OpenStack Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Deployment (On-Cloud, On-Premise), By Organization Size (Small & Medium Enterprises, Large Enterprises), By Industry Vertical (BFSI, Manufacturing, IT & Telecom, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 30.23 Billion
CAGR (2026-2031)	23.39%
Fastest Growing Segment	Small & Medium Enterprises
Largest Market	North America
Market Size (2031)	USD 106.69 Billion

Market Overview

The Global OpenStack Services Market will grow from USD 30.23 Billion in 2025 to USD 106.69 Billion by 2031 at a 23.39% CAGR. OpenStack is an open-source cloud operating system that facilitates the management of large pools of compute, storage, and networking resources, serving as a foundational layer for private and public cloud infrastructures. The market for services surrounding this platform is primarily driven by the increasing organizational imperative for digital sovereignty and a strategic migration away from the rising costs of proprietary virtualization licensing. Additionally, the platform’s capability to handle data-intensive artificial intelligence and machine learning workloads is significantly bolstering adoption rates across the telecommunications and enterprise sectors.

However, the expansion of these services is frequently hindered by the operational complexity involved in architecture and maintenance, which necessitates a high level of specialized engineering talent that is often in short supply. This skills gap can impede rapid deployment and elevate long-term management costs for organizations. Highlighting the scale of its utilization despite these hurdles, according to the OpenInfra Foundation, in 2025, global OpenStack deployments were estimated to exceed 55 million cores in production.

Key Market Drivers

The Migration from Proprietary Virtualization Platforms to Open-Source Solutions is fundamentally reshaping the Global OpenStack Services Market. Following significant shifts in licensing models by major proprietary vendors, enterprises are urgently seeking to eliminate vendor lock-in and reduce escalating operational expenditures. This transition requires extensive consulting, migration, and re-architecting services, as organizations move legacy workloads to open environments. Highlighting this trend, according to the OpenInfra Foundation, March 2025, in the 'From VMware to OpenStack: Why Open Source is Winning the Virtualization Battle' report, over 80% of its member organizations reported receiving inquiries to migrate workloads from VMware to OpenStack. This massive influx of migration projects has created a critical need for specialized service providers capable of ensuring data integrity and minimizing downtime during the platform switch.

Simultaneously, the Surge in Network Functions Virtualization (NFV) for 5G Telecommunications is acting as a secondary engine for market expansion. As telecommunications operators deploy next-generation networks, they increasingly rely on OpenStack services to manage the distributed, virtualized infrastructure required for low-latency connectivity. This adoption is evident in major carrier deployments; according to Canonical, June 2025, in the 'Canonical Helps Customers Looking for an Alternative' case study, the BT Group's OpenStack deployment successfully scaled to support 5G coverage for over 75% of the UK population. The market's growth is further underpinned by the financial efficiency of these open architectures. According to OpenMetal, November 2025, in the 'How OpenStack Lowers Total Cost of Ownership' article, deploying OpenStack can reduce IT capital and operational costs by up to 60%, driving long-term service contracts.

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Key Market Challenges

The primary challenge impeding the Global OpenStack Services Market is the profound shortage of specialized engineering talent required to navigate the platform's operational complexity. OpenStack’s architecture demands deep technical expertise for effective deployment, customization, and ongoing maintenance, creating a substantial barrier for organizations that lack dedicated, highly skilled teams. This scarcity of qualified professionals directly hampers market growth by causing significant delays in project timelines and increasing the risk of architectural errors during implementation. Consequently, organizations often hesitate to scale their adoption or are forced to incur premium costs for external consultants, effectively slowing the broader expansion of these services across enterprise sectors.

The severity of this talent deficit is substantiated by recent industry data highlighting the widening gap between organizational needs and available workforce capabilities. According to the Linux Foundation, in 2024, 64% of technology leaders acknowledged a lack of essential skills or experience in candidates, with cloud computing ranked as the highest priority domain for staffing needs. This data underscores a critical friction point where the limited availability of competent engineers restricts the ability of service providers and enterprises to fully leverage OpenStack’s capabilities, thereby capping the market’s immediate growth trajectory.

Key Market Trends

The Rising Adoption of OpenStack for AI and High-Performance Computing Workloads is rapidly accelerating as organizations seek scalable, cost-effective infrastructure for data-intensive applications. Unlike proprietary public clouds that can incur prohibitive costs for large-scale model training, OpenStack offers a private, customizable environment that efficiently manages GPU resources and high-throughput networking. This trend is characterized by the increasing deployment of AI toolkits directly on open infrastructure, allowing enterprises to maintain data proximity and performance control. Underscoring this shift, according to Canonical, November 2025, in the '83% of organizations see value in adopting open source' report, the adoption of open source AI and machine learning (ML) applications has increased from 35% to 40% since 2024, reflecting the platform's critical role in supporting these demanding workloads.

Simultaneously, the Expansion of Managed OpenStack Private Cloud Services is emerging as a vital strategy to bridge the widening engineering skills gap. While the platform provides robust capabilities, its architectural complexity often overwhelms internal IT teams, prompting a shift toward consumption-based managed models where third-party experts handle operations, upgrades, and security. This approach allows businesses to leverage OpenStack’s benefits without the burden of maintaining the underlying stack, effectively democratizing access to private cloud infrastructure. This growth in managed engagements is financially evident; according to Linuxiac, June 2025, in the 'Canonical, Maker of Ubuntu, Reports Revenue Growth in 2024' article, the company’s subscription revenue, driven by enterprise managed services, climbed to $235 million, reflecting a 19% year-over-year growth.

Segmental Insights

Small and Medium Enterprises represent the fastest growing segment in the Global OpenStack Services Market due to a heightened focus on operational cost reduction and infrastructure flexibility. These organizations increasingly adopt OpenStack to avoid the high licensing costs and rigid contracts typical of proprietary commercial cloud providers. The open source nature of the platform allows smaller entities to build scalable private clouds that align with limited IT budgets while preventing vendor dependency. Additionally, the continuous development led by the OpenInfra Foundation provides these enterprises with a stable and secure environment essential for modernizing their business operations.

Regional Insights

North America maintains a dominant position in the Global OpenStack Services Market due to the widespread early adoption of cloud computing technologies across large enterprises. The region benefits from a mature IT infrastructure and the significant presence of key service providers that drive market development. Furthermore, the ecosystem is heavily supported by the OpenInfra Foundation, headquartered in the United States, which fosters standardization and community collaboration. This strong institutional backing, combined with high commercial demand for flexible private and hybrid cloud solutions, ensures the region remains the primary hub for open-source service innovation.

Recent Developments

• In October 2024, Platform9 launched "Private Cloud Director," a new management solution specifically targeting the Global OpenStack Services Market's demand for legacy virtualization modernization. The platform was designed to streamline the migration of virtual machines from traditional proprietary vendors to an open-source private cloud environment, featuring a purpose-built migration tool to automate the process. By providing a unified control plane and reducing the operational complexity associated with maintaining distributed clusters, the launch offered enterprises a cost-effective and flexible alternative for managing their private cloud resources and infrastructure.
• In October 2024, Rackspace Technology reinforced its long-standing influence in the Global OpenStack Services Market by announcing its return as a Platinum Member of the OpenInfra Foundation. This strategic renewal included the appointment of a senior executive to the Foundation's Board of Directors, signaling a deepened commitment to the open-source community. Concurrently, the company highlighted its "Rackspace OpenStack Enterprise" offering, a fully managed cloud solution engineered to secure and scale critical workloads. This move underscored the provider's dedication to delivering robust, enterprise-grade open infrastructure services as a viable alternative to public cloud hyperscalers.
• In August 2024, Red Hat made a significant impact on the Global OpenStack Services Market with the general availability of Red Hat OpenStack Services on OpenShift. This major platform evolution integrated the OpenStack control plane directly with the OpenShift Kubernetes platform, allowing telecommunications service providers and enterprises to manage both virtualized and containerized workloads from a unified interface. The new architecture enabled organizations to deploy compute nodes significantly faster than previous versions, effectively addressing the industry's growing need for scalable, modernized network fabrics that unify traditional and cloud-native infrastructure.
• In July 2024, Mirantis advanced its offerings in the Global OpenStack Services Market by announcing the release of Mirantis OpenStack for Kubernetes (MOSK) 24.2. This update introduced a technical preview of the Dynamic Resource Balancer, a feature designed to automate the distribution of workloads across clusters to prevent hypervisor overloading and "noisy neighbor" issues. The release also included support for the Open Virtual Network (OVN) and was built on the OpenStack Caracal version, providing enterprises with a more stable and efficient alternative to proprietary virtualization solutions for managing their private cloud infrastructures.

Key Market Players

• IBM Corporation
• Oracle Corporation
• Hewlett Packard Enterprise Company
• Red Hat, Inc
• Canonical Group Limited
• Mirantis, Inc
• Cisco Systems, Inc
• Rackspace Technology Global, Inc
• Broadcom, Inc
• Cloudify, Inc

By Deployment	By Organization Size	By Industry Vertical	By Region
On-Cloud On-Premise	Small & Medium Enterprises Large Enterprises	BFSI Manufacturing IT & Telecom Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global OpenStack Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• OpenStack Services Market, By Deployment:

• On-Cloud
• On-Premise

• OpenStack Services Market, By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

• OpenStack Services Market, By Industry Vertical:

• BFSI
• Manufacturing
• IT & Telecom
• Others

• OpenStack Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE