North America Application Container Market Report and Forecast 2024-2032

North America Application Container Market Outlook

The North America application container market size reached approximately USD 1.73 billion in 2023. The market is projected to grow at a CAGR of 23.3% between 2024 and 2032, reaching a value of around USD 11.88 billion by 2032.

Key Takeaways

• Reportedly, over 90% of organisations are expected to run containerised applications in production by 2027.

• Containerised applications play a pivotal role in enhancing IT operational efficiency, digital transformation, and cloud migration.

• The technology sector maintains its position as the leading adopter of application containers and is poised to dominate the market.

Application container refers to a virtualisation app that offers an isolated environment to build, deploy, and manage applications across different environments. It utilises fewer resources compared to standard virtual machines (VM) and offers higher security through the isolation of applications and rapid deployment of apps to other platforms.

The growing usage of Kubernetes in application containerisation for the automation, deployment, and scaling of applications in containers and ensuring their seamless operation is one of the major factors driving the North America application container market growth. This open-source platform can automate routine tasks, reduce manual errors during deployment, and allow the DevOps (development and operation) team to focus on other important tasks.

Key Trends and Developments

The North America application container market growth is being driven by the deployment of application containers in a hybrid cloud; rising focus on boosting container platform security; the rising popularity of CaaS; and advancements in containerisation technology

Oct 4th 2023

Docker introduced Docker Debug and Docker Build, enabling engineers to develop containers faster while simplifying specialised tasks like building applications made of numerous containers.

Sep 20th 2023

Oracle announced new capabilities such as Oracle Cloud Guard Container Governance to support developers to simplify Kubernetes operations and configuration of containerised workloads deployed on Oracle Container Engine for Kubernetes (OKE).

Oct 17th 2022

Oracle announced Virtual Nodes capability for Oracle Container Engine for Kubernetes (OKE) and the preview availability of OCI Container Instances to simplify operations of container-based applications in Oracle Cloud Infrastructure (OCI).

May 27th 2021

Amazon Web Services announced the general availability of Amazon Elastic Container Service (ECS) Anywhere to enable customers to manage and run container-based applications on-premises, on any customer-managed infrastructure, or AWS.

The deployment of application containers in a hybrid cloud

Enterprises are leveraging application containers in hybrid cloud environments for the smooth transfer of workload between the on-premises and cloud ecosystems.

Growing popularity of container as a service (CaaS)

Container as a service (CaaS) is increasingly gaining popularity as it offers enhanced scalability, provides enhanced security and scalability, enables users to pay for resources used, and eliminates the need to test container infrastructure and build clusters.

Increasing focus on boosting container platform security

As container environments require continuous monitoring and are highly dynamic, there is a rising adoption of security measures to mitigate risks, enhance vulnerability management, and secure containers.

Advancements in containerisation technology

Advancements in containerisation technology aimed at reducing infrastructural costs, enhancing scalability, and driving application security are expected to aid the North America application container market expansion.

The rising popularity of container as a service (CaaS), which is a cloud-based platform that simplifies containerised applications so the developers can focus on the deployment of code, also offers support to the North America application container market demand. It offers a pay-as-you-go price model in which organisations only pay for the resources they consume and save the overhead cost.

Increased efforts by market players to enhance the security of container platforms is another crucial trend aiding the market expansion. For example, in May 2022, Docker Inc., a US-based cloud service provider, acquired Nestybox, a company that offers enhanced isolation for containers, to strengthen and develop new security capabilities for application containers.

Market Segmentation

“North America Application Container Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment Mode

• On-Premises

• Cloud

Market Breakup by Service

• Monitoring and Security

• Data Management and Orchestration

• Networking

• Support and Maintenance

• Consulting

Market Breakup by Organisation Size

• Small and Medium Enterprises

• Large Enterprises

Market Division by Industry Vertical

• BFSI

• IT and Telecom

• Healthcare and Life Science

• Retail and E-commerce

• Media and Entertainment

• Others

Market Breakup by Country

• United States of America

• Canada

Data management and orchestration services represent a significant market share

Data management and orchestration services occupy a significant portion of the North America application container market share as application containers facilitate the quick deployment and management of data compared to traditional VMs. The growing presence of market players in the region that are readily adopting innovative technologies to improve the effectiveness of containers also supports the segment’s growth.

Monitoring and security services are also anticipated to witness robust growth in the coming years as the containers can detect errors and allow the enterprise to fix them in the containerised environment quickly.

Containerisation is revolutionising the BFSI sector as it offers a secure and cost-effective environment for application management

As per the North America application container market analysis, the BFSI sector accounts for a healthy market share as it offers an economical and secure environment for the management of applications that may contain sensitive information. The growing adoption of cloud services in the banking sector, due to their scalability, also offers lucrative opportunities for application containers.

The IT and telecom sector is also expected to gain sizeable growth in the forecast period, due to the growing use of containers for agile application deployment. Meanwhile, with rapid digital transformation and technological advancements in the healthcare and life sciences sector, containerised applications can reduce licensing and server costs, promote agility and flexibility, facilitate automation, and reduce costs.

Competitive Landscape

Some of the major players included in the North America application container market report are engaging in merger and acquisition activities to enhance their capabilities:

Oracle Corp.

Oracle Corp., incorporated in 1977 and based in Texas, the United States, is a multinational technology company. Some of its major products and services include Oracle cloud infrastructure, Oracle cloud applications, and Oracle database, among others.

Microsoft Corp.

Microsoft Corp. is a computer technology company, established in 1975 and based in New Mexico, the United States. Some of its renowned products include Microsoft Office, Microsoft operating system, Microsoft Azure, and Xbox, among others.

Hewlett Packard Enterprise Development LP

Hewlett Packard Enterprise Development LP, founded in 1939, is an information technology corporation, based in Texas, the United States. The company offers the deployment of new container-based applications as well as the modernisation of preexisting applications through its container solutions.

Docker Inc.

Docker Inc. is a company that supports developers to collaboratively and efficiently run, build, and share applications. Headquartered in California, the US, the company is known for offering reliable, integrated, and secure workflow to support app delivery.

Other North America application container market players include Amazon Web Services, Inc., Alphabet Inc., IBM Corp. (Red Hat, Inc.), Broadcom Inc., Salesforce, Inc., and Telefonaktiebolaget LM Ericsson, among others.

The United States represents a significant portion of the North America application container market share due to the presence of leading companies such as Microsoft, Salesforce, and Oracle, among others, in the country. Due to the high proliferation of tech start-ups and countries in the country, application containers that can reduce the time and cost spent on infrastructure maintenance are rising.

In the forecast period, increasing adoption of application container platforms in sectors like healthcare and BFSI is expected to favour the US market expansion. Meanwhile, the adoption of application containers in Canada is anticipated to rise in the coming years as it can enhance business outcomes and combat challenges associated with traditional application development.

Key Highlights of the Report