Press release
Cloud Native Technologies Market to Grow at a CAGR of 23.8% and Expected to Reach $ 53.6 Billion in 2032
According to a new report published by Allied Market Research, the cloud native technologies market size was valued at $6.5 billion in 2022, and is estimated to reach $53.6 billion by 2032, growing at a CAGR of 23.8% from 2023 to 2032.Cloud-native technologies signify a transformative approach to software development, leveraging cloud computing capabilities to create, deploy, and manage applications. Focused on scalability, resilience, and portability, these technologies prioritize loosely coupled microservices, containerization, and DevOps practices to streamline the software lifecycle. Central to this paradigm is the use of containers, enabling developers to package applications with their dependencies for consistency across diverse environments.
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Microservices architecture complements this by breaking down complex applications into smaller, independently deployable services, promoting agility and facilitating easier updates and maintenance. This methodology fosters continuous integration and continuous deployment (CI/CD) pipelines, automating software delivery and enabling rapid innovation and deployment. The adoption of cloud-native technologies marks a significant evolution in software development and deployment strategies, enabling organizations to innovate rapidly, optimize resource utilization, and swiftly respond to market demands by harnessing the scalability, elasticity, and automation inherent in cloud platforms.
The cloud-native technologies market is influenced by several key determinants such as the increasing demand for scalable, agile, and efficient software solutions that drive the adoption of cloud-native technologies. Businesses seek to leverage these technologies to enhance flexibility, reduce costs, and expedite software development and deployment. In addition, the rise of containerization technologies, such as Docker and Kubernetes, significantly impacts the cloud-native landscape.
Containers enable the packaging of applications and their dependencies, facilitating consistency across different environments and streamlining deployment processes. Furthermore, the shift towards microservices architecture plays a crucial role. It enables the development of applications as a suite of small, independently deployable services, fostering scalability and resilience. Overall, the combination of scalability, agility, containerization, microservices, DevOps practices, and competitive advantages collectively drive the growth and adoption of cloud-native technologies in the market.
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Moreover, key players in the Cloud Native Technologies Industry have implemented various strategies to enhance competition and provide improved services to their customers. For instance, in April 2023, Chronosphere, a leading cloud-native observability platform, entered into a partnership with Google Cloud. Serving as go-to-market partners, Chronosphere and Google Cloud aim to assist customers in swiftly resolving incidents while managing costs associated with cloud-native observability solutions. This multi-year agreement is expected to support joint marketing and sales efforts through Google Cloud's Solution Connect program and Google Cloud Marketplace. As part of this collaboration, the companies are anticipated to develop joint marketing campaigns, sales enablement initiatives, and mutually beneficial customer success programs.
COVID-19 Scenario:
• The COVID-19 pandemic had a significant impact on consumer trends, preferences, and budgets, leading to notable changes in the cloud-native technologies market. As businesses and individuals adapted to remote work and digital transformation, the demand for cloud-native solutions surged. Companies prioritized cloud-native technologies to enable scalability, flexibility, and remote accessibility, which helped them maintain business continuity during lockdowns.
• In addition, the pandemic accelerated the digital transformation of businesses. Companies, under the constraints of the pandemic, realized the importance of cloud-native technologies for flexibility and resilience. As a result, there was a rapid increase in the deployment of containerization and orchestration tools, like Kubernetes, as well as cloud-native application development platforms, leading to a substantial expansion of the cloud-native market.
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By component type, the software segment held the highest market share in 2022, accounting for more than half of the global cloud native technologies market revenue, attributable to the rapid adoption of cloud-based infrastructure across industries. Businesses increasingly recognize the agility, scalability, and cost-efficiency offered by cloud-native solutions, propelling the demand for sophisticated software tools tailored for these environments. However, the hardware segment is projected to manifest the highest CAGR of 25.9% from 2023 to 2032, attributable to ongoing advancements in hardware technologies, including the development of more powerful processors, high-capacity storage solutions, and energy-efficient infrastructure, offer immense potential for market growth.
By deployment mode, the public cloud segment held the highest market share in 2022, accounting for nearly half of the global cloud native technologies market revenue, because of the design and implementation procedures easier, allowing businesses to concentrate more on the functionality and logic of their applications rather than the infrastructure together. However, the private cloud segment is projected to manifest the highest CAGR of 25.9% from 2022 to 2032. Private clouds provide for more customization and flexibility, enabling businesses to adapt the infrastructure and services to their particular requirements. They can thus tailor performance, scalability, and resource allocation to their particular needs.
By industry vertical, the BFSI segment held the highest market share in 2022, accounting for more than one-fourth of the global cloud native technologies market revenue, attributable to cloud native architectures. Customers may have easy access to their accounts, transactions, and financial information through these applications, which could boost their happiness and loyalty. However, the retail segment is projected to manifest the highest CAGR of 25.7% from 2022 to 2032, retail organizations are better equipped to add new digital commerce services faster and easier to remain on top of changing retail trends as a cloud-native strategy accelerates development capabilities and boosts speed to market.
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By region, North America held the highest market share in terms of revenue in 2022, owing to the ongoing trend, which is serverless computing, which allows developers to focus on writing code without worrying about infrastructure management. Serverless platforms such as AWS Lambda and Azure Functions have gained traction in North America, offering opportunities for developers and businesses to build and deploy applications more efficiently. However, Asia-Pacific is expected to witness the fastest CAGR of 26.9% from 2023 to 2032 and is likely to dominate the market during the forecast period. With surge in containerization and orchestration platforms such as Kubernetes, as well as serverless computing frameworks, these technologies are empowering businesses to streamline their operations and reduce infrastructure costs.
Leading Market Players: -
• Alibaba Group Holding Limited
• Dell Technologies Inc.
• Dropbox
• Google, Inc.
• Hewlett Packard Enterprise Development L.P.
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• Salesforce
• VMware, Inc.
The report provides a detailed analysis of these key players in the global cloud-native technologies market. These players have adopted different strategies such as expansion, merger, and product launch to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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