February 24, 2024
Cloud Native Software Market

Growing Deployment Of Cloud-Based Services To Boost The Growth Of Cloud Native Software Market

The global Cloud Native Software Market is estimated to be valued at US$ 5.80 Bn in 2023 and is expected to exhibit a CAGR of 34.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Cloud native software consists of applications that are developed to take full advantage of the cloud platform and environment. It is built and run to utilize the cloud platform capabilities and services such as scalability, auto-scaling, failover, and redundancy to minimize application downtime and increase availability. Cloud native applications are faster to develop and are more agile as changes such as release updates and configuration settings can be rolled out seamlessly without service interruption. These applications make use of microservices architecture and DevOps practices to develop and deploy software in shorter iterations. Cloud native software can leverage the cloud platform capabilities and services to provide self-healing, auto-scaling, and containerized applications with high availability.

Market key trends:

The key trend in the cloud native software market is the rising adoption of Kubernetes and containerization by organizations. Kubernetes being an open-source container orchestration system helps in automating deployment, scaling, and management of containerized applications. It is witnessing increasing deployment for developing and managing cloud native applications. According to recent surveys, about 50% of organizations are using Kubernetes across production environments. Additionally, the growing popularity of DevOps practices and microservices architecture among companies is boosting the demand for cloud native software. Microservices architecture breaks down applications into independently deployable small modules that are easier to develop and scale on cloud platforms. This increasing shift towards cloud-based services will continue to drive the demand for cloud native applications and solutions.

Porter’s Analysis

Threat of new entrants: Low-medium. Existing cloud native software vendors have large market shares and economies of scale. However, barriers to enter are relatively low for new software startups.
Bargaining power of buyers: Medium-high. Large enterprises have significant bargaining power due to their purchasing volume. They can demand price reductions and customized offerings.
Bargaining power of suppliers: Low. There are many component/tooling suppliers for cloud native software development. Switching costs are relatively low.
Threat of new substitutes: Medium. Alternatives like serverless computing and containerization have emerged as substitutes. However, cloud native still dominates for complex application development.
Competitive rivalry: High. The market is rapidly growing but dominated by few major players. Intense competition on price and product differentiation.

Key Takeaways

The Global Cloud Native Software Market Size is expected to witness high growth, exhibiting CAGR of 34.8% over the forecast period, due to increasing focus on application modernization and demand for scalable infrastructure.

Regional analysis: North America dominates currently with a share of over 40% due to strong adoption rates among enterprises. Asia Pacific is expected to grow at the fastest pace with countries like China, India and Japan emerging as new hotspots. Growing startup investments and digitalization drives in the region fuel the market.

Key players operating in the Cloud Native Software Market include Microsoft, IBM, Dynatrace, Datadog, Splunk, New Relic, GitLab, CircleCI, CloudBees, Snyk, Twistlock, Qualys, Salesforce, SAP, Adobe, Oracle, VMware, Red Hat, Rancher Labs, and Sysdig. Microsoft leads with its Azure platform and tools. Newer players like CircleCI and GitLab are gaining popularity for DevOps and CI/CD workflows. Acquisitions and partnerships remain key growth strategies.

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