Hilbert space
The algebra of observables in quantum mechanics is naturally an algebra of operators defined on a Hilbert space, according to Werner Heisenberg's matrix mechanics formulation of quantum theory. Von Neumann began investigating operator algebras in the 1930s, as rings of operators on a Hilbert space. The kind of algebras studied by von Neumann and his contemporaries are now known as von Neumann algebras. In the 1940s, Israel Gelfand, Mark Naimark and Irving Segal gave a definition of a kind of operator algebras called C*-algebras that on the one hand made no reference to an underlying Hilbert space, and on the other extrapolated many of the useful features of the operator algebras that had previously been studied. The spectral theorem for self-adjoint operators in particular that underlies much of the existing Hilbert space theory was generalized to C*-algebras. These techniques are now basic in abstract harmonic analysis and representation theory.
David Hilbert
Around 1909, Hilbert dedicated himself to the study of differential and integral equations; his work had direct consequences for important parts of modern functional analysis. In order to carry out these studies, Hilbert introduced the concept of an infinite dimensional Euclidean space, later called Hilbert space. His work in this part of analysis provided the basis for important contributions to the mathematics of physics in the next two decades, though from an unanticipated direction.
Later on, Stefan Banach amplified the concept, defining Banach spaces. Hilbert spaces are an important class of objects in the area of functional analysis, particularly of the spectral theory of self-adjoint linear operators, that grew up around it during the 20th century.