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Major Force in the Open Source Software Market 2025: Growth Of Small Enterprises Fueling Demand For Affordable Software

02-12-2025 05:19 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Open Source Software Market Size

Open Source Software Market Size

How Will the Open Source Software Market Grow, and What Is the Projected Market Size?
The market for open-source software has expanded swiftly in the recent past. It's predicted to surge from $41.83 billion in 2024 to $48.92 billion in 2025, witnessing a compound annual growth rate (CAGR) of 16.9%. Factors such as greater accessibility to open-source platforms, a heightened focus on tech education, growth in government-led initiatives, inflation in cost pressures, and a rise in the need for collaborative and adaptable software solutions contributed to the growth observed in the historical period.

Anticipating a swift expansion in the following years, the market size of open source software is predicted to reach $90.66 billion in 2029, with a compound annual growth rate (CAGR) of 16.7%. The growth during the forecasted period is credited to the increasing number of organizations, the growing accessibility of open APIs, the escalating use of open-source software in businesses, an increasing trend towards cloud-based infrastructure, and heightened awareness about security advantages. Technological evolution, ethical licensing models, cloud-based open-source software, quantum computing frameworks, and low-code or no-code development are among the significant trends expected during the forecast period.

What Are the Main Catalysts for Growth in the Open Source Software Market?
The rise in small-scale enterprises is anticipated to spur the growth of the open-source software market. These small enterprises are typically privately-held businesses, characterized by a limited workforce and comparatively lower revenue and profits than larger corporations. Factors such as technological advances, globalization, evolving workforce trends, government aid, market prospects, cost-effectiveness, and entrepreneurial dynamism drive these enterprises. Open-source software offers affordable solutions that meet the needs of small enterprises, allowing them to utilize high-quality software without the associated high costs of proprietary software. For example, the UK's Department for Business and Trade reported in October 2023 that the number of small enterprises had increased from 217 in 2022 to 223 in 2023. The count of medium-sized enterprises remained static at 36 in 2021 and 2022 before mildly increasing to 37 in 2023. Consequently, the surge in small enterprises is fuelling the expansion of the open-source software market.

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Who Are the Major Industry Players Fueling Open Source Software Market Expansion?
Major companies operating in the open source software market are Intel Corporation, International Business Machines Corporation, Oracle Corporation, Transcend Information Inc., F5 Inc., Red Hat Inc., Mozilla Corporation, SUSE S.A., Progress Software Corporation, HashiCorp, Acquia Inc., Canonical Ltd., Aptean, Puppet Inc., TYPO3, MariaDB Corporation, The Linux Foundation, Redpill Linpro., ClearCenter, KDE, Eclipse Foundation AISBL, The Apache Software Foundation, Python Software Foundation, FossID, RethinkDB

Which Key Developments Are Influencing the Open Source Software Market?
Major companies in the open-source software market are concentrating their efforts on creating edge-optimized operating systems like Red Hat Device Edge, to back up open-source communities. Red Hat Device Edge provides the necessary framework and capacity for effective and efficient data processing at the network's edge. For example, Red Hat Inc., an American open-source software product provider, introduced an edge-optimized operating system named Red Hat Device Edge in October 2022. This product permits businesses to install only essential software components, which minimizes the attack surface and conserves resources. It simplifies the administration of edge devices and corresponding workloads, enabling businesses to deploy workloads on resource-limited devices at the extreme edge. It also offers security enhancements like smart device updates, zero-touch provisioning, and fast security corrective measures.

How Is the Segmentation of the Open Source Software Market Defined?
The open source software market covered in this report is segmented -

1) By Type: Shareware, Bundled Software, Berkeley Source Distribution (BSD)
2) By Application: Professional Services, Managed Services
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By End-User: Banking Financial Services And Insurance (BFSI), Education, Manufacturing, Healthcare And Life Sciences, Retail And Distribution, Other End-Users

Subsegments:
1) By Shareware: Trial Software, Freemium Software, Time-Limited Software, Feature-Limited Software, Subscription-Based Shareware
2) By Bundled Software: Operating System Bundles, Productivity Tool Bundles, Web Development Bundles, Enterprise Resource Planning (ERP) Bundles, Database Management System (DBMS) Bundles, Security Software Bundles
3) By Berkeley Source Distribution (BSD): BSD Operating Systems, BSD-Based Web Servers, BSD-Based Network Tools, BSD License Software, BSD-Based Security Tools

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What Is the Leading Region in the Open Source Software Market?
North America was the largest region in the open source software market in 2024. The regions covered in the open source software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Open Source Software Global Market Report?

- Market Size Analysis: Analyze the Open Source Software Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Open Source Software Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Open Source Software Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Open Source Software Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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