Report ID : 10154373 |
Published Date : 21 Mar 2025 |
Report Format : PDF,PPT |
Delivery Timeline :48-72 Business Hours
Definition of OpenStack Service
The OpenStack service is a free software platform that allows one to access the source code, modify, or share it with other users. It is a next-stage virtualization that organizes, manages, and stores a pool of data, and network resources in an IT organization. The OpenStack service functions upon Infrastructure-as-a-Service (IaaS) service model that gives users effective plug-in and play components. It is made of microservices that can be altered based on the requirement and the open stack provides distributed cloud computing without the use of additional technologies or disruption of excess installations.
Global OpenStack Service Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~29% |
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Base Year Market Size (2022) |
~ USD 9 Billion |
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Forecast Year Market Size (2035) |
~ USD 190 Billion |
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Regional Scope |
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Global OpenStack Service Market Highlights Over 2023 - 2035
The global OpenStack service market is estimated to garner a revenue of USD 190 Billion by the end of 2035 by growing at a CAGR of ~29% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 9 Billion in the year 2022. The market growth can be attributed to the advancements in the telecom sector. Furthermore, businesses are adopting digitalization in their operations owing to the increase in the share of urbanization, which is also expected to add to the market growth. Moreover, there has been an increase in investment in the digital transformation which is expected to surge the growth of the global OpenStack service market. Furthermore, the surge in financial support from both the government and non-government organizations, which is expected to help businesses to opt for cloud-based infrastructure and OpenStack service, is also poised to bring in significant growth opportunities for the market in the coming years. For instance, the board of directors of The World Bank approved USD 500 million in 2020 for the financing and digital inclusion development policy formulation.
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The growth of the market can also be attributed to the numerous benefits associated with OpenStack platform, such as open-source access from any location, and that it can be easily deployed in any business circumstances. Besides this, the huge adoption of large data analytics in the telecom sector is also poised to boost the market growth in the coming years. Also, the advancements in infrastructure of OpenStack technology that provides more capacity for heterogeneous enterprises for greater working speed and developer experience, is further projected to drive the growth of OpenStack service market during the forecast period. As per the report, about 20% of organizations with more than 9000 employees are using the OpenStack services for their cloud computing works.
Global OpenStack Service Market: Growth Drivers and Challenges
Growth Drivers
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Advancement in the Telecommunication Sector with Decentralized Government Investments – About USD 1 trillion of Investment Infrastructure and Jobs Act (IIJA) was released by the Government of the United States with ~USD 60 billion for continued broadband adoption and deployment to expand and improve telecommunication.
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Increasing Demand for Internet-Enabled Devices for Data Security and Authentication – As per the estimations, worldwide, the internet of things, was projected to deploy over 39 billion devices with Corps Information System Control officers by the end of 2021.
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Growing Preference for Cognitive Cloud to Improve Self Learning, Recognition, and Analysis – Cloud Computing is used by doctors for the analysis of illness, disease recognition, and in decision-making activities using cognitive abilities. For instance, The IBM Watson for Oncology was used to assist oncologists in finding alternatives for cancer patients in evidence-based treatment at Memorial Sloan Kettering Cancer Center.
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Increasing Popularity of Open-Cloud Platforms - It is estimated that more than 40% of the enterprises in EU use open cloud services.
Challenges
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High Cost of Initial Investment for the Deployment of OpenStack Platform
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Lack of Experts for Technical Assistance
The use of OpenStack services requires knowledge of all the tools used in cloud computing. Training or assistance from skilled experts is necessary for someone to use these services. The lack of availability of expert guidance and the complexity of the deployment is estimated to hamper the market growth. Rising demand for investment and funding from key players such as IBM, RedHat, and others can be used to support with the technical assistance.
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Growing Security and Installation Issues
The global OpenStack service market is segmented and analyzed for demand and supply by enterprises segmented into large enterprises and small & medium enterprises. Out of which, the large enterprise segment is anticipated to hold the largest share over the forecast period in the global OpenStack service market owing to the financial capability of large enterprises to pay for the OpenStack service. Moreover, there has been an increase in the number of large enterprises adopting cloud-based infrastructure that is best supported by the OpenStack service as compared to small & medium enterprises. It is estimated that adoption of cloud-based services can save any large enterprise upwards of around USD 1 million each year. Therefore, the financial capability and adoption of cloud-based infrastructure are expected to increase the growth of the large enterprise segment.
Global OpenStack Service Market Regional Synopsis
The Asia Pacific region OpenStack service market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. Rising investment in research and development for digital transformation is one of the major factors estimated to boost the market growth. Moreover, there has been an increase in the use of cloud-based services in the countries in the Asia Pacific region such as Japan, and China among others, which is also expected to add to the market growth in the region. In addition, there has been an increase in urbanization that is leading to an increase in the adoption of digitalization, further contributing to the market growth. For instance, Japan’s urban population had increased from 58,797,628 in 1960 to 115,494,817 in 2020.
Market Segmentation
Our in-depth analysis of the global OpenStack service market includes the following segments:
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By Enterprises |
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By Component |
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By Verticals |
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Key Companies Dominating the Global OpenStack Service Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global OpenStack service market that are included in our report are IBM Corporation, Oracle Corporation, Red Hat, Inc., Hewlett Packard Enterprise Company, VMware, Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd., Canonical Ltd., Rackspace Technology, Cyxtera Technologies, Inc., and others.
Global OpenStack Service Market: Latest Developments
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14 October 2021: Red Hat, Inc., announced Red Hat OpenStack Platform 16.2, the latest version of its highly agile and scalable cloud Infrastructure-as-a-Service (IaaS) platform. Red Hat OpenStack Platform 16.2 is designed to assist organizations in succeeding in a hybrid cloud world by providing tighter integration with Red Hat OpenShift, allowing customers to run both new and traditional applications in parallel with improved network capacity, security features, storage, performance, and efficiency.
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21 May 2018: VMware, Inc. announced VMware Integrated OpenStack 5, the latest release of VMware's OpenStack distribution based on the OpenStack Queens release. VMware Integrated OpenStack 5 will be available in both Carrier and Data Center Editions and will include new features to assist customers in simplifying, scaling, and securing production OpenStack environments.
