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The enterprise application and integration market is estimated to increase by USD 17,242.64 million and to grow at a CAGR of 13.34% between 2022 and 2027. The growth of the market depends on several factors, including expansion in the number of connected devices in financial industries, exponential increase in data volumes, and globalization has enabled international integration with Business.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The enhanced efficiency of business processes is notably driving the market growth, although factors such as the growing challenges associated with integration may impede the market growth. Our researchers analyzed the data with 2022 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 Driver
The enhanced efficiency of business processes is a key factor driving market growth and in the past, big companies relied on software applications to deliver critical business services. Complex software manages everything, right from customer relationships to supply chains and business intelligence (BI). Business software, such as ERP systems, CRM, SCM, BI applications, and payroll and human resources systems, bring much-needed benefits to companies. They enable robust data collection and analysis, streamline business processes, and establish communication with customers, colleagues, and suppliers.
More companies are investing in enterprise application and as they realize the benefits and need to share information and applications between systems to enhance efficiency. It helps streamline processes and keep all elements of the enterprise interconnected. Linking different systems, processes, applications, business partners, and enterprise data helps attain seamless business operations. Such factors are expected to drive the growth of the global market during the forecast period.
Major Trend
The increased adoption of cloud-based integration solutions will fuel the global enterprise application and integration (EAI) market growth. Organizations are adopting cloud computing solutions to modernize their IT infrastructure through cost-effective and flexible solutions. Cloud computing solutions help organizations move their supply chain management (SCM) systems from the on-premises model to the cloud computing model to integrate with other back-office systems. The popularity of cloud-based services is increasing due to the availability of faster connectivity features to run multiple applications.
Cloud-based services enable enterprises to exchange data within or with outside enterprises for commercial applications. Cloud-based services are deployed in two forms, namely integration platform-as-a-service (iPaaS) and data platform-as-a-service (dPaaS). iPaaS includes a set of cloud-based integration solutions that enable enterprises to integrate back-office systems without installing physical IT infrastructure. dPaaS is an integration service for data management in organizations. It enables enterprises to access applications for the quick retrieval of data. Thus, the increased adoption of cloud-based integration solutions is one of the growing trends, which is expected to drive the growth of the global market during the forecast period.
Significant Challenge
The growing challenges associated with integration are a major challenge to the global enterprise application and integration (EAI) market growth. Integration issues arise when new enterprise application software is integrated with the existing application software infrastructure of an enterprise. The differences in the versions of application software, the OS, and hardware configurations are some of the common reasons behind system integration-related issues. Most organizations still use legacy and outdated software systems, applications, programming languages, and backend storage systems, which leads to interoperability issues while integrating new back-office systems with enterprise or front-end systems.
New application software comprises regulatory and compliance features due to the increasing regulatory pressures in the BFSI, telecom, healthcare, and other industry verticals. The integration of new application software with traditional ICT infrastructure makes it difficult to run all applications smoothly. Thus, growing challenges associated with integration are a major challenge for the growth of the global market during the forecast period.
Key Market Customer Landscape
The market research 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 growth strategies.
Global Market Customer Landscape
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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. The on-premises model segment will experience slow growth during the forecast period. The adoption of solutions requires investments to be made in product purchases, installation, maintenance, and upgrades. Furthermore, organizations need to incur investments in training an in-house IT workforce to support users of the software. The on-premises model is more secure than cloud solutions. The global market is dominated by large organizations that are concerned more about functionality than cost-effectiveness. These organizations mainly deal with critical data, so they increasingly prefer to rely on the on-premises model, as it is more secure due to end-to-end quality control and no third-party interference.
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The on-premises segment showed a gradual increase in market share, from USD 7,789.21 million in 2017 and continued to grow by 2021. Furthermore, on-premise deployments enable the real-time monitoring of business processes. Such deployments also ensure the complete security of enterprise data, such as source codes, version enhancements, and source code change histories, as they only require licensed or purchased copies of software solutions from independent software vendors. The growth of the on-premises model is volatile in nature due to the high switching costs involved in shifting from the on-premises to the cloud-based model. The emergence of SMEs, innovations in data security, inherent cost-effectiveness, and flexibility of the cloud-based model are expected to drive the adoption of cloud technologies during the forecast period, which is a major challenge for the growth of the on-premises segment in the global EAI market during the forecast period.
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North America is projected to contribute 32% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is a significant contributor to the growth of the global market, with enterprises adopting these solutions to gain better operational efficiency and survival in the highly competitive environment. Furthermore, the growing demand for cloud computing, which plays a significant role in the easy adoption and integration of multiple application software and service platforms, is driving the growth of the market in North America. In addition, the adoption of customer relationship management (CRM) via the cloud is common among North American organizations, which are increasingly utilizing the hybrid model of on-premises and cloud products to meet their business needs. Thus, the increased adoption of enterprise software and applications, coupled with the need for enterprise application integration, is expected to drive the growth of the market in North America during the forecast period.
However, the demand for these solutions increased during the lockdowns as most of the organizations adopted work from home model. Moreover, lockdown restrictions were relaxed in the second half of 2020 owing to large-scale vaccination drives conducted in North America. Additionally, the increasing digitalization of businesses and the availability of cloud-based enterprise application integration solutions will further boost the growth of the market in North America during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The market is driven by the need for businesses to streamline operations and improve efficiency. Existing systems are being integrated with automation technologies and cloud computing to enhance performance. However, restraints like the need for skilled labor and significant R&D investment hinder growth.
Technological advancements in middleware and supply chain management applications are reshaping the industry. Enterprise resource planning (ERP) systems, human resource management, and business intelligence systems are increasingly integrated, boosting operational efficiency. Payroll systems and other business systems are also being integrated for better functionality. The market is segmented by deployment type (cloud, hybrid), organization size (large enterprises, SMEs), and industry verticals (IT & Telecom, Retail, Manufacturing, etc.). Geographically, Asia Pacific and Latin America are emerging as key regions for market growth. CSPs are playing a crucial role in driving solutions for businesses, indicating a positive outlook for the market.
Enterprise Application and Integration Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.34% |
Market growth 2023-2027 |
USD 1,7242.64 million |
Market structure |
Fragmented |
YoY growth (%) |
13.16 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adeptia Inc., Atlassian Corp. Plc, Axway Software SA, Boomi LP, Carmatec IT Solutions Pvt. Ltd., Fiorano Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Informatica Inc., International Business Machines Corp., Microsoft Corp., Oracle Corp., Salesforce.com Inc., SAP SE, ScienceSoft USA Corp., SnapLogic Inc., Software AG, Talend Inc., TIBCO Software Inc., and Workato |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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