Tuesday, October 17, 2017


Rise of the Container Economy. Application containers en route to $2.7bn revenues



Application containers to have the highest CAGR within the Cloud-Enabling Technologies segment which is set for $39.6bn revenues by 2020.

The container market is growing fast and set to boom in the next three years as enterprises search for new application management solutions.

According to the latest report from 451 Research,  “Cloud-Enabling Technologies Market Monitor”, container applications are tipped to grow from $762m in 2016 to $2.7bn by 2020.

This represents a compound annual growth rate (CAGR) of 40% between now and 2020.

Such growth translates into revenues that will top $1.1bn 2017, $1.5bn in 2018, $2.1bn in 2019 and than $2.7bn by 2020.

The think tank highlights that despite catering smaller figures than other segments, application containers are the segment with the highest CAGR of all.

For example, the virtualisation market is estimated to have topped $11.8bn in 2016 and growing at 11% CAGR through 2020, when it is forecast as a $17.7bn market.

Overall, the Cloud-Enabling Technologies market, which includes virtualization, containers, Private PaaS, and other automation and management software, is worth approximately $23.1bn in 2017 and is expected to grow at a 15% CAGR to $39.6bn at year-end 2020.

Greg Zwakman, Vice President, Market and Competitive Intelligence at 451 Research, said: “Two things stand out from our market sizing and research on containers: the breadth and diversity of vendors basing their offerings on containers or integrating and partnering to better support containers in their products, and the speed at which the container software and market are maturing based on production, use and revenue growth.

451

451 Research continues to say the application container market can be compared to the OpenStack market “since both are based on open source software and have participation from startups and established vendors”.

Both markets saw relatively rapid growth during a short amount of time in the enterprise. However,  based on the number of vendors currently participating and yet to emerge, containers may have a broader impact on the market than OpenStack, which was valued at $1.8bn in 2016 and is expected to grow to $5.8bn at a CAGR of 35% by year-end 2020.

Analysts believe enterprise adoption of containers and market maturity appears to be happening more rapidly than OpenStack and other adjacent trends, such as PaaS and DevOps.

Enterprise interest and the presence of a large number of both startups and vendors in the container market indicate a continuing high level of M&A through 2017 across the market segments, primarily management and orchestration, monitoring, security and continuous integration/continuous deployment.

Jay Lyman, Principal Analyst, Cloud Management and Containers at 451 Research, said: “In the three years we have been tracking the OpenStack market, we have watched it grow from just 30 vendors in 2013 to more than 91 vendors today.

“Just as we saw with OpenStack, revenue generation in the early application container market is characterised by some pure-play vendors and larger established vendors generating significant revenue, but most players are just beginning to realise paid engagements.”