Open Source Services Market Expected to Reach $165.4 Billion by 2033

According to a new report published by Allied Market Research, titled, “Open Source Services Market," The global open source services market size was valued at $33.9 billion in 2023, and is estimated to reach $165.4 billion by 2033, growing at a CAGR of 16.8% from 2024 to 2033. 

Open source services refer to solutions and support provided for open source software. These services include customization, integration, deployment, maintenance, and technical support. Businesses use open source services to enhance software functionality, ensure security, and optimize performance. Service providers help organizations adopt and manage open source tools effectively, reducing costs as compared to proprietary software. Common offerings of open source services include consulting, training, and managed services. Open source services are widely used in IT infrastructure, cloud computing, and software development. The open-source services market is growing as more companies seek flexible, scalable, and cost-effective technology solutions without vendor lock-in. 

Market players are adopting various strategies to gain a competitive advantage to expand their presence in the open source services market. Many companies are partnering with other organizations to combine complementary open source technologies and services or acquiring smaller firms to gain access to their expertise and customer base. This approach allows companies to quickly expand their capabilities and reach and offers more comprehensive solutions to their customers. Moreover, companies are also investing in R&D to innovate and differentiate their offerings. In May 2021, Databricks, a company specializing in Data and AI, introduced its latest open source project, known as Delta Sharing. The tool has been designed to enable data sharing with any SaaS product or cloud infrastructure in a vendor-neutral manner. Delta Sharing is part of the larger Databricks open source Delta Lake project. 

On the basis of service, the global open source services market size was dominated by the managed services in 2023 and is expected to maintain its dominance in the upcoming years, owing to increasing complexity of IT environments, which has led to a shortage of skilled IT professionals. By partnering with managed service providers, organizations can access a team of experienced professionals who can manage their IT infrastructure effectively and efficiently, allowing them to focus on their core business activities. 

However, the professional services segment is expected to register the highest CAGR during the forecast period, owing to rise in adoption of open source technologies in enterprises. Businesses are increasingly seeking consulting, integration, and support services to manage complex open source ecosystems. In addition, the demand for cybersecurity solutions in open source software is increasing, driving the need for expert guidance. Hence, fueling the growth of the professional open source services segment. 

Region-wise, North America dominated the open source services market share in 2023. This was attributed to increase in adoption of cloud computing, as businesses seek flexible, scalable, and cost-effective solutions. Open source technologies, such as Kubernetes, Docker, and Linux, are becoming integral to cloud-native application development and management. In addition, rise of DevOps practices has fueled demand for open source tools that enable automation, faster development cycles, and improved collaboration between development and operations teams. However, Europe is expected to exhibit the highest CAGR during the forecast period. The region has a large and rapidly expanding technology market, with many companies and organizations looking for cost-effective and customizable solutions to meet their IT needs. The region has a large and growing pool of startups and entrepreneurs who are increasingly turning to open source solutions to drive innovation and growth. 

Key findings of the study  

• By services, the managed services segment held the largest share in the open-source services market in 2023. 

• By deployment mode, the on-premises segment held the largest share in the open source services industry in 2023. 

• By enterprise size, the small and medium-sized enterprise segment is expected to show the fastest market growth during the forecast period. 

• By industry vertical, the others segment is expected to show the fastest growth during the open source services market forecast period. 

• Region-wise, North America held the largest open-source services market share in 2023. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period. 

The key players profiled in the open source services market analysis are Hewlett Packard Enterprise Development LP, Databricks, IBM Corporation, Oracle Corporation, Percona LLC., Flatworld Solutions Inc, Evoke Technologies Pvt. Ltd, Wipro, Infosys Limited, EPAM Systems, Inc., Keitaro, Quansight Inc., Collabora, Innova Solutions, C Ahead Technologies, ViSolve, Eclature Technologies, Ashnik, Charter Global Inc. and SUSE. These players have adopted various strategies to increase their market penetration and strengthen their position in open source services industry.