Linux Operating System Market Size, Share & Industry Analysis, By Distribution (Virtual Machines, Servers, and Desktops), By End-use (Commercial/Enterprise and Individual), and Regional Forecast, 2024-2032

The global linux operating system market size was valued at USD 18.34 billion in 2023 and is projected to grow from USD 21.77 billion in 2024 to USD 89.76 billion by 2032, exhibiting a CAGR of 19.4% during the forecast period (2024-2032). 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 allows 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. 

Furthermore, the need for open-source digital workplace solutions, such as chat applications, video conferencing platforms, and others, gained momentum during the COVID-19 pandemic. The increased demand for open-source software is expected to drive the adoption of open-source operating systems.

Linux Operating System Market Trends

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. The cloud-based Linux operating system is mainly developed for hosting users. This cloud-based operating system helps 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 protect 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 make Enterprise Linux and OpenShift available 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 their 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.

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Linux Operating System Market Growth Factors

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

Linux, renowned for its robustness and security, is widely favored for deployment across desktops, servers, virtual machines, and embedded systems. Operating under an open-source license, Linux offers extensive customization options for its Graphical User Interface (GUI) at minimal cost, enabling users to develop their Linux distributions (Distros). This has led to a proliferation of Distros providers, such as Arch Linux, Ubuntu, Fedora, Kubuntu, and Linux Mint. According to hostingtribunal.com, in 2019, over 96% of the top 1 billion servers globally were powered by Linux. Furthermore, Linux has gained traction in commercial embedded applications, including communication, supercomputing, clustering, and medical imaging, driving its global market growth.

As of May 2020, Linux ranks among the top 500 most powerful operating systems worldwide, according to Net Applications. Additionally, based on the Linux kernel, the Android operating system boasts the largest installed base globally on tablets and smartphones. Regarded as highly preferred for embedded systems and servers, Linux is poised for significant growth in the coming years.

RESTRAINING FACTORS

Intense Competition from Windows and Limited Adoption of Linux OS is 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 threats and have limited specific functionality. It is less user-friendly than Windows GUI. Moreover, to switch 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.

Linux Operating System Market Segmentation Analysis

By Distribution Analysis

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 OS provides various benefits to organizations, such as pre-and post-customizations, advanced security models, high storage facilities, and others.

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 the 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.

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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 that is compatible with playing 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

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

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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 surge in demand for the IoT system dominates the market in Europe. 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.

Internet penetration rates in South America and the Middle East & Africa are still in the 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.

List of Key Companies in Linux Operating System Market

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

The company offers user-friendly, reliable, and secure 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

• November 2023 – Red Hat, Inc., the provider of open-source solutions, unveiled the general release of Red Hat Enterprise Linux 9.3 alongside the upcoming availability of Red Hat Enterprise Linux 8.9. These latest iterations of the premier enterprise Linux platform drive developments in container technologies, introduce new managing services via Red Hat Insights and offer comprehensive support for Stratis as a system storage choice.


• July 2023 – China launched its inaugural domestically developed open-source desktop operating system, dubbed OpenKylin, according to state media reports. This move signifies China's increased efforts to reduce dependence on U.S. technology. OpenKylin is derived from the open-source Linux operating system and was constructed by a community of approximately 4,000 developers. It applies to various sectors, including space programs, finance, and energy industries.


• 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 operations, and more.


• January 2023 – IIT Madras unveiled BharOS, a domestically developed operating system designed to provide enhanced security and privacy for mobile devices. This Linux kernel-based Indian OS aims to cater to India's vast mobile user base of 1 billion people, many of whom currently rely on smartphones running foreign-owned Android and iOS operating systems.


• 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 customer migration. 


• 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 an open-source Linux distribution architecture that supports security and stability for the business.

REPORT COVERAGE

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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