by Cloud native software solutions enable companies to deploy container-based applications that eliminate dependency on hardware infrastructure. Some of the key advantages of cloud native software include enhanced scalability, portability, and flexibility as the applications can easily adapt to changing business requirements. With containerization providing improved isolation and packaging of applications, cloud native software allows enterprises to develop, deploy, and manage container-based distributed applications without latency issues.Containerizing applications helps break monolithic structures into smaller, independent services that communicate through application programming interfaces (APIs). This microservices architecture eases the process of building, deploying, managing, and scaling applications.
The global Cloud Native Software Market is estimated to be valued at US$ 5.8 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Adoption of microservices architecture has increased as it offers greater agility, productivity, and faster development cycles. Cloud native applications designed using microservices are highly scalable and self-healing. Increased focus on developing cloud native apps as they help optimize the utilization of cloud infrastructure resources and lower costs. Growing demand for cloud native data management solutions that facilitate efficient management of data across clouds and platforms. Emergence of serverless computing which allows to build and run applications and services without managing infrastructure is also gaining traction in the cloud native software market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cloud native software market is moderate. Significant capital investment is required for infrastructure, sales network, and R&D. However, the market is witnessing growing demand which acts as an opportunity for new players.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have a variety of options to choose from various established as well as emerging players. They can negotiate on price and demand customized solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are many component and technology suppliers. However, established cloud native solution providers develop integral components in-house which reduces their dependence.
Threat of new substitutes: The threat of new substitutes is low. There are limited substitutes that can provide capabilities similar to cloud native platforms. Traditional platforms require huge infrastructure investments.
Competitive rivalry: The competition in the market is high. Players compete based on product innovation, reliability, security features, scalability, pricing and services.
Key Takeaways
The global cloud native software market is expected to witness high growth over the forecast period supported by growing adoption of cloud technologies.
Regional analysis: North America dominates the market currently owing to strong presence of established as well as emerging players such as Siemens Healthineers AG, Medline Industries, Inc., Owens Corning etc. in the region. However, Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing investments in digital technologies by organizations in countries such as China and India.
Key players: Key players operating in the cloud native software market are Siemens Healthineers AG, Medline Industries, Inc., Owens Corning, Stericycle, Inc., Philips Healthcare, Trane Technologies plc, Johnson Controls International plc, Hitachi, Ltd., Honeywell International Inc., Schneider Electric SE operating in the market. Players are focusing on new product launches and partnerships with cloud specialists to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
