Application Gateway Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, UK, Germany, Japan - Size and Forecast 2024-2028

Application Gateway Market Size 2024-2028 

The application gateway market size is forecast to increase by USD 1.04 billion at a CAGR of 8.51% between 2023 and 2028. In today's digital age, businesses are increasingly relying on mobile commerce (m-commerce) to reach customers and expand their market reach. However, this shift towards m-commerce comes with its own set of challenges. The rise in the number of application-layer attacks poses a significant threat to mobile networks and user data. Hackers are constantly finding new ways to exploit vulnerabilities and gain unauthorized access to sensitive information. Furthermore, the surge in demand for secure networks has become a top priority for businesses to ensure customer trust and protect their brand reputation. Implementing robust security measures, such as multi-factor authentication and encryption, can help mitigate these risks and provide a secure mobile shopping experience for consumers.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing significant growth due to the increasing adoption of cloud-based applications and digitization. With the rise of digital transformation, businesses are shifting their applications to the cloud to enhance flexibility and scalability. However, this shift brings new challenges, such as unauthorized access, cyber attacks, and loss of sales due to cyber breaches. Application Gateways play a crucial role in mitigating these risks by securing HTTP requests and maintaining record integrity. Cybercrimes have become a major concern for businesses of all sizes, leading to potential loss of sales and damage to reputation. McAfee reports that cyber attacks against small and medium-sized businesses have increased by 22% in the last year. Application Gateways provide an additional layer of security by filtering traffic and blocking malicious requests. Zoom, a leading video conferencing platform, recently experienced a cyber attack that compromised the personal data of its users. Such incidents highlight the importance of investing in robust application security solutions. The market is expected to continue its growth trajectory as businesses prioritize cybersecurity to protect their digital assets. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Increased use of m-commerce is notably driving market growth. The proliferation of cloud-based applications and the digitization of various industries have expanded the attack surface for cybercriminals, leading to an increase in application layer attacks such as unauthorized access, phishing attempts, ransomware, and data breaches.

Moreover, these security risks pose significant threats to organizations of all sizes, including large enterprises and mid-market companies, across verticals like healthcare, finance, and retail. The use of video communication platforms like Zoom has further amplified these risks. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Government initiatives is the key trend in the market. Application gateways play a crucial role in securing cloud-based applications and protecting organizations from various cyber threats, including application layer attacks, unauthorized access, data breaches, phishing attempts, and ransomware.

Moreover, with the increasing digitization and the growing number of IoT devices, the attack surface for cybercrimes is expanding, posing significant security risks for both large enterprises and mid-market companies. Governments worldwide recognize the importance of application gateways in mitigating these risks and ensuring secure and efficient access to applications and services. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Privacy and security concerns is the major challenge that affects the growth of the market. The market faces significant challenges in ensuring the security of cloud-based applications, particularly in the context of application layer attacks, unauthorized access, and data breaches. Cyber attacks, including phishing attempts, ransomware, and cybercrimes, pose substantial risks to organizations of all sizes, from large enterprises to mid-market companies.

Moreover, the digitization of various industries, from healthcare to video communication platforms like Zoom, expands the attack surface and increases the potential for privacy and security concerns. Solutions and services that address these risks are essential.  Hence, the above factors will impede the growth of the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Aculab Plc: The company offers application gateway such as ApplianX AP gateway.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Akamai Technologies Inc.
• Alphabet Inc.
• Amazon.com Inc.
• Cisco Systems Inc.
• Citrix Systems Inc.
• Cognizant Technology Solutions Corp.
• CyberArk Software Ltd.
• F5 Inc.
• Forcepoint LLC
• Imperva Inc.
• International Business Machines Corp.
• Kemp Technologies Inc.
• Microsoft Corp.
• Oracle Corp.
• Orange SA
• Wipro Ltd.
• Zscaler Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The large enterprises segment is estimated to witness significant growth during the forecast period. The market is a critical solution for securing cloud-based applications from various cyber threats. With the digitization of businesses and the increasing use of mobile devices and IoT devices, the attack surface has expanded, leading to an uptick in application layer attacks such as unauthorized access, phishing attempts, ransomware, and data breaches.

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The large enterprises segment was the largest segment and valued at USD 1.11 billion in 2018. These attacks pose significant security risks for organizations of all sizes, including large enterprises and mid-market companies, and can result in loss of sales, reputation damage, and cyber breaches. Healthcare vertical is a prime target for cybercrimes due to the sensitive nature of patient data. HTTP requests are a common entry point for attacks on web applications. Hence, such factors are fuelling the growth of tis segment during the forecast period.

By Region

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APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is a critical solution for securing cloud-based applications from various cyber threats. With the digitization of businesses and the increasing use of mobile devices, the attack surface has expanded, making organizations of all sizes, including large enterprises and mid-market companies, vulnerable to unauthorized access, application layer attacks, phishing attempts, ransomware, and data breaches. These risks can lead to significant consequences, such as loss of sales, reputation damage, and cybercrimes. Hence, such factors are driving the market in APAC during the forecast period.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user Outlook
  • Large enterprises
  • SMEs
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing robust growth driven by increasing demands for Cloud Based Applications and the need for Network Protection Systems against rising Security Threats. These systems play a crucial role in safeguarding Internet Facing Services and protecting against DDoS Attacks, which can lead to Network Failures and Downtimes. Commercial Organizations, including Small and Medium-Sized Enterprises (SMEs), Banking, Financial Services, and Insurance sectors, rely on these technologies for Secure networks and resilience against Advanced Persistent Threats and Denial of Service attacks.

The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) enhances Cyber Security Technology capabilities, ensuring proactive defense mechanisms against Breach attempts such as Phishing attacks and Data breaches. Application Gateway solutions encompass Software Defined Network Technologies, Firewall configurations, and Application layer gateways, providing robust protection for Network infrastructure and critical Security components. The market landscape depends on SQL injection, Cookie poisoning, Botnets, Distributed Denial of Service (DDoS), Data breach, Security vendors, Cybersecurity technology, Security component, Network Address Translation, Application layer gateway, Application proxy, Application level proxy, NAT traversal filters. Consulting services focus on Integration and Deployment, Support and Maintenance, and advising on Strengthening network security measures. As Financial Service Organizations embrace Smart banking technologies like Internet banking and Mobile banking, the market continues to innovate, mitigating risks associated with Cyberattacks and protecting Intellectual property through comprehensive security solutions.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies