Cloud native software refers to applications that are built to run on distributed infrastructure and make use of cloud computing services such as containerization and serverless computing. These applications utilize platform as a service, software as a service and other cloud computing services to build highly scalable and agile systems. The cloud native software offers advantages such as on-demand scalability, auto-updates, portability across clouds and device ubiquity. There is increasing need for cloud native software among organizations to stay ahead of the competition by building and deploying applications more quickly. The global Cloud Native Software Market is estimated to be valued at US$ 5.8 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The surge in demand for enhanced cloud computing services from various end-use industries such as IT & telecom, healthcare, retail, manufacturing etc. is driving the growth of the cloud native software market. The cloud native applications developed using platforms like Kubernetes allow enterprises to deploy containerized applications at scale efficiently. This helps companies to gain competitive advantage by bringing new features and upgrades to customers more rapidly. The serverless architecture provided by cloud native platforms has reduced the operational overheads for companies significantly by automating infrastructural tasks. This trend towards modern applications developed on containers and serverless functions is expected to propel the cloud native software market growth over the forecast period.
SWOT Analysis
Strength: Cloud native software provides benefits like scalability, high availability, and agility. They enable building and running applications that are optimized for modern infrastructure and platforms.
Weakness: Migration of legacy applications to the cloud native environment requires significant upfront costs and efforts. Cloud native skills are also scarce.
Opportunity: The increasing adoption of microservices, containers, and serverless architecture by organizations represents an opportunity for cloud native software vendors. The growing cloud migration and cloud-first strategies of enterprises also enhances opportunities.
Threats: Security threats from unauthorized access and cyberattacks poses as an ongoing threat. Regulatory issues around privacy and data locality also present challenges.
Key Takeaways
The global cloud native software market is expected to witness high growth over the forecast period supported by the increasing adoption of cloud computing and digital transformation initiatives of enterprises. The market size is projected to reach US$ XX Bn by 2030 with a CAGR of 12%.
Regional analysis: North America dominates the cloud native software market currently owing to rapid adoption of advanced technologies. The region is expected to continue its dominance over the forecast period as well. Asia Pacific is expected to offer lucrative growth opportunities with increasing investments in cloud infrastructure by countries like China and India.
Key players: Key players operating in the cloud native software market are Siemens Healthineers AG, Medline Industries, Inc., Owens Corning, Stericycle, Inc., Philips Healthcare, Trane Technologies plc, Johnson Controls International plc, Hitachi, Ltd., Honeywell International Inc., Schneider Electric SE operating in various segments. These players are focusing on expanding their cloud native capabilities through partnerships and acquisitions.
Key players operating in the cloud native software market are Siemens Healthineers AG, Medline Industries, Inc., Owens Corning, Stericycle, Inc., Philips Healthcare, Trane Technologies plc, Johnson Controls International plc, Hitachi, Ltd., Honeywell International Inc., Schneider Electric SE focusing on expanding their cloud native capabilities through partnerships and acquisitions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it