Cloud Microservices Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The cloud microservices market size has grown exponentially in recent years. It will grow from $1.88 billion in 2024 to $2.27 billion in 2025 at a compound annual growth rate (CAGR) of 20.7%. The growth in the historic period can be attributed to agility and time to market, flexibility and modularity, resilience and fault tolerance, data privacy and compliance, edge computing and IoT.

The cloud microservices market size is expected to see exponential growth in the next few years. It will grow to $4.83 billion in 2029 at a compound annual growth rate (CAGR) of 20.8%. The growth in the forecast period can be attributed to increased demand for hybrid and multi-cloud, edge computing expansion, enhanced security measures, integration with serverless computing, focus on observability and monitoring. Major trends in the forecast period include integration with AI/ml services, serverless microservices, event-driven architectures, develops for microservices security, automated ci/cd pipelines.

The growing retail and e-commerce is expected to propel the growth of the cloud microservices market going forward. Retail refers to the process of selling goods or services directly to consumers through physical stores or online channels, while e-commerce is the buying and selling of goods and services over the Internet. It arises due to internet penetration, shifting consumer preferences, and the convenience offered by online shopping. Cloud microservices are widely used in the retail and e-commerce sectors to build scalable, flexible, and resilient applications that can handle the complexities of modern digital commerce. For instance, according to the United States Census Bureau, a US-based government agency, e-commerce increased 7.6% in 2023, compared to 6.9% in 2022. Furthermore, according to the National Retail Federation, a US-based retail trade association, annual retail sales increased from $4.61 trillion in 2021 to $4.94 trillion in 2022, a 7% increase. Therefore, growing retail and e-commerce are driving the growth of the cloud microservices market.

Major companies operating in the cloud microservices market are concentrating on developing innovative products, such as the microservices engine, to provide comprehensive and inclusive cloud microservices. This engine is an open-source, highly available platform to support microservice development, and it is helpful for various business scenarios, including microservice registration and discovery, distributed scheduling, and integration with other cloud services. For instance, in March 2022, Alibaba Cloud, a China-based computer software company, launched the microservices engine (MSE), providing an open-source, inclusive platform for microservice development. Its features include a fully managed registration and configuration center, cloud-native gateways, and microservice governance capabilities. Additionally, this platform aims to enhance the open-source microservices ecosystem, improve performance, observability, and convenience, and provide a unified, efficient, and secure platform for cloud-based O&M. It is designed to be highly available and suitable for various business scenarios, providing benefits such as improved open source capabilities, fully managed services, and diverse authentication requirements.

In January 2023, DC Two Limited, an Australia-based data center, cloud, and software provider acquired Attained Group for $1.4 million. This acquisition aims to expand its business beyond data centers and infrastructure into the broader cloud microservices IT sector, including cybersecurity, managed cloud services, network, and voice solutions. Attained Group is an Australia-based IT consultancy and solution services company specializing in cloud management and microservices.

Major companies operating in the cloud microservices market are Google LLC, Microsoft Corporation, Dell Technologies Inc., Amazon Web Services Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., Hewlett Packard Enterprise Development LP, Tata Consultancy Services Limited, Salesforce.com Inc., Infosys Limited, Alibaba Cloud, Atos SE, Rackspace Hosting Inc., Marlabs Inc., Contino Holdings Limited, Optisol Business solution, Idexcel Inc., OpenLegacy Ltd., NGINX Inc., SmartBear Software Inc., Macaw Software Inc., RapidValue Solutions Inc., Pivotal Software Inc.

North America was the largest region in the cloud microservices market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud microservices market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud microservices market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cloud microservices market consist of revenues earned by entities by providing services such as compute services, storage services, networking services, identity and access management, monitoring and logging services, and database services. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud microservices market also includes of sales of virtual machines, load balancers, object storage tools, and networking tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Cloud microservices are an architectural approach for constructing software applications or functionalities as a decentralized collection of autonomously deployable and manageable services. This service is used across various domains to build scalable, resilient, and agile applications that meet the evolving needs of businesses and users.

The main types of components in cloud microservices are platforms and services. Platform component refers to a specific part or element of the overall microservices architecture that is responsible for providing a particular function or service. It encourages various deployments, such as public, hybrid, and private, and is used in different organizations, including small and medium enterprises (SMEs) and large enterprises and end users are banking, financial services and insurance, retail, e-commerce, manufacturing, telecommunication, information technology and information technology enabled services, healthcare, and others.

The main types of components in cloud microservices are platforms and services. Platform component refers to a specific part or element of the overall microservices architecture that is responsible for providing a particular function or service. It encourages various deployments, such as public, hybrid, and private, and is used in different organizations, including small and medium enterprises (SMEs) and large enterprises and end users are banking, financial services and insurance, retail, e-commerce, manufacturing, telecommunication, information technology and information technology enabled services, healthcare, and others.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.