Microservices Architecture Market

Global Microservices Architecture Market:

The global microservices architecture market size reached US$ 3.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 11.8 Billion by 2032, exhibiting a growth rate (CAGR) of 13.4% during 2024-2032. The increased demand for scalability, digital transformation initiatives, expanding e-commerce industry, and ongoing technological advancements are primarily driving the market's growth.

Microservices Architecture Market Analysis:

• Major Market Drivers: The increasing need for digital transformation to meet business requirements represents one of the key factors bolstering the growth of the market. Moreover, boosting sales of connected devices, such as smartphones, wearables, smart home applications, drones, tablets, and fitness trackers, is positively influencing the microservices architecture market share.
• Key Market Trends: Due to better performance, reduced risk, and cost efficiency, there is a considerable rise in the usage of cloud-based solutions worldwide. This, in confluence with technological advancements, such as the integration of microservices architecture with the Internet of Things (IoT), is creating a favorable market outlook. Additionally, the market is also impelled by the growing utilization of virtualized infrastructure across the globe.
• Competitive Landscape: Some of the prominent microservices architecture market companies include Broadcom Inc., Cognizant, F5 Inc., Infosys Limited, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Salesforce Inc., Software AG, and Tata Consultancy Services Limited, among many others.
• Geographical Trends: According to the microservices architecture market dynamics, North America dominates the overall market. Many organizations in the region are transitioning from monolithic legacy systems to microservices-based architectures to modernize their IT infrastructure, making it more agile and capable of handling today’s digital demands.
• Challenges and Opportunities: The rising complexity of implementation and the shortage of skilled professionals are hampering the microservices architecture market growth. However, microservices are ideally suited for cloud environments due to their ability to scale dynamically. With the growing adoption of cloud services globally, companies can easily scale different microservices independently based on demand, improving resource optimization and cost efficiency.
   

Microservices Architecture Market Trends:

Expanding Digital Transformation Industry

Expanding digital transformation is driving the market's growth. For instance, according to IMARC, the global digital transformation market size reached US$ 692 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 2,845 Billion by 2032, exhibiting a growth rate (CAGR) of 16.9% during 2024-2032. Digital transformation is pushing companies to build flexible, personalized customer experiences. Microservices allow for the rapid development and iteration of customer-facing applications, driving better engagement and retention. These factors are expected to propel the microservices architecture market share in the coming years.

Growing Adoption of IoT Devices

The increasing number of IoT devices is driving the market's growth. For instance, according to Statista, the number of Internet of Things (IoT) devices globally is expected to nearly double, from 15.9 billion in 2023 to more than 32.1 billion by 2030. This has created a demand for architectures that can scale and process large volumes of data from distributed devices. Microservices architectures are well-suited to handle this scale by breaking down complex processes into smaller, manageable services.  These factors further positively influence the microservices architecture market growth.

Artificial Intelligence Integration

The growing use of AI and ML in business applications is driving the adoption of microservices. AI/ML models can be deployed as independent services, allowing organizations to integrate intelligent capabilities like predictive analytics, automation, and personalization into their applications. For instance, in September 2024, NVIDIA launched a suite of microservices to help developers integrate generative AI into apps, specifically for machine translation (MT) across 30 languages, as well as transcription and text-to-speech capabilities, thereby boosting the microservices architecture market share.

Global Microservices Architecture Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global microservices architecture market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, deployment type, organization size, and industry vertical.

Breakup by Component:

• Solutions
• Service
   

Solutions hold the majority of the total market share

The report has provided a detailed breakup and analysis of the microservices architecture market based on the component. This includes solutions and service. According to the report, solutions hold the majority of the total market share.

According to the microservices architecture market outlook, microservices architecture solutions encompass the tools, platforms, frameworks, and technologies that enable organizations to design, develop, deploy, and manage microservices-based applications. Moreover, organizations require solutions that allow individual microservices to scale independently based on demand, optimizing resource utilization and cost.

Breakup by Deployment Type:

• On-premises
• Cloud-based
   

On-premises currently exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the microservices architecture market based on the deployment type. This includes on-premises and cloud-based. According to the report, on-premises exhibit a clear dominance in the market.

According to the microservices architecture market overview, in industries like finance, healthcare, and government, data security and privacy regulations often require organizations to maintain complete control over their data. On-premises microservices architectures allow companies to manage sensitive data within their own infrastructure, ensuring compliance with laws such as GDPR, HIPAA, and PCI-DSS. Moreover, many organizations are modernizing their legacy, monolithic systems while still retaining an on-premises infrastructure. Microservices architectures allow for incremental modernization, where specific services can be migrated or refactored without disrupting the entire system, providing a smooth transition to a more modern, scalable architecture.

Breakup by Organization Size:

• Large Enterprises
• Small and Medium-sized Enterprises
   

The report has provided a detailed breakup and analysis of the microservices architecture market based on the organization size. This includes large enterprises and small and medium-sized enterprises.

Large enterprises, especially in industries like finance, retail, and telecommunications, require systems that can handle millions of transactions and high traffic volumes. Microservices allow them to scale individual components independently, optimizing resource allocation and improving performance during high-demand periods. Moreover, SMEs face limited budgets but often need to scale quickly to handle growing traffic or user bases. Microservices enable cost-efficient scaling by allowing SMEs to scale specific services as needed, reducing the cost of scaling an entire monolithic system.

Breakup by Industry Vertical:

• BFSI
• Manufacturing
• Retail and E-Commerce
• IT and Telecom
• Healthcare
• Government
• Others
   

BFSI accounts for the largest market share

The report has provided a detailed breakup and analysis of the microservices architecture market based on the industry vertical. This includes BFSI, manufacturing, retail and e-commerce, IT and telecom, healthcare, government, and others. According to the report, BFSI accounts for the largest market share.

Many BFSI institutions rely on legacy monolithic systems that are difficult to update or scale. Microservices architecture allows for incremental modernization, where institutions can refactor individual components (e.g., account management, loan processing) without overhauling the entire system. This reduces risk and cost while improving agility, further driving the market’s growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America currently dominates the global market.

According to the microservices architecture market statistics, North American businesses are increasingly adopting cloud-native architectures, with microservices playing a key role in enabling the agility and scalability needed to leverage cloud infrastructure. Microservices are well-suited for cloud environments, allowing for seamless scaling and optimized resource use. Moreover, a significant driver of microservices adoption is the need for legacy system modernization. Many large organizations in North America, especially in sectors like banking, healthcare, and manufacturing, are transitioning away from monolithic architectures toward microservices to improve agility, reduce technical debt, and optimize their IT infrastructure, further propelling the microservices architecture market size.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• Broadcom Inc.
• Cognizant
• F5 Inc.
• Infosys Limited
• International Business Machines Corporation
• Microsoft Corporation
• Oracle Corporation
• Salesforce Inc.
• Software AG
• Tata Consultancy Services Limited
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Microservices Architecture Market Recent Developments:

• October 2024: Digitech Systems launched Sys.tm, a versatile information management platform for digital transformation and office automation that enables users to easily manage files, distribute papers, and safeguard data. Sys.tm's microservices architecture allows consumers to access an extended feature set as needed, but only pay for the capabilities they actually use.
• September 2024: NVIDIA launched a suite of microservices to help developers integrate generative AI into apps, specifically for machine translation (MT) across 30 languages, as well as transcription and text-to-speech capabilities.
• January 2024: MTS introduced a platform for network infrastructure management. The Network Orchestration Platform (NOP) will assist in centralizing technological changes in the network across the country while providing real-time monitoring and administration. The platform is based on a microservices architecture that uses open standards.

Microservices Architecture Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the microservices architecture market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global microservices architecture market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the microservices architecture industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.