Linux Operating System Market Size, Share & COVID-19 Impact Analysis, By Distribution (Virtual Machines, Servers, and Desktops), By End-use (Commercial/Enterprise and Individual), and Regional Forecast, 2023-2030

The global Linux operating system market size was valued at USD 15.52 billion in 2022 and is projected to grow from USD 18.34 billion in 2023 to USD 66.28 billion by 2030, exhibiting a CAGR of 20.1% during the forecast period.

In the scope, we have considered major players and their offerings, such as Red Hat Enterprise Linux operating system platforms and Oracle Linux operating system with cloud computing tools in a single support system. Further, Suse Group offers an easy-to-manage and adoptable SUSE Linux Enterprise Server SUSE that provides administrators and developers to deploy business workloads in the cloud and on-premises. IBM Corporation provides Linux with high-performance and security-rich operating systems. The market's growth is driven by increasing internet penetration and the surge in data centers, cloud deployments, and servers worldwide. Similarly, these operating systems are helping in lowering carbon footprints. For instance,

• In September 2022, IBM Corporation introduced the LinuxONE server to enterprises looking for lower energy-consuming solutions as a business sustainability strategy. This is a Kubernetes and Linux-based platform that can enable huge workloads with thousands of footprints under a single system. 

COVID-19 IMPACT

 Rise in End-users Spending on Data Center Infrastructure to Boost Market Growth

Since the outbreak of COVID-19, many organizations have been leaning toward open-source software to develop and deliver their solutions. Further, the ease of availability of these open-source software enables small & medium-sized businesses to access cutting-edge technologies for driving collaboration, facilitating knowledge sharing, and managing their operations across the facilities. In addition, during the lockdown, open-source digital workplace solutions such as chat applications, video conferencing platforms, and others gained momentum. The increased demand for open-source software during the COVID-19 pandemic is expected to drive the adoption of the open-source operating system.

According to Gartner Inc.’s report in 2020, the data center infrastructure revenue declined by around 10.3% in 2020. The end-user spending in 2020 on the global data center infrastructure reached USD 188.00 billion and is expected to reach USD 200 billion in 2021, owing to the COVID-19 pandemic.

Post-COVID-19 pandemic, several key players have planned investments for data centers and cloud infrastructure developments, owing to the surge in cloud services adoption by businesses around the globe. For instance,

• In September 2021, Techno Electrics and Engineering Company planned USD 1 billion investment to establish data centers across major cities such as Delhi, Mumbai, and India.

The server operating system in the data centers is used for network resources management, ensuring data security and monitoring systems, which is expected to drive the Linux operating system market growth.

LATEST TRENDS

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Increasing Adoption of Hybrid Cloud Technology to Increase Demand for the Product

Key players in the market, such as CloudLinux, Inc., IBM Corporation, and others, are developing OS-based hybrid cloud computing models. Increasing adoption of OS-based on hybrid cloud platforms with advanced security, enhanced server stability, and density has propelled the market growth. Cloud-based Linux operating system is mainly developed for hosting users. This cloud-based operating system helps to isolate users in a separate Lightweight Virtualized Environment (LVE). This offers users secure allocation, partitions, and restrictions for server resources. Cloud-based OS helps to ensure the users’ database and websites from unstable and unwanted scripts and cyber-attacks. For instance,

• In February 2023, Abu Dhabi-based G42 Cloud announced a partnership with Red Hat to avail Enterprise Linux and OpenShift in its cloud. Through this cloud provision, the companies are offering secured capabilities to the clients and support digital transformation.


• In January 2023, Oracle Corporation announced a strategic collaboration with Red Hat to expand Red Hat Enterprise Linux on its cloud infrastructure (OCI). The companies are offering mission-critical cloud services, higher performance, and digitalization-supporting operations to its clients across the globe.

Owing to this, the adoption of cloud-based OS is growing in the market. In addition to this, cloud-based OS offers a wide range of features such as 80% enhanced server utilization, increased stability, server control, managing and operating data and applications, and more. The increasing adoption of cloud platforms will aid the Linux operating system market share expansion in the near future.

DRIVING FACTORS

Increasing Adoption of Operating System among Servers and Embedded Systems to Aid Growth

Linux is a reliable and secure operating system mostly preferred for desktops, servers, virtual machines, and embedded systems. It is an open-source license system where users can customize the operating system by varying the Graphical User Interface (GUI). In addition, the user can develop their Linux distortion (Distro) in the market with negligible cost. This has resulted in an increased number of different Distros providers, such as Arch Linux, Ubuntu, Fedora, Kubuntu, Linux Mint, and others, available in the market. As per hostingtribunal.com, in 2019, more than 96% of the top 1 billion servers were run on this OS. Moreover, the system has gained popularity across commercial embedded applications such as communication, supercomputing and clustering, and medical imaging. This drives the growth of the Linux OS market around the globe.

According to net applications, as of May 2020, this desktop operating system has gained popularity and is listed in the top 500 most powerful operating systems around the globe. Moreover, the Android system used on tablets and smartphones is built on the Linux kernel OS and has registered the most extensive installed base globally. This OS is considered a highly preferred operating system for embedded systems and servers and is expected to grow significantly in the coming years.

RESTRAINING FACTORS

Intense Competition from Windows and Limited Adoption of Linux OS are Hampering Market Growth

Although Linux owns several advanced features such as better security, reliability, and flexibility, it has a comparatively low market share in consumer markets, owing to higher penetration of Windows OS among enterprises and end-user consumers.

Linux-based OS devices are complex against the threat and have limited specific functionality. It is less user-friendly as compared to Windows GUI. Moreover, for switching to Linux, it is essential to install the necessary compatible software, hardware, and drivers in the computer for this operating system. Also, there are limited hardware manufacturers that offer drivers for L Linux-based OS as compared to Windows, which hinders the Linux OS market growth.

Furthermore, this OS is difficult to use compared to Windows, requiring a high skill set and knowledge about computing. This is challenging for beginners, as they have to learn many different processes and functionalities that hinder the market growth globally.

SEGMENTATION

By Distribution Analysis

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Servers Segment to Dominate Due to Highest Sale Generated 

By distribution, the market is segmented into virtual machines, servers, and desktops. Among these, the servers segment is expected to dominate the market share during the forecast period. Key players in the market have generated the highest revenue through the sale of OS across servers and virtual machines. Server-based on OS provides various benefits such as pre and post-customizations, advanced security models, high storage facilities, and others to organizations.

Prominent players, such as Red Hat, Inc., IBM Corporation, Oracle Corporation, and others, are developing Linux operating systems for virtual machines and web servers. For instance,

• In June 2020, the CloudLinux division of TuxCare security services launched QEMUCare Live patching service for Linux. It runs on virtual machines and hosts through open-source QEMU, open-source hardware, and the emulator virtualization platform.

The virtual machines segment is expected to grow with the highest CAGR, owing to a surge in adoption by users. The growth is primarily attributed to the rise in the adoption of the OS in virtual machines across commercial businesses, where security is essential.

By End-use Analysis

Rising Popularity of Content Enabled with Cloud Computing Technologies and Surge in Online Gaming Software Users to Drive Growth

By end-use, the market is bifurcated into commercial/enterprise and individual. The commercial/enterprise segmental dominance is primarily attributed to the rising demand for cloud-based and hybrid OS among commercial and enterprise users. Several leading companies in the market are launching enhanced graphical interface, security, and reliability features-based systems for online gaming software users around the globe.

• In July 2021, Valve launched Linux and KDE-powered portable gaming system platforms for desktop and PC users. Steam Deck is a Linux-powered KDE interface-based system with compatibility to play Windows games on Linux without additional cost.

With the rise in demand for cloud-based OS and a surge in online gaming software users, the commercial/enterprise segment is expected to boost further during the forecast period.

Furthermore, the individual segment is expected to grow with a steady CAGR during the forecast period. The growth of the individual segment is primarily due to its low cost and ease of availability of OS for desktop users. Also, this OS is the most secure, user-friendly, reliable, and flexible operating system for desktops.

REGIONAL INSIGHTS

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The global market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America is expected to dominate the market and capture the highest share during the forecast period. North America generated around USD 5.51 billion in revenue in 2022 and is growing with a significant CAGR during the forecast period. Increasing cloud and data center deployment across the region is also growing, owing to leading companies spending billions each year on establishing the data center infrastructure to accommodate the growing demand for cloud services and operating systems.

Europe is growing with a considerable CAGR during the forecast period. The growth in the area is mainly attributable to the increased use of the Internet of Things (IoT) and cloud computing in Germany, Italy, Spain, and others. The market in Europe is dominated due to the surge in demand for the IoT system. According to Gartner, Europe had around 6.40 billion connected devices by 2020, and IoT spending reached around USD 20 billion. Also, in Europe, as of 2019, approximately 135,889 companies, including SMEs and large enterprises, use Linux for their business units.

Asia Pacific is anticipated to grow at the highest CAGR during the projected period. China, Japan, India, South Korea, and other countries would provide the most significant CAGR in the area. This is primarily due to substantial growth in the number of data centers in South Korea, China, and Japan, fueling the market expansion in this area. With the rise in the number of data centers based on this OS, the market size in the Asia Pacific is expected to boost during the forecast period.

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Internet penetration rates in Latin America and the Middle East & Africa are still early stages. The Linux operating system is considerably gaining recognition in these regions. Additionally, rising investment by large-scale organizations in the IT & telecom industry and an increasing number of regional startups offering OS will drive the market growth. This would boost the region’s market growth.

KEY INDUSTRY PLAYERS

Market Leaders to Introduce New Capabilities in their Product Offerings to Strengthen Market Position

The company offers user-friendly, reliable, and secured Linux operating systems for commercial and individual users at an affordable cost. IBM Corporation offers enterprise platforms such as LinuxONE OS and IBM Z to integrate data, transactions, and insights. IBM Corporation is a major distribution partner of Red Hat, SUSE Group, and Canonical (Ubuntu).

The leading players in the market are adopting several business strategies, such as new product launches, partnerships, mergers, and acquisitions, to remain competitive. For instance,

February 2022: Slackware Linux Project launched Slackware version 15.0 for desktops. The release features a new user interface, updated applications, upgraded stability and performance, and other enhancements.

December 2022: Siemens AG introduced customizable Linux Sokol Flex OS software for RISC-V architecture. The new system helps customers to detect and monitor vulnerabilities through built-in security.

List of Key Companies Profiled:

• Amazon Web Services, Inc. (U.S.)


• Canonical Ltd. (U.K.)


• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• ClearCenter (U.S.)


• Linux Mint (Ireland)


• Elementary, Inc. (U.S.)


• Slackware Linux Project (U.S.)


• MontaVista Software, LLC (U.S.)


• SUSE Group (Germany)

KEY INDUSTRY DEVELOPMENTS

• February 2023 – Elektrobit and Canonical introduced an open-source Linux for automotive software, EB corbos Linux. It is built on Ubantu to help speed up the development of electronic control units and offers automotive production process compliances.


• February 2023 – SAP SE announced a partnership with Red Hat, Inc. to support industries using SAP for cloud transformation using Red Hat Enterprise Linux. The collaboration is helping SAP clients with a flexible and secured cloud environment, intelligent business operation, and more.


• September 2022 – SUSE Group strategically collaborated with Amazon Web Services, Inc. to support its SAP customer's shift to the cloud. It provides the SAP solution on the SUSE Linux operating system that offers minimum time and a reliable platform for mission critical migration of customers. 


• May 2022 – Google LLC funded a Linux security project to improve the Linux operating system. The Linux kernel language of programming has been hired to create software that improves smartphone security and internet connectivity.


• March 2022 – cPanel LLC announced a collaboration with Ubantu to offer its cPanel & WHM version. It offers customers with an open-source Linux distribution architecture that supports security and stability for the business.

REPORT COVERAGE

An Infographic Representation of Linux Operating System Market

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The research report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. In addition to the above-mentioned factors, the report includes several factors that have contributed to the market growth in recent years.

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