The email application market is expected to boom between now and 2025, with North America enjoying a compound annual growth rate (CAGR) of 5%, according to a study by Persistence Market Research.
The global market is projected to grow from U.S. $4,540 million in 2017 to $ 6,842.4 million in 2025, reflecting a CAGR of 4.6% during the forecast period.
Microsoft’s Windows will remain the dominant operating environment, increasing in revenue from $677.3 million this year to $1076.9 million at the end of 2025. And it will post a CAGR of 6%, the report predicts.
The study continues that “from mainframe, Unix and Linux enterprise systems across the globe have adopted Microsoft’s Windows operating environment seamlessly.”
The other operating systems have a “meager share of the global market," it adds.
In North America, Windows will grow from $1,400 million by the end of 2025, for a CAGR of 5%. Window is also expected to lead markets in Latin America, Europe, Asia-Pacific, the Middle East and Africa.
Meanwhile, the U.S. is expected to be the most robust email applications market overall, with high year-over-year growth rates.
Europe and the Asia-Pacific are expected to grow by 1.3%, with a CAGR of 3.8%.
Driving this growth is the increasing use of cloud-based email applications fueled by artificial intelligence, the study notes.
In addition, the market is being fueled by a growing preference for on-demand services with automated provisioning infrastructure and the rising adoption of SaaS-based solutions.
The market will see a high demand for security solutions and migration to cloud-based services, especially in the banking and financial services sector. The latter segment is likely to utilize Windows.
As they are now, small and medium businesses will remain the main end users of email applications. This segment is projected to have a CAGR of 5.2%..
The on-premise segment will be the most attractive segment for suppliers, growing from $2,500 million in 2017 to $3,800 t the end of the forecast period, resulting in a CAGR or 4.1%, the report continues.
However, there are a number of possible obstacles.
For one, a compromise of business email on Windows and other operating environments “is likely to pose grave challenges to the global market,” the study states.
In addition, fraudulent individuals who have access to cloud-based email applications may pose “grave” security concerns.
Suppliers will pursue two growth strategies, the report predicts. About 40% of the key players will introduce new products.
Other companies will make strategic acquisitions. Hewlett Packard Enterprise and VMware Inc. have taken this approach.
Of the top players making acquisitions over the last three years, 12% have done so to expand their global market presence.