April 24, 2024
Ict

Cloud Native Software Market Poised to Witness High Growth Due to Increasing Demand for Software Agility and Scalability

Cloud native software refers to applications and infrastructure that leverage techniques like containers, microservices, immutable infrastructure and declarative APIs. These enable loose coupling, elasticity and streamlined deployments.

The Global Cloud Native Software Market is estimated to be valued at US$ 6.69 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 to 2030.

The key advantages associated with cloud native software include increased agility, greater scalability, simplified operations with automated deployment and management, improved disaster recovery and lower costs. As organizations aim to build and deploy software faster while balancing costs, demand for cloud native architectures and platforms is increasing significantly. The need for accelerated software delivery, improved efficiency of development teams and ensuring business continuity are the major factors driving the adoption of cloud native technologies across various industry verticals.

Key Takeaways

Key players operating in the cloud native software market are Boston Scientific, Merit Medical Systems,Cook Medical, Terumo Corporation, BTG Medical, Sirtex Medical, C.R. Bard. The growing trend of containerization and serverless computing presents significant opportunities for cloud native software providers and platform vendors to enhance their offerings. The public cloud giants like Amazon Web Services, Microsoft Azure and Google Cloud are witnessing rising adoption of their container and serverless services.

In terms of opportunities, the growing popularity of DevOps practices and emergence of platforms supporting Kubernetes and containers presentample scope for innovation and newproduct/feature development. There is also a rising demand for hybrid and multicloud management solutions to simplify operations and optimize cloud costs for enterprises with complexrequirements.

Globally, North America dominated the cloud native software market in 2019 owing to rapid digitalization. However, Asia Pacific is expected to witness the fastest CAGR during the forecast period with growing investments by tech companies in countries like India and China for development of cloud native applications and services.

Market Drivers
One of the major drivers for The Cloud Native Software Market is the increasing demand for software agility and scalability. Legacy monolithic architectures are rigid and limiting in terms of scalability. Cloud native design principles enable building scalable and resilient applications that can handle sudden traffic spikes easily. This provides a competitive advantage to businesses in terms of faster response times, better customer experiences and improved operational efficiency. The demand for accelerated innovation and continuous delivery has prompted many organizations to shift from traditional software development approaches to cloud native models.

PEST Analysis
Political: Cloud native software market is influenced by various data privacy regulations passed by governments globally. Adoption of cloud services is dependent on factors like data sovereignty etc.

Economic: Cloud native architecture helps organizations reduce upfront IT costs and shift to variable operating expenditure model. This has aided the spending on cloud native technologies by enterprises looking to optimize costs.

Social: Younger demographics are technology savvy and driving the demand for digital services. Cloud native applications offer seamless experience across devices promoting social media usage and connectivity.

Technological: Cloud native services allow on demand scalability and auto-updates. This has led to rapid experimentation and accelerates innovation. Containers and microservices architecture has transformed software development promoting cloud native adoption.

Geographical regions with high market concentration
The cloud native software market in terms of value is highly concentrated in North America and Europe. Both regions account for more than 60% of global revenues driven by increased cloud adoption by large enterprises across sectors. Growing digital transformation initiatives and investments into developing cloud competent workforce have augmented demand.

Fastest growing region
The Asia Pacific region is emerging as the fastest growing market for cloud native technologies. Presence of developing economies, growing internet penetration and focus on supporting startups offer significant potential. Countries like China, India and Japan are major contributors with their initiatives to foster local innovation through cloud platforms. Expansion of hyperscalers into new markets and availability of affordable cloud services are bolstering adoptions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it