Application Integration Market by Offering (Platforms and Services), Integration Type, Application (Customer Relationship Management, Enterprise Resource Planning), Vertical (BFSI, Retail & eCommerce, Automotive) and Region - Global Forecast to 2028
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Ask real questions. Get complete answers ![278 Pages Report] The global application integration market size is projected to grow from USD 15.4 billion in 2023 to USD 38.4 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 20.0% during the forecast period. Growing demand for B2B integration, improved productivity, and scalability is driving market growth, but the high initial investment is a hindrance to market growth.
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Market Dynamics
Driver: Rising need to eliminate data silos and improve productivity
A data silo is a collection of information inaccessible to each part of a company's hierarchy. Data silos cause expensive and time-consuming problems for companies. And hence, they must be resolved. Enterprise application integration solutions cater to eliminating data silos and the costs associated with them and enable the productive use of data. To gain a competitive edge, enhance operational efficiencies, and generate new business opportunities simultaneously, cutting down on costs may motivate companies to achieve more with their data. To achieve this, access to enterprise-wide information is vital. This is expected to drive the market for application integration systems.
Restraint: High initial investment
Investments in enterprise applications are elevated right now. As businesses continue to make investments, gaps between their expanding array of applications are affecting their performance. Though, with application integration, their efficiency is increased, as the tools work together, the initial investments for application integration are high for the organizations, limiting the prospects of this market.
Opportunity: Growing demand for B2B integration
To integrate all the complex processes, such as the B2B and electronic data interchange (EDI) processes of an enterprise across their partner communities in a single gateway, a B2B integration platform is necessary. B2B integration software can be used for on-premises or integration services. It can be accessed through hosted cloud services. The Business-to-Business Middleware (B2B Integration) industry will increase at a substantial CAGR during the forecast interval.
Challenge: Data inaccessibility because of its widespread storage
In the case of most tech-savvy companies, some data is stored so that it remains inaccessible to those who could gain an advantage from it. One of the primary reasons for this problem is that cloud apps are not adequately connected and thus leave business data spread across the cloud. The other reason is that some data is stored on-premises in legacy databases or older apps. These factors are proving an obstacle to the growth of enterprises looking to increase their efficiency and boost revenue.
Market Ecosystem
Leading companies in the application integration market include a definite provider of application integration solutions and services. These companies have been active in the market for several years and possess a varied product portfolio, innovative technologies, and strong global sales and marketing networks. Prominent companies in this market include Salesforce (US), Informatica (US), SAP (Germany), Oracle (US), SnapLogic (US), Software AG (Germany), IBM (US), Microsoft (US), TIBCO Software (US), Celigo (US), Boomi (US), Adeptia (US), WSO2 (US), DBSync (US), Flowgear (South Africa), InterSystems (US), SEEBURGER (Germany), Workato (US), Magic Software (Israel), OpenLegacy (US), Jitterbit (US), Elastic.io (Germany), Talend (US), Tray.io (US), Cyclr Systems (UK), APIFuse (US), and Zapier (US).
Services segment is expected to grow at a higher rate during the forecast period
Services in this market have been categorized into professional and managed services. Professional services are essential in the management of the entire lifecycle of solutions. Managed services, on the other hand, assess business networks, monitor the health of infrastructure, and perform remote maintenance activities. These services provide security and expert assurance, helping the entire business be more productive. Professional services are further segmented into consulting, integration, support, and maintenance.
Integration Platform as a Service (iPaaS) segment to account for the largest market share during the forecast period
iPaaS allows the building and deploying integrations between cloud and on-premises applications and data. It uses an API-led approach without requiring installing or managing any middleware or hardware. iPaaS includes capabilities such as Application Programming Interface (API) management, data transformation, data integration, and real-time monitoring and integration, offering simplicity, visibility, business agility, and governance with minimal cost and resource requirements. Enterprises and SMEs are moving toward adopting a cloud-based iPaaS solution to benefit from flexibility and robustness in internal business operations.
North America segment to account for the largest market share forecast period
North America is expected to account for the largest global application integration market share. The US contributes the maximum share in the application integration market. Various factors driving the adoption of application integration in this region are the diversification of services delivered and the shift of focus from SaaS to cloud services for infrastructure and platforms. Also, with an increasing number of enterprises and prominent players in the region, the demand for the application integration market is increasing. These enterprises have to manage the increasing number of applications and hence need application integration solutions.
Key Market Players
The Application Integration market vendors have implemented various organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global Application Integration market are Salesforce (US), Informatica (US), SAP (Germany), Oracle (US), SnapLogic (US), Software AG (Germany), IBM (US), Microsoft (US), TIBCO Software (US), Celigo (US), Boomi (US), Adeptia (US), WSO2 (US), DBSync (US), Flowgear (South Africa), InterSystems (US), SEEBURGER (Germany), Workato (US), Magic Software (Israel), OpenLegacy (US), Jitterbit (US), Elastic.io (Germany), Talend (US), Tray.io (US), Cyclr Systems (UK), APIFuse (US), and Zapier (US). The study includes an in-depth competitive analysis of these key players in the Application Integration market with their company profiles, recent developments, and key market strategies.
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- Latest News, Updates & Trend analysis
Report Metrics |
Details |
Market size available for years |
2017–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
Offering, Integration Type, Application, Vertical, and Region |
Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
Salesforce (US), Informatica (US), SAP (Germany), Oracle (US), SnapLogic (US), Software AG (Germany), IBM (US), Microsoft (US), TIBCO Software (US), Celigo (US), Boomi (US), Adeptia (US), WSO2 (US), DBSync (US), Flowgear (South Africa), InterSystems (US), SEEBURGER (Germany), Workato (US), Magic Software (Israel), OpenLegacy (US), Jitterbit (US), Elastic.io (Germany), Talend (US), Tray.io (US), Cyclr Systems (UK), APIFuse (US), and Zapier (US) |
This research report categorizes the application integration market to forecast revenues and analyze trends in each of the following subsegments:
By Offering
- Platforms
-
Services
-
Professional Services
- Consulting
- Integration
- Support and Maintenance
- Managed Services
-
Professional Services
By Integration Type
- Point-To-Point Integration
- Enterprise Application Integration
- Enterprise Service Bus
- Integration Platform as a Service
- Hybrid Integration
By Application
- Customer Relationship Management
- Enterprise Resource Planning
- Human Resource Management System
- Supply Chain Management
- Business Intelligence
- Electronic Health Record Management
- Other Applications
By Vertical
- Banking, Financial Services, and Insurance
- Retail & eCommerce
- Manufacturing
- Healthcare & Life Sciences
- Energy & Utilities
- Automotive
- Transportation and Logistics
- Government & Public Sector
- Other Verticals
By Region
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordic Region
- Rest of Europe
-
Asia Pacific
- China
- India
- Japan
- Australia and New Zealand
- Southeast Asia
- Rest of Asia Pacific
-
Middle East & Africa
-
Middle East
- UAE
- KSA
- Rest of Middle East
- Africa
-
Middle East
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In March 2023, Oracle extended its collaboration with NVIDIA to allow the functioning of NVIDIA AI applications on the new Oracle Cloud Infrastructure (OCI) Supercluster.
- In September 2022, AWS and Salesforce announced the integration between the Salesforce platform and Amazon SageMaker to enable customers to use ML modeling services on the Salesforce platform.
- In December 2021, IBM announced a global relationship with Mulesoft to deliver increased integrations and solutions around the IBM Z product family to support financial services and other mutual customers.
Frequently Asked Questions (FAQ):
What is Application Integration?
The application integration market consists of pre-built solutions that help connect different applications in multiple configurations to ease data flow throughout the organization and use it beyond the application in which it originated.
Which countries are considered in Europe?
The report includes an analysis of the UK, France, Germany, Italy, Spain, and the Nordic region in Europe.
Which are the key drivers supporting the growth of the Application Integration market?
The key driver supporting the growth of the Application Integration market includes the rising need to eliminate data silos and improve productivity, the growing need for automation of mission-critical business processes, and the rising need to improve time-to-market and boost ROI.
Who are the key vendors in the Application Integration market?
The key vendors operating in the Application Integration market include Salesforce (US), Informatica (US), SAP (Germany), Oracle (US), SnapLogic (US), Software AG (Germany), IBM (US), Microsoft (US), TIBCO Software (US), Celigo (US), Boomi (US), Adeptia (US), WSO2 (US), DBSync (US), Flowgear (South Africa), InterSystems (US), SEEBURGER (Germany), Workato (US), Magic Software (Israel), OpenLegacy (US), Jitterbit (US), Elastic.io (Germany), Talend (US), Tray.io (US), Cyclr Systems (UK), APIFuse (US), and Zapier (US).
What are some of the technological advancements in the market?
Cloud computing is referred to as on-demand access through the internet to computing resources. The resources are applications, physical and virtual servers, data storage, networking capabilities, development tools, and more. These resources are hosted at a remote data center managed by a CSP. Organizations are promptly expanding their application and data footprint to multiple cloud deployments. AI and ML have gained significant focus and are being implemented in various verticals. ML enables users to dive deep into data and produce actionable insights. In data integration,0 ML is utilized for its capability to efficiently and quickly process big data. There is a lack of processing speed for handling large volumes of data with traditional data integration tools. ML can analyze the prominent data structure of all data formats to generate accurate data models and data pipelines with reduced human coding intervention.
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The application integration market study involved using secondary sources, directories, and databases, such as D&B Hoovers, Bloomberg Businessweek, and Factiva. Other market-related sources, such as journals and white papers from industry associations, were also considered while conducting the secondary research. Primary sources were mainly industry experts from core and related industries, preferred system developers, service providers, System Integrators (SIs), resellers, partners, and organizations related to the various segments of the industry’s value chain. In-depth interviews were conducted with various primary respondents to obtain and verify critical qualitative and quantitative information and assess the market’s prospects. These respondents included key industry participants, subject matter experts, C-level executives of key market players, and industry consultants.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources. Several journals, such as the Institute of Electrical and Electronics Engineers (IEEE), ScienceDirect, ResearchGate, Academic Journals, Scientific.Net, various telecom and application integration associations/forums, and 3GPP, were also referred. Secondary research was mainly used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both markets and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the application integration market. The primary sources from the demand side included application integration end users, network administrators/consultants/specialists, Chief Information Officers (CIOs), and subject-matter experts from enterprises and government associations.
After the complete market engineering process (including calculations for market statistics, market breakdown, market size estimations, market forecast, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also conducted to identify and validate the segmentation types; industry trends; key players; the market's competitive landscape, and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
In the complete market engineering process, both top-down and bottom-up approaches and several data triangulation methods were used to perform the market estimation and forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Company Name |
Designation |
IBM |
Media Relations |
Oracle Corporation |
Director, Analyst Relations |
SAP SE |
Head of Analyst Relations |
Software AG |
Senior Vice President Corporate Communications |
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the market size of the application integration market. The first approach involves the estimation of market size by summing up the revenue generated by companies through the sale of application integration components, such as platforms and services.
Application Integration Market: Bottom-Up Approach
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Application Integration Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the application integration market was divided into several segments and subsegments. A data triangulation procedure was used wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
The application integration market consists of pre-built solutions that help connect different applications in multiple configurations to ease data flow throughout the organization and use it beyond the application in which it originated.
According to TIBCO Software, application integration refers to making the applications communicate with each other by exchanging data and invoking services they offer. Application integration is fundamentally needed for digital transformation strategy because businesses can operate in new and innovative ways when the applications are integrated and communicate with one another.
Key Stakeholders
- Network Infrastructure Enablers
- Technology Vendors
- Mobile Network Operators (MNOs)
- Independent Software Vendors (ISVs)
- System Integrators (SIs)
- Resellers
- Value-added Resellers (VARs)
- Managed Service Providers (MSPs)
- Compliance Regulatory Authorities
- Government Authorities
- Investment Firms
- Cloud Service Providers
- Application Integration Alliances/Groups
- Original Design Manufacturers (ODMs)
- Original Equipment Manufacturers (OEMs)
- Enterprises/Businesses
Report Objectives
- To determine, segment, and forecast the global application integration market by offering, integration type, application, vertical, and region in terms of value
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- To provide detailed information about the major factors (drivers, opportunities, threats, and challenges) influencing the growth of the market
- To study the complete value chain and related industry segments and perform a value chain analysis of the market landscape
- To strategically analyze macro and micro-markets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze industry trends, pricing data, and patents and innovations related to the market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the application integration market
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers and acquisitions, new product launches and developments, partnerships, agreements, collaborations, business expansions, and Research and Development (R&D) activities
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
- Further breakdown of the South Korean application integration market
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company.
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Application Integration Market