The adoption of cloud native software is enabling organizations across various industries to improve efficiency, flexibility and scalability through digital transformation. Cloud native software applications are developed using an approach that utilizes the benefits of the cloud platform such as rapid and frequent innovation, self-service provisioning, elasticity, and application resiliency through containerization and microservices.
The global cloud native software market involves various types of software such as containerized software, microservices-based software and serverless architecture software. These cloud native software enable features such as high availability, rapid scalability, and auto-scaling. With growing need among organizations to modernize legacy systems and reduce costs through scalable solutions, the demand for cloud native software is growing substantially.
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 include Boston Scientific, Merit Medical Systems,Cook Medical, Terumo Corporation, BTG Medical, Sirtex Medical, C.R. Bard. Boston Scientific and Terumo Corporation capture a major share in the global market owing to their diverse product portfolio and expansive geographical presence.
Growing demand from industries such as healthcare, banking and telecom to enhance customer experience through streamlined operations and agility is a key factor driving the growth of cloud native software. Increased need among organizations to develop scalable and data driven applications is further propelling the adoption of cloud native solutions.
Leading players are expanding their presence globally by partnering with regional players to tap the growth opportunities in emerging markets such as Asia Pacific and Latin America. This global expansion of major players will further accelerate the growth of the cloud native software market.
Market Key Trends
One of the key trends in the cloud native software market is the shift toward microservices architecture from monolithic applications. Microservices break down large applications into smaller, independent services. This makes applications more agile, scalable and easier to develop and deploy. Using microservices has become increasingly popular for building cloud native applications. With growing adoption of containers and Kubernetes, more organizations are embracing microservices architecture to leverage the scalability and elasticity benefits of the cloud. This trend is expected to continue and drive the demand for cloud native software.
Porter’s Analysis
Threat of new entrants: The high capital requirement and large economies of scale in terms of R&D and distribution network pose substantial barriers to entry.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products and non-differentiated nature of product offerings.
Bargaining power of suppliers: The presence of many suppliers and commodity nature of raw materials limits the bargaining power of suppliers.
Threat of new substitutes: Moderate threat as technology disruption brings new solutions that can replace existing products.
Competitive rivalry: Intense competition exists amongst existing players due to similar product lines and pricing pressures.
Geographical Regions
North America dominates the market currently owing to high technology adoption and presence of major players in the region.
Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing digitalization initiatives, government support for startups and growing internet penetration in developing Asian countries.
