Cloud Microservices Market Forecasts to 2030 – Global Analysis By Type (Public Cloud, Private Cloud and Hybrid Cloud), Component, Organization Size, End User and By Geography

Cloud Microservices Market Forecasts to 2030 – Global Analysis By Type (Public Cloud, Private Cloud and Hybrid Cloud), Component, Organization Size, End User and By Geography

According to Stratistics MRC, the Global Cloud Microservices Market is accounted for $1.5 billion in 2023 and is expected to reach $6.5 billion by 2030 growing at a CAGR of 22.4% during the forecast period. Cloud microservices refer to a software architecture approach where applications are structured as a collection of loosely coupled, independently deployable services, each running in its own lightweight container and communicating with each other via APIs (Application Programming Interfaces). These services are typically designed to perform specific, well-defined functions and can be developed, deployed, and scaled independently, allowing for greater agility, flexibility, and scalability in cloud-based environments.

According to the ITU, Canada is expected to spend more than USD 16 billion on digital transformation technologies and services, supported by investments in cutting-edge technologies like cognitive/artificial intelligence (AI) systems, IoT, next-generation security, 3D printing, and robotics, which power cloud microservices.

Market Dynamics:

Driver:

Proliferation of the Microservices Architecture

The microservices architecture has witnessed widespread adoption in the cloud microservices market. Its proliferation is driven by the need for scalable, agile, and resilient systems. By breaking down applications into smaller, loosely coupled services, organizations can achieve faster development cycles, easier maintenance, and better resource utilization. Moreover, microservices align well with cloud-native principles, facilitating seamless deployment, scaling, and management in dynamic cloud environments. This trend signifies a fundamental shift towards more efficient and adaptable software development practices.

Restraint:

Security and Compliance

Security and compliance are paramount concerns in the market, where the distributed nature of services demands robust measures. With data traversing various endpoints, ensuring encryption, authentication, and access control is crucial. Compliance with industry standards like GDPR, HIPAA, and PCI DSS is non-negotiable, requiring thorough audits and monitoring. Additionally, implementing strategies like containerization and network segmentation fortifies defenses against breaches.

Opportunity:

Adoption of hybrid cloud across various end-user industries

The adoption of hybrid cloud solutions is witnessing significant traction across diverse end-user industries within the market. Industries ranging from finance and healthcare to retail and manufacturing are increasingly leveraging hybrid cloud architectures to balance the benefits of both public and private cloud environments. This approach offers enhanced flexibility, scalability, and security, catering to the unique requirements of different sectors while optimizing cost efficiency and performance.

Threat:

Lack of skilled professionals

The market faces a critical shortage of skilled professionals, impeding its growth and innovation. With the increasing demand for scalable and efficient cloud-native solutions, the scarcity of qualified individuals proficient in microservices architecture, containerization technologies, and cloud platforms poses significant challenges. Bridging this skills gap is essential to harnessing the full potential of cloud microservices, driving organizational agility, and staying competitive in the rapidly evolving digital landscape.

Covid-19 Impact:

The COVID-19 pandemic accelerated the adoption of cloud microservices as businesses sought flexible and scalable solutions to adapt to remote work and shifting market demands. Organizations increasingly turned to microservices architecture to enhance agility and resilience, enabling rapid development and deployment of applications. Additionally, the pandemic underscored the importance of cloud-native technologies in enabling digital transformation, further driving growth in the cloud microservices sector despite economic challenges.

The public cloud segment is expected to be the largest during the forecast period

The public cloud segment is expected to be the largest during the forecast period due to scalable infrastructure and services for deploying, managing, and scaling microservices-based applications. Public cloud providers offer a plethora of tools and services tailored for microservices architectures, enabling developers to focus on building and deploying applications without worrying about underlying infrastructure concerns. This has fueled the growth and adoption of cloud-native microservices solutions across industries.

The media and entertainment segment is expected to have the highest CAGR during the forecast period

The media and entertainment segment is expected to have the highest CAGR during the forecast period. This market segment focuses on delivering streaming services, content management, and personalized experiences through microservices architecture hosted on cloud platforms. By utilizing microservices, companies can efficiently manage content, optimize streaming performance, and personalize user experiences, catering to the evolving demands of digital media consumption. This trend reflects the industry's commitment to innovation and adaptation in the digital age, driving growth and competitiveness.

Region with largest share:

North America is projected to hold the largest market share during the forecast period due to increasing demand for flexible and scalable solutions. Companies across various sectors are adopting microservices architecture to enhance their application development and deployment processes. This trend is propelled by factors such as the need for faster time-to-market, improved scalability, and enhanced flexibility. With prominent players offering a diverse range of microservices solutions, the market is characterized by fierce competition and ongoing innovation, further fueling its growth trajectory.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. The region was considered one of the fastest-growing markets for cloud services, including microservices. Factors such as rapid digital transformation, increasing internet penetration, and the adoption of cloud-native technologies were driving this growth. Compliance and data sovereignty regulations varied across countries, influencing cloud adoption strategies and provider choices for organizations operating in the region.

Key players in the market

Some of the key players in Cloud Microservices market include Microsoft Corp., F5 Networks Inc., Amazon Web Services, Inc. (US), Tata Consultancy Services Ltd., Weaveworks Inc., Infosys Ltd., Oracle Corp., Salesforce.com Inc., SmartBear Software Inc., Broadcom Inc., Contino Solution Ltd., GitHub Inc., International Business Machines Corp., Macaw Software Inc., Marlabs LLC, Atos SE, Pivotal Software, Inc., Anjuna Security, Inc., CA Technologies and Geant Technology, LLC.

Key Developments:

In July 2022, Oracle announced introducing new sovereign cloud zones for the European Union in 2023. Germany and Spain will host the first two EU sovereign cloud regions, which will be logically and physically distinct from the region's current public OCI regions.

In February 2022, A multi-year Strategic Collaboration Agreement (SCA) between Amazon Web Services, Inc. and UST, a provider of solutions for digital transformation, was completed to develop industry and domain-specific solutions for healthcare, financial services, and telecom.

Types Covered:
• Public Cloud
• Private Cloud
• Hybrid Cloud

Components Covered:
• Services
• Platform

Organization Sizes Covered:
• Small and Medium Enterprises
• Large Enterprises

End Users Covered:
• Retail and eCommerce
• Media and Entertainment
• Transportation and Logistics
• Telecommunications
• Government
• Manufacturing
• Healthcare
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements