PUBLISHER: The Business Research Company | PRODUCT CODE: 1503862
PUBLISHER: The Business Research Company | PRODUCT CODE: 1503862
Open source software encompasses programs that come with their source code available, enabling users to examine, alter, and distribute them freely. This stands in contrast to proprietary software, where the source code is typically concealed and managed by the developer or vendor. The open-source approach fosters collaboration and community-led development, resulting in software that is more transparent, adaptable, and economical compared to its proprietary counterparts.
The primary categories of open-source software include shareware, bundled software, and Berkeley source distribution (BSD). Shareware is a software distribution method that permits users to test it before purchasing. It finds applications in various sectors such as professional services, managed services, small and medium enterprises, large enterprises including banking, financial services, insurance (BFSI), education, manufacturing, healthcare, life sciences, retail, distribution, and other end-users.
The open-source software market research report is one of a series of new reports from The Business Research Company that provides open-source software market statistics, including open-source software industry global market size, regional shares, competitors with an open-source software market share, detailed open-source software market segments, market trends and opportunities, and any further data you may need to thrive in the open-source software industry. This open-source software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The open-source software market size has grown rapidly in recent years. It will grow from $35.90 billion in 2023 to $41.83 billion in 2024 at a compound annual growth rate (CAGR) of 16.5%. The rise during the historical period can be credited to heightened access to open-source platforms, a stronger focus on technology education, government initiatives driving growth, cost pressures rising, and a greater demand for collaborative and flexible software solutions.
The open-source software market size is expected to see rapid growth in the next few years. It will grow to $77.75 billion in 2028 at a compound annual growth rate (CAGR) of 16.8%. The anticipated growth in the forecast period can be linked to a growing number of organizations, the increasing availability of open APIs, businesses' greater adoption of open-source software, a shift towards cloud-based infrastructure, and an increasing awareness of security benefits. Key trends expected in this period include technological advancements, ethical licensing models, cloud-based open-source software, frameworks for quantum computing, and the rise of low-code and no-code development.
The projected increase in small enterprises is anticipated to drive the growth of the open-source software market in the future. These small businesses are characterized as privately owned, run by a limited number of employees, and with comparatively lower revenue and profits than larger corporations. Their growth is fueled by advancements in technology, globalization, evolving workforce patterns, government backing, market prospects, cost-effectiveness, and a spirit of entrepreneurship. Open-source software aids these small enterprises by offering affordable solutions for their operational requirements, granting them access to top-notch software without the steep expenses associated with proprietary software. For example, in April 2023, as per the United States Chamber of Commerce, a U.S.-based business advocacy group, the United States was home to 33.2 million small businesses, making up 99.9% of all U.S. businesses. The year 2021 marked a significant milestone with 5.4 million new business applications submitted nationwide. Consequently, the rising number of small enterprises is propelling the expansion of the open-source software market.
Prominent players in the open-source software sector are concentrating on crafting edge-optimized operating systems, such as Red Hat Device Edge, to bolster open-source communities. Red Hat Device Edge, an edge-optimized operating system, facilitates computing by providing the essential infrastructure and capabilities for efficient data processing at the network's edge. For instance, in October 2022, Red Hat Inc., a U.S.-based provider of open-source software products, unveiled Red Hat Device Edge, an edge-optimized operating system. This product empowers enterprises to deploy only the essential software components, thereby reducing the attack surface and resource utilization. It simplifies the management of edge devices and their associated workloads, allowing enterprises to deploy workloads on resource-limited devices at the furthest edge. Additionally, it offers security features such as intelligent device upgrades, zero-touch provisioning, and rapid security patches.
In April 2024, Cisco Systems Inc., a U.S.-based digital communications technology corporation, acquired Isovalent for an undisclosed sum. This acquisition is aimed at enhancing Cisco's capabilities in cloud-native networking and security while also expanding its dedication to the open-source ecosystem, particularly in the eBPF technology domain. Isovalent is a U.S.-based company that provides open-source software for cloud-native service connectivity, security, and observability.
Major companies operating in the open source software market are Intel Corporation, International Business Machines Corporation, Oracle Corporation, Transcend Information Inc., F5 Inc., Red Hat Inc., Mozilla Corporation, SUSE S.A., Progress Software Corporation, HashiCorp, Acquia Inc., Canonical Ltd., Aptean, Puppet Inc., TYPO3, MariaDB Corporation, The Linux Foundation, Redpill Linpro., ClearCenter, KDE, Eclipse Foundation AISBL, The Apache Software Foundation, Python Software Foundation, FossID, RethinkDB
North America was the largest region in the open source software market in 2023. The regions covered in the open source software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the open source software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The open source software market includes revenues earned by entities by providing services such as community support, security, and educational opportunities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Open Source Software 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 open source software 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 open source software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The open source software 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.