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APPLICATION CENTRIC INFRASTRUCTURE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

Application Centric Infrastructure Market, By Component (Hardware, Software, and Services), By Deployment Mode (On-Premises, Cloud-Based, and Hybrid), By End User (IT and Telecom, BFSI, Healthcare and Life Sciences, Retail and Consumer Goods, Government and Defense, Energy and Utilities, Manufacturing, and Others), By Geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa)

  • Historical Range: 2020 - 2024
  • Forecast Period: 2025 - 2032

Global Application Centric Infrastructure Market and Forecast – 2025-2032

The global application centric infrastructure market is estimated to be valued at USD 6 Bn in 2025 and is expected to reach USD 11 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 14% from 2025 to 2032.

Key Takeaways of the Application Centric Infrastructure Market

  • The hardware segment is expected to account for 46% of the application centric infrastructure market share in 2025.
  • The on-premises segment is projected to capture 41% of the market share in 2025.
  • The IT and telecom segment is expected to command 33% share in 2025.
  • North America will dominate the application centric infrastructure market in 2025 with an estimated 41%
  • Asia Pacific will hold 22% share in 2025 and record the fastest growth.

Current Events and Its Impact

Current Events

Description and its Impact

Nutanix Platform Development

  • Description: On December 15, 2025, Nutanix, a leader in hybrid multi-cloud computing, announced new capabilities in its Nutanix Cloud Platform (NCP) solution designed to give organizations greater flexibility to deploy and govern their infrastructure across distributed environments running traditional, modern, and AI applications, including fully disconnected environments.
  • Impact: This illustrates broader infrastructure trends toward unified control across public/private cloud and on-premises environments.

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Segmental Insights

Application Centric Infrastructure Market By Component

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Why Does the Hardware Segment Dominate the Global Application Centric Infrastructure Market in 2025?

The hardware segment is expected to hold 46.0% of the global application centric infrastructure market share in 2025. The surge stems from how vital tangible equipment is in holding up the full network environment. Modern hardware is built to work with software-defined networking without any problems, so it can adapt to different setups.

These components shift resources on the fly, responding directly to what apps actually do, moment by moment. With newer network backbones rolling out, performance leans heavily on smart switches which are fast, agile, able to juggle messy data flows without slowing down.

On-Premises Segment Dominates the Global Application Centric Infrastructure Market

The on-premises segment is expected to hold 41.0% of the global application centric infrastructure market share in 2025. The growth is substantial as companies want to be more involved in managing their technological setups. Companies are more likely to keep systems on-premises to protect data than to outsource them. Control stays local and follows strict rules without any exceptions. When infrastructure stays on site, security gets stronger. This model makes things more open, which gives teams better oversight. Custom settings have a direct effect on how apps work, which is very important for regulated industries.

Why is the IT and Telecom Segment the Most Dominant End User in the Application Centric Infrastructure Market?

The IT and telecom segment is expected to hold 33.0% of the global application centric infrastructure market share in 2025. This space moves quick, shaped by relentless technology shifts coupled with rising expectations from users. Centralized policy control makes setup easier, and automated provisioning speeds up the launch of new features, keeping up with what the industry needs. Handling surges of data without lag becomes possible only through smart, responsive architecture, one that expands effortlessly as needs shift.

Application-Level SLA Compliance Impact

Metric

Traditional Network

ACI Fabric

Average Latency in DC (ms)

~4–7 ms (mid-enterprise deployment average)

~1–3 ms (~50% lower)

Measured Latency for App Traffic (microsec)

~5 µs

~2 µs

Packet Loss Count (per sampled

25 packets dropped (baseline test)

~0 packets dropped

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Regional Insights

Application Centric Infrastructure Market By Regional Insights

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North America Application Centric Infrastructure Market Analysis and Trends

The North America region is projected to lead the market with a 41% share in 2025.  The growth stems from a well-established IT environment across the region, tied closely to major technology firms planting deep roots alongside growing use of high-end networking tools.

In the U.S., momentum builds on heavy backing for data centers, cloud platforms, while SDN gains steady ground. Public efforts pushing digital upgrades and stronger cyber defenses give added lift to ACI uptake. Cisco Systems, first to launch ACI, moves forward with VMware and Arista shaping progress through fresh product lines and alliance-building. Cloud vendors dominate the scene, while businesses chasing flexible, rule-based networks keep need levels consistently high.

Asia Pacific Application Centric Infrastructure Market Analysis and Trends

Asia Pacific is expected to exhibit the fastest growth in the market contributing 22% share in 2025. Faster digital shifts in developing nations help push momentum, while policy moves boost tech backbone projects. Nations including India, China, Japan, or South Korea pour resources into modernizing networks, favoring setups that adapt quickly with minimal manual input.

Foreign capital flows rise at the same time, alongside broader server hub rollouts fueling steady climb. Firms like Cisco, Huawei, HPE, and Juniper Networks widen reach locally by adjusting offerings, teaming up with regional distributors, customizing support based on distinct demands.

Global Application Centric Infrastructure Market Outlook for Key Countries

Why is the U.S. Emerging as a Major Hub in the Application Centric Infrastructure Market?

The U.S. application centric infrastructure market leans heavily into cloud-native setups early, embracing network automation that fits well with ACI offerings. Large corporations dominate the landscape, alongside massive cloud operators, fueling ongoing advancements and broad rollouts. Cisco stands out locally, backed by a wide range of products and deep ties to enterprise clients. Efforts center on weaving AI-powered insights and tighter safeguards into ACI systems, boosting both function and regulatory alignment.

Is China the Next Growth Engine for the Application Centric Infrastructure Market?

China’s application centric infrastructure market shifts fast, driven by state support for digital expansion and strict rules favoring homegrown data systems. Local giants like Huawei and H3C stand strong next to international players, delivering tailored ACI solutions built for regional data hubs. With heavy investment in smart cities and 5G rollouts, demand rises for adaptive networks and automated setups capable of scaling on their own.

India Application Centric Infrastructure Market Analysis and Trends

India’s growing IT framework thrives on initiatives such as Digital India, along with rising reliance on cloud platforms, sparking steady need for app-focused networking tools. A vast number of local tech firms, combined with broader shifts toward mixed-cloud setups, opens room for ACI systems to take hold. Firms like Cisco and Juniper have deepened their footprint across the region - working hand-in-hand with telecom operators and corporate networks to roll out adaptable fixes for tangled digital landscapes where growth and protection often clash.

Japan Application Centric Infrastructure Market Analysis and Trends

Japan pushes ahead with smart technology setups, driven by companies that value innovation and swift digital shifts. Industries like manufacturing, cars, transport and banking now rely on seamless machine workflows and responsive networks, thus driving the demand for application centric infrastructure. Firms including Cisco and NEC stand out here, weaving together networking tools with sensors and decentralized compute layers, adjusted precisely for regional demands.

Germany Application Centric Infrastructure Market Analysis and Trends

In Germany, strict data rules influence how markets evolve, while manufacturers keep pushing for reliable, fast networking systems. Heavy industry fuels spending on smart production environments plus corporate-level connectivity, sparking greater interest in adaptive computing infrastructures. Firms like Cisco, Aruba Networks, and Juniper stay ahead by meeting those needs through intelligent safeguards and rule-driven control features.

Market Players, Key Development, and Competitive Intelligence

Application Centric Infrastructure Market Concentration By Players

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Key Developments

  • On June 3, 2025, WPP Media introduced Open Intelligence, a next-generation data solution utilizing the first Large Marketing Model (LMM). This fresh setup skips standard ID-linked info, pulling instead from wide-ranging crowd patterns, actions, and live happenings, fed by 350+ sources in over 75 regions.
  • On February 27, 2025, IBM announced it has completed its acquisition of HashiCorp, whose products automate and secure the infrastructure that underpins hybrid cloud applications and generative AI. Together the companies' capabilities will help clients accelerate innovation, strengthen security, and get more value from the cloud.

Top Strategies Followed by Global Application Centric Infrastructure Market Players

Player Type

Strategic Focus

Example

Established Market Leaders

AWS Platform Development

 

 

 

 

On April 10, 2025, AWS introduced horizontal autoscaling for Amazon ElastiCache for Memcached, allowing automatic node addition/removal (scaling out/in) based on metrics like memory usage, managed through AWS Application Auto Scaling.

Mid-Level Players

Tencent Major Step Forward in Research

On December 19, 2025, Tencent Holdings secured access to high-end Nvidia artificial-intelligence chips that remain restricted to Chinese buyers even after President Donald Trump’s recent semiconductor agreement with the country.

Small-Scale Players

Platform Launch

On April 8, 2025, Fibrus and Nokia signed a five-year agreement to deploy the Nokia Deepfield solution across its growing network following a successful trial.

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Market Report Scope

Application Centric Infrastructure Market Report Coverage

Report Coverage Details
Base Year: 2024 Market Size in 2025: USD 6 Bn
Historical Data for: 2020 To 2024 Forecast Period: 2025 To 2032
Forecast Period 2025 to 2032 CAGR: 14% 2032 Value Projection: USD 11 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Component: Hardware, Software, and Services
  • By Deployment Mode: On-Premises, Cloud-Based, and Hybrid
  • By End User: IT and Telecom, BFSI, Healthcare and Life Sciences, Retail and Consumer Goods, Government and Defense, Energy and Utilities, Manufacturing, and Others 
Companies covered:

Cisco Systems Inc, VMware Inc, Juniper Networks Inc, Arista Networks Inc, Hewlett Packard Enterprise, Dell Technologies Inc, Huawei Technologies Co Ltd, Nokia Networks, IBM Corporation, Fujitsu Ltd, Extreme Networks, Ciena Corporation, Broadcom Inc, F5 Networks Inc, and Citrix Systems Inc

Growth Drivers:
  • Growing adoption of cloud computing
  • Increasing need for network automation
Restraints & Challenges:
  • Interoperability gap
  • Complex integration process

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Global Application Centric Infrastructure Market Dynamics

Application Centric Infrastructure Market Key Factors

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Global Application Centric Infrastructure Market Driver - Growing Adoption of Cloud Computing

The surge in usage of cloud services and computing is pushing ACI growth, since companies now lean toward systems that scale easily, stay agile, yet run smoothly across shifting workloads as clouds need networks strong enough to juggle demanding apps without dropping performance, safety, or ease of oversight. With centralized app rules and automated setup, ACI fits right into cloud operations, helping firms adjust fast when needs shift, all while holding steady on stability and command. As more businesses blend multiple clouds into their flow, they rely on networking tools that speak across platforms and respond through codes.

Global Application Centric Infrastructure Market Opportunity - Growing Need for Enhanced Security and Compliance

The rising wave of complex cyberattacks pushes companies everywhere to make cyber security a top concern in how they manage technology, opening real room for growth in the global application centric infrastructure market. As firms now rely heavily on cloud systems, connected devices, and sweeping digital changes, risks multiply quickly. With application centric infrastructure, teams gain unified control over policies while automating protections across both hardware and software layers, letting them spot weaknesses faster and respond without delay. Tougher laws like GDPR, HIPAA, or CCPA also force leaders to build stronger safeguards into operations, ensuring information stays private and trustworthy by design. ACI systems give fine-tuned insight into how apps behave, letting companies handle strict rules without extra strain.

Analyst Opinion (Expert Opinion)

  • The global application centric infrastructure market is changing from a traditional SDN-based networking model to a wider, intent-based, and policy-driven infrastructure layer that works with hybrid cloud and AI-ready data centers. Businesses are putting more and more emphasis on making sure that applications work well, that they are automated, and that security is the same across on-premises, private cloud, and multi-cloud environments. This has kept the demand for ACI architectures high, especially in big companies, telecom companies, and hyperscale data centers, where centralized policy control and real-time visibility are very important for managing complex, distributed applications.
  • The market is growing less because of standalone ACI deployments and more because of how they work with AI workloads, Kubernetes platforms, and cloud-native networking. To stay relevant in the face of growing competition from open SDN, cloud-native networking, and managed cloud services, vendors are focusing on better integration with analytics, zero-trust security, and automation tools. Smaller companies still have trouble adopting ACI because of its high cost and complicated operations. However, the application centric infrastructure market is expected to keep growing steadily over the next few years as companies continue to invest in AI-optimized networking, edge computing, and hybrid cloud strategies.

Market Segmentation

  • Component Insights (Revenue, USD Billion, 2020 - 2032)
    • Hardware
    • Software
    • Services
  • Deployment Mode Insights (Revenue, USD Billion, 2020 - 2032)
    • On-Premises
    • Cloud-Based
    • Hybrid
  • End User Insights (Revenue, USD Billion, 2020 - 2032)
    • IT and Telecom
    • BFSI
    • Healthcare and Life Sciences
    • Retail and Consumer Goods
    • Government and Defense
    • Energy and Utilities
    • Manufacturing
    • Others
  • Regional Insights (Revenue, USD Billion, 2020 - 2032)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • Spain
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East
      • GCC Countries
      • Israel
      • Rest of Middle East
    • Africa
      • South Africa
      • North Africa
      • Central Africa
  • Key Players Insights
    • Cisco Systems Inc
    • VMware Inc
    • Juniper Networks Inc
    • Arista Networks Inc
    • Hewlett Packard Enterprise
    • Dell Technologies Inc
    • Huawei Technologies Co Ltd
    • Nokia Networks
    • IBM Corporation
    • Fujitsu Ltd
    • Extreme Networks
    • Ciena Corporation
    • Broadcom Inc
    • F5 Networks Inc
    • Citrix Systems Inc

Sources

Primary Research Interviews

  • IT Infrastructure Directors and CIOs
  • Application Centric Infrastructure Solution Providers
  • Cloud Service Providers and Data Center Operators
  • Enterprise IT Decision Makers

Databases

  • Bloomberg Terminal Infrastructure Data

Magazines

  • Network World Magazine
  • Data Center Knowledge
  • CIO Magazine
  • InformationWeek

Journals

  • IEEE Communications Magazine
  • Journal of Network and Computer Applications
  • ACM Computing Surveys

Newspapers

  • The Wall Street Journal (Technology Section)
  • Financial Times (Digital Business)
  • Reuters Technology News
  • TechCrunch Enterprise Coverage

Associations

  • Open Networking Foundation (ONF)
  • Data Center & Cloud Association (DCCA)
  • Cloud Security Alliance (CSA)
  • Infrastructure Masons (iMasons)

Public Domain Sources

  • U.S. Securities and Exchange Commission (SEC) Filings
  • Company Annual Reports and Investor Relations
  • Government Technology Procurement Reports
  • Open Source Infrastructure Project Documentation

Proprietary Elements

  • CMI Data Analytics Tool
  • Proprietary CMI Existing Repository of information for last 8 years

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About Author

Ankur Rai is a Research Consultant with over 5 years of experience in handling consulting and syndicated reports across diverse sectors.  He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.

Frequently Asked Questions

The global application centric infrastructure market is estimated to be valued at USD 6 Bn in 2025 and is expected to reach USD 11 Bn by 2032.

The CAGR of global application centric infrastructure market is projected to be 14% from 2025 to 2032.

Growing adoption of cloud computing and increasing need for network automation are the major factors driving the growth of the global application centric infrastructure market.

Interoperability gap and complex integration process are the major factors hampering the growth of the global application centric infrastructure market.

In terms of component, hardware is estimated to dominate the market revenue share in 2025.

ACI provides unified policy management across on-premises and cloud platforms, ensuring application performance and security consistency.

AI workloads require low-latency, high-bandwidth networks, pushing vendors to enhance ACI with AI-optimized traffic management and analytics.

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