Cloud Native Market Size and Share

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Cloud Native Market Analysis by Mordor Intelligence

The global cloud native market is valued at USD 11.34 billion in 2025 and is forecast to reach USD 41.14 billion by 2030, advancing at a 29.4% CAGR. Growth accelerators include platform engineering adoption, Kubernetes-native data services, and the surge of generative-AI workloads that now drive half of cloud infrastructure expansion. GPU consumption for AI training has risen 336% year-over-year at Oracle, illustrating how specialized compute reshapes infrastructure demand. Enterprises use these technologies to maintain hybrid consistency, reduce vendor lock-in, and satisfy rising sovereign-cloud compliance. Public cloud keeps its lead, yet hybrid and multi-cloud patterns grow faster as organizations seek workload portability and data-localization conformity.

Key Report Takeaways

  • By component, platforms held 55.84% of cloud native market share in 2024, while services are projected to expand at a 32.53% CAGR to 2030. 
  • By deployment model, public cloud led with 61.64% revenue share in 2024; hybrid and multi-cloud configurations are forecast to grow at 34.75% CAGR through 2030. 
  • By enterprise size, large enterprises accounted for 64.88% of the cloud native market size in 2024; SMEs exhibit the fastest growth at 32.40% CAGR. 
  • By end-user industry, BFSI captured 29.45% of cloud native market share in 2024, while healthcare and life sciences will progress at a 36.50% CAGR to 2030. 
  • By geography, North America commanded 41.73% revenue share in 2024; Asia-Pacific is advancing at 34.64% CAGR through 2030.

Segment Analysis

By Component: Services Surge Past Platform Dominance

Services are forecast to expand at 32.53% CAGR through 2030 as enterprises outsource managed Kubernetes, security monitoring, and lifecycle operations. Platforms maintained 55.84% cloud native market share in 2024, but the steep rise of services shows preference for vendor expertise when internal complexity grows. Red Hat’s estimated USD 5–10 billion annual hybrid cloud revenue underlines demand for integrated software and advisory bundles. 

The services wave intersects with platform engineering adoption because 75–80% of organisations intend to form dedicated teams. Consulting and managed offerings help design, build, and run these platforms, letting customers keep focus on product delivery. Vendors embed AI into support layers, allowing proactive optimisation. This blend of automation and service know-how sustains the cloud native market growth trajectory.

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By Deployment Model: Hybrid Architectures Reshape Cloud Economics

Public cloud held 61.64% of revenue in 2024, yet hybrid and multi-cloud segments will grow 34.75% CAGR to 2030. Organisations use multi-provider strategies to avoid lock-in and meet localisation rules, a pattern validated by Oracle’s 115% sequential jump in MultiCloud database revenue. Sovereign programmes from yperscalers align with this trend, packaging compliance controls with familiar services. 

Private cloud remains crucial for industries needing on-premises data, but they increasingly adopt cloud-native tooling for parity with public services. Hybrid control planes unify operational experience, trimming skills gaps and speeding deployment. These factors reinforce demand across every deployment category and widen the overall cloud native market.

By Enterprise Size: SME Adoption Accelerates Through Platform Simplification

Large enterprises accounted for 64.88% of cloud native market size in 2024, yet SMEs will grow 32.40% CAGR through 2030. Simplified SaaS-delivered platforms and managed Kubernetes clusters lower entry barriers for resource-constrained firms. Kubernetes commands 60% orchestration penetration, promoting open standards that appeal to SMEs wary of vendor dependency. 

AI-assisted automation trims operational burden, letting small teams manage sophisticated architectures. At the same time, internal platform engineering in large firms standardises governance and security. These dual motions expand the install base across both segments and ensure steady adoption momentum for the cloud native market.

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By End-user Industry: Healthcare Digitization Drives Vertical Transformation

BFSI led with 29.45% revenue in 2024, but healthcare and life sciences will progress at 36.50% CAGR through 2030 as telemedicine, genomic analytics, and AI-aided diagnostics demand elastic compute. Industry cloud blueprints package compliance frameworks and domain APIs, speeding adoption in regulated fields. Ninety-five percent of firms recognise value in vertical-specific solutions. 

Manufacturing and retail embrace edge orchestration for 5G and supply-chain telemetry, while IT-telecom sectors move network functions to containers. The EU AI Act adds sector guidelines that vendors bake into industry clouds, prompting steady uptake. This vertical diversification bolsters resilience of the wider cloud native industry.

Geography Analysis

North America contributed 41.73% of revenue in 2024 thanks to early hyperscaler penetration, a dense startup ecosystem, and robust AI spending. Strong platform engineering communities accelerate knowledge sharing and tooling maturity. Federal guidance on secure software supply chains also reinforces demand for Kubernetes-centric DevSecOps.

Asia-Pacific is the fastest-growing region with 34.64% CAGR to 2030. Localisation mandates spur sovereign-cloud offerings and domestic provider growth. China’s market shows preference for Alibaba, Huawei, and Tencent, illustrating how policy shapes vendor mix. India, Indonesia, and Vietnam record double-digit expansion as digital-first initiatives leapfrog legacy infrastructure.

Europe benefits from GDPR and the EU AI Act, which push enterprises toward region-based data residency. AWS’s European Sovereign Cloud investment exemplifies hyperscaler adaptation. Middle East and Africa adopt cloud native to support digital transformation projects in finance, public services, and oil-and-gas, though infrastructure gaps slow progress in some countries.

Cloud Native Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The cloud native market shows moderate concentration. AWS, Microsoft, and Google together hold 63% of the larger cloud infrastructure arena. Yet specialist vendors gain traction by focusing on platform engineering, WebAssembly, and industry-cloud blueprints. Oracle’s USD 30 billion annual contract pipeline highlights appetite for performance-optimised AI platforms. 

Salesforce’s Data Cloud surpassed USD 1 billion ARR, confirming that data-centric services layered on Kubernetes drive incremental value. Venture capital supports niche innovators: Spectro Cloud raised USD 75 million to simplify fleet-scale Kubernetes, and wasmCloud graduated within CNCF, signalling community confidence. 

Consolidation continues as large vendors buy specialised capabilities. IBM’s USD 6.4 billion HashiCorp deal adds infrastructure-as-code depth, while Red Hat ties platform services with AI. These moves tighten integration between software, services, and hardware, creating higher switching costs and enlarging the total addressable cloud native market.

Cloud Native Industry Leaders

  1. Amazon.com, Inc.

  2. Google LLC

  3. International Business Machines Corporation (IBM)

  4. Oracle Corporation

  5. Alibaba Group Holding Limited

  6. *Disclaimer: Major Players sorted in no particular order
Cloud Native Market Concentration
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Recent Industry Developments

  • June 2025: Oracle announced a cloud agreement expected to generate above USD 30 billion annually from FY2028, citing 100%+ MultiCloud database revenue growth.
  • May 2025: Salesforce posted USD 9.8 billion revenue for Q1 FY2026, raised full-year guidance, and disclosed Data Cloud and AI ARR topping USD 1 billion.
  • April 2025: Databricks secured USD 10 billion funding, lifting valuation to USD 62 billion and confirming demand for unified data and AI platforms.
  • October 2024: Salesforce launched Agentforce, letting customers create autonomous AI agents to automate sales and service workflows.

Table of Contents for Cloud Native Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Generative-AI-driven workload explosion
    • 4.2.2 Mandatory carbon-aware cloud optimisation
    • 4.2.3 Enterprise shift to platform engineering teams
    • 4.2.4 Kubernetes-native data services maturation
    • 4.2.5 Hyperscaler sovereign-cloud programmes
    • 4.2.6 Accelerated industry-cloud blueprints (BFSI, healthcare, telco)
  • 4.3 Market Restraints
    • 4.3.1 Exit-strategy and repatriation cost shock
    • 4.3.2 Shortage of cloud-native security talent
    • 4.3.3 Emerging nation data-localisation mandates
    • 4.3.4 Escalating e-waste from short server refresh cycles
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Assessment of Macroeconomic Trends

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Platforms
    • 5.1.2 Services
  • 5.2 By Deployment Model
    • 5.2.1 Public Cloud
    • 5.2.2 Private Cloud
    • 5.2.3 Hybrid / Multi-Cloud
  • 5.3 By Enterprise Size
    • 5.3.1 Large Enterprises
    • 5.3.2 Small and Medium-sized Enterprises (SMEs)
  • 5.4 By End-user Industry
    • 5.4.1 Banking, Financial Services and Insurance (BFSI)
    • 5.4.2 Information Technology and Telecommunications
    • 5.4.3 Manufacturing
    • 5.4.4 Retail and E-Commerce
    • 5.4.5 Healthcare and Life Sciences
    • 5.4.6 Other Industries (Media, Government, Education, etc.)
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 United Kingdom
    • 5.5.3.2 Germany
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Russia
    • 5.5.3.7 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 India
    • 5.5.4.4 South Korea
    • 5.5.4.5 Australia and New Zealand
    • 5.5.4.6 Southeast Asia
    • 5.5.4.7 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 UAE
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Nigeria
    • 5.5.5.2.3 Egypt
    • 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Amazon Web Services, Inc.
    • 6.4.2 Microsoft Corporation
    • 6.4.3 Google LLC
    • 6.4.4 International Business Machines Corporation
    • 6.4.5 Oracle Corporation
    • 6.4.6 Alibaba Group Holding Limited (Alibaba Cloud)
    • 6.4.7 Tencent Cloud Computing (Beijing) Co., Ltd.
    • 6.4.8 Huawei Technologies Co., Ltd.
    • 6.4.9 VMware, Inc.
    • 6.4.10 Red Hat, Inc.
    • 6.4.11 SAP SE
    • 6.4.12 Salesforce, Inc.
    • 6.4.13 Broadcom Inc.
    • 6.4.14 Cloudflare, Inc.
    • 6.4.15 DigitalOcean Holdings, Inc.
    • 6.4.16 Snowflake Inc.
    • 6.4.17 CoreWeave, Inc.
    • 6.4.18 Infosys Limited
    • 6.4.19 Tata Consultancy Services Limited
    • 6.4.20 Capgemini SE

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Cloud Native Market Report Scope

Cloud native is the software approach of building, deploying, and managing modern applications in cloud computing environments. Modern companies want to build highly scalable, flexible, and resilient applications that they can update quickly to meet customer demands.

The cloud native market is segmented by component (platforms, services), by deployment (public cloud, private cloud, hybrid cloud), by enterprises (large enterprises, medium and small enterprises), by end-users (BFSI, IT and telecom, manufacturing, retail and e-commerce, healthcare, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Platforms
Services
By Deployment Model Public Cloud
Private Cloud
Hybrid / Multi-Cloud
By Enterprise Size Large Enterprises
Small and Medium-sized Enterprises (SMEs)
By End-user Industry Banking, Financial Services and Insurance (BFSI)
Information Technology and Telecommunications
Manufacturing
Retail and E-Commerce
Healthcare and Life Sciences
Other Industries (Media, Government, Education, etc.)
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Southeast Asia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
By Component
Platforms
Services
By Deployment Model
Public Cloud
Private Cloud
Hybrid / Multi-Cloud
By Enterprise Size
Large Enterprises
Small and Medium-sized Enterprises (SMEs)
By End-user Industry
Banking, Financial Services and Insurance (BFSI)
Information Technology and Telecommunications
Manufacturing
Retail and E-Commerce
Healthcare and Life Sciences
Other Industries (Media, Government, Education, etc.)
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Southeast Asia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
UAE
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
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Key Questions Answered in the Report

What is the current value of the cloud native market and its growth outlook?

The cloud native market stands at USD 11.34 billion in 2025 and is projected to climb to USD 41.14 billion by 2030, reflecting a 29.4% CAGR

Why are generative-AI workloads so important for cloud native adoption?

Large language models need specialised GPU clusters that traditional virtualisation cannot support, driving enterprises toward container-based, Kubernetes-orchestrated architectures that scale inference efficiently

How does platform engineering differ from DevOps?

Platform engineering creates centrally managed self-service layers that abstract infrastructure, combining governance with developer autonomy. This organisational model now spans 55% of enterprises and is expanding rapidly

Which deployment model is growing the fastest?

Hybrid and multi-cloud configurations are the quickest-growing segment, expected to advance at 34.75% CAGR through 2030 as firms seek workload portability and sovereignty compliance

What are the main obstacles slowing cloud native projects?

Hidden repatriation costs, a global shortage of cloud-security talent, and emerging localisation mandates can all delay or complicate roll-outs

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