Widespread Application of AI Large Models Will Increase Demand for Middleware - Market Outlook and Forecast Analysis for the Middleware Industry
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Middleware, as one of the core foundational software, is an indispensable part of the information innovation industry chain and a key force in building digital transformation infrastructure.
Middleware is a type of software that sits between application systems and system software. It utilizes the basic services (functions) provided by system software to connect various parts of networked application systems or different applications, enabling resource sharing and functional sharing.
While there is no strict definition, the IDC's definition is widely accepted: middleware is an independent system software service program that allows distributed applications to share resources across different technologies. Middleware resides above the operating systems of client-server environments, managing computing resources and network communication.
In this sense, middleware can be represented by an equation: middleware = platform + communication. This confines the term to distributed systems, distinguishing it from support software and utility software.
Middleware can be categorized into message-oriented middleware, transaction middleware, and application server middleware, among others. Application server middleware is the most common, integrating web applications—such as data access and client request handling—to simplify development for specific applications like websites, email systems, and office automation (OA).
Currently, the state places high importance on network data security, and developing independently controllable key technologies and products is a strategic focus for national informatization and the information industry. In February 2006, the State Council issued the 'National Medium- and Long-Term Science and Technology Development Plan (2006-2020),' which for the first time positioned middleware as a strategic priority.
The internet has spurred the emergence of distributed systems and network applications, while the independence and prosperity of foreign software have driven the growth of middleware. In 2021, the overall structure of the software infrastructure (middleware) market remained stable, with industry demand primarily concentrated in sectors such as government, finance, and telecommunications.
From an industry perspective, if calculated solely based on software and service revenue, finance, energy, manufacturing, and education are the largest sectors in the middleware market, collectively accounting for 71.5% of the total market in 2021. The share of emerging markets is expected to rise rapidly in the future.
Middleware Industry Market Prospects Forecast and Analysis
As a bridge connecting applications and operating systems, middleware can shield the heterogeneity of underlying hardware, operating systems, and communication protocols, providing application developers with a unified and standardized interaction interface. Hence, it is referred to as the 'software of software.'
Currently, major middleware vendors include IBM, Oracle, Tongfang, Kingdee Tianyan, etc. The middleware market can be divided into commercial camps (Microsoft, IBM, Oracle, Tongfang, etc.) and open-source camps (Apache and other organizations sharing code). Previously, overseas companies dominated the global market, such as IBM and Oracle.
With the development of new-generation information technologies and the digital economy, Chinese vendors have grown and expanded in competition with international giants, giving rise to a group of excellent domestic middleware vendors such as Tongfang, Primeton, Bocloud, Zhongchuang Middleware, and Kingdee Tianyan. As the domestic middleware industry matures, the new infrastructure context will accelerate the localization process of middleware. Influenced by the accelerated localization of Xinchuang, industry users in digital transformation are more inclined to choose leading domestic vendors.
With the rapid development of emerging technologies such as cloud computing, big data, and the Internet of Things, the application scope and functionality of middleware products are rapidly expanding. Due to the core value points of middleware products, such as compatibility and common support, their product value is rapidly increasing.
In the field of digital transformation for government and enterprises, new-generation technologies, including artificial intelligence (AI), are continuously penetrating the digital economy and digital society. New applications and services are emerging endlessly, posing higher requirements for digital transformation. In the security field, this also involves AI content detection. The widespread application of AI large models and vertical application models will further increase the demand for middleware.
AI model training relies on substantial hardware infrastructure to process and optimize vast amounts of data, demanding high efficiency in data handling and deployment management. Therefore, efficient middleware is essential to support large-scale data storage, transmission, and processing, as well as rapid model deployment, monitoring, and optimization. Middleware must also accommodate diverse hardware and software environments to meet varying scenario requirements.
In recent years, with the continuous advancement of China's digital transformation, enterprises moving to the cloud and industries undergoing digital transformation have led to new demands in infrastructure (middleware) products. These demands focus on two key aspects: application and security. First, in terms of application, middleware must offer greater flexibility to quickly adapt to enterprise business processes. Second, regarding security, it must provide robust capabilities in data security, information security, and privacy protection.
According to statistics, China's middleware market reached approximately 7.82 billion yuan in 2020, with an annual growth rate of around 8% from 2015 to 2020. Driven by technological innovations such as cloud computing and blockchain, the market is expected to expand to nearly 15 billion yuan by 2025.
In the coming years, traditional industries like finance, telecommunications, and energy will maintain steady demand, while new opportunities will emerge from the need for innovative middleware products. Additionally, middleware solutions will play an increasingly significant role in small and medium-sized enterprises.