The Cloud Native Software Market is estimated to be valued at US$ 5.80 Billion in 2023 and is expected to exhibit a CAGR of 34.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cloud native software consists of applications designed for cloud computing platforms. These applications can be easily deployed on any infrastructure and are optimized for modern cloud platforms like Kubernetes and service meshes. Cloud native applications rely on containerization, decentralized services, immutable infrastructure and declarative APIs. They allow businesses to innovate faster, scale more efficiently and deliver great digital experiences to customers on any device or platform.
Market key trends:
One of the major trends driving the growth of cloud native software market is the rising adoption of microservices architecture. Microservices break down enterprise applications into smaller, independent services that can be developed, tested, deployed and scaled independently. This allows organizations to streamline development processes, boost innovation and accelerate product launches. Microservices are well suited for cloud environments as they are loosely coupled and distributed in nature. The proliferation of microservices is prompting businesses across industries to build cloud native applications, thereby pushing up demand for products like containers, serverless computing and service meshes. The ability of cloud native software to support microservices architecture at scale is a key factor propelling its adoption among enterprises.
Porter's Analysis
Threat of new entrants: Low capital requirements for software development and availability of distribution platforms like the app stores lower barriers of entry. However, established players have significant brand value and customer base.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity for software. However, switching costs and need for specialized skills retain some customers.
Bargaining power of suppliers: Software developers and talent have significant bargaining power given the demand. However, availability of open source and freelancing platforms balances this power.
Threat of new substitutes: Virtualization and containerization increase substitutes, but cloud native technologies address agility, scalability and infrastructure-as-code needs better than existing solutions.
Competitive rivalry: Intense as vendors compete based on capabilities, customer experience and pricing. Focus on product differentiation, partnerships and customer lock-in.
SWOT Analysis
Strengths: Improved agility, scalability, efficiency and developer productivity. End-to-end automation of infrastructure, builds and deployments.
Weaknesses: Immature culture around cloud native mindset. Significant skill gaps for architects, developers and operations teams.
Opportunities: Massive digital transformation demand. Multi-cloud/hybrid deployments requiring portability and management. Growth of serverless computing and microservices.
Threats: Vendor lock-in concerns. Container security and compliance challenges. Budget and skill constraints delaying adoption. Regulation impacting data sovereignty.
Key Takeaways
The Global Cloud Native Software Market Size is expected to witness high growth at a CAGR of 34.8% over the forecast period due to increasing demand for applications that can dynamically adapt to changing infrastructure and end-user needs. By 2030, the market size is projected to reach over US$ 200 Bn.
North America dominated over 40% of the market in 2023 due to large-scale adoption of cloud and DevOps among enterprises. However, Asia Pacific is expected to exhibit highest CAGR over 35% owing to growing digital transformation agenda across industries in countries like China and India.
European nations are also focusing on innovation led growth strategies and implementation of advanced technologies to gain competitiveness. The region is anticipated to show significant increases in cloud, AI and automation spends.
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. Vendors are investing in R&D to expand product capabilities around observability, security and developer workflows. Partnerships are also a key focus amid multi-cloud architectures.
For More Insights, Read: https://www.newswirestats.com/cloud-native-software-market-demand-growth-and-regional-outlook-by-2030/
