OpenStack Service Market Size, Share, Growth, and Industry Analysis, By Type (Solution, and Service), By Application (Government & Defense, IT, Telecommunication, Academic & Research, BFSI, Retail & E-Commerce, Manufacturing, and Others) and Regional Insights and Forecast to 2031

Updated On: 06 May 2024

OPENSTACK SERVICE MARKET REPORT OVERVIEW

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The global OpenStack Service Market size was USD 3335.6 million in 2021 and will touch USD 13910 million by 2028, exhibiting a CAGR of 22.2% during the forecast period.

OpenStack, an open-source cloud computing platform, empowers organizations to construct and oversee both public and private clouds. Offering a suite of services encompassing computing, storage, and networking, it facilitates the deployment and administration of virtual machines and various other resources for users.

Within the OpenStack service market, a spectrum of components and services aids in deploying, managing, and maintaining OpenStack-driven clouds. Nova, as the principal computing engine of OpenStack, furnishes virtual servers (instances) as needed. It oversees the lifecycle of these instances, encompassing tasks like initiating, scheduling, and decommissioning virtual machines.

COVID-19 Impact: Increased Demand for Cloud Services among Population to Fuel Market Growth

The shift to remote work becoming prevalent amid the pandemic has led to a significant increase in the demand for cloud services, essential for facilitating remote collaboration, communication, and access to applications and data. This surge in demand has, in turn, fueled the adoption of OpenStack-based clouds as organizations look for scalable and flexible cloud infrastructure solutions.

While certain organizations have made cloud adoption a priority to facilitate remote work and advance digital transformation initiatives, others have encountered budget constraints and postponed IT projects due to financial uncertainty. Consequently, this has resulted in a deceleration of OpenStack service adoption and other cloud technologies within specific sectors.

LATEST TRENDS

"Hybrid and Multi-Cloud Adoption, Edge Computing Integration to Drive Market Growth"

Organizations are increasingly acknowledging the importance of flexibility and agility in their cloud infrastructure. Hybrid and multi-cloud approaches enable them to harness the strengths of different cloud environments based on specific workload needs. OpenStack's compatibility and interoperability with various public cloud providers make it an optimal platform for implementing such strategies. By diversifying their cloud environments across multiple providers or integrating public and private clouds, organizations can mitigate risks associated with vendor lock-in, data breaches, and service interruptions. OpenStack's open-source nature empowers users with enhanced control and flexibility in their cloud deployments, reducing reliance on any single vendor. Additionally, there is a growing trend towards edge computing, which involves processing data closer to the source or endpoint devices. OpenStack is evolving to support edge computing use cases by offering adaptable and scalable infrastructure solutions tailored for edge deployments. This enables quicker data processing and facilitates real-time decision-making capabilities across various industries.

OPENSTACK SERVICE MARKET SEGMENTATION

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By Type

Based on type the global OpenStack Service Market can be categorized into Solution, and Service.

• Solution: Within the global OpenStack Service Market, solutions encompass software and technology offerings facilitating the deployment and administration of OpenStack-based cloud environments. These solutions often comprise OpenStack distributions, packaged versions of the OpenStack software stack, accompanied by management tools, deployment frameworks, and support services. They empower organizations with the essential infrastructure and functionalities to construct and manage private, public, or hybrid clouds utilizing OpenStack technology.

• Service: Conversely, within the OpenStack Service Market, services encompass a variety of professional and managed offerings provided by vendors, consultants, and service providers. These services are geared towards assisting with the implementation, optimization, and upkeep of OpenStack-based cloud environments. They range from consulting, design, deployment, migration, training, and support to managed services, all customized to address the unique needs and demands of organizations adopting OpenStack clouds. Service providers assume a crucial role in aiding organizations in maximizing the value and efficacy of their OpenStack investments by offering expertise, guidance, and continuous support throughout the cloud's lifecycle.

By Application

Based on application the global OpenStack Service Market can be categorized into Government & Defense, IT, Telecommunication, Academic & Research, BFSI, Retail & E-Commerce, Manufacturing, and Others.

• Government & Defense: Within the global OpenStack Service Market, the Government & Defense sector employs OpenStack to construct secure and scalable cloud infrastructures, catering to a variety of mission-critical applications. OpenStack empowers these entities to bolster data security, compliance, and sovereignty, all while maximizing resource utilization and cost-effectiveness.

•  IT: In the IT sector, OpenStack is utilized to create and oversee agile and economical cloud environments, facilitating software development, testing, and deployment procedures. OpenStack equips IT organizations with the adaptability and scalability required to address fluctuating workload requirements while enhancing resource distribution and operational efficiency.

• Telecommunication: Telecommunication firms implement OpenStack to construct virtualized network functions and coordinate network services within software-defined networking (SDN) and network functions virtualization (NFV) frameworks. OpenStack empowers these companies to deploy and oversee scalable, readily available network infrastructure, fostering accelerated service delivery and innovation.

• Academic & Research: Academic and research institutions employ OpenStack to establish communal computing and storage assets, essential for facilitating scientific research, data analysis, and collaborative endeavors among researchers. OpenStack enables the development of customized private and hybrid cloud environments that cater to the distinct needs of academic and research tasks, fostering collaboration and the exchange of knowledge.

• BFSI: In the BFSI sector, OpenStack is utilized to bolster data security, regulatory compliance, and operational efficiency within cloud environments. OpenStack empowers BFSI entities to construct robust and scalable cloud infrastructures to accommodate critical banking applications, customer data, and financial services, all while ensuring data privacy and adherence to industry regulations.

• Retail & E-Commerce: Within the Retail & E-Commerce domain, OpenStack plays a pivotal role in crafting and implementing scalable and durable cloud infrastructures. These infrastructures support e-commerce platforms, online storefronts, and digital marketing endeavors. OpenStack empowers retailers to provide customers with seamless and personalized shopping experiences, all while enhancing resource utilization efficiency and decreasing time-to-market for new offerin gs.

• Manufacturing: Manufacturing enterprises utilize OpenStack to establish agile and effective cloud infrastructures essential for sustaining digital manufacturing, supply chain management, and industrial IoT (Internet of Things) applications. OpenStack empowers manufacturers to streamline production processes, optimize resource allocation, and foster collaboration among dispersed manufacturing facilities and partners.

• Others: This category includes additional industries and sectors that employ OpenStack for diverse purposes, including healthcare, media, entertainment, energy, transportation, and more. OpenStack's adaptability and scalability render it suitable for a broad spectrum of applications and use cases spanning various industries, catalyzing innovation and digital transformation initiatives.

DRIVING FACTORS

"Flexibility and Scalability to Boost the Market"

The OpenStack Service Market growth is significantly propelled by its capacity to deliver adaptable and scalable cloud infrastructure solutions. Organizations are actively pursuing platforms capable of adjusting to evolving workload demands and facilitating expansion without compromising performance or efficiency.

Cost Efficiency to Expand the Market

Another pivotal factor contributing to market expansion is cost efficiency. OpenStack's open-source framework empowers organizations to sidestep vendor dependency and curtail licensing expenditures typically linked with proprietary cloud solutions. Furthermore, its modular architecture fosters resource optimization, thereby mitigating operational costs.

RESTRAINING FACTOR

"Complexity of Implementation to Potentially Impede Market Growth"

The intricacy involved in implementing and overseeing OpenStack-based solutions can serve as a notable impediment. Organizations may encounter difficulties in deploying and configuring OpenStack infrastructure, necessitating specialized expertise and resources to overcome these challenges.

OPENSTACK SERVICE MARKET REGIONAL INSIGHTS

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"North America to Dominate the Market owing to the Adoption Of cloud-native application development"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

North America dominates the OpenStack Service Market share, propelled by the significant presence of large enterprises, cloud service providers, and technology innovators. The region enjoys the advantages of a thriving ecosystem comprising OpenStack vendors, consultants, and user communities. Key markets within North America, such as the United States and Canada, witness extensive utilization of OpenStack for cloud-native application development, hybrid cloud deployments, and initiatives related to edge computing.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through support services to aid organizations"

Among the prominent players in the OpenStack Service Market is Red Hat. Renowned for its provision of open-source solutions, Red Hat offers OpenStack distributions like the Red Hat OpenStack Platform. Additionally, the company extends consulting, training, and support services to aid organizations in the deployment and management of OpenStack-based clouds.

List of Market Players Profiled

• Red Hat (U.S.)
• IBM (U.S.)
• Oracle (U.S.)
• Dell EMC (U.S.)
• Huawei (China)

INDUSTRIAL DEVELOPMENT

September 2023: Ample growth opportunities are anticipated for the market during the forecast period, driven by the widespread adoption of advanced technology and the presence of major players in the region.

REPORT COVERAGE

The future demand for OpenStack Service Market is covered in this study. The Research report includes the Increased Demand for Cloud Services due to the Covid-19 Impact. The report covers the latest trends in Hybrid and Multi-Cloud Adoption. The paper includes a segmentation of the OpenStack Service Market. The research paper includes the driving factors that are Flexibility and Scalability to Fuel Market Growth. The report also covers information on Regional Insights where the region which has emerged leading market for OpenStack Service.