Market Definition
DevOps is an approach that is used in the software development & IT industry, where it is a combination of cultural philosophies, practices, and tools to enable organizations to deliver applications & services at high velocity. As a result, it ultimately enhances & expedites the system's development life cycle.
Market Insights
The Global DevOps market is projected to grow at a CAGR of around 18.27% during the forecast period, i.e., 2023-28. The surging focus by enterprises across sectors such as BFSI, IT & Telecom, Healthcare, Retail, etc., on software delivery speed & on reducing downtime has led to the increased adoption of DevOps. Countries like Germany, the US, Japan, South Korea, etc., which have developed IT infrastructure, have also played a major role in market expansion as a business in these countries recognized the potential benefits of DevOps practices in terms of agility & automation. Owing to this, they used DevOps tools & methodologies to streamline their process.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 18.27% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, Germany, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia & New Zealand, Singapore, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: The UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
| Key Companies Profiled | Atlassian Corporation plc, CA Technologies (Broadcom), Amazon Web Services, Inc. (AWS), IBM Corporation, Microsoft Corporation, Dell Technologies LLC, Google LLC, Micro Focus International PLC, Hashicorp, Inc., Oracle Corporation, Gitlab Inc, RackSpace Technologies, Cigniti Technology, Perforce Software, Inc., Chef Software, Inc., Others |
| Unit Denominations | USD Million/Billion |
Moreover, the rising automation across various sectors, especially the manufacturing sector, has also played a major role in market growth. The adoption of digitalization through Industry 4.0 has accelerated automation in electronics & automotive manufacturing. This automation is combined with DevOps practices in manufacturing companies to streamline their operation. Furthermore, as the landscape of the manufacturing sector is evolving due to the integration of new automation technology, the trend of automation in the manufacturing sector is expected to surge, which would augment the demand for DevOps tools & methodologies in the ensuing years.
Market Dynamics
Significant Driver: Surging Adoption of Microservices & Service Virtualization to Augment the Market Growth
The surging adoption of microservices & service visualization by a wide range of organizations across industries such as finance, healthcare, e-commerce, etc., has positively impacted the demand for DevOps as these services require a collaborative & agile approach for software development, provided by such practices. Companies like Netflix, Uber, Airbnb, etc., have adopted microservice architecture by leaving behind the monolithic architecture to improve scalability. The adoption of these practices makes software development more complex, therefore the demand for DevOps practices to manage the deployment of these architectures was high during the historical period.
Moreover, in the countries like the UAE, Saudi Arabia, Singapore, etc., the governments are planning to expand their healthcare, finance, and e-commerce sectors, and these sectors would subsequently enhance the demand for microservices & service virtualization, which would positively impact the market growth during the forthcoming period.
Possible Restraint: Challenges Associated with Implementation of DevOps
The implementation of DevOps practices in an organization often leads to cultural resistance, lack of communication between teams, security & compliance risks, etc. Among them, cultural resistance to change is one of the significant challenges faced by companies, while implementing these practices. Moreover, according to the 2020 DevOps Trends Survey conducted by Atlassian & CITE Research, approximately 84% of the respondents (companies) encountered a barrier to their DevOps implementation. The most common hurdles are a lack of skills in employees, legacy infrastructure, and adjusting corporate culture. In line with this, companies are becoming hesitant to adopt these practices due to a fear of resistance from employees, which is hampering market growth.
Growth Opportunity: Surging Cloud Adoption to Provide New Opportunities to the Market Players
Cloud computing helps enterprises to reduce their IT costs & supplement their scalability & flexibility owing to companies planning to increase their cloud adoption in the coming years. According to the Nutanix cloud index report for 2021, all companies are increasing the adoption of cloud services. Moreover, as per the survey, 56% of respondents said they’ve already adopted multi-cloud, and 80% plan to do so in the next 3 years. Similarly, as per the 2023 Technology Spending Intentions Survey from Enterprise Strategy Group, about 71% of decision-makers of mid-market & enterprise companies plan to develop & deploy the cloud-native application in 2023, and approximately 59% of the respondents indicated that spending on cloud applications would increase post-2023. hence, this would create an opportunity for the market player to provide tools & services that would help them to adopt & implement DevOps practices in the future years.
Key Trend: Integration of AI/ML in DevOps
The adoption of AI/ML is creating new trends in the market owing to its potential to streamline the process. DevOps require automation to reach maximum efficiency & AI/ML is used to tackle these repetitive tasks. As a result, AI/ML solutions have also made their way into other DevOps steps, specifically ModelOps. As per Gitlabs 2022 Global DevSecOps Survey, the use of AI/ML in these practices has increased significantly, with almost 24% of respondents revealing that they use AI/ML in these practices. Hence, AI/ML integration has now become an essential component of the DevOps process which is expected to drive the market in the future.
Market Segmentation
Based on Type:
Of them, the Solutions type in DevOps is used by companies to streamline software development by enhancing communication between development & operation teams. Owing to this, it has registered significant demand in countries such as the US, India, Germany, etc., which have a well-established IT sector. Additionally, the Management DevOps in the solution segment has also witnessed a surge in demand due to the increasing need for companies to be agile in a rapidly changing business environment. Moreover, continuous business planning aligns business objectives with software development to bridge the gap between stakeholders & IT teams. Furthermore, the plans of the company to prioritize operations & divert focus from business planning would boost the demand for DevOps by IT firms to ensure that updates & features are delivered on a timely basis.
Based on Vertical:
The BFSI sector has undergone rapid digital transformation due to government initiatives in countries like India, Canada, Singapore, etc. Therefore, to adapt to the new, normal BFSI establishments leveraged digital technologies even faster & as a result of this digitalization, this sector used DevOps for building mobile banking platforms, enabling AI-driven cognitive document processing, etc. Furthermore, many other nations, such as the UAE, Qatar, Thailand, etc., are introducing new initiatives to enhance the digitalization of the BFSI sector. For instance,
These digital transformation plans would require substantial changes in the existing software mechanisms, for which new software would be needed. Thus, this would accelerate the demand for DevOps practices to ensure frequent updates & improving the quality of applications.
Regional Projection
Geographically, the market expands across:
North America witnessed high adoption of DevOps practice due to the presence of advanced IT infrastructure, the existence of a large number of IT firms, and favorable IT regulations. In the US, state entities, like the California Department of Health Care Services, US Citizenship, Immigration Services, etc., have also been adopting DevOps to streamline software management. Moreover, the American Council for Technology and Industry Advisory Council (ACT-IAC) instituted the DevOps Working Group to explore different DevOps aspects, which aims to explore the toolchains, practices, and culture for enhancing the service delivery capabilities of the US government. Thus, as government agencies accelerate the deployment of these components, the demand for DevOps practices is expected to surge in the region.
Recent Developments by the Leading Companies
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Frequently Asked Questions
A. The DevOps Market would showcase a CAGR of around 18.27% during 2023-28.
A. Surging adoption of microservices & service virtualization to augment the market growth.
A. Atlassian Corporation plc, CA Technologies (Broadcom), Amazon Web Services, Inc. (AWS), IBM Corporation, Microsoft Corporation, Dell Technologies LLC, Google LLC, Micro Focus International PLC, Hashicorp, Inc., Oracle Corporation, Gitlab Inc, RackSpace Technologies, Cigniti Technology, Perforce Software, Inc., Chef Software, Inc., etc., are some leading players in the market.
A. The software is the leading segment based on type in the DevOps market.
A. The North America would present growth prospects in the DevOps market.
A. Integration of AI/ML in DevOps is the new trend shaping the market growth.
A. BFSI, IT & Telecom, Healthcare, Retail, Government & Public Sector, Manufacturing, Media & Entertainment, etc., are industries potential end-users.
A. Surging cloud adoption to provide new opportunities to the market players through 2028.
