Linux OS Market is expected to grow at a CAGR of ~20% during the forecast period 2021-2031

Linux OS Market to grow at a CAGR of 20%

Linux OS market was valued at ~US$ 4.7 Bn in 2020, and is expected to grow at a CAGR of ~20% during the forecast period 2021-2031. The growth in the market for Linux operating systems is due to the growing demand for open-source operating systems and the need for a more secure operating system than Windows.

Moreover, the market is also seeking opportunities, due to the growing use of a user-friendly graphical user interface (GUI) and the increasing adoption of Linux operating systems by small and medium-sized enterprises, to lower initial costs and improve business efficiency.

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What is Driving Demand for Linux OS Systems?

The Linux OS system growth is primarily driven by growing internet penetration rate and the rising number of data centers and servers worldwide. Increasing demand for advanced data centers is considered one of the key growth factors of the market.

Also, organization in healthcare, manufacturing, IT & telecom, and other sectors are focused on replacing existing servers and equipment with advanced Linux based servers, owing to its capabilities such as advanced security measures, data storing capacity, reliability, and system speed.

Server Segment is expected to Contribute Largest Market Share

The server segment is estimated to dominate the market during the forecast period. Most of the revenue through Linux systems is mostly generated owing to the sale of OS across servers and virtual machines. Server based on Linux OS offers a wide range of benefits such as advanced security models, pre and post-customizations, high storage facility and others, to organizations.

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Servers are likely to gain the lead in the market owing to operating system being capable of handling large workloads on virtual and bare metal machines and public clouds or private clouds. This is evident by the growing list of benefits of the OS such as simplified software update, automated compliance across environments, and increased security. Its use by multinational companies such as Facebook and Google for its servers further fuel the sales of Linux operating system.

Moreover, key companies such as Red Hat, Oracle, and others are focused on offering Linux OS for servers and virtual machines. For instance, in December 2019, Oracle Corporation launched Oracle VM Virtual Box 6.1.0. This VirtualBox is cross-platform and is available on open-source platform. The virtual machines offers a wide range of virtualization solution for computing applications.

US Linux OS Growth Prospects

U.S. is expected to reach a stellar valuation for the North America market owing to presence of large companies and potential of open source applications across industries of fintech, healthcare, and automotive. Presence of players such as Red Hat Inc. and IBM Corporation as well as adoption of server farms by financial organizations can bolster the market demand.

Furthermore, rising cloud investment across various sectors is considered as key growth factor in the U.S. Prominent clod-computing platforms such as Amazon’s AWS, are Linux-based, placing Linux OS in a firm position for potential development as cloud computing investments rises further. This provides tremendous growth avenues for Linux OS vendors and will ultimately extend the reach of Linux OS on the desktop.

Europe Demand Outlook for Linux OS

Europe is projected to be a steady source of revenue for the market owing to the preference of large number of users on the control of software and applications. With major operating system manufacturers moving towards the as-a-service model, empowerment of users given by Linux can drive its sales by a considerable amount.

Adoption by SMEs and governments in the region can provide a boost to the market. France, Germany, and the U.K. can be the biggest revenue generators of the market.

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The growth in the region is mainly attributed to the proliferation of Internet of Things (IoT) in countries such as Germany, Italy, Spain, and others. In addition, with rise in the number of data centers based on Linux OS in the region is likely to boost the demand over the forecast period.

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