Microservices architecture improve application scalability by breaking down a monolithic application into smaller, independent services. Each microservice can be developed, deployed, and scaled independently, allowing organizations to allocate resources efficiently based on demand. This approach also facilitates continuous integration and delivery, enabling faster iterations and improved responsiveness to changes or issues. As components can communicate via APIs, it ensures that scaling one part does not necessarily affect others. This segregation enhances overall system reliability, allowing businesses to better manage increasing loads and improving user experiences.