PUBLISHER: The Business Research Company | PRODUCT CODE: 1455199
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455199
Cloud native development is a software development approach that harnesses the capabilities and benefits of cloud computing and modern containerization technologies to create and manage applications. This methodology is specifically tailored for building and deploying applications intended to operate in cloud environments.
The primary types of cloud-native development can be categorized as solutions and services. A solution encompasses a comprehensive set of tools, technologies, or software packages designed to address specific challenges or requirements associated with cloud-native application development. These solutions can be deployed in private clouds, hybrid clouds, and multi-cloud environments. Cloud-native development solutions are utilized by various organizations, including small and medium-sized enterprises (SMEs) and large enterprises. They cater to diverse industries, such as banking, financial services, and insurance (BFSI), healthcare, government, and other end-users.
The cloud native development market research report is one of a series of new reports from The Business Research Company that provides cloud native development market statistics, including cloud native development industry global market size, regional shares, competitors with cloud native development market share, detailed cloud native development market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud native development industry. This cloud native development market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The cloud native development market size has grown exponentially in recent years. It will grow from $708.56 billion in 2023 to $881.98 billion in 2024 at a compound annual growth rate (CAGR) of 24.5%. The growth observed in the historical period can be attributed to factors such as the adoption of agile development practices, the implementation of microservices architecture, the promotion of a DevOps culture, scalability requirements, and the pursuit of cost efficiency in software development.
The cloud native development market size is expected to see exponential growth in the next few years. It will grow to $2065.64 billion in 2028 at a compound annual growth rate (CAGR) of 23.7%. The anticipated growth in the forecast period can be attributed to the adoption of serverless computing, increased contributions to open source projects, integration of edge computing, and the incorporation of artificial intelligence (AI) and machine learning (ML). Additionally, enhanced security measures are expected to contribute to the growth of cloud-native development. Major trends expected in the forecast period include a focus on continuous innovation, the prevalence of hybrid and multi-cloud deployments, the rise of low-code/no-code platforms, the widespread use of containerization technology, the increasing adoption of Kubernetes orchestration, and the overall growth of containerization.
The anticipated growth in cloud computing adoption is set to drive the expansion of the cloud-native development market in the future. Cloud computing involves delivering a range of computing services over the internet, encompassing storage, processing power, databases, networking, and software applications. Cloud-native development is utilized in cloud computing to optimize the efficiency, scalability, and flexibility of applications. According to data from July 2023 by the International Data Corporation, global revenue from public cloud services experienced substantial growth, reaching $545.8 billion in 2022, representing a significant increase of 22.9% compared to the previous year. Consequently, the increasing adoption of cloud computing is a key factor propelling the growth of the cloud-native development market.
The ongoing digitization trend is expected to contribute to the growth of the cloud-native development market. Digitization involves the conversion of analog information or physical objects into digital format, facilitating the representation of data in numerical or binary code. Within cloud-native development, digitization serves as building blocks for microservices communication and integration, fostering modularity and agility in cloud-native architectures. As of December 2022, global spending on digital transformation amounted to approximately $1.85 trillion, marking a 16% increase compared to 2021, according to data from Augusta Free Press. Therefore, the upward trajectory of digitization is a driving force behind the growth of the cloud-native development market.
The growth of the cloud-native development market may face hindrances due to security risks associated with open-source software. Open-source software introduces potential cybersecurity risks, including security vulnerabilities, intellectual property concerns, lack of warranty, and challenges in maintaining the security of cloud-native applications. The 8th Annual State of the Software Supply Chain report by Sonatype Inc. revealed a significant year-over-year increase of 633% in cyber attacks against open-source repositories as of November 2022. These security risks may impede the growth of the cloud-native development market.
Major companies in the cloud-native development sector are innovating by introducing advanced serverless solutions. Serverless computing, a cloud computing model where cloud providers dynamically manage infrastructure, is gaining popularity. For example, DigitalOcean Holdings Inc. launched DigitalOcean Functions in May 2022, providing a serverless solution for developers, startups, and small businesses. This solution offers a fast, scalable, and cost-effective approach to building applications without the need to manage cloud infrastructure. DigitalOcean Functions enables developers to focus on software creation and scaling without the complexities of server provisioning and maintenance, catering to the demand for serverless functions.
In February 2022, International Business Machines Corporation (IBM) strengthened its position in the cloud-native development landscape by acquiring Neudesic Technologies for an undisclosed amount. This strategic move expanded IBM's hybrid multi-cloud services portfolio and enhanced capabilities in the Microsoft Azure platform and multi-cloud environments. Neudesic Technologies, a technology company based in the United States, specialized in providing cloud-native development, full-stack development, data and AI, mobile, and quality assurance services.
Major companies operating in the cloud native development market report are Amazon Inc., Alphabet Inc., Microsoft Corporation, Huawei Technologies Co. Ltd., International Business Machines Corporation, Oracle Corporation, SAP SE, NTT Data Corporation, Cognizant Technology Solutions Corporation, Infosys Limited, VMware Inc., Wipro Limited, Tech Mahindra Limited, Red Hat Inc., Nutanix Inc., Pivotal Software Inc., Alibaba Cloud, HashiCorp, GitLab Inc., SUSE Software Solutions, Samsung SDS Co. Ltd., DataStax Inc., Docker Inc., Puppet, Canonical Ltd., Neo4j Inc., Jenkins Software Foundation, Grafana Labs
North America was the largest region in the cloud native development market in 2023. The regions covered in the cloud native development market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the cloud native development market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cloud native development market consists of revenues earned by entities by providing serverless computing services, logging solutions, database and data storage services, and API gateway services. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud native development market also includes sales of edge computing device, high-performance computers, and sensors. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cloud Native Development Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cloud native development market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cloud native development ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cloud native development market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.