The Container as a Service (CaaS) market is expected to register a CAGR of approximately 35% in the forecast period (2020-2025). The CaaS technology helps organizations to reduce shipment time due to the hosted applications, and its dependencies are bundled into a single package. Additionally, the technique is easy to manage as these are lightweight, enabling rapid delivery and deployment of new application containers.
- Although, CaaS is a subset of Infrastructure as a Service (IaaS), the fundamental asset for CaaS is a holder, as opposed to a virtual machine (VM) or an uncovered metal hardware host framework, which is utilized in IaaS environments. The CaaS solutions are expected to enable both IT divisions and developers to create, manage, and run containerized applications. In a CaaS model, clusters and containers are given as a service which can be deployed in both an on-premises server environment or over the cloud.
- The CaaS model is expected to provide new business opportunities for small-medium enterprises (SMEs), and improvement in networking capabilities are certain factors which are expected to provide certain opportunities to a CaaS provider in the forecast period. CaaS model also enables the business organizations to endure a greater degree of agility, which is the ability to create a new production workload as quickly as possible. This is further expected to augment the market growth.
- However, the CaaS market is expected to face data security issues because usually the data is stored in the cloud servers exposing to hacking. This may hinder the market growth in the forecast period. Also, cloud servers need a constant supply of electricity and internet connectivity to operate efficiently. Hence, the developing regions are expected to face the challenge of slow internet speeds and lack of continuous power supply. This is expected to further restrain the market for containers as a service in the developing regions. Nevertheless, ongoing research and development are expected to strengthen the security of containers as a service in the forecast period.
Scope of the Report
Containers as a service (CaaS) is a cloud-based emerging service offering that allows software developers and IT departments to upload, organize, run, scale, manage, and stop containers by using container-based virtualization. A CaaS provider will commonly provide a framework which allows users to make use of the service. CaaS providers typically make use of application programming interface (API) calls or a web portal interface.
Key Market Trends
BFSI Sector Expected to Have Maximum Application
- FinTech has changed the banking system drastically, as more and more BFSI companies have embraced cloud and diversified their cloud providers. Also, technologies like mobile banking, digital payments, etc. are revolutionizing the banking industry, especially in emerging countries like India and China. Hence, the use and deployment of CaaS models are also increasing. The container application platform is designed to automate the hosting, configuration, deployment, and administration of application stacks across any cloud provider.
- These solutions help the banks in modernizing digital foundations for a competitive edge, speeding service delivery in branches of the future, optimizing payment processing models, and deepening customer engagement without compromising on cybersecurity. It gives application developers self-service access so they can easily deploy applications on demand. That can help banks move more quickly and decrease time to market in the increasingly competitive environment of financial services. These solutions help financial institutions to develop and support a broad range of applications while maintaining stringent security and compliance requirements. It also enables companies to deliver new applications to engage customers and associates.
- Major BFSI companies have already started deploying container application platforms in their systems. For instance, in July 2018, HSBC announced that it plans to build its new business banking service to run on a Kubernetes-managed container infrastructure using Google's toolset. HSBC is already using Google Cloud for data analytics, but the move into container applications hosting is a new step by the company towards technology.
Asia-Pacific is Expected to Grow Significantly
- The Asia Pacific region is expected to emerge as the fastest-growing region in the Container as a Service market during the forecast period. The growth can be attributed to the growing economies of China and India, which have more economic growth due to an increase in industrial production.
- Also, factors such as increased demand for microservices, technological advancements, and growing need for adoption of microservices in this region are driving the market in the region.
- Further, the major CaaS solution providers are innovating and expanding their business in the region to capture maximum market share and also grab the massive opportunities the region portrays.
- For instance, in June 2018, Red Hat, Inc. a leading provider of open source solutions, launched the Red Hat OpenShift Practice Builder Program in the Asia-Pacific. The program aims to help system integrators (SIs) build and monetize a modern cloud-native application development and delivery practice using Red Hat OpenShift and Red Hat JBoss Middleware. System integrators are key to helping Asia Pacific companies innovate through the development of new cloud and container-enabled applications, as well as modernizing existing applications.
- Also, in June 2019, Portworx, the cloud-native storage and data management company modern enterprises trust to manage data in containers, recently announced significant partner momentum across the Asia Pacific and China (APAC) region. New partners include leading technology providers ACW Distribution, Futong, Ingram Micro and Syspower, and Portworx also announced an expanded partnership with DaoCloud. With these reseller partnerships, Portworx is expanding its global footprint to provide cloud-native storage and data management for the developing regions.
The containers as a service market is comparatively consolidated due to the existence of some leading players holding the majority share of the market. However, CaaS is a developing and a demanding technology and there are enormous business opportunities where a considerable measure of new players are entering the market and are teaming up with significant players to capture a significant market share.
- May 2019 - Palo Alto Networks agreed to purchase fast-growing cloud and container security startup Twistlock. The company is expected to spend between USD 450 million and USD 500 million on the acquisition of Portland, Ore.-based Twistlock.
- December 2018 - DigitalOcean, announced the launch of its Kubernetes-as-a-Service offering to all developers recently. The early access release of the service already introduced most of the basics, like node provisioning, handling durable storage, firewall, load balancing, and similar tools. This new release adds open APIs for integrations with existing developer tools, support for the latest versions of Kubernetes.
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