Cloud-Native Market by Component Type (Solution and Services), by Deployment (Private Cloud, Public Cloud, and Hybrid Cloud), by Organizational Size (Small Enterprise, Medium Enterprise, and Large Enterprise), and by End User (IT & Telecom, BFSI, Retail & E-Commerce, Mobile & Entertainment, Government, Healthcare & Life Science, Travel & Hospitality, and Others) - Global Opportunity Analysis and Industry Forecast 2023-2030

Market Definition

The global Cloud-Native Market size was valued at USD 4.22 billion in 2022 and is predicted to reach USD 26.52 billion by 2030 with a CAGR of 25.8% from 2023-2030. Cloud-native refers to the process of developing and operating applications that fully utilize the distributed computing capabilities offered by the cloud delivery model.

Cloud native is a way to speed up building new applications, optimizing existing ones and connecting them. These technologies are designed to be lightweight, modular, & easily deployable in the cloud as well as built to take advantage of the scalability, elasticity, resilience, and flexibility of cloud providers. It enables enterprises to run & build scalable applications in dynamic and modern environments such as private, hybrid, and public clouds.

Market Dynamics and Trends

As businesses and government agencies increasingly transition their data and applications to the cloud, they're also embracing cloud-native technologies. These technologies aid in the more effective management and operation of their cloud setups. This is leading to an increasing demand for cloud native solutions, such as container orchestration and service mesh, which help organizations to automate & manage the deployment, scaling, and operation of their cloud-based applications.

For instance, in June 2023, the Smart Nation and Digital Government Office (SNDGO) of Singapore partnered with Google Cloud to introduce the Artificial Intelligence Government Cloud Cluster (AGCC), a comprehensive platform aimed at accelerating the adoption of AI in the public sector. The AGCC, hosted in a dedicated cloud environment within Singapore, provides the government agencies and the research and enterprise ecosystem with access to Google Cloud's advanced AI technology stack and partner ecosystem.

Moreover, the growing demand for digital transformation by numerous organizations to digitize operations and improve the ability to compete in the digital economy is boosting the demand for cloud native technologies to build and deploy new, cloud-based applications & services quickly and easily.

Moreover, the growing implementation of cloud computing allows healthcare organizations to store, process, and analyze large amounts of patient data in real-time, which help to improve patient care & outcomes. This increased use of data analytics and machine learning in healthcare across countries has resulted into greater utilization of cloud native technologies, which help healthcare organizations to manage their cloud-based applications efficiently. 

However, lack of skilled personnel proficient in cloud native technologies and concerns associated with security, including data breaches and cyber-attacks, particularly when it comes to sensitive data are the factors that are expected to restraint the growth of the market during the forecast period. 

On the contrary, advancements in containerization and orchestration, along with the implementation of serverless computing to enhance the portability while automating server management and scaling is expected to create ample growth opportunities for the market in the coming years.

Market Segmentations and Scope of the Study

The cloud-native market report is segmented on the basis of component type, deployment, organizational size, end user, and geography. On the basis of component type, the market is divided into solutions and services. On the basis of deployment, the market is classified into private cloud, public cloud, and hybrid cloud. On the basis of organizational size, the market is categorized into small enterprise, medium enterprise, and large enterprise. On the basis of end user, the market is bifurcated into IT & telecom, BFSI, retail & e-commerce, mobile & entertainment, government, healthcare & life science, travel & hospitality and others. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of cloud-native market at present and is expected to continue its dominance during the forecast period. This is attributed to the increasing adoption of cloud native technologies by both government and private sector for efficient and secure cloud-based infrastructure to enhance operational efficiency and optimize resource allocation, allowing them to operate more efficiently & securely in this region.

For instance, in February 2022, Amazon Web Services (AWS) announced the availability of AWS Managed Services in the AWS GovCloud (US) regions. This expansion aimed at driving further adoption of cloud native solutions and services in both the public and commercial sectors, leveraging the full potential of cloud technology.

Also, presence of major key players such as Cognizant Technology Inc., IBM, Infostretch corporation and Sciencesoft Corp., that are launching new products and services further boosts the market growth in this region. For instance, in April 2021, IBM launched cloud economics for education infrastructure, aiming to revolutionize the way educational institutions approach cloud technology. By providing cost-effective solutions and enhanced accessibility to cloud services, IBM aims to empower schools and universities, enabling them to leverage the full potential of cloud-based resources for improved learning experiences and academic advancements. 

On the other hand, Asia-Pacific is expected to show a steady rise in the cloud native market due to the increasing demand for cloud technology by the Indian government to drive innovation and improve efficiency in government operations. For instance, in September 2021, the National Institution for Transforming India (NITI Aayog) announced collaboration with Amazon Web Services (AWS) and Intel to establish a new studio at the NITI Aayog Frontier Technologies, Cloud Innovation Center (CIC). This center is expected to be a hub for collaboration and experimentation to enable problem solving and innovation between government stakeholders, startups, enterprises, and industry domain experts.

Moreover, rising government initiatives for adoption of cloud technology in countries such as India, Malaysia and China is expected to drive the cloud native market growth in this region. For instance, in March 2022, the Malaysian government announced a new Cloud Framework Agreement (CFA), collaborated with local IT providers and Amazon Web Services (AWS) to help accelerate cloud adoption in the public sector. The CFA provides consulting and technology services to government agencies and contributes to the growth of Malaysia’s digital economy.

Competitive Landscape

The cloud-native industry trends comprising of various market players such as Amazon.com Inc, Google LLC, IBM Corporation, Infosys Technologies Pvt Ltd, Microsoft Corporation, Oracle Corporation, SAP SE, Red Hat, VMare Inc, Alibaba Cloud, Bacany Technology, Citrix Systems Inc, LTI Infotech Corp, HCLTech, Pivotal, and others. These market players are adopting various strategies such as partnership and product launches across various regions to maintain their dominance in the market. 

For instance, in May 2023, Google Cloud partnered with Exabeam to introduce cloud-native SIEM solution. By combining Exabeam's expertise in security analytics with Google’s advanced cloud infrastructure, Google aims to provide threat detection and response capabilities, revolutionizing cybersecurity.

Moreover, in April 2022, Infosys launched Infosys LaborForce, a new cloud native Platform as a Service (PaaS) Unemployment Insurance (UI) system. Infosys LaborForce is a tax, benefits, appeals and workforce solution that are designed to support state governments in building digital and resilient UI systems.

Key Benefits

• The report provides quantitative analysis and estimations of the cloud-native market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the cloud-native market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the global market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Cloud-Native Market Key Segments

By Component Type

• Solution 

• Services

By Deployment 

• Private Cloud

• Public Cloud

• Hybrid Cloud

By Organizational Size

• Small Enterprise

• Medium Enterprise

• Large Enterprise

By End User 

• IT & Telecom

• BFSI

• Retail & E-Commerce

• Mobile & Entertainment

• Government

• Healthcare & Life Science

• Travel & Hospitality 

• Others

By Region

• North America    

  • US

  • Canada

  • Mexico

• Europe    

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW    

  • Latin America

  • Middle East

  • Africa

Report Scope and Segmentation

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