Application Hosting Market Research Report – Forecast to 2027

Global Application Hosting Market Research Report: By Hosting Type (Managed, Cloud, Colocation), Services Type (Database Administration, Backup & Recovery, Application Security), Application Type, Organization Size and by End-user - Forecast till 2027

ID: MRFR/ICT/5065-HCR | February 2021 | Region: Global | 100 pages

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Market Scenario

Application hosting is cloud-based on-demand software, refers to a computing and operating platform that allows continuous availability of software to the end user over the Internet. In other words, an application hosting is a type of software as a service (SaaS) solution that allows an individual to perform and operate a software application entirely from the cloud on a recurring subscription. Generally, the enterprises across all industry verticals need to develop and maintain connectivity infrastructure to run on-premises applications. However, the development of application hosting solutions allows enterprises to run their business applications on online platforms with continuous monitoring, software updates, and business continuity services.

Along with solution, application hosting allows various services for enterprises to run application monitoring, managed backup and security services, and others. Application monitoring offers critical solutions through a customized set of tools to identify threat issues and fix problems to eventually enhance the customer experience. These services also offers backup solution to safeguard its data on a regular basis. Furthermore, the application hosting services offer sophisticated solutions that increases its availability, dependability, security, scalability, and compliance thereby increasing the need for extensive hosting solutions with additional services driving the growth of global application hosting services market during the forecast period.

In 2017, Navisite, a part of Spectrum Enterprise, an international provider of cloud-enabled hosting, managed applications and services partnered with Cisco to deploy Cisco Application Centric Infrastructure (Cisco ACI). Though this deployment, Navisite can provide an advanced level of robust, scalable, and secure cloud services to its client to run its business applications. It also offers new customized services according to its clients’ requirements such as implanting a specific firewall or load balancer to meet the client’s needs within private cloud managed hosting environments.

On the other hand, enterprises mostly rely on third-party cloud hosting vendors to access their data which in turn are unable to provide immediate backup support during downtime. Therefore, limited functionality and control of the hosted application are limiting the growth of the market.

Global application hosting market is expected to reach approximately USD 82.17 billion by 2023 growing with a CAGR of 13.4% over the forecast period 2018-2023.

Key Players

Some of the prominent players of application hosting market include Amazon Web Services (US), IBM Corporation (US), Rackspace (US), Google LLC (US), LiquidWeb (US) Microsoft Corporation (US), Sungard AS (US), DXC Technology (US), Spectrum Enterprise (US), and Apprenda (US).


The application hosting market is differentiated by hosting type, service type, application type, organization size, and vertical.

By hosting type, the application hosting market is sub-segmented as managed hosting, colocation hosting, and cloud hosting. The service-type is categorized into application monitoring, application security, backup and recovery, database administration, and others. The application type includes web application and mobile application. Furthermore, based on the organization size, the market is segmented into large enterprise and small and medium enterprises. Depending on industrial vertical, the market is categorized into BFSI, IT & Telecommunication, media & entertainment, retail & e-commerce, healthcare, manufacturing, and others.

Regional Analysis

Geographically, the application hosting market is segmented into four different regions namely North America, Asia Pacific, Europe, and the rest of the world.

North America is presumed to have significant growth in the application hosting market. The US is a leading country in the market owing to the presence of large number of solution providers in the region. Additionally, Asia Pacific is expected to have significant growth in the market. China, Japan, South Korea, and India are the leading countries in the region. The market growth is attributed to the surging adoption of e-commerce websites such as Amazon, Flipkart, and others. Additionally, the region is also expected to witness increased investment from advanced to boost cloud infrastructure to outsource managed services.

Target Audience

  • Application Hosting solution vendors

  • Application Hosting service providers

  • Application developers

  • System integrators

  • Information Technology (IT) developers

  • Third party vendors

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Frequently Asked Questions (FAQ) :

The global application hosting market is expected to record a substantial market valuation of up to USD 82.17 billion by 2023.

The global application hosting market is projected to register a moderate 13.4% CAGR in the forecast period.

The cloud hosting segment is slated to expand as the fastest-growing segment.

The IT and telecommunication segment is expected to witness substantial growth.

A few major market players operating in the global application hosting market are Amazon Web Services (US), IBM Corporation (US), Rackspace (US), Google LLC (US), among others.