The OpenStack service market is projected to grow from USD 1.63 Billion in 2017 to USD 5.66 Billion by 2022, at a CAGR of 28.3% from 2017 to 2022.
Fast and easy deployment, no compulsion of vendor lock-in, and advantage of wide community support are the factors driving the growth of the market across the globe.
The OpenStack service market has been segmented on the basis of component, organization size, vertical, and region. Based on component, the market has been segmented into solution and service. Based on organization size, the market has been segmented into small & medium enterprises and large enterprises. Based on vertical, the market has been segmented into government & defense, IT, telecommunication, academic & research, BFSI, retail & e-commerce, manufacturing, and others, which include consulting, real estate, web hosting, media & entertainment, and advertisement. And based on region, the market has been segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
Based on region, the market in Europe is projected to grow at the highest CAGR from 2017 to 2022. The growth of the market in Europe can be attributed to the increasing use of open source software and data security, which compel enterprises to adopt OpenStack services in this region. In the Asia Pacific region, enterprises have been increasingly adopting OpenStack services to tap the power of the OpenStack solution and gain competitive advantages. The OpenStack service market in China, Japan, India, Australia, and South Korea is projected to witness significant growth during the forecast period, owing to increased R&D investments made by various companies in digital transformation.
A key factor restraining the growth of the OpenStack service market is the growing security concerns related to the technology which is still in the growing stage and is prone to breach and access by hackers. OpenStack developers and service providers are continually working on providing security patches along with solutions and services to enhance the security of the OpenStack solution.
Key players in the OpenStack service market include Canonical (UK), Huawei (China), Cisco Systems (US), SUSE (Germany), VMware (US), HPE (US), Oracle (US), Dell EMC (US), IBM (US), Red Hat (US), Rackspace (US), Mirantis (US), Platform9 Systems (US), EasyStack (China), and Bright Computing (US). These companies adopt different growth strategies, such as expansions, mergers & acquisitions, partnerships, and new product launches to increase their market shares.