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Serverless Computing Market Size (2024 - 2029)

The serverless computing market is experiencing significant growth, driven by advancements in computing technology that facilitate the adoption of serverless environments. This shift allows organizations to reduce costs and streamline operations by eliminating the need for extensive hardware and maintenance. The market's expansion is further supported by the demand for faster product development and the ability to meet increasing consumer expectations. Despite challenges such as security concerns, which have slowed some adoption, the overall market size is expected to grow as more companies, including startups, leverage serverless technology to enhance their offerings and reduce time-to-market.

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Market Size of Serverless Computing Industry

Serverless Computing Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
CAGR 23.17 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Serverless Computing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Serverless Computing Market Analysis

Serverless Computing Market is expected to register a healthy CAGR of over 23.17% during the forecast period. Advancements in computing technology enable organizations to incorporate a serverless environment, thereby augmenting the market. The benefits of Serverless Computing, such as unconditional development and deployment, and built-in scalability, among others, are playing an essential role in supporting the rapid adoption of Serverless Computing, thereby fueling the market's growth.

  • With the adoption of serverless architecture, organizations can effectively eliminate expensive and time-consuming approaches such as purchasing new hardware components, installing, configuring, and troubleshooting, thereby shifting the responsibility of managing servers, databases, and application logic, which reduces set-up and maintenance costs.
  • With the rapid technological shift in the business environment, companies are releasing new products and features, thereby focusing on reduced time-to-market to meet the exponentially growing consumer expectations. The increasing prominence of such trends is expected to drive the market during the forecast period.
  • In the competitive marketplace, startups are anticipated to scale rapidly and deliver enhanced product and service features, thereby improving their business values. Hence, to achieve minimum lead time and positively impact their business, they are anticipated to adopt serverless technology, propelling the market's growth.
  • The rising security concerns have been limiting the adoption of serverless computing technology. According to a recent survey by SaltStack, a Utah-based provider of intelligent IT automation software, even though two-thirds of organizations have more than 10% of their applications containerized, 40% of the organizations still need to be concerned that their container strategy needs to invest in security adequately. Another 34% reported that their approach needs more detail.
  • COVID-19 has impacted the adoption of new technologies. This is because many organizations cannot deal with new technology due to the other tasks that have taken precedence due to COVID-19. However, it is also anticipated to be likely a temporary slowdown.

Serverless Computing Industry Segmentation

A cloud computing execution model known as "serverless computing" entails the cloud provider allocating machine resources as needed and managing the servers on behalf of its clients. Serverless architecture has emerged as an innovative step in leveraging cloud-based technologies to their full potential, enabling enterprises to focus on their core products and services instead of managing a load of traffic on their IT infrastructure.

The Serverless Computing Market is segmented by Service (Professional, Managed), Type (Hybrid, Multi-Cloud), End-user Industry (IT & Telecommunication, BFSI, Retail, Government, Industrial), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Service
Professional
Managed
By Type
Hybrid Cloud
Multi-Cloud
By End-user Industyr
IT & Telecommunication
BFSI
Retail
Government
Industrial
Other End-user Industries
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Serverless Computing Market Size Summary

The serverless computing market is poised for significant growth, driven by advancements in computing technology that facilitate the adoption of serverless environments. This approach offers numerous benefits, including seamless development and deployment, as well as inherent scalability, which are crucial for organizations aiming to meet the fast-paced demands of the digital era. By eliminating the need for costly and time-consuming hardware management, serverless computing allows businesses to focus on innovation and rapid product delivery, thereby enhancing their competitive edge. Despite challenges such as security concerns and the temporary slowdown caused by the COVID-19 pandemic, the market is expected to expand as companies increasingly recognize the value of serverless architecture in reducing infrastructure costs and improving agility.

North America is projected to lead the market in terms of revenue, supported by technological advancements and a strong presence of key industry players across various sectors. The region's high level of digitalization and adoption of cloud computing services drive demand as enterprises strive to remain competitive and agile. The market is moderately competitive, with major players like Amazon Web Services, Microsoft, and Google dominating, while new entrants continue to expand their presence. Innovations such as AWS Lambda SnapStart and Alibaba's investment in cloud computing further propel market growth. As businesses increasingly move towards cloud services, the integration of serverless computing with hybrid and multi-cloud strategies is expected to enhance operational efficiency and reduce costs, despite ongoing security concerns.

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Serverless Computing Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Assessment of COVID-19 impact on the industry

    4. 1.4 Technology Snapshot

      1. 1.4.1 API Gateway

      2. 1.4.2 Function as a Service (FaaS)

      3. 1.4.3 Database as a Service (DbaaS)

      4. 1.4.4 Backend as a Service (BaaS)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Professional

      2. 2.1.2 Managed

    2. 2.2 By Type

      1. 2.2.1 Hybrid Cloud

      2. 2.2.2 Multi-Cloud

    3. 2.3 By End-user Industyr

      1. 2.3.1 IT & Telecommunication

      2. 2.3.2 BFSI

      3. 2.3.3 Retail

      4. 2.3.4 Government

      5. 2.3.5 Industrial

      6. 2.3.6 Other End-user Industries

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Latin America

      5. 2.4.5 Middle East & Africa

Serverless Computing Market Size FAQs

The Serverless Computing Market is projected to register a CAGR of 23.17% during the forecast period (2024-2029)

Amazon Web Services Inc., Microsoft Corp., Google LLC, Alibaba Group Holding Limited and IBM Corp. are the major companies operating in the Serverless Computing Market.

Serverless Computing Market Report Snapshots

Serverless Computing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)