Asia Pacific BPM and middleware market to bounce back: IDC

  • BPM and middleware market grew just 2.2% to US$1.4 billion in 2013
  • Expected to grow at 6.2% to reach US$1.5 billion in 2014
Asia Pacific BPM and middleware market to bounce back: IDC

RESEARCH and analyst firm IDC said that in 2013, it observed several high-profile management movements among the major middleware vendors as they restructured to be more relevant and aligned themselves closer to the marketplace, putting a dent in customers' confidence.
Coupled with uncertainties in the macroeconomic landscape and moderate expansion rates in the two large emerging Asian economies, India and China, the business process management (BPM) and middleware market in Asia Pacific excluding Japan (APEJ) grew by just 2.2% to US$1.4 billion in 2013.
However, it is expected to bounce back in 2014 and grow at 6.2% to reach US$1.5 billion, IDC said in a statement.
Growth projections for this market remain positive with a compound annual growth rate (CAGR) of 7.9% and are expected to hit the US$2 billion mark by 2018, it added.
“2013 was a year of change as the industry transformed and evolved alongside technology advancements in the ‘third platform’ – cloud, mobility, big data, and social,” said Chris Zhang, senior market analyst, Application Deployment Software Research, IDC Asia/Pacific.
“The middleware layer is ever more so required to be robust, flexible, and scalable to handle disparate workload demands in terms of velocity, volume, and variety.
“This ensures the future of middleware technologies: a key enabler to cope with today's rapidly changing business environment,” he added.
Overall, IDC expects BPM to be the best performer in the middleware market as organisations in the region strive to stay competitive in the global landscape. Investment in process efficiency will continue to drive growth in this market.
The business-to-business (B2B) middleware market is also predicted to do well as organisations aim to achieve high visibility and resiliency of their supply chains.
Increased e-commerce activities in the region are also causing businesses to invest in more effective communication and collaboration systems.
In terms of technology drivers, increased market momentum and opportunities around mobility will continue to drive demand for mobile application development and deployment platforms.
“IDC expects vendors to expand their focus beyond the core development and deployment platform – and more on mobile device management, mobile content management (think of the DropBox phenomenon), and mobile security (spanning identity access, policy management, and encryption capabilities),” Zhang said.
The growth of the Platform as a service (PaaS) market will also continue over the forecast period with some degree of cannibalisation to the on-premise market.
It is critical for vendors to recognise this trend and start to differentiate themselves in the marketplace as PaaS becomes more of a commodity, IDC said.

Asia Pacific BPM and middleware market to bounce back: IDC

Other findings from IDC’s Asia/Pacific Semiannual Application Deployment Software Tracker:

  • Growth projections for the middleware market in APEJ remains positive with a CAGR of 7.9% and is expected to reach US$1.9 billion by 2018 as key economies (China and India) continue to grow.
  • Developing South-East Asian countries such as the Philippines, Malaysia, and Vietnam will continue to enjoy healthy growth – preference over appliances/ converged systems (smaller cores) for fast deployments and minimal configurations is obvious in this sub-region.
  • The De-IOE (deleting IBM, Oracle, and EMC) initiative in China is expected to influence governments and state-owned enterprises in adopting preferences for and supporting local solutions.

Countries included in the IDC Asia/Pacific Semiannual Application Deployment Software Tracker are Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, the Philippines, China, Singapore, Taiwan, Thailand, Vietnam and the ‘Rest of Asia Pacific.’
Software revenue consists of licence, maintenance, and other software revenue, while Application Deployment Software includes Application Server Middleware and Integration & Process Automation Middleware, IDC said.
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