The global open source services market size was USD 25.7 Bn in 2022 and is likely to reach USD 97.3 Bn by 2031, expanding at a CAGR of 16% during 2023–2031. The market growth is attributed to the rising adoption of open-source services in business ecosystems due to enhanced flexibility, security, and reliability in process management and development.
Open-source services (OSS) are non-proprietary software systems that offer enhanced security and flexibility to users by allowing them to inspect, modify, and upgrade the source code. These systems are distributed free of cost with their source codes so that the users can modify and utilize the software systems as per their requirements.
For instance, if an IT organization adopts the open-source services it can have extensive control over the software management system. The developers can upgrade and modify the source code to build enhanced enterprise capabilities, interoperability, and scalability in the organizational structure.
Global organizations use multiple technologies and applications in a business ecosystem. Open-source solutions enable developers to maintain interoperability between different technologies, systems, and applications.
The modular design of the open-source technologies provides parallel development of the source codes, for the purpose of interoperability while maintaining digital sovereignty in the business processes. This factor drives the adoption of open-source services in modern business ecosystems.
The report finds that the COVID-19 pandemic positively impacted the open source services market. The adoption of open-source services surged during the pandemic. The reliance on digital technologies to avail daily conveniences and work remotely increased significantly during the pandemic period. The developers in digital technology companies adopted open-source services to build flexible, agile, and secured software systems to offer comprehensive solutions for users.
Open Source Services Market Dynamics
Major Drivers
Rising adoption of open-source services due to enhanced flexibility, security, and cost-efficiency in enterprises is expected to drive the market. The open-source services are designed to help public and private organizations to accelerate business outcomes with the help of enterprise-ready solutions. The open-source solutions enhance efficiency, stability, and security across multiple IT environments.
Existing Restraints
Architectural and operational complexities involved in the integration of open-source services in the existing business ecosystem are likely to hinder the market. While developing an application from open-source software the developers deal with issues related to data synchronization, collaboration tools, load balancing, and data management and work on it extensively.
Emerging Opportunities
The preparedness of organizations to hire a dedicated staff to address the complexities in the open-source services application is likely to create significant opportunities for the market. Open-source applications are modified to suit the business interests of the organizations.
The users demand versions of feature-rich and user-friendly open-source applications. The dedicated staff amends the provisions in the open-source services applications to help users in providing user-friendly and easily adaptable OSS applications.
Scope of the Open Source Services Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Open Source Services Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Service (Implementation, Managed Services, and Training), Vertical (IT & Telecom, Banking Financial Services & Insurance, Manufacturing, Healthcare, and Others), and Organization Size (Small & Medium Enterprises and Large Enterprises)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Red Hat, Inc.; Accenture; IBM; Oracle; Cisco Systems, Inc.; Salesforce, Inc.; SUSE; Infosys Limited; Hewlett Packard Enterprise Development LP; and Databricks
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Open Source Services Market Segment Insights
Based on service, the open source services market is segmented into implementation, managed services, and training. The managed services segment is expected to expand at a significant growth rate during the projection period owing to the rising need for outsourcing IT operations to vendors for maximizing efficiency and productivity. Managed services help organizations to focus on core business operations by deploying managed services to perform IT operations in the organizational structure.
On the basis of vertical, the global market is segregated into IT & telecom, banking financial services & insurance [BFSI], manufacturing, healthcare, and others. The healthcare segment is projected to register a considerable CAGR during the forecast period due to the growing adoption of open source services for clinical data analytics and advanced clinical decision support in the healthcare sector.
Patient data management is an integral aspect of healthcare infrastructure. Open-source services help clinicians and support staff to handle and manage medical data such as patient health statistics, medications, lab results, and physician notes to provide efficient and personalized services to patients.
Based on organization size, the open source services market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment is expected to register a robust growth rate during the forecast period owing to the ability of open-source services applications to provide scalability and security in IT management operations. Source codes embedded in open services operations enable the users to upgrade the code to upscale the functionality and utility of the applications in a large enterprise setup.
Regional Outlook
In terms of region, the global open source services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to the rising adoption of advanced technology solutions in business processes in the region to enhance productivity and scalability.
Open-source services applications are modified to suit the business interests of the enterprises and are upscaled easily by upgrading the codes. The cost-efficiency and manageability of open-source services applications are relatively higher than conventional applications.
The market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period owing to the liberalization of economies and subsequent growth of the industrial sector. The rising industrialization in the Asia Pacific region creates a conducive atmosphere for the growth of open-source services applications adoption. Businesses are adopting OSS to enhance process outcomes with enhanced efficiency and security.
Segments
The open source services market has been segmented on the basis of
Service
- Implementation
- Managed Services
- Training
Vertical
- IT & Telecom
- Banking Financial Services & Insurance [BFSI]
- Manufacturing
- Healthcare
- Others
Organization Size
- Small & Medium Enterprises
- Large Enterprises
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Red Hat, Inc.
- Accenture
- IBM
- Oracle
- Cisco Systems, Inc.
- Salesforce, Inc.
- SUSE
- Infosys Limited
- Hewlett Packard Enterprise Development LP
- Databricks
Competitive Landscape
Key players competing in the global open source services market are Red Hat, Inc.; Accenture; IBM; Oracle; Cisco Systems, Inc.; Salesforce, Inc.; SUSE; Infosys Limited; Hewlett Packard Enterprise Development LP; and Databricks.
These open source services companies adopted development strategies including product diversification, restructuring, acquisitions, partnerships, mergers, product launches, collaboration, and production expansion to expand their consumer base worldwide. For instance,
- In June 2022, Hewlett Packard Enterprise Development LP announced that it has integrated open-source solutions designed by Red Hat to support the Hewlett Packard Enterprise GreenLake edge-to-cloud platform. The open-source solutions provided by Red Hat help developers deliver applications on any cloud services platform with enhanced security, speed, stability, and reduced complexity.
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