The key players in the global managed file transfer (MFT) market are focusing on mergers and acquisitions and product development to enhance their presence in this highly competitive arena, finds Transparency Market Research (TMR) in a new study. Cloud and customized deployment models are likely to provide a significant push to the market and an increasing number of companies are aligning their business practices so as to make the most of this factor. The leading players in the global MFT market are Axway Software SA, Biscom Inc., GlobalSCAPE Inc., IBM Corporation, Open Text Corporation, and Oracle Corporation.
The global MFT market is poised to reach a value of US$1,637.3 mn by 2024 from US$837.2 mn in 2015, expanding at a CAGR of 7.7% from 2016 to 2024. Geographically, North America will continue to be the front-runner in the market by revenue until 2024. The rise in cybercrimes, increasing requirements for data centralization, and rising awareness regarding limitations of traditional file transfer systems are contributing to the growth of this region. However, with the increasing government compliances pertaining to data privacy and security, the Asia Pacific region is expected to exhibit a noteworthy CAGR of 10.3% over the forecast period.
Increasing Demand for Cost-Effective Solutions by SMBs to Fuel Growth of Cloud-based MFT
By deployment, on-premise was the leading revenue contributor in 2015. Due to features such as interoperability among infrastructure and quick installation by users, the segment is expected to dominate the market until 2024, reaching a value of US$889.1 mn. Moreover, the evolution of organizations by collaboration and expansion is increasing the need for high-volume data transfer within organizations, which in turn is facilitating the adoption of on-premise services.
On the other hand, with the increasing adoption of cloud-based services by small- and medium-sized businesses (SMBs) as a cost effective and highly secure file transfer tool, the cloud segment is anticipated to exhibit a significant CAGR during the same period.
Scalability and Compatibility Issues Associated with Traditional File Transfer Systems to Stimulate Sales of MFT Solutions
Lack of robustness, high maintenance cost, limited volume of transfers, and scalability issues are among the limitations associated with traditional file transfer systems. Moreover, traditional file transfer protocols such as FTP are not compatible with emerging technologies such as cloud networks. “The rising technological integration among various platforms has triggered the presence of loopholes in data transfer, thus making data security a critical issue for several sectors including government, financial, and healthcare,” says TMR’s lead analyst. Owing to these limitations of traditional file transfer systems, the demand for managed file transfer solutions is escalating, thereby fuelling the growth of the managed file transfer market.
Other factors such as the emergence of government compliance policies regarding sensitive and private data and increasing penetration of automation in business processes is driving the global MFT market.
Low Reliability and Robustness of Present-day MFT Products to Hamper Growth Prospects
MFT products, for the most part, are still in the nascent phase of development. Data-sensitive sectors such as government, BFSI, and legal require stable file transfer solutions for the storage and management of massive amounts of critical data. “Incidents such as the Panama Papers leak are creating a dilemma for data-sensitive sectors in the adoption of MFT products,” says a TMR analyst. This factor, in turn, is restraining the growth of the market. Another factor hurting revenues of key players is the high cost incurred on maintenance and training for every new on-premise deployment of MFT.
However, these issues are expected to be mitigated by emergent technological advancements and growth of competition in the telecommunication service provider market in the near future. Moreover, cloud-based technologies are estimated to revolutionize the MFT market over the forecast period with their contemporary solutions such as enterprise-class MFT.
The information presented in this review is based on a Transparency Market Research report, titled,“Managed File Transfer Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
The global managed file transfer market has been segmented as follows:
Managed File Transfer Market, by Deployment
Managed File Transfer Market, by Application
- Health Care
Managed File Transfer Market, by Type
- Ad hoc
- Administrative to Administration (A2A)
- Business to Business (B2B)
- Accelerated Transfer
Managed File Transfer Market, by Geography
- North America
- The U.S.
- The U.K.
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Middle East & Africa (MEA)
- United Arab Emirates (the UAE)
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
- Rest of Latin America
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