Application Containers Market to Grow at a CAGR of 15.82% During the Forecast Period 2020-2025

Application Containers Market size was valued at $1.38 billion in 2019, and it is estimated to grow at a CAGR of 15.82% during 2020-2025. The growth is majorly driven by the efforts put to develop advanced technologies of application containers such as cloud hosting, container hosting and other container apps. Further the growing emphasis towards applications such as micro services, hybrid cloud is also set to propel the market growth in the future.

Key Takeaways
North America dominated the Application Containers market in term of revenue in 2019 owing to the presence of major number of players.
Adoption of advanced technologies such as IoT, automation technologies in organizations is poised to propel the market growth.
Increasing adoption of Application Containers in BFSI sector is set to drive the market.
Security is the major challenge that hampers the market growth.

Deployment – Segment Analysis
Cloud deployment held the major share of 62.83% in 2019. Cloud based deployment mode is more preferred for mobile and web application security and this is poised to drive the market growth. Cloud deployment provides greater flexibility and offer much less in the means of customization when compared to on-premises. This drives the cloud based deployment of Application Containers.

End Users – Segment Analysis
BFSI is the fastest growing segment in Application Containers market and estimated to grow at a CAGR of 16.25% during forecast period 2020-2025. The growth is mainly attributed to the Omni channel approach and the trend of shifting towards cloud environment. This sector is one of the early adopters of application containers technology which offers benefits such as administration ease and cost effectiveness. Implementation of the Docker in the banking sector provides benefits such as platform portability, higher security and smooth workflow of data, and efficient usage of infrastructure which creates opportunities for the market growth.

Geography- Segment Analysis
North America dominated the Application Containers market in 2019 with a market share of 35.82%, followed by Europe and APAC owing to the presence of large number of players. In addition to these, high adoption of advanced technologies in industries which drives the market growth. High investments in adoption and development of advanced versions of application containers set to drive the market in this region.

Drivers –Application Containers Market
Increasing adoption of advanced technologies such as IoT
Adoption of Internet of Things (IoT) in various organizations set to drive the application containers market. Multiple organizations across the globe are rapidly implementing IoT technology. Application containers offer features, such as the ability to migrate applications between IoT devices, enable application sign-ups and switch to different hosts, offer easy application upgrades, and provide simplicity and faster configuration, which are all well-suited for IoT technology. Many IoT devices lack powerful computing and memory resources. Their ability to process software updates is therefore limited. Containers can help on this front because installing a new container image does not require much computing power and this drives the market growth.

Benefits associated with application containers
Application containers are less overhead and they require less system resources than traditional or hardware virtual environments as they don’t include operating system images. Applications that run in containers can be deployed easily to multiple different operating systems and hardware platforms. They have greater efficiency by allowing applications to be more rapidly deployed, patched and scaled. This pushes the market growth.

Challenges – Application Containers Market
Security Issue
Security risks associated with the application container technology is set to hamper the market growth. One of the major drawback associated with application container is security. Compared to a traditional stack, Containers need multi-level security as they have multiple layers. Application containers cannot isolate from the host operating system, as they share the same host operating system as the other containers. There is a chance that if a hacker gains access to the host operating system, it can breach the security of other containers as well which restricts the market growth.

Market Landscape
Technology launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Application Containers market. Application Containers top 10 companies include IBM, Amazon Web Services, Microsoft, Google, VMware, Lola, Altexsoft, Tradeshift, Advito, Cisco and others.

Acquisitions/Technology Launches
In July 2020, The Linux Container Executor (LCE) had allowed the YARN NodeManager in order to launch YARN containers to run either directly on the host machine or inside Docker containers. The LCE also provides enhanced security and is required when deploying a secure cluster. This increases the Company’s application containers market share.
In January 2018, Cisco had launched the Cisco Container Platform, a turnkey, open, and production grade software container platform in order to address customers growing need to have applications seamlessly run the same way on premises and in public clouds. This drives the application containers market growth.