Application Hosting Market by Hosting Type (Managed, Cloud, & Colocation), Service Type, Application Type (Web-based, Mobile), Organization Size, Vertical, and Region (North America, Europe, APAC, Latin America, MEA) - Global Forecast to 2027

Application Hosting Market by Hosting Type (Managed, Cloud, & Colocation), Service Type, Application Type (Web-based, Mobile), Organization Size, Vertical, and Region (North America, Europe, APAC, Latin America, MEA) - Global Forecast to 2027

The application hosting market is projected to grow from USD 66.9 billion in 2022 to USD 121.7 billion by 2027, at a CAGR of 12.7% during the forecast period. Application hosting vendors provide an environment for building applications, making it easy for businesses to get their applications up and running. Depending on the type of solution, a complete range of processes and responsibilities can be delegated to the hosting vendors increasing the adoption of application hosting solutions.

By organization size, the SMEs segment is projected to register a higher CAGR during the forecast period

SMEs is a faster-growing segment in the application hosting market compared to large enterprises. Most of these organizations lack the funds to build their infrastructure and employ resources to manage these infrastructures. Cloud hosting services empower these organizations to host their applications, leveraging the infrastructure of some other service provider at an affordable cost. Features such as flexibility, disaster recovery, automatic updates, CAPEX free, collaboration, document control, and security encourage SMEs to host their applications in the cloud environment at a rapid pace.

Web-based application type is estimated to account for the largest market share in 2022

Web technologies are changing rapidly with the evolution of new technologies. These technologies are reshaping enterprise business applications. Enterprises understand the importance of web-based applications, and hence, invest more in this segment to gain a competitive advantage. Moreover, enterprises are incorporating the latest technologies, such as AI chatbots, motion UI, blockchain, Augmented Reality (AR), and push notifications, in their web-based applications.

Among regions, the market in Asia Pacific is projected to register the highest CAGR during the forecast period

The growth of the application hosting market in Asia Pacific is highly driven by technological advancements across the region. China is anticipated to be the leading market for application hosting solutions in this region. The existence of a large population and developing infrastructure and technology are major factors contributing to the growth of the application hosting market in Asia Pacific. The rapid rise in technology adoption by various verticals live retail and e-commerce, BFIS is driving the demand for application hosting solutions in the region.

Breakdown of primaries

In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the application hosting market.

By Company Type: Tier I: 35%, Tier II: 45%, and Tier III: 20%

By Designation: C-Level Executives: 35%, Directors: 25%, and others: 40%

By Region: North America: 45%, Europe: 20%, Asia Pacific: 30%, RoW: 5%

The report includes the study of key players offering application hosting solutions and services. It profiles major vendors in the application hosting market. The major vendors in the application hosting market include AWS (US), IBM (US), Google (US), Rackspace (US), Microsoft (US), Liquid Web (US), Sungard AS (US), DXC Technology (Ireland), Apprenda (US), Navisite (US), Spectrum Enterprise (US), Capgemini (France), DigitalOcean (US), Oracle (US), NEC Corporation (Japan), Bluehost (US), HostGator (US), Netmagic Solutions (India), GreenGeeks (US), Cloudways (Malta), Hostwinds (US), Serverspace (Netherlands), Hostarium (UK), Appfleet (Poland), and BoltFlare (UK).

Research Coverage

The market study covers the application hosting market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as hosting type, service type organization size, application type, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key Benefits of Buying the Report

The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall application hosting market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights better to position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.