February 26, 2024
Cloud Native Software Market

Cloud Native Software Market is Expected to be Flourished by Rising Adoption of Cloud Services

Cloud native software enable organizations to develop and run scalable applications in public, private, and hybrid clouds. It utilizes services offered by various cloud platforms including application development, testing, delivery, and operations. The software generally follows 12 factors and related best practices to enable cloud-native architecture and development. Services offered through cloud native software include containers, microservices architecture, continuous integration and delivery (CI/CD), immutable infrastructure, declarative APIs, and metadata-driven management. Key use cases of cloud native software include online retail, ecommerce, banking, gaming, e-learning, media & entertainment, healthcare, and government sectors.

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 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Rising adoption of cloud services is expected to drive the growth of global cloud native software market over the forecast period. As per CMI analysis, cloud computing adoption has grown exponentially as enterprises are migrating their infrastructures and applications to public clouds for cost optimization, scalability, and agility. For example, according to RightScale’s 2022 State of the Cloud Report, 94% of the respondents said they use public cloud infrastructure like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. Furthermore, rapid growth of data volumes driven by digital initiatives of organizations is compelling them to develop and deploy cloud native applications optimized for scalability on public clouds. However, security and compliance challenges posed by cloud platforms can hamper the market growth during the forecast period.

Segment Analysis
The cloud native software market is dominated by the SaaS(Software as a Service) segment which accounts for nearly 70% of the total market revenue. Cloud based SaaS solutions provides easier deployment, maintenance and regular upgrades compared to on premise installation. They have minimal upfront investment and ongoing costs are based on pay-per-use pricing which makes it affordable for startups and SMEs. Other segments include PaaS (Platform as a Service) and IaaS (Infrastructure as a Service) but SaaS dominates owing to the operational efficiencies and competitive pricing provided to customers.

PEST Analysis
Political: Governments across various countries are promoting cloud adoption through incentives and policies. Data protection laws are also being strengthen to build trust for critical workloads on cloud.
Economic: Organizations are under pressure to reduce costs and drive business agility. Cloud offers a pay-per-use model which lowers upfront capital expenditure. It also enables focus on core competencies rather than managing infrastructure.
Social: Younger workforce is technology savvy and prefers flexible working environment supported by cloud solutions. Customers also expect superior digital experiences at par with consumer technologies.
Technological: Emerging technologies such as serverless computing, microservices, AI/ML etc are enabling easier development and deployment of scalable cloud native applications. Orchestration platform like Kubernetes has accelerated the growth of containerization.

Key Takeaways
The Global Cloud Native Software Market Size is expected to witness high growth during the forecast period of 2023 to 2030 driven by increasing demand for agility, scalability and DevOps among enterprises.

Regional analysis: Asia Pacific region is anticipated to be the fastest growing market during the forecast period. Countries like China, India are witnessing increased cloud adoption due to large development of in-house solutions, availability of skilled workforce and government initiatives to develop local cloud infrastructure. DevOps trends are also gaining momentum in the region leading to rise in demand for scalable cloud native platforms.

Key players operating in the cloud native software market are Boston Scientific, Merit Medical Systems,Cook Medical, Terumo Corporation, BTG Medical, Sirtex Medical, C.R. Bard. Key players are focusing on extending their product portfolio through organic and inorganic growth strategies to strengthen market position.

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