Open Source Services Market Analysis

Open Source Services Market Overview

Open Source Services Market Size was valued at USD 24.5 Billion in 2022. The Open Source Services market is projected to grow from USD 28.6 Billion in 2023 to USD 99.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.80% during the forecast period (2023 - 2032). Emphasis on shortened time to market and lower total cost of ownership, as well as increased OSS use due to the services' given agility, flexibility, and reliability, are the key market drivers enhancing the market growth.

Services: Secondary Research, Primary Research, MRFR Database and Analyst Review

Open Source Services Market Trends

Gamut of low-cost open source services is driving the market growth

For a business, switching to an open source version of a software package that is being paid for might be quite advantageous. A free or open source licence enables everyone to have access to a product's design or blueprint in order to extensively redistribute it. Because open source software is frequently free, it is possible to create customised software without inventing the wheel. Open source software, as contrast to closed proprietary software, can be modified and expanded by any developer who is familiar with the source code. Organisations wouldn't have to worry about licences if they used open source software. They can install open source software multiple times and access it from any location. Organisations won't have to keep track of, count, or monitor licence compliance.

Open source software typically works with a variety of platforms. It gives the customer the option to choose the platform that best meets their needs. Customers can save a lot of money by using less expensive options. The quality is not, however, diminished. In general, open source is substantially less expensive than a proprietary solution. In a corporate setting, open source solutions are often far less expensive for equal or better functionality, and they also allow businesses to start small and grow. Open source software powers everything, from medical devices to human resource management in the healthcare industry. According to a report published by the State of Open Source in June 2022, 77% of the businesses agreed that they had adopted open-source software in the previous year. This makes open source technology perfect for use in the healthcare industry, where active collaboration between user, clinical, and IT vendor communities allows for the development of solutions that maximize benefits to the provision of health and social care.

After COVID-19, there was a movement towards remote working, making digital transformation and virtual connectivity crucial for organisations to thrive. These open-source solutions were embraced by businesses for a range of uses. 92% of IT leaders agreed that Open Source Services were crucial to crisis management and shared solutions during the difficult pandemic phase, according to Red Hat's State of Enterprise Open Source Report from 2022.

Businesses employ a variety of software assets from internal, cloud, SaaS, and open source sources. They are accessible from everywhere via service calls and APIs, and they run everywhere. The expanding attack surface for these applications in this dispersed context is a result of APIs, serverless interfaces, susceptible services, and opaque software assets. Since 95% of API security incidents are reported by companies on average, APIs and service endpoints have become the most common danger sources. Between 2015 and 2021, the number of security holes affecting APIs that were found in the OVE database increased by 540%. These elements could hinder the Open Source Service Market's ability to change. Thus, driving the Open Source Services market revenue.

Open Source Services Market Segment Insights     

Open Source Services: Services Insights

The Open Source Services Market segmentation, based on services, includes managed services, support and maintenance, training and consulting, and implementation. Managed services segment dominated the global market in 2022. Managed services provide IT support to enhance the customer experience. Companies use Managed Service Providers (MSPs) to handle particular IT tasks on their behalf. These fundamental outsourcing responsibilities include maintaining IT infrastructure and other services while completely outsourcing the IT staff.

Open Source Services Enterprise Size Insights

The Open Source Services Market segmentation, based on enterprise size, includes small and medium-size enterprises and large enterprises. Large enterprises segment dominated the global market in 2022. Since each organization has unique installation, module, feature, and packaging requirements, these applications are difficult to administer and maintain. Open source integration can meet all perfection and efficiency requirements.

Open Source Services Industry Insights

The Open Source Services Market segmentation, based on Industry, includes banking, financial services & insurance (BFSI), government, it & telecom, manufacturing, healthcare & life sciences, retail, and others. Healthcare & life sciences segment dominated the Open Source Services Market in 2022. Speed, efficiency, and accuracy are essential components in the healthcare sector if patients are to receive the finest care possible. Large amounts of data and information, such as patient information, medication information, Electronic Medical Records (EMRs), doctor notes, and test results, must be readily available to doctors, nurses, and support staff.

Figure 1: Open Source Services Market, by Industry, 2022 & 2032 (USD Billion)

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Open Source Services Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Open Source Services Market dominated this market in 2022 (45.80%). Massive data availability has accelerated the development of cloud-native, artificial intelligence, and machine learning technologies by creating a demand for more heterogeneous computing. Such developments are warmly welcomed in North America. Further, the U.S. Open Source Services market held the largest market share, and the Canada Open Source Services market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: OPEN SOURCE SERVICES MARKET SHARE BY REGION 2022 (USD Billion)

Services: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Open Source Services market accounted for the healthy market share in 2022. European nations can invest heavily in R&D operations and hence help to develop new technology because their economies are stable and well-established. Further, the German Open Source Services market held the largest market share, and the U.K Open Source Services market was the fastest growing market in the European region

The Asia Pacific Open Source Services market is expected to register significant growth from 2023 to 2032. This is a result of the presence of significant market participants throughout the area, including IBM Corporation, Red Hat, Inc., Oracle Corporation, and others. The market in the region will grow thanks to the quick uptake of new technology and rising cloud investment. Moreover, China’s Open Source Services market held the largest market share, and the Indian Open Source Services market was the fastest growing market in the Asia-Pacific region.

Open Source Services Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Open Source Services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Open Source Services industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Open Source Services industry to benefit clients and increase the market sector. In recent years, the Open Source Services industry has offered some of the most significant advantages to medicine. Major players in the Open Source Services market, including IBM Corporation, Oracle Corporation, Red Hat, Inc., Accenture Plc., Wipro Limited, Cisco System, Inc., SUSE, MuleSoft, LLC, Data bricks Inc., ViSolve.Com, Hewlett Packard Enterprise Development LP, Infosys Limited, Kubermatic GmbH, and others., are attempting to increase market demand by investing in research and development operations.

Intent-based solutions for networking, security, collaboration, apps, and the cloud are integrated by Cisco Systems Inc (Cisco). The company sells wireless equipment, controllers, access points, switches, modules, routers, and interfaces. The company's products and technology assist its customers in managing additional network connections from devices, users, and other entities. Oil and gas, education, financial services, government, healthcare, mining, sports, media, entertainment, retail, utilities, and transportation are just a few of the many industries that Cisco supports. Through its direct sales team and channel partners, which include service providers, system integrators, distributors, and resellers, it markets its solutions. Across the Americas, Europe, the Middle East, Africa, Asia-Pacific, Japan, and China, the company has business and operational presence. The U.S. city of San Jose, California, is home to Cisco. Cisco unveiled FunctionClarity in October 2022, a new open-source technology that helps secure serverless functions while lowering the amount of code necessary to create and deploy cloud-native apps.

Software development firm Red Hat Inc. (Red Hat), a division of International Business Machines Corp. It provides a wide variety of open-source software options, such as the Red Hat Enterprise Linux, JBoss Enterprise application platform, and other associated Red Hat enterprise technologies. It also offers the core enterprise operating system platform. The cloud, virtualization, applications, administration, Ceph storage, and edge deployments are all incorporated into the architecture of these enterprise systems. The business provides and creates these solutions through subscription-based open-source software development. Additionally, it offers services for consulting, customer portals, training, and certification. Accenture, TCS, Infosys, Intel, Cisco, HP, Deloitte, Google, Ericsson, HCLTech, Microsoft, Nutanix, Capgemini, and Wipro are a few of Red Hat's partners. The Americas, Europe, the Middle East, Africa, and Asia-Pacific are all where it conducts business. The U.S. city of Raleigh, North Carolina, is where Red Hat is based. Red Hat introduced a cost-free subscription model in February 2023 that gives partners access to Red Hat's open hybrid cloud portfolio.

Key Companies in the Open Source Services market include

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  IBM Corporation

  
  


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  Accenture Plc.

  
  


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  Wipro Limited

  
  


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  Cisco System, Inc.

  
  


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  SUSE

  
  


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  MuleSoft, LLC

  
  


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  Oracle Corporation

  
  


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  Data bricks Inc.

  
  


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  Com

  
  


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  Red Hat, Inc.

  
  


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  Hewlett Packard Enterprise Development LP

  
  


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  Infosys Limited

  
  


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  Kubermatic GmbH

  
  

Open Source Services Industry Developments

January 2023: For open-source networking projects, Infosys became a platinum member of the Linux Foundation Networking (LFN). Already, 18 additional top international organisations are served by the LFN.

Open Source Services Market Segmentation

Open Source Services: Services Outlook

• Managed Services


• Support and maintenance


• Training and Consulting


• Implementation

Open Source Services Enterprise Size Outlook

• Small and Medium-size enterprises


• Large Enterprises

Open Source Services Industry Outlook

• Banking, Financial Services & Insurance (BFSI)


• Government


• IT & Telecom


• Manufacturing


• Healthcare & Life Sciences


• Retail


• Others

Open Source Services Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America