Service Mesh Market

Market Definition

The Service Mesh Market size was valued at USD 238.5 million in 2022 and is predicted to reach USD 3450.6 million by 2030 with a CAGR of 39.7% from 2023-2030. Service Mesh is a technology that helps manage the communication between different services or microservices within a complex application or system. It acts as a dedicated infrastructure layer, providing features like traffic control, security, monitoring, and reliability. Service mesh works by deploying a proxy sidecar to each service.

The sidecar proxies are responsible for handling multiple streams of traffic to the service. This allows the service mesh to control the communication between services, providing features such as service discovery, rate limiting, authentication, and more. 

Market Dynamics and Trends

The demand for service mesh is increasing due to the growing complexity of modern applications such as microservices and distributed architectures. Service mesh offers a simpler way to manage microservices-based applications such as containerized environments (e.g., Kubernetes), cloud-native applications, and IoT platforms, which provides visibility into the health of services. Also, service mesh helps to speed up the tasks performed by the organization’s system engineers such as load balancing, failover, and routing traffic through multiple services, thus further driving the growth of the service mesh market. Moreover, service mesh offers a unified way to monitor the services and understand how traffic flows through the mesh. It provides detailed metrics on request latency, error rates, and other performance metrics to help organizations quickly identify and resolve issues, therefore boosting market growth.

However, the high installation cost along with the maintenance of a service mesh infrastructure may restrain the growth of the market. On the other hand, the introduction of web 4.0 followed by advanced technologies such as artificial intelligence, blockchain, and the Internet of Things, is expected to create ample growth opportunities for the market in the future. These technologies offer enhanced data encryption, decentralized networks, and intelligent automation, which contribute to better data privacy, reduced vulnerabilities, and increased efficiency in service communication. 

Market Segmentation and Scope of Study

The global service mesh market report is segmented on the basis of type, deployment, enterprise-size, end-user, and geography. Based on type, the market is classified into Kubernetes-based, service mesh without Kubernetes, and others. Based on the deployment, the market is segmented into on-premise and cloud-based. On the basis of enterprise size, the market is categorized into large enterprises and SME’s. On the basis of end-user, the market is divided into BFSI, telecommunication, retail and e-commerce, healthcare, manufacturing, government and public sector, transportation and logistics, energy and utilities, media and entertainment, education, and other industries. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the global service mesh market share and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the developed IT infrastructure especially in industries such as telecommunications, financial services, and healthcare that generates more network traffic, and offering government initiatives which is accelerating the growth of the global market. According to the International Trade Administration, the United States is home to the largest tech market in the world, representing one third of the global information technology (IT) market valued at USD 5 trillion. The tech industry contributes USD 1.9 trillion to the U.S. value-added GDP, which is more than 10 percent of the national economy.

Moreover, the presence of key market players such as Microsoft Corporation, Google LLC, and HashiCorp Inc. along with their strategies including product launches is further fueling the growth of the market in the region. For instance, in February 2021, HashiCorp Inc., launched a new service mesh solution ‘HashiCorp Consul and Vault’ to reduce the burden of the company and to improve data transmission to the cloud. Also, in August 2020, Microsoft launched a new open-source service mesh based on the Envoy proxy as a reference implementation of the Service Mesh Interface (SMI) spec, to help most of the players in this ecosystem.

On the other hand, Europe shows substantial growth in the global service mesh market owing to the growing government initiatives & policies for digital transformation within businesses in Europe to enable the development and deployment of new applications as well as services quickly & efficiently. For instance, in December 2022, The European Council adopted the 2030 policy program ‘Path to the Digital Decade’, to strengthen the EU’s digital leadership by promoting inclusive and sustainable digital policies that serve citizens and businesses.

Moreover, the rising adoption of cloud computing in organizations to manage communication between cloud-based services is further boosting the service mesh market growth. According to Eurostat, around 42% of organizations in the European Union used cloud computing in 2021. Service mesh provides a dedicated infrastructure layer that simplifies and enhances communication between services running on different cloud platforms. 

Competitive Landscape

The service mesh industry includes several market players such as Amazon Web Services, Inc., A10 Networks, Inc., Alcide.IO Ltd., Buoyant, Inc., EC-Council International Limited, Envoy, Inc., F5, Inc., Google, LLC., HashiCorp, Inc., Kong Inc., Microsoft Corporation, Red Hat, Inc., Solo.io, Inc., Tetrate.io, Inc., and Traefik Labs. These market players are adopting various strategies such as product launches to maintain their dominance in the global market.

For instance, in May 2022, Buoyant Cloud launched “Fully Managed” Linkerd, a new solution that automates service mesh management. This innovation aims to simplify the deployment and operation of service mesh technology, providing organizations with improved control and visibility over their microservices architectures. The launch of Fully Managed Linkerd reflects the growing demand for efficient service mesh solutions in the market.

Also, in November 2020, Solo.io launched a beta version of its full-stack platform of services mesh. Through this launch, the company aims to develop Gloo Mesh Enterprise for the configuration, operation, and visibility of service-to-service connectivity across various distributed applications.

Key Benefits

• The report provides quantitative analysis and estimations of the service mesh market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the service mesh market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the service mesh market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Service Mesh Market Key Segments

By Type  

• Kubernetes-based 

• Service Mesh Without Kubernetes

• Others

By Deployment  

• On-Premise

• Cloud

By Enterprise Size

• Large Enterprises 

• Small and Medium Enterprises

By End-User Industry

• BFSI

• Telecommunication

• Retail and E-commerce

• Healthcare

• Manufacturing

• Government and Public Sector

• Transportation and Logistics

• Energy and Utilities

• Media and Entertainment

• Education

• Other Industries

By Region

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • Italy

  • Spain

  • United Kingdom

  • Russia

  • Sweden

  • Rest of Europe

• Asia-Pacific

  • Australia

  • China

  • India

  • Japan

  • South Korea

  • Indonesia

  • Singapore

  • Rest of Asia-Pacific

• RoW

  • Latin America 

  • Middle East

  • Africa

Key Market Players:

• Amazon Web Services, Inc.

• A10 Networks, Inc.

• Alcide.IO Ltd.

• Buoyant, Inc.

• EC-Council International Limited

• Envoy, Inc.

• F5, Inc.

• Google LLC.

• HashiCorp, Inc.

• Kong Inc.

• Microsoft Corporation

• Red Hat, Inc.

• Solo.io, Inc.

• Tetrate.io, Inc.

• Traefik Labs