April 21, 2024
Cloud Native Software

Cloud Native Software is Estimated to Witness High Growth Owing to Advancements in Cloud Technologies

Cloud native software refers to applications built and deployed for the cloud, using cloud infrastructure services like databases and message queues. These applications are optimized for dynamic scalability, high availability, and resilience on cloud infrastructure. The need for cloud native software is growing as organizations aim to increase agility, reduce costs, and enable remote work and collaboration. Technologies like containers, microservices, and serverless computing enable developers to build distributed applications that can grow and shrink with demand.

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.

Advancements in technologies like containers, microservices, and Kubernetes have enabled developers to build cloud native applications easier and faster.

Key Takeaways
Key players operating in the Cloud Native Software are Boston Scientific, Merit Medical Systems,Cook Medical, Terumo Corporation, BTG Medical, Sirtex Medical, C.R. Bard. Major companies are investing in research and development to come up with innovative cloud native products and solutions.

The key opportunities in the cloud native software market include increased adoption across verticals like healthcare, BFSI, retail and ecommerce. Cloud native approaches help optimize costs and boost productivity. There is also increasing demand for specialized cloud native solutions tailored for specific industry needs.

Advancements in container orchestration platforms like Kubernetes have made it easier for developers to deploy and manage containers at scale. Serverless computing is another emerging technology that is driving the adoption of cloud native architectures as it allows building and running applications without managing infrastructure.

Market drivers
The major driver for the growth of Cloud Native Software Market is the flexibility and agility offered by cloud native applications. Migrating applications to cloud native models allow enterprises to scale up during peak loads and scale down when not needed. This helps optimize infrastructure costs. Further, cloud native solutions also improve business continuity as the applications can withstand failures and automatically recover. The demand for digital transformation across industries is also propelling the growth of the cloud native software market.

Current challenges in Cloud native software market:
The cloud native software market is facing several challenges currently due to dynamic market conditions and evolving technology landscape. Legacy technologies and monolithic application architectures have been predominant among organizations for long. Migrating such complex architectures to cloud native models requires significant efforts and costs. Lack of skilled talent with expertise in cloud native technologies like Kubernetes, containers, microservices is also a major challenge faced. Integrating cloud native applications with legacy systems of organizations poses interoperability issues. Data security, regulatory compliances and vendor lock-ins are other concerns that slow down the adoption of cloud native models. However, industry leaders are working towards addressing these challenges by developing technologies, frameworks and expertise that can facilitate seamless transition to cloud native systems.

SWOT Analysis
Strength: Cloud native technologies offer huge scalability, faster innovation, and enable continuous delivery of applications and services. Being inherently distributed, they provide high availability and reliability.

Weakness: Cloud native platforms require mastery of complex technologies like containers and microservices which increases initial costs of development and maintenance. Associated learning curve is also high.

Opportunity: Growing focus on digital transformation and need for agility is driving organizations across industries to embrace cloud native models. This presents significant growth opportunities.

Threats: Dependency on public cloud providers leads to vendor lock-ins. Data portability and accessibility issues arise which can impact businesses. Skilled talent crunch also poses challenges.

North America accounts for the largest share in the cloud native software market currently, both in terms of value and volume. This is attributed to strong economic conditions and early adoption of advanced technologies across industries in the region. However, Asia Pacific region is emerging as the fastest growing market driven by increasing digitization, infrastructure development, and government initiatives in countries like India, China and others. The market is also witnessing significant growth in Europe due to initiatives promoting open source technologies. Latin America and Middle East & Africa offer promising growth prospects for cloud native software solutions.

The fastest growing regional market for cloud native software is expected to be Asia Pacific between 2024-2030. This growth is expected to be fuelled by rapid digital transformation of industries and development of digital infrastructure in major economies of the region like China, India and others. Cloud adoption is increasing at an exponential rate in Asia Pacific creating opportunities for cloud native solution providers. Initiatives promoting open innovation also contribute to the growth of this market in Asia Pacific.

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