Application Gateway Market Trends

Application Gateway Market Overview

The Application Gateway Market is projected to grow from USD 2.97 billion in 2024 to USD 5.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.95% during the forecast period (2024 - 2032). Additionally, the market size for Application Gateway was valued at USD 2.7 billion in 2023.

Increased demand for secure networks, a growing number of different application layer attacks, and adopting cloud-based applications are the key market drivers enhancing the market growth.

Application Gateway Market Trends

Growing demand for secure networks is driving the market growth

Market CAGR for application gateway is driven by the rising demand for secure networks. Damage to expensive property is an effect of inadequate network protection systems. Unauthorized access to employer’s or individual’s records is provided by hacking.

Additionally, as the internet and global computer networks expand, record integrity has emerged as one of the most crucial factors to remember. One of the most important factors while working remotely for small and large enterprises is the network’s overall safety and security. The majority of cyber-attacks committed against an organization can also cause network failures and downtimes; due to these protracted network outages, firms may be forced to halt operations, which could result in a loss of sales. The longer the network is down, the more money is wasted on missed income, the more revenue is lost. Over time the organization may come off as unreliable and lose its reputation. These worries have led to increased investment in network security improvements related to app gateway solutions.

The energy to quickly anticipate utility-layer DDoS attacks emphasizing Internet-going through offerings is important for commercial organization steadiness and achievement. When Internet-Facing offerings are cooperated due to DDoS attacks, the outcome can be excessive and feature good-sized corporate consequences. The exact cost of downtime depends on the company’s reliance on its online offerings. When assuming the price of downtime, the company’s requirement to think about at the least the subsequent as when online offerings pass down, the productivity of employees and companies that use or depend upon those services can be notably decreased.

Moreover, cloud-based applications are more vulnerable to attack than traditional on-premise applications, exposing them to a wider attack surface. Application gateways can support protecting cloud-based applications from numerous attacks, such as cross-site scripting (XSS) attacks, denial-of-service (DoS) attacks, and SQL injection attacks. Thus, driving the Application Gateway market revenue.

Application Gateway Market Segment Insights

Application Gateway Component Insights

The global Application Gateway market segmentation, based on components, includes solution and service. The solution segment generated the maximum market revenue. The application gateway market participants focus on developing innovative and new solutions to address security risks and phishing attempts against employees, as well as advanced persistent threats, ransom ware, denial-of-service attacks, and securing mobile devices allowed for employees.

Application Gateway Organization Size Insights

The global Application Gateway market segmentation, based on organization size, includes large enterprise and small & medium-sized enterprise. Small & medium-sized enterprises generated the most income. The top security concerns for these companies are targeted phishing attacks against employees, ransomware, advanced persistent threats, denial-of-service attacks, and the increase of employees allowed to use their mobile devices. For SMEs, one break often puts a victim out of corporate. It has raised the alarm for SMEs to take on security solutions, such as application gateway and firewalls.

Application Gateway Vertical Insights

The global Application Gateway market segmentation, based on vertical, includes BFSI, manufacturing, government, IT & Telecommunication, retail and healthcare. The BFSI category generated the most income due to the strong growth of present financial service enterprises and new entities entering the market. Enterprises constantly introduce financial products backed with cutting-edge technologies to boost business operations and increase their customer base. Technological enhancements in the BFSI sector make the industry a lucrative fraud target. Organizations in the BFSI industry vertical require security products and services to protect employees, assets, customers, offices, operations, and branches. With smart and mobile banking facilities, BFSI companies must prioritize application gateway security solutions. Attacks such as SQL injection, cross-site scripting, forceful browsing, cookie, poisoning, botnets, and Distributed Denial Service (DDoS) have been practiced in the BFSI industry vertical. The BFSI industry vertical provides services through the web or financial service applications.

Application Gateway Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Application Gateway market will dominate, owing to growing data breaches and security threats. In addition, the adoption of the latest cyber-security technology and infrastructure will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe's Application Gateway market accounts for the second-largest market share due to the growing Internet penetration, and the migration of organizations to cloud-based infrastructure has increased the possibility of cyber-attacks. Further, the German Application Gateway market held the largest market share, and the UK Application Gateway market was the fastest-growing market in the European region.

The Asia-Pacific Application Gateway Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rising adoption of mobile devices and the internet and growing investments in IT infrastructure. Moreover, China’s Application Gateway market held the largest market share, and the Indian Application Gateway market was the fastest-growing market in the Asia-Pacific region.

Application Gateway Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Application Gateway market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Application Gateway industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the global Application Gateway industry to benefit clients and increase the market sector. In recent years, the Application Gateway industry has offered some of the most significant advantages to technology. Major players in the Application Gateway market, including Microsoft Corporation (US), F5 Networks Inc. (US), Forcepoint (US), Akamai (US), Barracuda Networks (US), Orange S.A. (France), SAP SE (Germany), Palo Alto Networks Inc. (US), Imperva (US), Kemp Technologies Inc. (US), Citrix Systems Inc. (US), Zscaler Inc. (US), and others, are attempting to increase market demand by investing in research and development operations.

Microsoft supports digital transformation in the age of the intellectual cloud and edge. Its goal is to enable each individual and every organization to do more. To hasten the digital transformation of Indian start-ups, businesses, and governmental institutions, Microsoft provides local data centers in India with access to its global cloud services. The Microsoft India Development Center (MSIDC), which is situated in Hyderabad, is Microsoft’s biggest software development facility outside of its Redmond, Washington, headquarters. The MSIDC teams concentrate on developing software products that are sensitive to IP. For Instance: In June 2019, Microsoft Corporation launched its customer rules for its Azure Application Gateway Firewall (WAF). With this development, the business allows clients to create their own rules using string-based matching conditions, Internet Protocol (IP), IP Range, or both.

Orange Business, the business services division of Orange S.A., is a global integrator of communications solutions and services for international organizations. Orange Business Services changed to Orange Business on February 16, 2023. Orange Business provides integrated communications services and products to multinational corporations in cloud computing, unified communications, collaboration, big data, the Internet of Things, and artificial intelligence; these services and products help manage and integrate the complexity of global communications and software applications. The existing France Telecom companies of Equant and Wanadoo were rebranded and combined to form Orange Business on June 1, 2006. Orange Business has also acquired industry leaders in Analytics, Data Science, Cloud, and other fields such as Business & Decidsion and Basefarm in recent years. For Instance: In January 2020, Orange Business Services announced that it had successfully acquired SecureLink, a European supplier to the cyber-security sector. With this acquisition, the corporation intended to increase its global footprint and cyber-security skills.

Key Companies in the Application Gateway market include

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  Microsoft Corporation (US)

  
  


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  F5 Networks Inc. (US)

  
  


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  Forcepoint (US)

  
  


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  Akamai (US)

  
  


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  Barracuda Networks (US)

  
  


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  Orange S.A. (France)

  
  


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  SAP SE (Germany)

  
  


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  Palo Alto Networks Inc. (US)

  
  


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  Imperva (US)

  
  


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  Kemp Technologies Inc. (US)

  
  


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  Citrix Systems Inc. (US)

  
  


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  Zscaler Inc. (US)

  
  

Application Gateway Industry Developments

April 2022: Barracuda Networks Inc. may now be purchased by investment funds of KKR, a well-known international investment company, thanks to signing a binding agreement. For the industry leader in cloud computing, Barracuda, Thoma Bravo, a renowned software investment business, provides security solutions.

May 2019: F5 Networks acquired NGINX, an open-source application delivery and load-balancing solution provider. This acquisition enables F5 Networks to offer multi-cloud application services across all environments.

Application Gateway Market Segmentation

Application Gateway Component Outlook

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  Solution

  
  


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  Service

  
  

Application Gateway Organization Size Outlook

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  Large enterprise

  
  


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  Small & Medium Enterprise

  
  

Application Gateway Vertical Outlook

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  BFSI

  
  


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  Manufacturing

  
  


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  Government

  
  


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  IT & Telecommunication

  
  


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  Retail

  
  


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  Healthcare

  
  

Application Gateway Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America

    
    
  
  
  
  

The Global Application Gateway Market was valued at USD 4.5 Billion in 2030 and is expected to register a CAGR of 10.10% during the forecast period.

An application gateway is a type of technology that provides security for computer networks. It runs on the firewall and protects the network from illegal traffic and unauthorized access, providing a secure connection to the clients. The major driving factors for the growth of the application gateway market are increasing demand for secure networks, increasing the frequency of different application-layer attacks, and security concerns among the enterprises. Enterprises require secure networks for the efficient and proper working of their business. The applications and information transmitted over an unprotected network can cause various types of attacks such as spyware, phishing, and worms. The application gateway provides application-layer security for the enterprises of all verticals including BFSI, IT & telecommunication, retail, government and others using IT  infrastructure. The increasing adoption and use of artificial intelligence (AI), the Internet of Things (IoT), and software-defined network technologies are creating significant opportunities for the growth of the application gateway market during the forecast period.

Market Segmentation

The Global Application Gateway Market has been segmented based on Component, Organization Size, Vertical, and Region/Country.

By Component, the Global Application Gateway Market has been divided into solution and service. The service segment has been broken down into three sub-segments: consulting, integration and deployment, and support and maintenance.

Based on organization size, the global application gateway market has been divided into small- and medium-sized enterprises (SMEs) and large enterprises.

On the basis of vertical, the global application gateway market has been divided into BFSI, manufacturing, government, IT & telecommunication, retail, healthcare, and others.

The Global Application Gateway Market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

Regional Analysis

The Global Application Gateway Market is estimated to register a CAGR of 11.2% over the forecast period. The geographic analysis of the global application gateway market has been done for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

North America accounted for the largest market share due to the ever-rising number of cyber attacks and the increasing need for data security by the large as well as small- and medium-sized enterprises. The US leads the market in North America followed by Canada and Mexico due to the early adoption of technology and the growing need for effective management of IT risk and compliance monitoring.

Europe is expected to be the second-largest market during the review period. The rising Internet penetration and migration of the enterprises to cloud-based infrastructure have increased the number of vulnerabilities and increased the possibility of cyberattacks. Asia-Pacific is expected to be the fastest-growing regional segment in the global application gateway market during the forecast period. The markets in countries such as China and Japan are expected to increase at a fast pace in the coming years.  

Competitive Analysis

The Global Application Gateway Market is registering high growth due to the rise in demand from various verticals such as banking, financial services, and insurance, telecom and IT, healthcare, government, and others. Major players are partnering with enterprises as a part of their inorganic strategy and launching new products as a part of their key organic growth strategy to enhance their position in the market and cater to the demands of end-users across verticals. For instance, in December 2019, Microsoft Corporation launched Azure Kubernetes Service (AKS) and application gateway solution. The new solution offers an open-source application gateway ingress controller (AGIC) for Kubernetes, making it possible for its customers to leverage application gateway for launching their cloud software on the Internet. In March 2019, F5 Networks acquired NGINX, a commercial provider of an open-source web server with the same name. With this acquisition, F5 Networks would strengthen its application security and rich application services portfolio.

Key Players

The Key Players in the Global Application Gateway Market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include Microsoft Corporation (US), F5 Networks Inc (US), Forcepoint (US), Akamai (US), Barracuda Networks (US), Orange S.A. (France), SAP SE (Germany), Palo Alto Networks, Inc. (US), Imperva (US), Kemp Technologies, Inc. (US), Citrix Systems, Inc (US), Zscaler, Inc. (US), Snapt (US), Avi Networks (US) and Aculab (US). The key strategies adopted by most of the players are partnerships, agreements, and collaborations.

Intended Audience

• Application security solution vendors


• Value-added resellers (VARs)


• System Integrators (SIs) and aggregators


• Cybersecurity testers and auditors


• IT managers


• Application End-Users


• Application developers


• Cybersecurity consultants