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Global application infrastructure and middleware market touched $28 billion in 2017. Expected to grow even faster in 2018: Gartner

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AIM market

Global application infrastructure and middleware (AIM) market reached $28.5 billion, growing 12.1% from 2016, according to market research firm Gartner.

The growth of AIM market has been driven by increased adoption of digital technology trends like migration to cloud platforms, demand for real-time data and analytics, API economy, and deployment of internet of things (IoT) and artificial intelligence (AI) services.

Gartner further forecasted that AIM market will continue its growth in 2018, and then slow down each year, finally reaching 5% YoY growth in 2022.

“A new approach to application infrastructure is the foundation organizations build their digital initiatives upon, and therefore robust demand in the AIM market is testament to the occurrence of digitalization,” said Fabrizio Biscotti, research vice president at Gartner. “The more companies move toward digital business models, the greater the need for modern application infrastructure to connect data, software, users and hardware in ways that deliver new digital services or products.”

The licensed and on-premises application integration suite services witnessed single-digit growth in 2016 and 2017, while the cloud and open source based application integration (iPaaS) services achieved double-digit growth.

The iPaaS segment is currently a small part of the AIM market, but it grew 72% in 2017 to touch $1 billion. It’s the fastest growing segment in the AIM market. Gartner said that iPaaS offerings are lighter and more agile to well-suit for the use cases around digital business.

“The iPaaS market is also starting to consolidate, most notably with Salesforce’s recent acquisition of MuleSoft,” said Mr. Bhullar. “There is still a lot of room for further consolidation, with more than half the AIM market held by vendors outside the top five. This “others” segment is enjoying double-digit growth, which is likely to encourage acquisitions from big players losing market share to challengers.”

IBM and Oracle dominated the AIM software market by revenue in 2017, followed by Salesforce, Microsoft and Amazon. Amazon and Salesforce witnessed the highest growth in 2017, while the growth of Oracle and IBM slowed.

Gartner said that momentum in AIM market is shifting from market incumbents to challengers.

AIM market

Also read: Majority of CIOs expecting their job to change due to digital transformation: Gartner’s 2018 CIO Agenda survey

Gartner will further discus the trends in AIM market at Gartner application architecture events in London, Sydney, and Las Vegas.

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