How Is The Global Open Source Software Market Defined?
Open source software refers to software that is distributed with its source code, allowing users to study, modify, and distribute the software for any purpose. This approach contrasts with proprietary software, where the source code is usually kept secret and controlled by the software's developer or vendor. The open-source model encourages collaboration and community-driven development, leading to more transparent, flexible, and cost-effective software than its proprietary counterparts.
Open Source Software Global Market Report 2024 provides data on the global open source software market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Open Source Software market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Open Source Software Market Size And Growth Rates Projected To Evolve?
The open-source software market size has grown rapidly in recent years. It will grow from $35.90 billion in 2023 to $41.83 billion in 2024 at a compound annual growth rate (CAGR) of 16.5%. The growth in the historic period can be attributed to increased access to open-source platforms, increased emphasis on technology education, growth in government initiatives, rise in the cost pressures, increased demand for collaborative, and flexible software solutions. The open-source software market size is expected to see rapid growth in the next few years. It will grow to $77.75 billion in 2028 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to increasing numbers of organizations, rising availability of open APIs, rising use of open-source software by businesses, increasing shift towards cloud-based infrastructure, increasing awareness of security benefits. Major trends in the forecast period include technological advancements, ethical licensing models, cloud-based open-source software, quantum computing frameworks, low-code and no-code development.
What Are The Essential Drivers Behind The Growth Of The Open Source Software Market?
The growing number of small enterprises is expected to propel the growth of the open-source software market going forward. Small enterprises refer to businesses that are typically privately owned, operated by a small number of employees, and have relatively low revenue and profit levels compared to larger corporations. Small enterprises are driven by technological advancements, globalization, changing workforce trends, government support, market opportunities, cost efficiency, and an entrepreneurial spirit. Open-source software helps small enterprises by providing cost-effective solutions for their business needs, enabling them to access high-quality software without the high costs associated with proprietary software. For instance, in April 2023, according to the United States Chamber of Commerce, a US-based business association advocacy group, the United States boasted 33.2 million small businesses, constituting 99.9% of all U.S. businesses. In 2021 witnessed a remarkable milestone, with 5.4 million new business applications filed nationwide. Therefore, the increasing number of small enterprises is driving the growth of the open-source software market. The open-source software market size is expected to reach $2023 billion in 2023, $2024 billion in 2024, and $2028 billion in 2028.
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How Is The Global Open Source Software Market Divided Into Key Segments?
The open source software market covered in this report is segmented –
1) By Type: Shareware, Bundled Software, Berkeley Source Distribution (BSD)
2) By Application: Professional Services, Managed Services
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By End-User: Banking Financial Services And Insurance (BFSI), Education, Manufacturing, Healthcare And Life Sciences, Retail And Distribution, Other End-Users
What Trends Are Reshaping The Future Of The Open Source Software Market?
Major players in the open-source software sector are concentrating on creating edge-optimized operating systems, such as Red Hat Device Edge, to support open-source ecosystems. Red Hat Device Edge is specifically designed to enable efficient and effective data processing at the network edge by providing the essential infrastructure and capabilities. For instance, in October 2022, Red Hat Inc., a US-based open-source software provider, introduced Red Hat Device Edge, an edge-optimized operating system. This system allows enterprises to deploy only essential software components, which minimizes the attack surface and conserves resources. It simplifies the management of edge devices and workloads, supports deployment on resource-constrained devices, and offers security features such as intelligent device upgrades, zero-touch provisioning, and rapid security fixes.
What Is The Fastest Growing Region In The Open Source Software Market?
North America was the largest region in the open source software market in 2023. The regions covered in the open source software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
