Application Container Market Report

Application Container Market Analysis Report By Deployment, By Platform (Kubernetes, Docker), By Organization Size (SMEs, Large Enterprise), By Service, By Application, By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Feb, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-796-4
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 167

Industry Insights

The global application container market size was valued at USD 1.5 billion in 2018 and is expected to register a CAGR of 26.5% from 2019 to 2025. An application container platform aids in upgrading, creating and deploying multiple solutions on a single OS kernel. The technology enables automation of various processes such as monitoring, scaling, scheduling, and upgrading of lifecycle management solutions.

The adoption of cloud-based technologies by enterprises is increasing significantly as these technologies enable the storage of massive amounts of data. Furthermore, they incur lower maintenance costs and include remote access and built-in security features. Ongoing trends in cloud computing, such as hybrid cloud solutions, cloud security, and cloud services and solutions such as SaaS, PaaS, and IaaS, are expected to significantly boost the market growth.

U.S. application container market

Increasing volumes of data generated by Internet-of-Things (IoT) devices are expected to propel market growth. The popularity of concepts such as smart cities, connected homes, connected cars, and connected healthcare among users has also resulted in the generation of massive amounts of data. Business sectors such as industrial, manufacturing, and retail have therefore been using IoT devices to record large volumes of data.

Docker is an open-source software development platform that allows collaboration of applications in a container and deployment of multiple applications using a single setup. It is the most popular platform type among users, and hence, the segment is expected to generate the highest revenue throughout the forecast period. The use of Docker helps improve platform portability, enhance traceability of data, completely utilize, and reallocate a container with minimal loss of data in case of an emergency.

However, market players face certain challenges due to the complexity of cloud technologies. The cloud environment is observed to be more intricate than predicted, for meeting the growing needs of end-users as control and management of technologies such as big data, IoT, and hybrid cloud on a single platform has become rather difficult.  Unavailability of adequate bandwidth and shortcomings associated with network congestion tend to cause latency during the exchange of data between the source and the cloud. This could act as a challenge to market growth.

Deployment Insights

Based on deployment, the market has been segmented into cloud and on-premise deployment. The on-premise segment is projected to account for a share of over 55.0% by 2025. The cloud segment, on the other hand, is anticipated to register a CAGR of close to 30.0% from 2019 to 2025.

Organizations maintain their data in a captive data center over the cloud and have complete control over processes such as scheduling, processing, maintenance, and administration. Higher capital expenses and costs associated with developing and maintaining on-premise infrastructure are a primary factor leading to the increasing adoption of cloud deployment.

The cloud deployment segment is anticipated to exhibit the highest CAGR over the forecast period. Factors such as increasing the use of private and public hybrid cloud technology are expected to drive the segment. Orchestration engines, including Kubernetes, help enterprises scale and run these solutions over the cloud. For instance, once created, cloud containers offer enhanced portability and can be deployed quickly onto different servers.

Organization Size Insights

Based on organization size, the application container market has been segmented into SMEs and large enterprises. The size of the large enterprise segment was valued at approximately USD 950.0 million in 2018 and is estimated to register a CAGR of around 26.0% over the forecast period. The adoption of application containers in SMEs is, however, anticipated to grow at the highest rate over the forecast period.

Large enterprises have a robust infrastructure, strong R&D capabilities, and availability of higher budgets, which facilitate the adoption of technology for benefits such as cost-effectiveness, easy management and administration, and simple architecture. For instance, Bank of America Corporation and Goldman Sachs are progressively using containers owing to their simple architecture and deployment process and security and compliance benefits.

Platform Insights

The Docker segment accounted for a significant revenue share in 2018 and is projected to continue its dominance throughout the forecast period. Enterprises are using this platform to enhance data security and automate scanning. For instance, ADP, LLC. a cloud-based Human Capital Management (HCM) solutions provider, used Docker Enterprise Edition, multiple Docker Trusted Registries, and Universal Control Plane/Swarm to address issues related to its legacy applications and data security.

The Kubernetes segment is anticipated to witness substantial growth from 2019 to 2025. This can be attributed to the platform’s flexibility to function alongside multi-container applications. The other segment includes AWS ECS, Hashicorp Nomad, Mesos, Cloud Foundry, and Azure Container.

Kubernetes was designed by Google, Inc. and is now maintained by the Cloud Native Computing Foundation (CNCF). It is an open-source, orchestration system that aids in automating management and deployment processes of containerized applications. The use of Kubernetes is increasing owing to its operational flexibility on the public as well as a private cloud.

Application Insights

The banking, financial services, and insurance (BFSI) sector accounted for the dominant market share in 2018. The use of containerization in BFSI is increasing significantly owing to its benefits such as ease of administration, cost-effectiveness, and a secured environment. For instance, Barclays launched an Application Platform-as-a-Service (PaaS) as a part of its cloud program, wherein Red Hat, Inc.’s OpenShift Container Platform was used by the bank to upgrade its IT infrastructure. The platform enabled faster release update schedule and helped developers in gaining resources on demand.

The telecommunication and IT segment are anticipated to register a CAGR exceeding 28.0% over the forecast period. The segment is projected to grow at the highest rate in the Asia Pacific, with China, Japan, and India being the most lucrative markets in the region.

Enterprises in the retail and e-commerce industry are globally using the Docker platform to secure and improve their software supply chain and offer seamless DevOps workflows. For instance, ASSA ABLOY, a Swedish lock manufacturer, used Docker EE to provide a consolidated container management platform with a secured solution compatible with different infrastructure and cloud platforms.

Service Insights

The data management and orchestration segment accounted for a significant revenue share in 2018 owing to the ability of containers to deploy and manage data quickly. North America is anticipated to be the largest adopter of these solutions across all verticals. The region is an early adopter of new innovative technologies such as DevOps, hybrid cloud, and containerization owing to the presence of key technology providers such as Amazon Web Services, Inc.; Cisco Systems, Inc.; Docker, Inc.; Google, Inc.; and IBM.

Global application container market

The monitoring and security segment is anticipated to account for the largest revenue share by 2025 owing to the ability of containers to effectively identify errors, which proactively helps avoid system breakdowns. For instance, TrueSight, an Algorithmic IT Operations (AIOps) platform by BMC Software, Inc. provides alerts about microservices and just-in-time visualizations, which helps enterprises rectify any issue in the container environment within minimal time.

Regional Insights

North America accounted for a revenue share of over 35.0% in 2018. The U.S. significantly contributed to the market revenue owing to the aggressive adoption of cloud-native technologies by vendors in the region and their collaboration with other technology providers. For instance, in May 2018, Google, Inc. collaborated with NetApp, a hybrid cloud data services provider, for gaining cloud-native and high-performance storage capabilities. In February 2018, Red Hat, Inc. announced a collaboration with a digital services provider named Atos Managed OpenShift (AMOS) to deliver a new, fully-managed cloud solution.

Asia Pacific is projected to exhibit a CAGR of nearly 30.0% over the forecast period. Growing adoption of DevOps, IoT devices, and hybrid cloud technology by enterprises, particularly in the BFSI and telecommunication sectors, is anticipated to trigger significant market growth in India, Singapore, Australia, China, and Japan.

Additionally, key players are undertaking strategic initiatives such as the establishment of R&D centers and partnerships with regional players to increase their market share in the region. For instance, in December 2017, AWS partnered with a telecommunication service provider named Ningxia Western Cloud Data Technology Co. Ltd. (NWCD), headquartered in Zhongwei, China, to increase its market share in the country.

Application Container Market Share Insights

Key players in the market include Red Hat, Inc.; International Business Machines Corporation (IBM); Google, Inc.; Cisco Systems, Inc.; and Amazon Web Services, Inc. In April 2018, Docker, Inc. introduced Docker Enterprise Edition 2.0. to improve container management and security on Kubernetes. Docker, Inc., which is a major provider of these solutions, is continuously increasing its R&D expenditure to develop innovative products.

Major software development companies are forming strategic alliances with application container developers to integrate this technology into their products. For instance, in May 2018, Red Hat, Inc. helped power Tata Communication Ltd.’s IZO private cloud, an integrated cloud platform, with its OpenStack, a cloud computing platform and OpenShift, a Kubernetes platform. Adoption of the platform enabled Tata Communication Ltd. to decrease the time-to-market for its latest services and improve customer experience.

Similarly, in August 2017, VMware, Inc., and Pivotal Software, Inc., in collaboration with Google Cloud, launched Pivotal Container Service (PKS) with compatibility to Google Container Engine (GKE). The PKS is an open-source Kubo technology that enables enterprises to deliver production-ready Kubernetes on the Google Cloud Platform (GCP) and VMware vSphere.

Report Scope

Attribute

Details

The base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Market revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, and Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to five analysts working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global application container market report based on deployment, organization size, platform, application, service, and region:

  • Deployment Outlook (Revenue, USD Million, 2014 - 2025)

    • Cloud

    • On-premise

  • Organization Size Outlook (Revenue, USD Million, 2014 - 2025)

    • SMEs

    • Large Enterprises

  • Platform Outlook (Revenue, USD Million, 2014 - 2025)

    • Docker

    • Kubernetes

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • BFSI

    • Healthcare & Life Science

    • Telecommunication & IT

    • Retail & E-commerce

    • Media & Entertainment

    • Others

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Monitoring & Security

    • Data Management & Orchestration

    • Networking

    • Support & Maintenance

    • Other Consulting Services

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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