Application Delivery Network (ADN) Market - Forecasts from 2024 to 2029

The Application Delivery Network (AND) market is anticipated to grow from US$9.576 billion in 2024 to US$15.188 billion in 2029 at 9.66% (CAGR).

Application Delivery Networks comprise services deployed over the network to provide application security, visibility, availability, and acceleration from servers to end-users. The system consists of application delivery controllers (ADCs) and Wan optimization controllers (WOCs). Furthermore, the rising adoption of cloud computing, SaaS platforms, and the use of public and private clouds is projected to drive the use of a cloud-based application delivery network.

With the rapid increase in cloud-based applications and the rising trend of bringing your device (BYOD) to many organizations, the overall market is expected to grow during the forecast period. Moreover, the ongoing shift towards consumer-based applications, followed by booming cloud computing and IoT adoption, has paved the way for future market expansion.

Application Delivery Network Market Drivers:

• Favorable initiatives and investments to bolster industrial automation propel market expansion.

Witnessing the ongoing shift towards the latest technological innovations and digitization governments are undertaking investments to bolster the same. For instance, the US$100 million loan was approved by the Inter-American Development Bank (IDB) for a program to promote Internet access and digitization in Argentina. The investment would further accelerate the growing network connectivity capacity and digital capabilities in remote and urban areas. Furthermore, the Industry 4.0 initiative is majorly driving the adoption of technological innovations in business culture, with various investments and schemes occurring in that accordance.

• Product innovations and strategic mergers are anticipated to drive the market growth.

Market players to provide new ADN offerings are investing in strategic maneuvers such as collaboration and new launches, which are set to positively impact the overall market growth. For instance, the operational launch of Orange's European tower company TOTEM, whose passive mobile infrastructure portfolio includes over 26,000 sites in France and Spain, respectively.

Likewise, in December 2022, F5 Inc. launched "F5 Distributed Cloud App Infrastructure Protection", a cloud workload protection solution that expands the application's observability and protection to cloud-native infrastructure. This product would enable organizations of any size to simplify and secure their application-driven digital experience.

• Bolstering growth in cloud computing and data center services drives market expansion.

Over the past couple of years, cloud computing adoption has witnessed remarkable growth among organizations implementing it for securing and analyzing network connections and applications. To further the scale of computing, various investments are being made in hyperscale infrastructure development, and emerging technologies such as AI and IoTs are catching the eye of large firms looking to implement them in their operations. Such transformation has expanded the scope of IT infrastructure in various major economies, which is expected to stimulate the overall market growth during the forecast period.

For instance, the Danish government's "National Strategy for Artificial Intelligence" enables companies to use AI and helps to promote Denmark as the leader in AI technology. The ongoing technological shift in the Middle East, where nations such as UAE, Kuwait, and Saudi Arabia are at the forefront of innovations, has provided new growth prospects. For example, the government of Kuwait has taken steps to develop a digital economy by developing its national-level policies for e-health and e-government which is projected to increase the ADN demand across the country.

Application Delivery Network Market Geographical Outlook

• North America is expected to account for a significant market share.

Region-wise, the application delivery network (ADN) market is analyzed into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The North American market is expected to account for a significant share of the market fuelled by the growing public and private cloud ecosystem in major regional economies namely the USA and Canada. Moreover, the well-established presence of major cloud computing players such as Amazon Web Service, Juniper Networks, and Microsoft that provide their services to corporate and government agencies has led to an upward market trajectory.

Additionally, favorable investments in data center establishments are expected to provide new growth prospects for the regional market growth. For instance, in May 2024, ESET announced the launch of its first local data center in Canada, which marked the company's commitment to providing unparalleled services to its customers in the country. Moreover, in January 2023, ManageEngines launched two new data centers in Montreal and Toronto, which showcased the company's effort to meet demand from Canadian organizations for localized data processing and storage.

Application Delivery Network Market Key Developments

• September 2023: Juniper Networks Inc. launched "Juniper(R) Apstra", the company's first multi-vendor intent-based networking solution that provides new experience-first data center features inclusive of simplified data collection. The solution transforms network operations by predicting and analyzing troubleshooting.
• August 2023: AppDirect announced the acquisition of ADCom Solution's VEEUE platform and Network Operation Center (NOC), enabling the former to launch a suite of its managed infrastructure and network services. This would offer organizations additional business intelligence insights and advanced incident monitoring.
• February 2022: F5 Inc. launched "F5(R) Distributed Cloud Services", which further expanded the company's application & delivery portfolio. The solution provides edge-based computing and multi-cloud networking on a unified SaaS platform.
• August 2023: Array Network formed a partnership with LUNA Technologies, one of the leading network performance solution providers in Malawi. The collaboration enabled Array Network to deploy its application security technology to Malawian organizations, enabling them to achieve application security and scalability.
• October 2022: LUNIQ formed a partnership with Canada-based Inuvika, through which the former can provide its cloud solution, including "Secure-Application-As-A-Service," via Inuvika's application delivery platform. The collaboration aims to assist customers unable to run end-user services in the cloud.

The Application Delivery Network market is segmented and analyzed as follows:

By Component

• Application Delivery Controller
• WAN Optimization Controller
• Application Security Equipment
• Others

By End-Users

• Cloud Service Providers
• Enterprises
• Telecommunication Service Providers

By Industry Vertical

• BFSI
• Healthcare
• Education
• Retail
• Government
• Media and Entertainment
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• Italy
• Spain
• Others
• Middle East and Africa
• Israel
• UAE
• Saudi Arabia
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others