilities
Education
Other End-user Industries
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Singapore
Malaysia
Australia
Rest of Asia-Pacific
Middle East United Arab Emirates
Saudi Arabia
Turkey
Israel
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
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Key Questions Answered in the Report

What is the current application gateway market size?

The application gateway market size stands at USD 3.03 billion in 2025, with a projected rise to USD 4.83 billion by 2030.

Which segment is growing fastest in the application gateway market?

Services, encompassing professional and managed offerings, exhibit the highest 12.6% CAGR through 2030.

Why are hybrid deployments gaining traction?

Enterprises balance cloud scalability with on-premises compliance, driving an 11.3% CAGR for hybrid models that maintain uniform security controls across environments.

What is the main driver behind increased application gateway adoption?

Surging automated Layer-7 DDoS and bot attacks require advanced gateways that combine behavioral analytics and API security at scale.

Which region leads growth in the application gateway market?

Asia-Pacific is forecast for the fastest 12.4% CAGR, propelled by large-scale digital-infrastructure investments and rising AI traffic demands.

How consolidated is the competitive landscape?

The top five vendors control a bit more than 60% of global revenue, reflecting moderate consolidation and ample space for niche innovators.

Application Gateway Market Report Snapshots