Terminal Emulator Software Market Size, Share & Trends 2031

Report Description

Terminal Emulator Software Market Outlook 2031

The Global Terminal Emulator Software Market was valued at USD 2,454.9 Million in 2022 and is projected to reach USD 3,493.6 Million by 2031, expanding at a CAGR of 4.1% during the forecast period, 2023 to 2031.

A terminal emulator is a software application that simulates the functionality of traditional computer terminals. These terminals primarily consist monitor and a keyboard, which are mainly used to connect to another computer, such as a minicomputer or a mainframe. A terminal window provides access to a text terminal and all of its programs, including command-line interfaces (CLI) and text user interface (TUI) apps.

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A video terminal emulator is a computer software that emulates a video terminal within another display architecture. The factors such as implementation of terminal emulator software improves business operations, increasing need of centralizing IT resource, and rise in ransomware underscores are boosting the market.

Macro-Economic Factors

Technological Advancement

Technological advancement is a macroeconomic factor that influences the growth of the terminal emulator software market. Terminal emulator software developers incorporate new features and functionalities into their products with technological advancement to enhance the user experience. For instance, Rocket Software, Inc.

A global software key company, has announced the release of Rocket Terminal Emulator, which provides the feature-rich, flexible, and modern host access for mission-critical systems. This software upgrade is available at no cost to all Rocket terminal emulation customers. Technological advancement also increases competition in the market, as new companies enter the market with innovative products and services.

In addition, innovations in mobile devices and cloud computing are driving the demand for terminal emulator software, as many companies are adopting advanced solutions.

Cyber security Issues

The demand for secure and advanced terminal emulators software is rising, due to the increasing cyber-attacks in the organizations. Terminal emulators are software programs that allow users to use commands to access the operating system of their computer. These commands are used to open & edit files, move files, run applications, and for more other tasks.

Businesses frequently use terminal emulators to access data or programs on remote devices or servers. For instance, attackers use software vulnerabilities to obtain unauthorized access to sensitive data or to execute malicious code on the host system. Therefore, it is critical to use a secure terminal emulator that was created with security features.

For example, Termius is a terminal with built-in Telnet and SSH support. It enables users to run many concurrent Telnet sessions with SSH capability and securely manage Mosh connections.

Terminal Emulator Software Market Dynamics

Market Driver- Implementation of Terminal Emulator Improves Business Operations

• Businesses relying on mainframe infrastructure need a secure access to stored data. Terminal emulator software and host access to this data enables the seamless workflow of business processes by efficiently serving customers to ensure regulatory compliance. The terminal emulation software empowers organizations to maximize productivity, streamline operations, and ensure seamless user experience in interaction with legacy systems, while maintaining compliance with the changing business requirements.

• Organizations leveraging mainframe (legacy system) or IBMi technology rely on the terminal emulator for secure access. Most organizations leverage their mainframe to provide strong foundation for digital growth. Digital business and hybrid IT architecture are driving the demand for the mainframe, owing to the increasing transaction volumes, complex interactions, and rising adoption of data-driven strategic technologies such as AI and IoT.

• Terminal emulator software provides the flexibity that is needed to achieve an efficient working environment with the elimination of disruptions that hinder the workflows and productivity of users.

• For instance, the Rocket Software, Inc. offers Rocket Terminal Emulator that provides access to IBM Z, IBM i, and VT applications. This application includes web edition of secure, browser-based emulation on any PC and mobile device. The desktop edition provides cost-efficient access to terminal-based applications from the desktop. The offering also runs within Zowe framework.

Market Driver- Increasing need of centralizing IT resource

• Centralization of the IT infrastructure influences IT productivity positively and fuels the demand of the terminal emulator software. Traditionally, the IT organization within a business is decentralized, based on the regions, departments, or different verticals, which leads to chaos and rudimentary tasks. This challenge is expected to resolve if the IT administration is centralized, which helps to propagate vital information, such as guidelines for feature additions, common problems, or features built for one business unit.

• Remote work drove the need for professionals to access critical systems securely, despite the location of the user of that technology. IT organizations are focused on remote access to centralize IT resources. The at-home workforce spiked from 17% pre-pandemic to 44% during the pandemic, which boosted the need to access business-critical applications through home computers and mobile devices, without any compromise to functionality. The pandemic acts as one of the significant catalysts for innovation in terminal emulator capabilities.

Market Driver - Rise in Ransomware Underscores

• Gaining access to networks through phishing, stolen remote desktop protocols (RDP) credentials, and exploitation of software vulnerabilities are considering as initial infection vectors for ransomware incidents. These vectors are likely to remain popular owing to the increased use of remote work.

• As per the survey, 71% of the organization across globe were affected by ransomware attacks in 2022. Business organizations across the globe are adopting terminal emulator into the mission-critical environments to eliminate the concerns associated with the security.

• For an instance, OpenText InfoConnect enterprise edition for unisys, IBM & open systems are a window-based terminal emulator that enables users connect to Unisys, UNIX, Linux, OpenVMS, and IBM hosts.

Market Restraint - Legacy System Compatibility Challenges

Legacy mainframes have unique communication protocols, making it challenging for terminal emulator software to ensure smooth compatibility. Despite the modernization, numerous organizations still rely heavily on legacy systems, which pose compatibility hurdles for contemporary terminal emulator solutions. The complex communication protocols embedded in these legacy mainframes diverge from standard interfaces, making it difficult for terminal emulation software to seamlessly integrate.

For instance, in industries such as finance and healthcare, where reliance on legacy infrastructure is prevalent, the transition to advanced terminal emulator software is hampered by the complexity of legacy system compatibility. This restraint creates a barrier for the widespread adoption of terminal emulation solutions, hindering organizations from fully leveraging the benefits of modernized interfaces and efficient remote access.

Market Restraint - Security and Compliance Concerns

Security and compliance concerns are a formidable restraint in the market. Escalating advancements of cyber threats has elevated the imperative for stringent security measures in software applications, including terminal emulators. Instances of data breaches and cyberattacks emphasize the critical need for robust security protocols.

For example, industries handling sensitive information, such as finance and healthcare, demand terminal emulation solutions that adhere to stringent compliance standards such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA). Meeting these regulatory requirements becomes a complex challenge for terminal emulator software developers, as the software must ensure secure access and transmission of data while navigating a landscape of evolving cybersecurity threats.

The restraint is aggravated by the growing awareness and prioritization of data protection, forcing organizations to scrutinize the security features of terminal emulation solutions before adoption.

Market Opportunity - Integration of Emerging Technologies

The integration of emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), machine learning, and cloud computing are opening up new opportunities for the terminal emulator software market with various factors such as:

• Efficient Data Processing: AI in IoT efficiently process huge volumes of real-time data that is being generated from IoT devices. Terminal emulator software, which enables computer terminals to emulate legacy systems, leverage this capability to manage large volumes of data and its security & privacy.

• Reduced Maintenance Cost and Downtime: AI in IoT help reduce maintenance cost and downtime. This is particularly beneficial for industries relying on legacy applications, such as finance and manufacturing.

• Improved Interoperability: AI in IoT software solutions is designed to meet interoperability challenges that arise due to varied heterogeneous devices. Terminal emulator software use these solutions to mitigate interoperability issues and create flexibility to effectively manage various business functions.

• Machine Learning and Deep Learning: The combination of machine learning (ML) and edge computing filter majority of the noise collected by IoT devices and leave the relevant data to be analyzed by edge & cloud analytic engines. This enhances the functionality of terminal emulator software.

• Enhanced Security Features: The terminal emulator software market is focusing on enhanced security features, as businesses transition to modern infrastructures. AI in IoT contribute to this focus by providing advanced security solutions.

Scope of The Terminal Emulator Software Market Report

The report on the global Terminal Emulator Software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Terminal Emulator Software Market Segment Insight

The global Terminal Emulator Software market is segmented on the basis of type and application.

On the basis of type, the global Terminal Emulator Software market is segmented into cloud based, web-based, and on-premise. The cloud-based segment holds a significant market share of the market and is projected to expand at a significant CAGR during the forecast period due to the factors such as the growing trend of Bring Your Own Device (BYOD) and the increasing demand for mobility in business operations are driving the adoption of cloud-based terminal emulator software.

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Based on application, the Terminal Emulator Software market is segmented into Large Enterprises and SMEs. The large enterprises segment holds a significant share of the market during the forecast period.

This is attributed to the rising adoption of terminal emulator software by large enterprises for a variety of applications such as inventory management, order management, sales & marketing, customer relationship management (CRM), supply chain management, and transportation & logistics.

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Regional Outlook

On the basis of region, the global Terminal Emulator Software market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America holds a significant market share and is expected to grow at a significant CAGR during the forecast period, owing to the presence of Silicon Valley, which is home to dozens of major technology, software, and internet companies.

These corporations continuously use terminal emulator software for remote access applications, boosting the market in the region.

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Key Companies Developments

• On 10^th September 2020, Rocket Software, Inc. introduced Rocket BlueZone Web for Zowe. This was the first commercial terminal emulator solution for Zowe, an open-source initiative within the Linux Foundation’s Open Mainframe Project (OMP), to provide terminal emulation for IBM Z servers from any browser-enabled device. It includes superior configuration options for macros and settings, enabling a familiar emulation environment.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Terminal Emulator Software Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Terminal Emulator Software Market