Cloud native software is designed to leverage managed services offered by cloud platforms including serverless computing, containers, and microservices architectures. Cloud native applications are containersized and event-driven that can easily be deployed and scaled on the cloud. Cloud native software and applications are helping organizations in increasing agility and scalability of their IT infrastructure. The rising adoption of cloud computing across industries is driving the demand for cloud native applications and software. Cloud native applications are becoming an important pillar of digital transformation strategies of enterprises globally. The ability of cloud native applications to be deployed easily on public, private or hybrid cloud models is aiding businesses in optimizing their IT spend on infrastructure.
The global Cloud Native Software Market is estimated to be valued at US$ 5.8 Bn in 2024 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 key trends:
One of the key trends in the cloud native software market is the increasing adoption of microservices architecture. Microservices architecture breaks down large complex software applications into smaller independent services that can be deployed and scaled independently. Cloud native applications are being developed using microservices architecture as it makes the applications highly scalable, robust and improves development velocity. Containerization is also gaining widespread adoption for cloud native development as it allows developers to package applications with all its dependencies and configurations to run anywhere. Companies are increasingly adopting containerization technologies like Docker and Kubernetes for building container-based cloud native applications. The increasing popularity of serverless computing where developers don’t have to manage servers is another trend transforming cloud native application development. With serverless architecture, computing resources are abstracted and the cloud provider manages the infrastructure.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cloud native software market is moderate. High upfront investments needed for R&D act as a barrier for new players. However, low switching costs enables new players to gain market share.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have a wide choice of providers for cloud native software. Standardized products enable buyers to compare offerings easily.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. The market has several technology providers but proprietary capabilities differ between providers. Suppliers depend on buyers for demand generation.
Threat of new substitutes: The threat of new substitutes is moderate. Open source solutions provide alternatives but lack certain features. Switching costs also act as a barrier for substitution.
Competitive rivalry: The competitive rivalry is high owing to presence of several global and regional players. Product differentiation, pricing strategies and targeted offerings increase competition in the market.
Key Takeaways
The Global Cloud Native Software Market Size is expected to witness high growth over the forecast period.
Regional analysis: North America holds the highest share in the cloud native software market and is expected to continue dominating over the forecast period. High use of advanced technologies and presence of major players in the US and Canada drive the North America market.
Key players: 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 focus on product innovations and expansion strategies to increase their market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it