Cloud Microservices Market Size - By Component (Platform, Services), Deployment Mode (Private, Public, Hybrid), End-User (BFSI, Education, Healthcare, IT & Telecommunication, Retail & Consumer Goods, Media & Entertainment), Enterprise size & Forecast 2024 – 2032

Cloud Microservices Market Size - By Component (Platform, Services), Deployment Mode (Private, Public, Hybrid), End-User (BFSI, Education, Healthcare, IT & Telecommunication, Retail & Consumer Goods, Media & Entertainment), Enterprise size & Forecast 2024 – 2032

Cloud Microservices Market Size

Cloud Microservices Market size was valued at USD 1.4 billion in 2023 and is projected to register a CAGR of over 20.3% between 2024 and 2032. Cloud microservices enable applications to be broken down into smaller, modular components that can be independently developed, deployed, and scaled. This flexibility allows organizations to scale specific components based on demand, improving resource utilization and overall application performance. For instance, Amazon uses microservices to power its e-commerce platform. This allows them to scale the platform to handle the billions of requests it receives every day.

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Microservices architecture, when combined with cloud services, promotes faster development cycles and continuous deployment. Each microservice can be developed, tested, and deployed independently, reducing development bottlenecks and accelerating time-to-market for new features and updates, thereby fostering their adoption.

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However, migrating existing monolithic applications to a microservices architecture can be challenging and resource intensive. Legacy systems might not easily adapt to microservices, and rewriting or rearchitecting applications can be time-consuming and costly. Organizations with substantial investments in legacy systems may hesitate to embrace microservices due to the perceived risks and costs associated with migration, thus impacting market growth and popularity.

COVID-19 Impact

The COVID-19 pandemic catalyzed the adoption of cloud microservices as businesses sought agility and remote capabilities. With workforces dispersed, companies turned to microservices to rapidly develop and deploy applications, adapting to changing market dynamics. For instance, Netflix, heavily reliant on microservices, managed the surge in streaming demand during lockdowns. However, challenges arose as organizations navigated security concerns and integration complexities while scaling up microservices. The pandemic underscored the importance of flexible, scalable architecture, further propelling the growth of the cloud microservices industry.

Cloud Microservices Market Trends

Kubernetes has become a standard for container orchestration, and its integration with microservices is gaining traction. The use of service mesh technologies like Istio or Linkerd within Kubernetes environments can provide advanced networking, observability, and security features for microservices. This trend aims to enhance the management and communication between microservices within a Kubernetes-based infrastructure.

The convergence of serverless computing and microservices architecture is also an emerging trend. Serverless microservices allow developers to focus solely on the application code, abstracting away infrastructure management. This trend could lead to increased efficiency, reduced operational overhead, and faster development cycles as organizations leverage serverless platforms to build and deploy microservices.

Cloud Microservices Market Analysis

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Based on the enterprise size, the large enterprises segment held over 68% of the market share in 2023. Cloud microservices are finding widespread application in large enterprises due to their ability to enhance agility, scalability, and innovation. By breaking down applications into modular components, these organizations can achieve faster development cycles, respond quickly to market demands, and efficiently scale specific parts of their systems.
 

For instance, Amazon Web Services (AWS) and Microsoft Azure offer comprehensive microservices solutions that empower enterprises to modernize their applications. The flexibility and potential cost savings of cloud microservices align with the complex and evolving needs of large-scale enterprises, driving their increased adoption.

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Based on end-user, the IT & telecommunication segment accounted for 24% of the cloud microservices market share in 2023. The IT & Telecom industry is increasingly adopting cloud microservices to enhance its agility, innovation, and service delivery. Microservices allow for rapid development and deployment of applications, enabling companies to introduce new features and services quickly. For example, telecommunications providers can efficiently roll out new network features to meet changing connectivity demands

Additionally, microservices facilitate seamless integration with other cloud-based technologies, improving overall operational efficiency. The industry's need to swiftly adapt to evolving customer needs and technological advancements is driving the robust adoption of cloud microservices.

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The North America cloud microservices market was over 33% of the revenue share in 2023. The region's advanced IT infrastructure and tech-savvy culture drive the adoption of innovative solutions like microservices. Additionally, the dynamic nature of industries such as e-commerce, finance, and healthcare demand agile and scalable applications, making cloud microservices a natural fit. The presence of major cloud service providers like AWS, Microsoft Azure, and Google Cloud also accelerates adoption.
 

Cloud Microservices Market Share

Major companies operating in the cloud microservices industry are

• Amazon Web Services, Inc
• Atos SE
• Broadcom
• Idexcel Inc
• Infosys Limited
• IBM Corporation
• Oracle
• Salesforce, Inc
• Tata Consultancy Services Limited

These companies are majorly focus on launching new cloud microservices solutions for different end-users.

Cloud Microservices Industry News

• In February 2022, IBM announced the acquisition of Cloudant, a database service used by many developers to store data for microservices applications. This acquisition gives IBM a major presence in the cloud database market, a key part of the cloud microservices ecosystem.

The cloud microservices market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Component

• Platform
• Services
• Consulting Services
• Integration Services
• Training, Support and Maintenance Services

Market, By Content

• Public
• Private
• Hybrid

Market, By Enterprise size

• SMEs
• Large enterprises

Market, By End-User

• BFSI
• Healthcare
• IT & Telecommunication
• Education
• Retail & Consumer Goods
• Media & Entertainment
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • GCC

Frequently Asked Questions (FAQ)

How big is the cloud microservices market?

The market size of cloud microservices reached USD 1.4 billion in 2023 and is set to observe over 20% CAGR between 2023 and 2032, owing to faster development cycles and continuous deployment, along with improved resource utilization and overall application performance.

Why are large enterprises opting for cloud microservices?

The large enterprises segment held a market share of over 68% in 2023 and will grow as cloud microservices find widespread application in large enterprises due to their ability to enhance agility, scalability, and innovation.

What is the size of North America cloud microservices industry?

North America market share was over 33% in 2023, attributed to the region's advanced IT infrastructure and tech-savvy culture that drive the adoption of innovative solutions like microservices.

Who are the key players in the cloud microservices market?

Amazon Web Services, Inc., Atos SE, Broadcom, Idexcel Inc., Infosys Limited, IBM Corporation, Oracle, Salesforce, Inc., Tata Consultancy Services Limited.