Microservices Orchestration Market size was valued at USD 4.7 billion in 2024 and is poised to reach USD 72.3 billion in 2037, witnessing around 23.4% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of microservices orchestration is estimated at USD 5.8 billion.
The rapid transition of businesses from monolithic systems to distributed architectures is a major catalyst for the market’s growth. Microservices have emerged as the preferred method for application development. Furthermore, the proliferation of SaaS and PaaS has assisted the adoption of microservices. The expansion of applications in tech giants such as Netflix, Google, Uber, and Amazon coupled with rising demand from the e-commerce and fintech sectors is positioned to assist the market in maintaining its steady growth. The table below indicates the adoption level of microservices worldwide in 2021.
Global Microservices Adoption Rate (2021) |
|
Partial adoption rate |
38% |
Complete adoption rate |
35% |
Rate of non-adoption |
27% |
Advancements in DevOps practices, coupled with the increasing reliance on data analytics to derive actionable insights, are expected to increase the percentage of businesses with complete adoption rates of microservices by 2025. Trend analysis can be applied to predict a further increase by the conclusion of the stipulated timeframe of the microservices orchestration market. Companies leverage microservices to reduce time-to-market for new features while meeting evolving customer expectations in the digital age. The industry dynamics indicate the rising importance of orchestration solutions which bodes well for the sector’s continued growth.
Additionally, emerging trends highlight that despite the private sector accounting for the largest application of microservices, the public sector is rapidly embracing multi-cloud strategies which is projected to drive demand for orchestration solutions. The table below indicates the cloud strategy in the U.S. public sector in 2021 as per the respondents.
Enterprise Cloud Strategy |
|
Multi-cloud Strategy |
92% |
Hybrid-cloud Strategy |
82% |
Source: Advanced Technology Academic Research Center (ATARC)
The push to modernize legacy systems is positioned to drive demand for microservices from the public sector, which expands the scope of clients for key players operating in the microservices orchestration sector. Additionally, a steady demand is expected from industries such as banking, retail, and healthcare, to maintain uptime and deliver consistent user experiences. With cloud-native architectures expected to continue dominating enterprise strategies, the demand for robust orchestration frameworks is poised to grow further by the end of 2037.
Growth Drivers
Estimated Serverless Adoption Rate of Cloud Providers
Name of Company |
Estimated Adoption Rate (Q2 2023) |
Amazon Web Services |
73% |
|
60% |
Microsoft Azure |
48% |
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
23.4% |
Base Year Market Size (2024) |
USD 4.7 billion |
Forecast Year Market Size (2037) |
USD 72.3 billion |
Regional Scope |
|
Deployment Model (Cloud-Based, On-Premise)
By deployment model, the cloud-based segment is set to hold microservices orchestration market share of over 58.3% by the end of 2037. A significant factor in the segment’s growth is due to the rising adoption of cloud-native applications. Furthermore, the demand for scalable microservices infrastructure boosts the application of cloud-based deployment. An additional factor for the segment’s dominance is the growth of mobile-based applications. Cloud microservices offer cost-effective scalability to support mobile-based applications driving implementation.
Moreover, the convergence of trends in robotics and digital twins has created lucrative revenue streams for key players in the microservices orchestration market to offer cloud-native microservices to shorten the time-to-market of generative AI models worldwide. For instance, in July 2024, NVIDIA announced generative AI models and NIM microservices for OpenUSD Language, Physics, Geometry, and Materials that are expected to expand the adoption of the universal 3D data interchange framework to robotics, engineering, and industrial design.
Vertical (IT and Telecom, Healthcare, Financial Services, Manufacturing, Retail, Government)
By vertical, the IT & Telecom sector of the microservices orchestration market is projected to account for a leading revenue share during the forecast period. The IT & Telecommunications sector is embracing the shift towards cloud-native infrastructures and the rapid deployment of 5G networks that require integration of microservices to effectively manage distributed systems. In August 2024, Infosys announced that it achieved a 28% reduction in latency and a 15% absolute improvement in accuracy by leveraging NVIDIA NIM and NeMo Retriever microservices. Furthermore, NVIDIA NIM and NeMo Retriever microservices allowed faster troubleshooting of issues indicating a 61% lower latency and a 22% absolute improvement in accuracy. The successful use cases encourage greater deployment of microservices in the IT sector.
Orchestration Tool (Kubernetes, Docker Swarm, Mesosphere DC/OS, Apache Mesos)
By orchestration tool, Kubernetes is expected to account for a major revenue share in the microservices orchestration market throughout the stipulated time frame. The popularity of the Kubernetes tool is attributed to its robust capabilities in automating the deployment of containerized applications. The growth of mobile applications worldwide has heightened the demand for Kubernetes. During the forecast period of the microservices orchestration market, Kubernetes is expected to continue exhibiting the largest adoption in orchestration tools.
Research Nester’s analysis highlights over 60% of the adoption rate of Kubernetes in organizations in 2022. Furthermore, the recent introduction of remediation guidance for Kubernetes environment by major cloud security platforms highlights the importance of the orchestration tool. For instance, in November 2024, Datadog Inc., announced the launch of Kubernetes Active Remediation, for end-to-end issue management for Kubernetes organizations.
Our in-depth analysis of the microservices orchestration market includes the following segments:
Deployment Model |
|
Enterprise Size |
|
Vertical |
|
Application Type |
|
Orchestration Tool |
|
North America Market Forecast
North America in microservices orchestration market is likely to capture around 24.9% revenue share by the end of 2037. A major factor in the regional market’s revenue share is the early adoption of cloud-native architectures. Moreover, North America is the home to major cloud service providers such as Microsoft Azure, Google, and AWS which support microservices architecture. The presence of industry giants supports the deployment of microservices orchestration tools to accelerate digital transformation in the public sector and emerging startups. In July 2023, the Harvard Business Review published a report indicating that digital leaders accounted for 8.1% of average annual shareholder returns from 2018 to 2022 while businesses lagging in digital transformation accounted for 4.9% of returns. The statistics indicate rife opportunities for continued digital transformation of business in North America, creating favorable opportunities for the adoption of orchestration tools.
The U.S. microservices orchestration market is poised to register a dominant share in North America. The U.S. boasts of an advanced IT infrastructure with early adoption of hybrid and multi-cloud solutions, creating a favorable ecosystem for the growth of microservices orchestration solutions. Kubernetes has become the orchestration tool of choice for numerous companies in the U.S. indicating rising opportunities for businesses to offer end-to-end issue management solutions in the B2B space. Refer to the table below for three recent major investments in digital and AI infrastructure in the U.S. which is poised to boost the expansion of the microservices orchestration sector.
Major Investments in Cloud Infrastructure (2024)
Name of Company |
Investment Detail |
Announcement Month & Year |
AWS |
Plans of investment worth USD 11 billion to expand infrastructure to support cloud computing and AI. |
January 2025 |
Microsoft |
Plans to invest around USD 80 billion in FY 2025 for AI-enabled data centers to deploy AI and cloud-based applications around the world. |
January 2025 |
Partners Group |
Completed USD 1.9 billion equity investment in EdgeCore Digital Infrastructure to fund the continued development and expansion of EdgeCore's data center platform. |
January 2024 |
The Canada microservices orchestration market is poised to expand during the forecast period. Canada benefits from North America’s early adoption of cloud-native architecture. A major driver of the market is the widespread adoption of containerized solutions in multiple industries such as finance, telecommunications, and the public sector. Furthermore, established tech hubs in Toronto and Vancouver support cloud adoption creating opportunities for key players in the microservices orchestration sector. In October 2022, Nextuple announced the Nextuple Fulfilment Studio, i.e., a composable suite of microservices to help retailers scale omnichannel capabilities at speed. Such offerings highlight the profitable opportunities in Canada to offer microservices across various sectors.
APAC Market Forecast
The APAC microservices orchestration market is expected to register the fastest growth during the forecast period. The rapid expansion of e-commerce and digital payment services throughout the region is fueling the demand for orchestration tools to manage distributed applications. The microservices orchestration market’s revenue share is led by China, India, Japan, South Korea, and Australia. Additionally, major government initiatives to support digitalization in emerging markets, such as Digital India, accelerate the adoption of microservices orchestration solutions.
The China microservices orchestration market is expected to account for the largest revenue share in APAC. China has positioned itself as a leader in AI, 5G, and automation race, which creates a favorable ecosystem for the expansion of microservices. The Digital China plan by the government aims for the country’s digital transformation. Furthermore, China aims at a 15% annual data industry growth by 2029 creating ample opportunities for domestic and foreign players to offer microservice orchestration solutions. CAICT anticipates China’s cloud adoption in various sectors to triple by the end of 2027, which is expected to create sustained demand for microservices orchestration solutions.
The India microservices orchestration market is poised to increase its revenue share by the conclusion of 2037. The expansion of the IT sector in the country coupled with a sustained government push for nationwide digitalization boosts the sector’s growth. Additionally, the country has a thriving startup ecosystem, particularly in e-commerce, quick commerce, and fintech which creates a demand for microservices architectures to handle the scalability required. The IBEF reported that more than 40% of organizations in the country had adopted cloud services by the end of 2024. Furthermore, Digital India initiatives such as Digi Locker and Unified Mobile Application for New-Age Governance (UMANG) are at the forefront of creating a digitally empowered ecosystem. The rapid adoption of cloud computing is positioned to drive serverless computing, benefiting the microservices orchestration market in the country.
The microservices orchestration market is poised to expand during the forecast period. Major players in the market are investing to expand portfolios to maintain pace with the growing demand for scalable solutions. Additionally, specialized tools that cater to specific industries, such as Portworx, are poised to assist companies in the sector in expanding their revenue shares. In April 2024, Microsoft, a major player in the microservices orchestration market, announced revenue worth USD 61.9 billion, which was a 17% increase from the previous year. Additionally, the quarterly Microsoft Cloud revenue was USD 35.1 billion, which was up 23% year-over-year. The strong annual performance by the major players in the country highlights the profitable opportunities in the microservices orchestration market.
Here are some key players in the microservices orchestration market:
Author Credits: Abhishek Verma
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