Furthermore, it provides a completely scalable solution to meet any cloud hosting requirement. OpenStack is made up of micro services that can be changed based on the software's requirements. Services communicate with one another and are in charge of various functions in the OpenStack environment.

Market Trend

OpenStack services boost scalability and resource utilization

The OpenStack private cloud has a high degree of scalability. As a key enabler in the adoption of cloud technology, OpenStack is comprised of several common deployment use cases. These are commonly referred to as the public, private, and hybrid models. OpenStack compute cells are intended to allow distributed cloud computing without the use of more complicated technologies or the disruption of existing excess installations. OpenStack's notable scalability allows a single API server to control access to multiple compute installations with the use of multiple cells. As a result, the additional complexity of running a new service is unnecessary. Furthermore, OpenStack is intended to be horizontally scalable. Rather than upgrading to larger servers, it purchases additional servers and installs identically configured services.

Market Dynamics

Factors driving the growth of the global OpenStack service market include the widespread use of OpenStack in cloud-based services, which provides numerous benefits such as cost savings, value-added services, modification/customization, and product portfolio innovation. Furthermore, OpenStack aids in the automation of cloud maintenance and benefits by providing a remote vision of other cloud storage devices. OpenStack serves as a key performance indicator (KPI) for any organization's cloud strategy. Furthermore, the rising demand for cloud-based solutions and services in organizations has a positive impact on the global OpenStack services market. The OpenStack market is growing due to the platform's free availability, widespread deployment, and high adoption among SMEs. The market's growth is hampered by a lack of technical assistance and the complexities of deployment. Furthermore, the time required for implementation and the rising security issues associated with technology (that is still in its early stages) make it vulnerable to breach and access by hackers. On the other hand, OpenStack services enable providers and developers to constantly work on security areas while also providing solutions and services to address security concerns.

Other benefits of OpenStack services include no customer lock-in, widespread community support, and simple and quick deployment that will drive the market in the coming years. Furthermore, high demand for big data analytics and smart device adoption is expected to drive the global OpenStack market during the forecast period.

Market Segmentation

The global OpenStack service market is segmented based on component, enterprise size, and end-user. By component, the market is bifurcated as solutions and services. Service is further classified as managed service and professional service. Based on enterprise size, the market is divided into small & medium enterprises and large enterprises. By end-user, the market is segmented as banking financial services & insurance, telecommunication, retail & e-commerce, information technology, and others

Based on component, service segment will record significant growth during the forecast period. This is attributed to increasing demand for easy operation, maintenance, and control of open source platforms by the enterprise. Furthermore, by enterprise size, the small & medium enterprise segment is expected to record highest CAGR in the forthcoming years. Improved implementation of OpenStack services by the enterprises for gaining profits and increased security are the prominent factors responsible for the growth of enterprise size segment. By end-user, information technology segment is projected to hold largest market share in the forecast period. Wide availability of cloud services to IT companies involved in the development of OpenStack software and availability of higher scalable storage as a service offering are the factors that impact positively on the OpenStack market to grow.

Regional Analysis

Based on regions, North America holds the dominating share for the global OpenStack market. It is expected that North America will continue its dominance till the forecast period owing to the presence of major players residing in this region. Additionally, several advancements in cloud technology have a positive influence on the market to grow. On the other hand, Europe is predicted to record second largest market share for the OpenStack service. High utility of private cloud among the enterprises, adoption of “Bring Your Device” (BYD) policy among organization drives the market growth globally. Asia-Pacific is anticipated to show remarkable CAGR during the forthcoming years. Increasing the utility of cloud services is one of the prominent factors that drive regional growth. As cloud services has shown exponential results in the past through adoption it has gained huge attention in APAC market specifically in Japan.

Competitive Analysis

The prominent players in the global OpenStack service market involve Cisco Systems, Inc., Huawei Technologies Co., Ltd., VMware, Inc., The Hewlett Packard Enterprise Company, Oracle Corporation, Dell EMC, International Business Machines Corporation, Rackspace Technology, Mirantis Inc., Platform9,  EasyStack Technologies Pte. Ltd., and among others

Other players involve Canonical Ltd., SUSE, Red Hat, Inc., Rackspace Technology, Mirantis Inc., Bright Computing, Inc., Puppet, Dalian Wensi Haihui Information Technology Co., Ltd., The Cloudscaling Group, Inc., Aptira, CDI LLC, Techblue Software Private Ltd., Cyxtera Technologies, Inc., and AQORN.

Market Segmentation

Market By Component

Solutions
Services

• Managed Service
• Professional Service

Market By Enterprise Size

Small & Medium Enterprise
Large Enterprise

Market By End-User

Banking Financial Services & Insurance Telecommunication
Retail & E-Commerce
Information Technology
Others

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

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

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa