According to a new Technavio market research report, the enterprise application and integration market size is set to grow by some US$17.2Bn between 2022 and 2027. It represents an accelerating CAGR of >13%. With a focus on identifying dominant industry influencers, the report offers a synthesis and summation of data from multiple sources. In so doing it seeks to present an up-to-date analysis of the current market, the latest trends and drivers an overall market assessment.
Technavio is a global technology research and advisory company. Its research and analysis focus on emerging market trends as well as the provision of actionable insights. These aim to help businesses identify market opportunities and develop effective strategies to optimise their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports (and counting), covering some 800 technologies and 50 countries.
Coverage of the enterprise application and integration market
The report covers the following areas:
- Enterprise Application and Integration Market size
- Enterprise Application and Integration Market trends
- Enterprise Application and Integration Market industry analysis.
The market share growth by the on-premise segment is significant during the forecast period. Even though the on-premise segment is the dominant segment, it is expected to have slow growth owing to the factors such as high investment requirements related to product purchases, installation, maintenance, and upgrades.
Furthermore, it sees a requirement for organisations to invest in training their in-house IT workforces in order to support users of the relevant software. It is the increasing adoption of the on-premise segment which Technavio sees as driving market growth during 2022-2027.
Fragmentation and an emerging trend
The report describes a fragmented market. The degree of fragmentation will likely accelerate during the forecast period. To help businesses improve their own market position, the report provides a detailed analysis of > 19 vendors operating in the market. The vendors examined include:
- Adeptia
- Atlassian
- Axway Software
- Boomi
- Carmatec IT Solutions
- Fiorano Technologies
- Fujitsu
- Hewlett Packard Enterprise
- Informatica
- IBM
- Microsoft
- Oracle
- Salesforce.com
- SAP SE
- ScienceSoft USA
- SnapLogic
- Software
- Talend
- TIBCO Software
- Workato.
The rising adoption of cloud-based integration solutions is an emerging trend. There is a significant increase in the adoption of cloud computing solutions across organisations as they digitise their IT infrastructure. In doing the latter they seek cost-effective and flexible solutions.
Some of the key benefits of cloud computing solutions are that it facilitates enterprises to shift their supply chain management (SCM) systems from the on-premises model to the cloud computing model to incorporate with other back-office systems. Furthermore, there is a growing popularity for cloud-based system integration services due to their faster connectivity features to run multiple applications. Such factors are increasingly expected to drive market growth.
Enterprise Times: what does this mean
To Technavio, enhanced efficiency of business processes drives market growth. The significant benefits offered by business software – such as ERP systems, CRM, SCM, BI applications, and payroll and human resources systems – across organisations improve business processes – from customer relationships to supply chains and business intelligence (BI). Some of the key benefits include:
- data collection and analysis
- streamlining business processes
- maintaining communication with customers, colleagues, and suppliers.
However, while Technavio expects such attractions to drive market growth during the forecast period, there are ever rising challenges associated with integration which will, conversely, impede the extent of market growth. For example, there is almost always a higher chance of integration issues arising in an organisation when it tries to implement new enterprise application software in conjunction with any existing application software infrastructure.
Some of the factors leading to integration issues include different versions of application software, OSs and hardware configurations.
Necessarily interoperability challenges arise when integrating new applications – because most organisations still run their business on outdated software systems, applications, programming languages and backend storage systems. Unsurprisingly Technavio expects such factors to hold back market growth.
