Cloud Native Application Market Size, Share, and Industry Analysis, By Deployment (Public Cloud and Private Cloud); By Enterprise Type (Large Enterprises and SMEs), By Industry (BFSI, IT & Telecom, Government, Retail, Healthcare, and Others); and Regional Forecast, 2024-2032

Cloud Native Application is a software approach that is designed for a cloud computing architecture. According to industry experts, around 500 million apps were developed using cloud native approaches. Modern enterprises are in need to build highly flexible, scalable, and robust applications that they can quickly update to meet customer demands. For doing this, enterprises are using new techniques or tools that support application development on cloud infrastructure. These cloud native technologies support frequent and fast changes to applications without affecting the service delivery, providing organizations with a competitive advantage.  According to Tigera report, around 75% of companies are focusing on developing the cloud native applications.

Due to COVID-19 pandemic, the demand for cloud native workloads has surged with rapid digitalization. Further, the demand is increasing more powerful and agile tools. Organizations are using cloud native approach widely, among that around 76% of organizations use containers for nearly all applications and business segments and 48% release code at least daily. As per industry experts, around 95% of new digital workloads will be set up on cloud native platforms by 2025, up from 30% in 2021. As per the Intricately Data, around 43% of businesses are deploying more than five cloud applications.

Impact of Generative AI on the Cloud Native Application Market

The increasing integration of Language Models (LLM) such as ChatGPT into cloud-native application marks an exciting frontier in software development. According to a report by Salesforce, around 86% of IT leaders expect that generative AI will play a significant role in their organizations. Cloud native DevOps has long struggle with the complexities of managing microservices, containers, and autoscaling capabilities. At KubeCon + CloudNativeCon 2023, there was a demo where they showcased that via slack, a generative AI engine can interpret natural language commands. This opens new opportunities for platform teams to streamline the complexities of Kubernetes, supporting more intuitive workflows. According to Stack Overflow May 2023 Developer Survey, around 70% of developers said that already use AI in software development.

Continuous Integration and Deployment (CI/CD) pipelines are ready for AI transformation. Generative AI is used to analyze spot potential issues, code changes, and even suggest new rules and automations to restructure the deployment process. This makes the CI/CD process more proficient and also addresses specific requirements for MLOps, DataOps, and DevOps pipelines. Microsoft has already incorporated ChatGPT into its Power Platform that allows developers to make custom Copilots. The flexibility of generative AI in cloud-native operations is apparent and never ending.

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on the Global Cloud Native Application Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis By Industry

By industry, the cloud native application market is segmented into BFSI, IT & telecom, government, retail & e-commerce, healthcare, and others. Cloud native technologies is helping BFSI industry to deliver a better customer experience with secure, faster, scalable, and compliant applications. According to survey, banks spend around 41% of their budget on cloud native applications. Banks & credit unions can streamline their services which helps them to deliver personalized and smooth experience on single platform. According to a survey by Capgemini, around 87% of respondents stated that a cloud native infrastructure has assisted to improve the experience for their users.

As the IT & telecom industry is shifting the way consumers communicate and work virtually in the wake of the COVID-19 pandemic, automation is verified to be a valued source for communication service providers (CSPs) looking to speed up service delivery with minimal human intervention. Cloud native technology can guarantee uninterrupted service delivery and integration by using CI/CD tools. With the cloud native architecture, CSPs can dynamically adjust according to the changing behavior of customers and move the network closer to where the customer wants to consume the services.

Regional Analysis

The global cloud native application market has been studied across five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. In 2023, a significant share of the market was held by North America, as the region has a booming tech industry that continues to attract innovations and investments. Companies in the region are embracing cloud native technologies for their business applications. The IT decision makers in the region are adopting containers as they see it as the next generation of virtualization. According to a survey by Valasys Media, around 91% of DevOps teams in North America are deploying their application in a containerized environments.

The Asia Pacific market is estimated to showcase the highest CAGR during the forecast period due to increasing digitalization and cloud adoption. Companies are promoting digital industry of Asia Pacific by investing in infrastructure, partner ecosystem, developer services, and startup support.

Distribution of the Global Cloud Native Application Market, By Region

• North America – 35%


• South America – 11%


• Europe – 26%


• Middle East and Africa – 8%


• Asia Pacific – 20%

Key Players Covered

The report provides the profiles of key players such as Amazon, Google, IBM, Infosys, Microsoft, Oracle, Red Hat, SAP SE, VMware, Citrix System, Ekco, Scality, and Huawei Technologies.

Key Industry Developments

• November 2023: IBM launched cloud native SIEM built for maximizing security team’s time and talent. It is designed to augment and level up the work of security analyst.


• July 2023: Oracle introduced a new cloud native secure cloud computing architecture for the U.S. Department of Defense for easing security compliance. The move also aimed to make the adoption of cloud for mission critical workloads more cost efficient and faster by using a framework of cloud native services.