Cloud native software refers to applications and services that leverage techniques of cloud computing, containerization, and microservices architecture. Cloud native software makes extensive use of containers and services to deploy applications as microservices which can independently scale both horizontally and vertically based on demand. The software is often designed to take advantage of the flexibility and scalability features of modern cloud computing platforms and interfaces directly with platforms' native workflow and scaling features. The advantages of cloud native technologies include low latency and high throughput computing, agility, resilience, and elasticity. With many organizations transitioning their operations to the cloud to gain operational efficiency, scalability and cost benefits, the demand for cloud native software is growing rapidly.
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.
Key Takeaways
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. These players are focusing on developing technologically advanced cloud native software solutions and expanding their presence globally.
Key opportunities in the market include growing demand for microservices architecture from businesses, increasing adoption of DevOps practices, and rising investments in digital transformation initiatives among organizations. The market is also driven by advancement of 5G networks which will spur the need for scalable, resilient cloud native applications.
Globally, the cloud native software market is witnessing high growth in North America region due to rapid technological adoption. However, Asia Pacific region is expected to offer lucrative growth opportunities owing to rising investments in cloud infrastructure development across countries like China and India. Market players are focusing on partnerships with regional players to strengthen their presence in emerging markets.
Market Drivers
Rising digital transformation across industries is a key driver for The Cloud Native Software Market. With growing digitalization, organizations are shifting towards cloud native technologies to gain flexibility, agility and scalability. This is expected to significantly increase the demand for cloud native software solutions over the forecast period.
Market Restrains
Lack of portable and interoperable applications between clouds is a major challenge faced by cloud native software platforms. Vendors focusing on proprietary software lock-ins rather than open standards can restrain the market growth. Additionally, security concerns related to cloud data breaches and loss of control on sensitive data act as a restraint for the increased adoption of cloud native technologies.
Segment Analysis
The cloud native software market can be broadly segmented based on component, organization size, end use industry, and region. Based on component, the solutions sub segment currently dominates the market. This is because many enterprises are adopting cloud native platforms and technologies to modernize their application development and IT infrastructure. Within end use industry, the BFSI segment accounts for the largest share as digitization initiatives are huge in this sector. Banking and financial institutions are extensively using cloud native solutions to optimize costs and enhance customer experience.
Global Analysis
On the basis of region, North America holds the major share of the global cloud native software market. This is owing to rapid technological advancements and presence of key players in countries like the US and Canada. The Asia Pacific region is estimated to witness the highest growth during the forecast period. This is due to growing adoption of cutting edge technologies, increasing investments by tech giants in developing countries, and rising digitalization across industries in the region. Countries like India, China, and Japan are emerging as lucrative markets for cloud native software vendors. Furthermore, Latin America and Middle East & Africa are also showing positive trends and expected to provide substantial growth opportunities for market players over the coming years.