Cloud Orchestration Market Overview
As per MRFR analysis, the Cloud Orchestration Market Size was estimated at 9.06 (USD Billion) in 2022.
The Cloud Orchestration Market Industry is expected to grow from 10.97(USD Billion) in 2023 to 61.5 (USD Billion) by 2032. The Cloud Orchestration Market CAGR (growth rate) is expected to be around 21.11% during the forecast period (2024 - 2032).
Key Cloud Orchestration Market Trends Highlighted
The Cloud Orchestration Market is currently experiencing a surge in demand due to the increasing adoption of cloud computing services. The need for efficient and automated management of cloud resources is driving the market's growth. The market is witnessing the emergence of new technologies, such as artificial intelligence (AI) and machine learning (ML), which are enabling more sophisticated and intelligent orchestration capabilities.
The market's key drivers include the growing complexity of cloud environments, the need for improved agility and scalability, and the increasing adoption of multi-cloud and hybrid cloud strategies. The market's opportunities lie in exploring the integration of cloud orchestration with other technologies, such as edge computing and IoT. The recent trend of increased collaboration between cloud providers and orchestration vendors is facilitating the development of more comprehensive and user-friendly orchestration solutions.
Figure1: Cloud Orchestration Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Orchestration Market Drivers
Increased Adoption of Cloud Computing
The increasing adoption of cloud computing is a major driver of the growth of the Cloud Orchestration Market Industry. Cloud computing offers a number of advantages over traditional on-premises IT infrastructure, including scalability, flexibility, and cost-effectiveness. As more and more businesses adopt cloud computing, they are also increasingly looking for ways to manage their cloud resources more effectively. Cloud orchestration solutions provide a way to automate and manage the deployment, configuration, and operation of cloud applications and services.This can help businesses to improve the efficiency and reliability of their cloud operations and to reduce the cost of managing their cloud resources. Cloud orchestration solutions can also help businesses to take advantage of the latest cloud technologies, such as containers and microservices. These technologies can help businesses to develop and deploy applications more quickly and efficiently. As businesses increasingly adopt cloud computing and container-based technologies, the demand for cloud orchestration solutions is expected to continue to grow.In addition, the growing adoption of artificial intelligence (AI) and machine learning (ML) is also driving the growth of the Cloud Orchestration Market Industry. AI and ML can be used to automate many of the tasks involved in cloud orchestration, making it easier and more efficient for businesses to manage their cloud resources. As AI and ML become more widely adopted, the demand for cloud orchestration solutions is expected to continue to grow.
Growing Complexity of Cloud Environments
The growing complexity of cloud environments is another major driver of the growth of the Cloud Orchestration Market Industry. As businesses increasingly adopt cloud computing, they are also increasingly deploying complex cloud environments that involve multiple cloud providers, cloud services, and applications. This complexity can make it difficult for businesses to manage their cloud resources effectively. Cloud orchestration solutions can help businesses simplify the management of their cloud environments by providing a single pane of glass for managing all of their cloud resources.
Need for Improved Security and Compliance
The need for improved security and compliance is also driving the growth of the Cloud Orchestration Market Industry. Cloud orchestration solutions can help businesses improve the security of their cloud environments by providing a centralized way to manage security policies and controls. In addition, cloud orchestration solutions can help businesses meet compliance requirements by providing a way to track and audit cloud resource usage.
Cloud Orchestration Market Segment Insights
Cloud Orchestration Market Solution Type Insights
The Cloud Orchestration Market revenue was valued at USD 6.49 Billion in 2023, and it is expected to reach USD 40.4 Billion by 2032, exhibiting a CAGR of 22.8% during the forecast period. The market growth is attributed to the increasing adoption of cloud computing, the need for efficient management of cloud resources, and the growing complexity of cloud environments. The market is segmented based on solution type, which includes the application layer, infrastructure layer, and network layer. The infrastructure layer segment held the largest market share in 2023, and it is expected to continue its dominance throughout the forecast period.The growth of this segment can be attributed to the increasing adoption of infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings, which require efficient management of infrastructure resources. The application layer segment is expected to witness the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing adoption of cloud-native applications and the need for efficient management of application workloads. The network layer segment is also expected to exhibit significant growth during the forecast period, driven by the increasing demand for network virtualization and the need for efficient management of network resources.Key Insights: The Cloud Orchestration Market is expected to reach USD 40.4 Billion by 2032. The infrastructure layer segment held the largest market share in 2023. The application layer segment is expected to witness the highest CAGR during the forecast period. The growth of the market is attributed to the increasing adoption of cloud computing, the need for efficient management of cloud resources, and the growing complexity of cloud environments.
Figure2: Cloud Orchestration Market, By Solution Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Orchestration Market Component Insights
The market growth is attributed to increasing adoption of cloud computing, growing demand for automation and optimization of cloud infrastructure, and rising need for efficient management of cloud resources. The Cloud Management Platform (CMP) segment held the largest market share in 2023, accounting for over 50% of the Cloud Orchestration Market revenue. CMPs provide a centralized platform for managing cloud resources, including virtual machines, storage, and networks. The growing adoption of CMPs is due to their ability to simplify cloud management and reduce operational costs.The Orchestration Engine segment is expected to witness the highest growth rate during the forecast period. Orchestration engines automate the deployment and management of cloud applications and infrastructure. The increasing demand for automation is driving the growth of this segment. The Automation Module segment is also expected to experience significant growth. Automation modules enable the automation of specific tasks within the cloud orchestration process, such as resource provisioning, configuration management, and performance monitoring.The Tools segment includes various tools that support cloud orchestration, such as monitoring tools, logging tools, and backup tools. The growing need for efficient management of cloud resources is driving the growth of this segment.
Cloud Orchestration Market Deployment Insights
The Cloud Orchestration Market is segmented by deployment type into cloud-based, on-premises, and hybrid. Among these, the cloud-based segment is anticipated to dominate the market in the coming years, owing to its cost-effectiveness, flexibility, and scalability. The on-premises segment is expected to hold a significant market share, as enterprises prefer to have greater control over their IT infrastructure. The hybrid segment is anticipated to witness substantial growth as it offers a balance between the benefits of cloud-based and on-premises deployments.
Cloud Orchestration Market Organization Size Insights
The Cloud Orchestration Market is segmented by organization size into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Among these segments, Large Enterprises held the largest market share in 2023 and are expected to continue their dominance throughout the forecast period. This growth is attributed to the increasing adoption of cloud computing by large enterprises to improve their operational efficiency and reduce costs. Moreover, large enterprises have a greater need for automation and orchestration solutions to manage their complex IT infrastructures.However, SMEs are expected to witness significant growth in the coming years, owing to the rising awareness of cloud computing benefits and the availability of affordable cloud orchestration solutions tailored to their specific needs. The growing adoption of cloud orchestration solutions by SMEs is expected to contribute to the overall growth of the Cloud Orchestration Market.
Cloud Orchestration Market Industry Vertical Insights
The Cloud Orchestration Market segmentation by Industry Vertical includes Financial Services, IT and Telecom, Healthcare, Manufacturing, and Retail. Financial Services is expected to hold the largest market share due to the increasing adoption of cloud-based solutions for managing financial operations, improving customer experience, and enhancing security. The IT and Telecom industry is also witnessing significant growth due to the need for efficient network management, automation, and service orchestration. Healthcare is another promising segment due to the increasing adoption of cloud-based solutions for managing patient records, improving care coordination, and enhancing operational efficiency.Manufacturing is also witnessing growth due to the need for optimizing production processes, reducing downtime, and improving supply chain management. Retail is expected to grow due to the increasing adoption of cloud-based solutions for managing e-commerce operations, improving customer experience, and optimizing inventory management. Overall, the Cloud Orchestration Market is expected to witness significant growth across all industry verticals due to the increasing adoption of cloud-based solutions for improving operational efficiency, reducing costs, and enhancing agility.
Cloud Orchestration Market Regional Insights
The Cloud Orchestration Market revenue stood at $17.4 billion in 2023 and is projected to reach $113.9 billion by 2032, exhibiting a CAGR of 23.4% during the forecast period. Regionally, North America held the largest market share in 2023, accounting for 38.2% of the market. Europe followed with a market share of 29.3%, while APAC, South America, and MEA accounted for 19.8%, 6.7%, and 6.1%, respectively. The growth of the North American market can be attributed to the increasing adoption of cloud-based services and the presence of major cloud service providers in the region.Europe is another key market for cloud orchestration, with a number of large enterprises adopting cloud-based solutions. The APAC region is expected to witness the fastest growth over the forecast period, due to the increasing adoption of cloud-based services in emerging economies such as India and China.
Figure3: Cloud Orchestration Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Orchestration Market Key Players And Competitive Insights
Major players in the Cloud Orchestration Market are continuously striving to gain a competitive edge by introducing innovative solutions and expanding their service offerings. Leading Cloud Orchestration Market players are actively involved in strategic partnerships, acquisitions, and collaborations to enhance their market position and cater to the evolving needs of customers. The Cloud Orchestration Market industry is characterized by intense competition, with both established players and emerging startups vying for market share. Key players are investing heavily in research and development to stay ahead of the curve and meet the growing demand for cloud orchestration solutions.VMware, a leading provider of cloud computing and virtualization software, is a dominant player in the Cloud Orchestration Market. The company's vRealize Automation solution offers a comprehensive suite of tools for automating and managing cloud infrastructure and applications. VMware has a strong presence across various industry verticals and has established partnerships with major cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. The company's focus on innovation and customer support has contributed to its leading position in the market.Red Hat, another major player in the Cloud Orchestration Market, provides a range of open-source solutions for managing complex IT environments. The company's OpenShift Container Platform is widely adopted for deploying and managing containerized applications across hybrid and multi-cloud environments. Red Hat has a strong ecosystem of partners and a commitment to open-source technologies, which has helped it gain a significant market share. The company's focus on automation, security, and scalability has made it a preferred choice for enterprises seeking to optimize their cloud operations.
Key Companies in the Cloud Orchestration Market Include
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AWS
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Skytap
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Oracle
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Microsoft
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CloudBees
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Fujitsu
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Cisco
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IBM
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Scalr
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HPE
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Google Cloud
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Turbonomic
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Nutanix
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Red Hat
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VMware
Cloud Orchestration Market Industry Developments
The cloud orchestration market is projected to reach a valuation of USD 61.5 billion by 2032, expanding at a CAGR of 21.11% from 2024 to 2032. The rising adoption of cloud computing, the increasing need for automation and orchestration of cloud resources, and the growing demand for cloud-based services are the key factors driving market growth. Key industry developments include the launch of new cloud orchestration platforms, strategic partnerships and collaborations among market players, and growing investments in research and development. Major companies operating in the market include VMware, Red Hat, Microsoft, IBM, and Cisco.
Cloud Orchestration Market Segmentation Insights
Cloud Orchestration Market Solution Type Outlook
- Application Layer
- Infrastructure Layer
- Network Layer
Cloud Orchestration Market Component Outlook
- Cloud Management Platform (CMP)
- Orchestration Engine
- Automation Module
- Tools
Cloud Orchestration Market Deployment Outlook
- Cloud-based
- On-premises
- Hybrid
Cloud Orchestration Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Cloud Orchestration Market Industry Vertical Outlook
- Financial Services
- IT and Telecom
- Healthcare
- Manufacturing
- Retail
Cloud Orchestration Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
9.06(USD Billion) |
| Market Size 2023 |
10.97(USD Billion) |
| Market Size 2032 |
61.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
21.11% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
AWS, Skytap, Oracle, Microsoft, CloudBees, Fujitsu, Cisco, IBM, Scalr, HPE, Google Cloud, Turbonomic, Nutanix, Red Hat, VMware |
| Segments Covered |
Solution Type, Component, Deployment, Organization Size, Industry Vertical, Regional |
| Key Market Opportunities |
Hybrid and multicloud adoption Automation of IT operations Growing demand for SDN and NFV Rise of DevOps and CICD Adoption of serverless computing |
| Key Market Dynamics |
Growing adoption of cloud computing, increasing need for automation, surging demand for hybrid and multicloud environments, rising adoption of artificial intelligence AI and machine learning ML technologies, and growing focus on security and compliance. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Cloud Orchestration Market is expected to reach a valuation of 10.97 billion USD in 2023.
The Cloud Orchestration Market is projected to grow at a CAGR of 21.11% from 2024 to 2032.
North America is expected to hold the largest market share in the Cloud Orchestration Market in 2023.
The IT and Telecom industry vertical is expected to drive the growth of the Cloud Orchestration Market.
Key competitors in the Cloud Orchestration Market include VMware, Microsoft, IBM, Red Hat, and Cisco.
Key trends driving the growth of the Cloud Orchestration Market include the increasing adoption of cloud computing, the need for automation and orchestration of cloud resources, and the growing demand for managed services.
Challenges faced by the Cloud Orchestration Market include security concerns, the lack of skilled professionals, and the complexity of cloud orchestration solutions.
Key opportunities for growth in the Cloud Orchestration Market include the increasing adoption of cloud-native applications, the development of new orchestration tools, and the growing demand for cloud services in emerging markets.
The Cloud Orchestration Market is expected to reach a valuation of 61.5 billion USD by 2032.
The COVID-19 pandemic has accelerated the adoption of cloud computing and cloud orchestration solutions, driving growth in the Cloud Orchestration Market.
