Report

The application delivery controllers market is expected to register a CAGR of 9.16% over the forecast period. Due to the increasing adoption of cloud-based services, investment in the market studied rose. The market investments have been mainly targeted toward innovations, investments by venture capitalists, and strategic partnerships. Vendors launched innovative activities to launch new products for different kinds of enterprises.

Key Highlights
Service providers and enterprises have considered ADC a crucial enabler driving digital transformation and unlocking operational efficiencies. Advances in ADC hardware and solution platform enable exponential growth efficiencies generated by cloud computing, and cloud-based applications are expected to shape ADC adoption throughout the forecast period.
Moreover, market vendors continuously invest in R&D activities to introduce innovative product offerings to gain more market presence and customer base. For instance, in August 2022, F5 announced the launch of new traffic management and security solution designed to offer better control over its customers' fleets of NGINX instances. The newly launched F5 NGINX Management Suite 1.0 has a centralized dashboard to provide high visibility and control of NGINX instances, API management workflows, application delivery services, and security solutions.
Furthermore, with the increase in distributed denial-of-service (DDoS) attacks disrupting enterprise servers, companies can rely upon ADCs to set limits on requests and traffic hitting a single internal server resource. According to the Cisco Visual Networking Index, DDoS attacks were anticipated to reach around 14.5 million by 2022. Technology evolutions and digitalization across the end-user industries drove the demand for ADC globally.
In addition, several market vendors are working on innovative solutions to tap into the growing SME sector globally, looking for cost-effective cloud-enabled solutions for their businesses. Such instances are further expected to drive the demand for investments in the market studied for cost-effective solutions. For instance, in August 2021, Snapt, an application security, visibility, and control company, launched Nova Version 2, the second generation of Snapt's centralized ADC platform.? The new cloud-based ADC includes a load balancer, WAF, GSLB, and web accelerator. Nova is a hyper-scale-ready, centralized platform for deploying, controlling, and monitoring ADCs at scale.
Additionally, with the COVID-19 pandemic, application visibility and management took on even more importance as remote workers quickly changed their working environments to maintain staff productivity from any place. This is expected to boost the market for application delivery controllers over the forecast period.


Application Delivery Controllers Market Trends

BFSI is Expected to Hold Significant Share


The demand for ADCs in the BFSI sector is witnessing an upward trend as the BFSI industry is rapidly embracing digital transformation and updating its legacy infrastructure. The increasing technological penetration, combined with digital channels, such as internet banking, mobile banking, digital wallets, and real-time payments, is becoming a preferred choice for banking services. There is a more critical requirement for banks to leverage advanced authentication and access control processes.
The digital ecosystem surrounding a bank is increasing at a rapid pace. With the constant change in consumer demand, there has been pressure on the banks to customize their product offerings according to their needs. Moreover, consumers embracing a mobile lifestyle and socializing on digital platforms expect banks to connect with them on the same media.? This is increasing the demand for application delivery controllers in the BFSI sector.
As financial organizations worldwide are increasingly adopting hybrid cloud, public cloud, and multi-cloud strategies to meet the need for compliance, competition, and modernization, the demand for application delivery controllers is anticipated to grow in the coming years. According to F5's the State of Application Strategy Report- Financial Services Edition for 2022, 69% of financial services organizations in the Asia-Pacific region have deployed multi-cloud strategies.
Moreover, the increasing number of cyber attacks in the BFSI industry worldwide induced the need for an application delivery network for better visibility and enhanced security. To cater to such demands, vendors in the market, such as Citrix, offers ADC to integrate with web applications' firewall and ensure protection against cyberattacks. The solution depends on high SSL performance with TLS 1.3 to meet the strict security regulations worldwide.
WhiteSight said the most valued independent neobank in 2021 was Brazilian Nubank, at USD 45 billion, thus stealing the position from Chime - the highest-valued independent digital bank in 2020. Chime was valued at around USD 14.5 billion in 2020, while Nubank was second that year, with USD 10 billion. Chime also increased its value in 2021 to USD 25 billion, making it the third most-valued independent neobank, after Nubank and Revolut.


Asia-Pacific is Expected to Witness Highest Growth


The Asia-Pacific region is expected to register the highest growth rate over the forecast period. The rapid increase in cloud computing in this region is expected to be a significant driver for cloud-based application delivery controllers.?
Government organizations and financial institutions are spending on ADCs, owing to the increasing digitalization in the banking ecosystem and the digital payments space, to support the ever-expanding traffic. Moreover, with the rapid cloud migration and the shift to remote work in countries like India, organizations need protection beyond traditional firewalls, boosting the need for ADC.
Moreover, the best healthcare system in the Asia-Pacific area is available in Singapore, which is regarded as the region's medical and healthcare center. Over 23 hospitals and healthcare facilities in Singapore have received accreditation from the Joint Commission International (JCI). More than 350,000 individuals go to Singapore annually to receive high-quality medical care. Such potential would boost cloud applications' use and fuel market expansion during the anticipated term.
In addition, the increasing internet users and data traffic in countries like China, India, and Indonesia further augment the growth of ADC solutions in the region. With the evolving digital era, market vendors are offering more innovative network solutions and products for end users, ensuring they have the best technology experience, thereby driving the market segment.
For instance, in June 2022, Cyber security and application delivery solutions provider Radware and managed security service provider OneSecure announced the expansion of their collaboration agreement. To enhance OneSecure's Webyith defacement and domain phishing monitoring service for the ASEAN enterprises, the MSSP announced the development of the cyber security suite to include Radware's Application Protection-as-a-service offering and Cloud DDoS Protection Service. OneSecure's security suite includes Radware's DefensePro solution for automated DDoS protection and Radware's Alteon application delivery controller, which protects applications while optimizing application performance and delivery.


Application Delivery Controllers Market Competitor Analysis

The competitive rivalry in the application delivery controllers market is high due to significant players like Array Networks Inc., Barracuda Networks, Citrix Systems, Fortinet, etc. The demand in this industry is dominated by end-user verticals such as healthcare, retail, etc. Players in the ADCs market are continuously innovating and making various product innovations, acquisitions, and strategic mergers to gain competitive advantages over other players.

In September 2022, AppViewX, the leader in automated machine identity management (MIM) and application infrastructure security, announced that the company joined F5's Technology Alliance Program (TAP). Through the partnership, F5 and AppViewX will jointly promote enterprise application security and delivery solutions focused on managing applications and ensuring cybersecurity across on-premises, cloud, and edge locations.

In April 2022, Akamai launched the Linode Managed Database service powered by Linode with support for MySQL, PostgreSQL, Redis, and MongoDB. Akamai's Linode Managed Database simplifies database deployment, helping developers reduce risk, increase efficiency, and minimize the complexity of manual management of production database clusters.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support