According to a research report 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″ published by MarketsandMarkets, 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 many auxiliary solutions and services above the core offering that help companies address specific use cases, central to their businesses driving the adoption of application hosting solutions and services.

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Cloud hosting type is expected to register the fastest growth rate during the forecast period.

The cloud hosting model is evolving rapidly in the application hosting market. Enterprises including large enterprises and SMEs have adopted cloud hosting, as it enables them to focus on their core competencies, instead of spending their capital on appliance-based infrastructure. Using cloud hosting services, enterprises can avoid costs pertaining to hardware, software, storage, and technical staff. Cloud hosting offers a centralized way to secure web and mobile applications across an organization, throughout the application development lifecycle. Enterprises support all types of cloud environments, including private, public, and hybrid, with easy and automatic deployment, detection, and monitoring of cloud applications and services. There has been an upward trend in the hosting of cloud applications.

BFSI vertical estimated to account for the largest market share in 2022

The need to consolidate the cost of IT and infrastructure is driving the BFSI vertical to host its applications on the cloud. Migrating applications to the cloud provides the banking industry with agility and flexibility to deploy IT infrastructure and legacy systems in a cost-effective manner. Additionally, application hosting services enable banks and financial institutions to transform their commercial processes and grow gradually in new sectors and regions without spending heavily to establish a physical presence. Hosting services help in creating new markets and services for customers, and in gaining a competitive edge in the market.

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Asia Pacific likely to emerge as fastest-growing market during the forecast period.

Asia Pacific is projected to be the fastest-growing market for application hosting solutions due to the increase in the adoption of new technologies, rising investments in digital transformation, and growing GDP in Asia Pacific countries. The competition in this region is fragmented, and application hosting solution providers are looking at expanding the base of their operations to most countries in the region. In a bid to drive better migration and adoption of the cloud environment, governments are significantly contributing toward the deployment of cloud services. Asia Pacific constitutes major countries, including China, India, Japan, and the rest of Asia Pacific, which are increasingly contributing toward the development of mobile and web-based application hosting in the market.

Market Players

The major vendors covered 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).

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