Application Hosting Market Report and Forecast 2025-2034

The global application hosting market size reached approximately USD 79.16 Billion in 2024. The market is further projected to grow at a CAGR of 12.60% between 2025 and 2034, reaching a value of USD 259.35 Billion by 2034.

Key Trends in the Market

Application hosting is a type of software service which permits the users to store, host, execute, and operate a software application completely from the cloud. The hosted applications provide the same functionality that of locally installed software but differs by easy updates provided in hosted applications.

• The key players are focused on fulfilling the hosting requirements of various sectors including healthcare, manufacturing, and finance. They are providing support services and specialised security measures, among other industry specific solutions, boosting the application hosting market demand.
• Adoption of cloud computing hosting solutions has enhanced the growth of the market as it allows the content of a particular website to spread across various servers of different regions. It also offers cost-efficiency, scalability, and flexibility which makes it a popular option for hosting applications.
• Rising number of cyber threats has encouraged organisations to prioritise their security requirements. This is supported by huge investments by application hosting service providers in developing user facing applications that are protected from disruption by external threats.

Global Application Hosting Market Segmentation

The EMR’s report titled “Application Hosting Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Hosting Type

• Cloud Hosting
• Managed Hosting
• Colocation Hosting

Market Breakup by Service Type

• Application Programming Interface Management
• Application Monitoring
• Infrastructure Services
• Database Administration
• Backup and Recovery
• Application Security

Market Breakup by Application

• Mobile-based Applications
• Web-based Applications

Market Breakup by Industry Vertical

• Banking, Financial, and Insurance
• Energy and Utilities
• Healthcare
• Manufacturing
• Media and Entertainment
• Retail and Ecommerce
• Telecommunications and IT
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Share by Application

Mobile-based applications are expected to account for a significant application hosting market share as they help various organisations to drive their sales, streamline business processes, and enhance customer experience. The demand for cloud based mobile applications is increasing from small and medium sized enterprises owing to the cost-effectiveness and low maintenance charges associated with these applications. Moreover, the development of new technologies such as accelerated mobile pages is further improving the page loading speed resulting in an improved user experience.

Market Share by Region

North America is anticipated to hold a significant share of the market over the forecast period. This growth can be attributed to the strong presence of major market players and rapid adoption of advanced technologies in the region. Several organisations are increasingly adopting new digital business strategies including application hosting services to enhance their business growth. Furthermore, the high budget allocation for application hosting by the organisations is yet another major factor aiding the application hosting market growth in North America.

Competitive Landscape

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

Amazon Web Service Inc.

Amazon Web Service Inc. was founded in 2006 and is headquartered in Washington, United States. The IT service management company provides on-demand cloud computing platforms and API to various companies, individuals, and governments.

Microsoft Corporation

Microsoft Corporation was founded in 1975 and is headquartered in Washington, United States. The company is known for providing best software products such as Microsoft office suite and internet explorer, among others.

Alphabet Inc. (Google LLC)

Alphabet Inc. (Google LLC) was established in 2015 and has its headquarters located in California, United States. The technology holding company provides its consumers with artificial intelligence, robotics, and cloud computing services, among others.

Other application hosting market players include IBM Corporation (IBM), DXC Technology, Liquid Web, LLC, NaviSite, Inc., Cloudways Ltd., Hostwinds LLC, and Digital Ocean, among others.