Container As A Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Container as a Service (CaaS) market is expected to register a CAGR of 35% in the forecast period. CaaS allows IT administrators total control over the deployment of containers, including governance and security controls. Containers as a Service (CaaS) primarily uses container-based virtualization, which enables IT organizations to upload, arrange, execute, grow, and manage containers. Also, containers as a service are being used more and more, especially by application development teams, because they are flexible and have lower infrastructure costs. This has helped the market grow a lot.

Key Highlights

• The market has a promising growth potential, mainly due to the surge in the adoption of containers as a service to assist IT departments and developers in creating, managing, and running containerized applications. Moreover, with the growing awareness of the benefits of cost-effectiveness and increased productivity, the rise in the need for services from businesses to reduce shipping times as a result of hosted applications facilitates the overall market's exponential growth.
• Furthermore, the CaaS model is expected to provide new business opportunities for small and medium-sized enterprises (SMEs) since it enables business organizations to endure a greater degree of agility, which is the ability to create a new production workload as quickly as possible. Additionally, the technique is quite easy to manage, as these are lightweight, enabling rapid delivery and deployment of new application containers. This is further expected to augment market growth.
• Moreover, the market is witnessing various significant developments. For instance, in October 2022, Veracode, a provider of application security testing solutions, announced the enhancement of its Continuous Software Security Platform to include container security. This early access program for Veracode Container Security is mostly underway for existing customers. The new Veracode Container Security offering, mainly built to meet the overall needs of cloud-native software engineering teams, addresses vulnerability scanning, secure configuration, and secret management requirements for various container images.
• However, the CaaS market is expected to face hindrances due to the rise in data security-related issues since usually the data is stored on cloud servers, exposing it to various hacking concerns. Also, cloud servers need a constant supply of electricity and internet connectivity to operate efficiently. This is likely to make the market for containers as a service even smaller in developing areas.

The COVID-19 outbreak made supply chains' vulnerabilities clear. Most IT firms were part of fragile ecosystems that provided critical IT services. Mandates encouraging remote work prompted service providers to guarantee that mission-critical enterprise clients had access to the tools and technologies required to enable the speed, security, quality, and general effectiveness of services offered, enhancing the market's growth opportunities vastly.

Container as a Service Market Trends

BFSI Sector Expected to Have Maximum Application

• Fintech has changed the banking system drastically, as more and more BFSI companies have embraced the cloud and diversified their cloud providers. Also, technologies like mobile banking, digital payments, etc., are revolutionizing the banking industry, especially in emerging countries like India and China. Hence, the use and deployment of CaaS models are also increasing. The container application platform is designed to automate the hosting, configuration, deployment, and administration of application stacks across any cloud provider.
• These solutions help the banks modernize their digital foundations for a competitive edge, speeding service delivery in branches of the future, optimizing payment processing models, and deepening customer engagement without compromising on cybersecurity. It gives application developers self-service access so they can easily deploy applications on demand that can help banks move more quickly and decrease time to market in the increasingly competitive environment of financial services. These solutions help financial institutions develop and support a broad range of applications while maintaining stringent security and compliance requirements. It also enables companies to deliver new applications to engage customers and associates.
• Creating and delivering on-demand financial services requires the use of cutting-edge digital tools. One of them is Kubernetes (K8s), which is mainly an open-source container orchestration and deployment technology. Applications can run seamlessly across platforms, regions, and clouds because of this technology's virtual operating systems. By operationalizing containerization with Kubernetes, banking organizations can thus offer a seamless experience to customers, automate savings, engage in innovation, and protect client data.
• In order to meet the needs of banks today, containerized programs' agility, scalability, and a quantum leap in user experience are essential. Whether in a private, public, or hybrid cloud, Kubernetes' container-based orchestration is the ideal option for financial services firms. So, banks can use Kubernetes to deploy containerized apps with an architecture that focuses on microservices, API-first, cloud-native, and headless, no matter what industry they work in - commercial, retail, or investing.
• As per the Reserve Bank of India, in the financial year 2022, the total count of digital payments that were recorded across India was around 71 billion. This was a drastic increase compared to the previous three years. Hence, with the rise in the number of digital payments, the need for using the container as a service will also increase considerably, facilitating the market's growth significantly.

North America is Expected to Account the Largest Market Share

• The North American region is expected to account for the largest market share in the Container as a Service market all throughout the forecast period. Most of the growth can be attributed to the growing economies of the U.S. and Canada, which are doing better because they are making more industrial goods.
• Also, factors such as increased demand for microservices, technological advancements, and the growing need for the adoption of microservices in this region are driving the market in the region. Also, the biggest CaaS solution providers in the region are coming up with new ideas and growing their businesses to get the most market share and take advantage of the huge opportunities in the region.
• For instance, in December 2022, AWS launched Finch, an open-source, cloud-agnostic command-line client designed especially for running, building, and publishing Linux containers. Finch primarily bundles together a number of open-source components such as nerdctl, lima, containerd, and buildkit. During the release, Finch was mostly a native macOS client that worked on all Mac CPU architectures.
• Also, in March 2022, Docker, Inc. revealed that it had picked up an additional sum of around USD 105 million in financing that, among other things, would be applied to extending the reach of the Docker container application development tools that developers mainly utilize into the realm of serverless computing frameworks and emerging WebAssembly (Wasm) and Web3 platforms. The company also says that application development teams that mainly use Docker containers release code 13 times more often, increase productivity with new technologies in 65% less time, and reduce the mean-time-to-remediate (MTTR) of security vulnerabilities by 62% compared to traditional ways of building applications.
• Moreover, in March 2022, Oracle Cloud Infrastructure (OCI) expanded with 11 new computing, networking, and storage services and capabilities that allow customers to run their workloads faster and more securely at a much lower cost. New offerings offer customers truly flexible core infrastructure services, automatically optimizing resources, especially to match application requirements, and significantly minimizing costs. Also, the company's new services include container instances that let customers use containers without directly managing the hosting VM or needing Kubernetes orchestration; AMD E4-Dense Compute instances that let customers use workloads that benefit from attached NVMe drives that offer low-latency storage; and an Oracle Cloud VMware Solution.

Container as a Service Market Competitor Analysis

The container market as a service is comparatively consolidated due to the existence of some leading players holding the majority share of the market. However, CaaS is a developing and demanding technology, and there are enormous business opportunities where a considerable number of new players are entering the market and are teaming up with significant players to capture a significant market share.

In September 2022, Dell declared that it is expanding its partnership with Red Hat to provide new solutions that will assist in managing and deploying on-premises, containerized infrastructure in multi-cloud environments. The combined Dell-Red Hat solutions would assist enterprises in speeding up the overall development and operations (DevOps) of cloud-native applications while removing IT management bottlenecks and barriers.

In May 2022, Microsoft declared a cloud-native product offering with Azure Container Apps, enabling developers to create microservice architectures utilizing containers in preview. Azure Container Apps is primarily built upon a foundation consisting of open-source technology with CNCF projects like Distributed Application Runtime (Dapr), Kubernetes Event-Driven Autoscaling (KEDA), and Envoy running on the Azure Kubernetes Service (AKS). Azure Container Apps can be well utilized in various contexts, from public API endpoints to microservices. The service enables the execution of application code wrapped in any container, regardless of programming or runtime model.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.