The Cloud Native Software Market is estimated to be valued at US$ 5.80 Bn or Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cloud native applications refer to applications designed to operate in a cloud environment and fully benefit from cloud technology features. The architecture revolves around microservices, containers, and DevOps practices. These applications are designed to be resilient and highly scalable. Leading industries such as e-commerce, media & entertainment, IT & telecom, and banking & finance are actively adopting cloud native solutions to gain competitive advantage.
Market Dynamics:
Growing adoption of microservices architecture is expected to drive the market growth. Microservices architecture enables building cloud native applications as independent services that can scale independently. It provides operational agility and enhances developer productivity. Additionally, continuous delivery and deployment model has gained widespread acceptance among organizations to release new functions or updates on daily/weekly basis. This allows incorporating customer feedbacks at a faster pace and improving application performance continuously. The two drivers are therefore expected to propel the cloud native software market growth over the forecast period.
SWOT Analysis
Strength: The Global Cloud Native Software Market has a variety of open source and commercial solutions that cater to different business needs. Cloud native technologies enable building scalable and resilient applications that can adapt to dynamic environments. Developers have access to a wide range of developer tools and frameworks for building cloud native software.
Weakness: Transitioning legacy applications to cloud native architectures requires significant investment and resources. Ensuring reliability, security, and compliance of cloud native applications deployed across hybrid and multi-cloud environments is challenging. Lack of skills and expertise in developing cloud native applications hinders adoption.
Opportunity: Growing demand for digital transformation and modernization of applications is stimulating demand for cloud native solutions. Enterprises are leveraging cloud native technologies to build innovative products and services with speed and agility. Expanding cloud services and increasing adoption of containers provide growth opportunities.
Threats: Security vulnerabilities in cloud native technologies pose risks. Competition from open source rivals threatens commercial vendors. Resistance to change from existing platform vendors hampers uptake of new models.
Key Takeaways
The global cloud native software market is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing adoption of cloud computing and demand for building scalable and resilient applications.
Regional analysis: The cloud native software market in North America is expected to hold the largest market share over the forecast period owing to strong presence of key cloud service providers and early adoption of cloud technologies. Asia Pacific region is poised to grow at the fastest pace during 2023-2030, due to increasing digitization initiatives and growing investments in cloud infrastructure development across countries like China and India.
Key players: Key players operating in the cloud native software market are Microsoft, IBM, Dynatrace, Datadog, Splunk, New Relic, GitLab, CircleCI, CloudBees, Snyk, Twistlock, Qualys, Salesforce, SAP, Adobe, Oracle, VMware, Red Hat, Rancher Labs, Sysdig. These players are focusing on product innovations and partnerships to strengthening their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it