Global application development and integration market to reach almost $150 billion by 2020

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Application development and integration: Key market research findings

  • The Americas to dominate the market geographically
  • On-premise segment to account for a majority of the market’s revenue
  • Key vendors – Fujitsu, IBM, Microsoft, Oracle, and Red Hat

Technavio’s market research analysts predict the global application development and integration market to grow at a CAGR of almost 5% between 2016 and 2020. The market’s growth can be accredited to the consumerization of IT and growth of the mobile workforce. Employees in organizations are increasingly demanding access to corporate applications via their personal devices such as smartphones and tablets. As a result, these organizations are focusing on designing applications that can be delivered seamlessly to these devices, thus, enabling cloud-based integration. During 2015, the Americas dominated the global application development and integration market by accounting for almost 55% of the overall market share. Increased investments by organizations in modernization, functional expansion, and digital transformation projects in the region are factors that will contribute to the growth of the application development and integration market in the Americas during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the application development and integration segments based on the type of deployment.

“Currently, the market is witnessing a steady shift towards comprehensive suites and platforms. The increased demand for a single comprehensive platform that addresses all requirements such as emails, messaging, blogs, online communities, Internet Protocol (IP) telephony, and video conferencing is prompting vendors to move toward multi-level support. Besides, this can facilitate better and tighter integration between different collaboration applications, reduction in wastage of time, and an increase in productivity,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.

By 2020, the on-premise segment is expected to continue its dominance over the global application development and integration market by accounting for close to 79% of the overall market revenue. The on-premise software requires licensing for each server and end-user. The customer is responsible for the availability, security, and overall management of the on-premise software. On-premise software is costlier than cloud software but provides better security than the cloud software.

The key vendors in the market include Fujitsu, IBM, Microsoft, Oracle, and Red Hat. This market appears highly fragmented due to the presence of several diversified international, regional, and local players. The forecast period will witness the entry of several new cloud service providers and this, in turn, will intensify the level of competition among vendors. Enterprise application developers are constantly focusing on increasing their market shares through acquisitions and partnerships. Also, local and regional vendors are focusing on differentiating themselves by offering innovative cost-effective application development services and solutions.

A more detailed analysis is available in the Technavio report, Global Application Development and Integration Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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