Cloud Native Applications Market Expected to Reach $48.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cloud Native Applications Market," The cloud native applications market was valued at $5.3 billion in 2022, and is estimated to reach $48.8 billion by 2032, growing at a CAGR of 25.2% from 2023 to 2032.

Cloud-native is developing and running applications that make use of the distributed computing resources, made available by the cloud delivery paradigm. Cloud-native programs are developed and crafted to take advantage of the scalability, dependability, and flexibility of the cloud. Due to integrated cloud-native applications, one can effortlessly promote their ideas. Users demand applications that are quick to respond, have zero downtime, are cloud-native, and have cutting-edge features. Modern enterprises are now able to operate in dynamic, modern environments, such as hybrid clouds, private clouds, and public clouds, and to build scalable applications, owing to cloud-native technology. Versatile cloud-native platforms are being developed by numerous significant organizations. Modern firms typically use cutting-edge developments such as big data analytics, artificial intelligence, and machine learning into their everyday operations. 

Software programs that are created from the ground up with the intention of being deployed on cloud infrastructure are known as cloud native applications. To provide improved performance and efficiency, these apps make use of the benefits of cloud computing, such as scalability, flexibility, and resilience. Microservices architecture, which divides programs into smaller, independently deployable components, enables the development of cloud native apps and enables quicker development cycles and simpler maintenance.

Additionally, rise in adoption of IoT devices and growth in need of data security and privacy, primarily drive the growth of the cloud native application market. However, inconsistency in the IoT standards for compatibility hamper the market growth to some extent. Moreover, rise in adoption of cloud-based devices is expected to provide lucrative opportunities for the cloud native applications market forecast. 

On the basis of component, the platform segment dominated the cloud native application market in 2022 and is expected to maintain its dominance in the upcoming years, as it offers a collection of instruments, frameworks, and services that uphold the fundamental tenets of building cloud native applications, including scalability, resilience, and agility, which propels the market growth significantly. However, the service segment is expected to witness the highest growth, owing to quick improvements in technology, including serverless computing, microservices, and containerization.

Region-wise, North America dominated the cloud native applications market share in 2022, owing to rise in number of IoT applications hosted on cloud and increasing investments in emerging technologies such as big data, social media, and due to mobility. However, Asia-Pacific is expected to witness the fastest growth owing to, transformation of IT and telecommunication with the increasing adoption and growth of advanced technology, such as cloud computing, data analytics, AI, and IoT, drives the need for cloud native applications in the Asia-Pacific region.

The demand for cloud native applications surged as businesses quickly adopted digital transformation plans and organizations globally migrated to remote work. The cloud native applications have to be crucial for sustaining the growth in online activity, enabling remote collaboration, and guaranteeing company continuity. During the pandemic, organizations that had previously been unwilling to move their apps to the cloud soon understood the advantages of cloud-native architecture. As businesses confronted unprecedented challenges and uncertainties, scalability, flexibility, and cost-effectiveness provided by cloud platforms became even more crucial. The cloud native applications market has expanded as a result of rise in the use of cloud services and the increase in demand for cloud-native applications. In addition, the pandemic also emphasized the value of flexibility and toughness in application development. The modular and distributed architecture of cloud native applications has shown to make them more adaptive to business interruptions and needs that change quickly. Businesses with the ability to swiftly adapt their applications and services to meet changing customer needs or tackle new difficulties were at a competitive advantage. The COVID-19 pandemic, thereby worked as a catalyst for the adoption of cloud-native practices and technology, fueling the expansion of the cloud native applications market.

Key Findings of the Study

• By component, the platform segment led the cloud native applications market size in terms of revenue in 2022. 
• By deployment mode, the private cloud segment is anticipated the fastest growth for cloud native app market.
• By enterprise size, the large enterprise led the cloud native applications market in terms of revenue in 2022.
• By end user, the retail and e-commerce is anticipated the fastest growth for cloud native app market.
• By region, North America generated the highest revenue for cloud native applications market analysis.

The key players profiled in the cloud native applications industry analysis are Amazon.com, Inc., Google LLC, IBM Corporation, Infosys Limited, Microsoft Corporation, Oracle Corporation, SAP SE, Red Hat, Inc., VmWare, Inc., and Cognizant. These players have adopted various strategies to increase their market penetration and strengthen their position in the cloud native applications industry.