Skip to main content

Application Container Revenue will Reach $2.7B by 2020

Data center server virtualization and cloud computing requirements are evolving. More CIOs and IT managers will be deploying Linux container based solutions in 2017, as the market matures and the vendors gain new momentum with their go-to-market strategies.

The market will grow from $762 million in 2016 to $2.7 billion by 2020, according to the latest worldwide market study by 451 Research. Despite making up a relatively small portion of the overall Cloud-Enabling Technologies (CET) market, application containers will  experience a CAGR of 40 percent through 2020.

The entire CET market  -- which includes virtualization, containers, Private PaaS, and other automation and management software -- is estimated to be worth approximately $23.1 billion in 2017. It is expected to grow at a 15 percent CAGR to $39.6 billion at year-end 2020.


Application Container Market Development

The application container market can be compared to the OpenStack market. But based on the number of vendors currently participating, containers may have a broader impact on the market than OpenStack, which was valued at $1.8 billionn in 2016 and is expected to grow to $5.8 billion at a CAGR of 35 percent by year-end 2020.

Put simply, Linux containers are viewed as highly impactful technology by IT buyers. Moreover, 451 Research analysts believe enterprise adoption of containers and market maturity appears to be happening more rapidly than OpenStack and other adjacent trends, such as cloud PaaS and DevOps.

"Two things stand out from our market sizing and research on containers: the breadth and diversity of vendors basing their offerings on containers or integrating and partnering to better support containers in their products, and the speed at which the container software and market are maturing based on production, use and revenue growth," said Greg Zwakman, vice president at 451 Research.

451 Research has identified and currently tracks 125 application container vendors -- and they expect new market entrants to emerge quarterly, including many yet to be identified as open source container providers.

Although it is still early days, 451 Research finds increased movement beyond early development and testing to the production use of containers. That said, during 2015 there was significant growth of container applications in production among the enterprises that were surveyed.

Outlook for Linux Container Adoption

The trend continued in a survey of enterprise IT buyers conducted in April and May 2016. Of the 25 percent of those enterprises surveyed who use containers, 34 percent were in broad implementation of production applications, and a further 28 percent had already begun initial implementation. The future is bright for new market growth, with associated vendor merger and acquisition (M&A) activity.

Enterprise interest and the presence of a large number of vendors in the market indicate a continuing high level of M&A through 2017 across several market segments -- including management and orchestration, monitoring, security, continuous integration and/or continuous deployment.

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202