Open Source Service Market to Reach CAGR of 24.2% by 2025

Strategic Insights -

The Open Source Service Market is expected to grow at a compound annual growth rate (CAGR) of 24.2% during the forecast period (2020-2025). This growth can be attributed to the emphasis on reduced cost of ownership and time to market. Companies are adopting open source solutions to save on operational and implementation costs, and vendors in the open-source market are charging for add-ons, which are usually much cheaper than closed source alternatives. The use of permissive open-source licenses has continued to rise, with 67% of open source components having permissive licenses, according to WhiteSource Software.

Key Takeaways:

  • The Open Source Service Market is expected to reach a CAGR of 24.2% during the forecast period (2020-2025).
  • Companies can save on operational and implementation costs by using open source solutions, with add-ons being charged separately.
  • The use of permissive open-source licenses has risen to 67%, with 33% of the top 10 most popular open-source licenses being copyleft.
  • Companies are adopting partnerships to accelerate technology evolution and reduce time to market, such as the Open Distributed Infrastructure Management initiative by HPE in partnership with Intel and Red Hat.
  • North America is expected to hold a major share in the market due to prominent market players and high adoption rate of new technologies.
  • The increased adoption of open source services by various end-user industries in the region boosts the growth of the market.
  • Royal Bank of Canada (RBC) and its AI research institute Borealis AI have partnered with Red Hat and NVIDIA to develop a new AI computing platform designed to transform the customer banking experience.

Statistics:

  • The Open Source Service Market is expected to grow at a CAGR of 24.2% during the forecast period (2020-2025).
  • 67% of open source components have permissive licenses (WhiteSource Software).
  • 33% of the top 10 most popular open-source licenses are copyleft (WhiteSource Software).
  • North America is expected to hold a major share in the market.

Sources:

  • "Open Source Service Market - Growth, Trends and Forecasts (2020-2025)" report by ResearchAndMarkets.com.
  • WhiteSource Software.
  • GitHub's State of the Octoverse 2019 report.
  • BusinessWire.com.