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Open source services will reach $165.4 billion globally by 2033

Posted on April 23, 2025 by Newsbit

Global Opportunity Analysis and Industry Forecast, 2024-2033,” valued at $33.9 billion in 2023. The market is expected to grow at a CAGR of 16.8% from 2024 to 2033, reaching $165.4 billion by 2033, according to Allied Market Research.

The open-source services market is experiencing substantial growth, driven by rise in the adoption of technology. Companies are using open-source services for IT infrastructure modernization, application development, digital transformation, and integration owing to rise in the availability of open-source platforms and growth in tech-savvy population, the global open-source services market is expected to grow notably. Cost-effectiveness, enhanced security, and improved quality are some of the factors that are further supporting the growth of the global open-source services market all over the world. However, the hidden costs associated with the OSS integration and implementation along with exploitation caused due to the advent of malicious users are expected to hinder the market growth.

Market Highlights
By service, the managed service segment dominated the market in 2023 and is expected to continue leading due to increase in demand for third-party expertise, cost efficiency, enhanced security, and scalability, helping businesses optimize open-source software adoption and management effectively.

By deployment mode, the on-premise segment dominated the market in 2023 and is expected to continue leading due to greater data security, regulatory compliance, enhanced control over infrastructure, and preference among enterprises with strict data governance policies.
By Enterprise Size, the large enterprises segment witnessed significant growth due to increasing adoption of open-source solutions for cost efficiency, scalability, enhanced security, and flexibility, enabling businesses to drive innovation and optimize IT infrastructure.

By Industry Vertical, the IT and telecommunication segment dominated the market in 2023 and is expected to continue leading due to rise in demand for scalable infrastructure, cost-effective solutions, enhanced security, and the need for continuous innovation in cloud computing and network management. Allied Market Research

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