July 22, 2024
Cloud Native Software Market
Ict

Cloud Native Software Market is Estimated To Witness High Growth Owing To Cloud Adoption

The Cloud Native Software Market is estimated to be valued at US$ 5.80 billion in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cloud native software refers to applications and services that leverage techniques, methods and tools which enables development, deployment, and management of applications without depending on traditional monolithic applications. Cloud native software allows organizations to build modern applications that are resilient, scalable and continuously delivery ready. Such software can be deployed on modern infrastructure which is containerized and distributed and managed using devops practices.

Market key trends:
Rising adoption of cloud computing across various end use industries has emerged as a key trend driving the growth of cloud native software market. Cloud adoption has witnessed significant growth in recent years owing to benefits such as scalability, ease of deployment and management along with reducing upfront infrastructure costs. According to recent estimates, the cloud computing market is expected to reach over $1.55 trillion by 2030, growing at a CAGR of 17.5% from 2023 to 2030. As cloud adoption increases, the demand for developing and deploying cloud native applications will also witness parallel growth. This is expected to significantly propel the cloud native software market over the forecast period.

Porter’s Analysis:
Threat of new entrants: New entrants face high initial capital requirements to build robust cloud native infrastructure and compete with existing players.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to presence of multiple cloud native software vendors offering substitutable products.
Bargaining power of suppliers: Software developers and technology providers have moderate bargaining power due to presence of alternative solution providers.
Threat of new substitutes: Risk of substitutes is moderate as new emerging technologies like serverless computing, containers and microservices pose threat to existing cloud native technologies.
Competitive rivalry: Intense competition exists among existing players.

SWOT Analysis:
Strengths: Cloud native approach offers scalability, flexibility, agility and reduced infrastructure costs.
Weaknesses: Skills shortage of cloud native developers and complex migration of legacy applications to cloud native platforms.
Opportunities: Growing demand for digital transformation and modern applications is driving adoption of cloud native technologies.
Threats: Security threats from misconfiguration of containers and orchestration platforms.

Key Takeaways:
The Global Cloud Native Software Market is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing demand for scalable and agile cloud infrastructure. The US market holds the largest share in the global market due to strong presence of leading cloud native software vendors and growing adoption among enterprises. The Asia Pacific region is expected to grow at the fastest pace due to rapid digitalization and expansion of cloud and container services.

Regional analysis:
The Asia Pacific Cloud Native Software market is anticipated to witness the highest growth during the forecast period. This is attributed to rapid digital transformation initiatives and growing adoption of cloud-based solutions across countries like China, India and Japan. Advances in container technologies are further fueling adoption of cloud native architectures in the region.

Key players:
Key players operating in the Cloud Native Software market are Microsoft, IBM, Dynatrace, Datadog, Splunk, New Relic, GitLab, CircleCI, CloudBees, Snyk, Twistlock, Qualys, Salesforce, SAP, Adobe, Oracle, VMware, Red Hat, Rancher Labs, Sysdig. Microsoft offers Azure cloud platform and various DevOps tools for developing cloud native applications. IBM provides Cloud Foundry container platform and Red Hat OpenShift for Kubernetes container orchestration.

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