open source software industry size, global open source software market, open source software market forecast, open source software market analysis, open source software market growth, open source software market trends
What are the recent trends in market size and growth for the open source software market?
The open source software market size has grown rapidly in recent years. It will grow from $41.83 billion in 2024 to $48.92 billion in 2025 at a compound annual growth rate (CAGR) of 16.9%. 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 $90.66 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. 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.
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What key drivers have fueled the open source software market’s development over the years?
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 October 2023, according to the Department for Business and Trade, a UK-based government department, in 2022, there were 217 small-scale enterprises, increasing to 223 in 2023. The number of medium-scale enterprises was stable at 36 in 2021 and 2022, then rose to 37 in 2023. Therefore, the increasing number of small enterprises is driving the growth of the open-source software market.
What is the segmentation for the open source software market?
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
Subsegments:
1) By Shareware: Trial Software, Freemium Software, Time-Limited Software, Feature-Limited Software, Subscription-Based Shareware
2) By Bundled Software: Operating System Bundles, Productivity Tool Bundles, Web Development Bundles, Enterprise Resource Planning (ERP) Bundles, Database Management System (DBMS) Bundles, Security Software Bundles
3) By Berkeley Source Distribution (BSD): BSD Operating Systems, BSD-Based Web Servers, BSD-Based Network Tools, BSD License Software, BSD-Based Security Tools
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Who are the most influential companies in the open source software market?
Major companies operating in the open source software market are Intel Corporation, International Business Machines Corporation, Oracle Corporation, Transcend Information Inc., F5 Inc., Red Hat Inc., Mozilla Corporation, SUSE S.A., Progress Software Corporation, HashiCorp, Acquia Inc., Canonical Ltd., Aptean, Puppet Inc., TYPO3, MariaDB Corporation, The Linux Foundation, Redpill Linpro., ClearCenter, KDE, Eclipse Foundation AISBL, The Apache Software Foundation, Python Software Foundation, FossID, RethinkDB
What are the top industry trends projected to impact the open source software market?
Major companies operating in the open-source software market are focused on developing edge-optimized operating systems, such as Red Hat Device Edge to support open-source communities. Red Hat Device Edge is an edge-optimized operating system that enables computing by providing the necessary infrastructure and capabilities to process data efficiently and effectively at the network’s edge. For instance, in October 2022, Red Hat Inc., a US-based provider of open-source software products, launched Red Hat Device Edge, an edge-optimized operating system. This product enables enterprises to deploy only the necessary software components, decreasing the attack surface and resource use. It streamlines the management of edge devices and associated workloads, allowing enterprises to deploy workloads on resource-constrained devices at the far edge. It also delivers security features like intelligent device upgrades, zero-touch provisioning, and speedy security fixes.
What are the major regional insights for the open source software market, and which region holds the top position?
North America was the largest region in the open source software market in 2024. The regions covered in the open source software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Open Source Software Market Report 2025 Offer?
The open source software market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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.
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