Application Container Market to Reach USD 8.2 Billion by 2025!

By Veritis

Application Container Market to Reach USD 8.2 Billion by 2025!

In the modern digital world, IT continues to be under intense pressure to build business agility, embrace scalability and adapt to the market’s changing demands. One such challenge is the delivery of applications at the deft pace demanded by the typical digital transformation. And containerization emerged as the solution.

Containerization involves encapsulating or packaging application code, its libraries, frameworks, and other dependencies. As a result, the applications run uniformly and consistently in any environment, whether it is the public cloud, on-premises data center, or personal laptop.

Containerization of applications brings many benefits, including portability between various platforms, faster delivery of enhancements, high efficiency thorough optimal resource utilization, and improved security by fault isolation.

Though the concept of containerization is decades old, the emergence of Docker in 2013, an open-source containerization tool, proliferated the adoption of this technology.

Recently, Docker reported that over 3.5 million applications have been placed in containers using their technology, and over 37 billion containerized applications have been downloaded.

Underpinning the growing trend for container adoption is the latest market estimates, which revealed that the global application container market, which was valued at USD 1.38 billion in 2019, is expected to reach USD 8.2 billion by 2025. The demand for the technology is poised to grow at a CAGR of 26.5% during the forecast period 2020-25.

The growing demand for cloud computing solutions and services, such as public and private cloud, SaaS, PaaS, and IaaS, is considered the prime factor driving the growth of the application container market.

Furthermore, the application container market growth is fueled by the increasing global adoption of container orchestration services and container security services.

Application Container Market Insights

Application Container Market Insights

  • Cloud to Drive Application Container Market

Based on the deployment model, the application container market is categorized into cloud and on-premises deployment. Among them, the cloud segment held a significant market share of 62.83% in 2019 and is forecasted to continue its dominance. It is poised to propel at a CAGR of around 30% over the forecast period.

Cloud provides greater flexibility, scalability, and on-the-fly customization when compared to on-premises. This drives the cloud-based deployment of application containers.

  • Banking Sector – The Prime Adopters of Application Containers

Based on vertical, the application container market is bifurcated into Banking, Financial Services, and Insurance (BFSI), retail, healthcare, telecom and IT, energy, and others.

BFSI is considered to be the most lucrative segment and is estimated to grow at a CAGR of 16.25% during the forecast period. With the growing footprint of BFSI and other clients, the container market is projected to expand further.

  • Large Enterprises Leads the Market

Based on organization size, the application container market is segmented into large enterprises and SMEs. The large enterprises’ segment dominated the market in 2018 with a revenue share of USD 950 million and is estimated to register a CAGR of 26% during the forecast period.

With robust infrastructure, strong R&D capabilities, and availability of higher budgets, large enterprises are increasingly adopting the technology.

  • North America to Continue its Dominance

North America dominated the application container market in 2019 with a market share of 35.82% and is projected to remain the dominant region over the forecast period.

The presence of an extensive cloud network established by major cloud service providers, like Amazon, Google, and Microsoft, in this region is the prime factor fueling the growth of the application container market.

US Application Container Market Size

Moreover, North America is home to various budding startups that offer solutions related to application container technology, including companies such as ClusterHQ, Bluedata, Docker, CoreOS, Twistlock, and Sysdig.

However, the Asia Pacific region is expected to exhibit the highest CAGR of around 30% in terms of adopting application container technology during the forecast period.

The growth is likely to be driven by the increasing adoption of DevOps and cloud technologies and the rise of the digital economy in the countries such as India, Japan, China, and Australia.


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