Containers as a Service Market Expected to Reach $20.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Containers as a Service Market," The containers as a service market was valued at $2.2 billion in 2022, and is estimated to reach $20.7 billion by 2032, growing at a CAGR of 25.3% from 2023 to 2032.

The containers as a service market has been growing steadily over the years due to the increase in demand for the services among organizations to reduce shipment time due to hosted applications, as well as the high popularity of the services because they are lightweight and enable speedy delivery. Moreover, increasing acceptance of containers as a service to aid IT departments & developers in designing, administering, and executing containerized applications is the primary factor contributing to the market's promising growth potential. In addition, rapid digitization, a surge in demand for services with increased flexibility than on-premises containers, and a shift to server-less architecture all benefit the containers as a service industry. Furthermore, the emergence of IoT applications is anticipated to create market opportunity for the containers as s service market during the forecast period.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in December 2022, Microsoft announced its partnership with Isovalent, a company engaged in building open-source software and enterprise solutions solving networking, security, and observability needs for modern cloud-native infrastructure, for bringing next-generation eBPF dataplane for cloud-native applications in Azure. The partnership strengthened the company's platform and enabled native eBPF support in Microsoft Azure, effectively addressing networking requirements like container network security, cluster service routing, and network observability at scale while preserving mission-critical uptime and reliability. Isovalent Cilium Enterprise is available on the Azure Container Marketplace as a Kubernetes container app. This also provided Azure Kubernetes clusters with sophisticated Isovalent Cilium Enterprise features a one-click deployment solution.

On the deployment model, the public cloud segment attained the highest containers as a service market size in 2022. This is because public cloud providers offer scalable infrastructure resources, allowing organizations to dynamically scale their containerized applications based on demand. The ability to rapidly scale up or down resources is particularly valuable for applications with fluctuating workloads.

On the basis of region, North America attained the highest containers as a service market share in 2022. This is due to increased demand for microservices, technological advancements, and the growing need for the adoption of microservices in this region are driving the market in the region. Also, the biggest CaaS solution providers in the region are coming up with new ideas and growing their businesses to get the most market share and take advantage of the huge opportunities in the region.

The pandemic necessitated a rapid shift to remote work and increased reliance on digital technologies. Organizations quickly recognized the need to modernize their IT infrastructure and embrace cloud-native approaches. CaaS emerged as a crucial enabler, allowing businesses to efficiently deploy and manage applications in a distributed environment. This accelerated digital transformation had spurred the demand for CaaS solutions. Further, containerization and CaaS helped organizations optimize costs by improving resource utilization and reducing infrastructure overhead. This became particularly important as companies sought ways to optimize expenses during the economic downturn caused by the pandemic. Therefore, the COVID-19 pandemic had a positive impact on the containers as a service market size.

Key Findings of the Study

• By deployment model, the public cloud segment led the containers as a service market forecast in terms of revenue in 2022.
• By service type, the monitoring and analytics segment led the containers as a service market in terms of revenue in the year 2022.
• By enterprise size, the large enterprises segment led the containers as a service market in terms of revenue in 2022.
• By region, North America generated the highest revenue in 2022.

The key players profiled in the containers as a service market analysis are Google LLC, Amazon Web Services, Inc., Cisco Systems, Inc., IBM, Microsoft, Huawei Technologies Co., Ltd., VMware, Inc., Docker Inc., Oracle, and Hewlett Packard Enterprise Development LP. These players have adopted various strategies to increase their market penetration and strengthen their position in the containers as a service industry.