The Function as a Service Market is the process by which the cloud service enables serverless application development and also manage the whole process.
The Function as a Service Market industry is projected to grow from USD 14.5 Billion in 2023 to USD 81.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.2% during the forecast period (2023 - 2032). By using the Function as a Service Market it is possible to take the decision in the organisation, as this makes the easy availability of the currency exchange data.
Figure 1: Function as a Service Market, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
COVID Analysis
The outbreak of the pandemic has caused a great impact on the regular life of the people. The spread of the pandemic has brought great losses in many sectors, even in many small business sectors, this has brought a long term effect. This is because of the lockdown implemented by the governments to control and avoid the spread of the pandemic. Which brought an impact on the economy of the country. Because of the lockdown, there was a demand for the Function as a Service Market. So this year is considered as the base year (2020). Even in this lockdown and strict restrictions many companies followed the safety measures and then got their place in the Function as a service market Share.
The main reason which is driving the Function as a Service Market Size is the increase in the usage of the application in recent days. And also the increase in the introduction of the new application and the technology in this modern period. As the spread of the pandemic brought changes in the health care centre, there were many applications introduced related to the healthcare sector. So this also paved the way for the development of the Function as a Service Market Size. Even the growth of the sectors like automation, integration and microservice has increased the market value of the FAAS.
Rapid advancement in the technology and the development of the application without the use of the server or even by the minimizer of the server usage has created the growth opportunity for the Function as a Service Market. This process of allowing to manage the code while connecting the operating system had increased the attraction among the engineers. As this makes their work easy to reuse the code even multiple times have created interest among the people. In recent times time is being valued very much. So the continuous reuse of the coding strategy has increased the growth opportunity for the Function as a Service Market Size.
The main restraint in the market is that the issue is portability to the cloud. Then the second factor that hinders the growth of the Function as a Service Market is the spread of the pandemic among all the countries. Due to the lockdown implementation, many sectors have lost their growth in the market. Even they were been sent to the long term loss because of the pandemic issue, some companies using the health-related measuring process came to a higher position in the function as a service market.
As the spread of the pandemic has caused a great impact in many countries. The interest among the people in using the good application without any network issues is one of the main challenges faced by the creators. Because by this FAAS you can able to reuse the same code multiple times, so that the people may able to avoid the network troubleshooting issues, this may cause the waste of time to the people who are working. Then the main challenge is to overcome the loss which is being created by the spread of the pandemic. As many companies are working hard and trying to collaborate with other companies to compensate for their loss.
The overall growth of the Function as a Market Share was stable and only after the spread of the pandemic did some companies come to long term loss. Even in the pandemic, some companies are working hard to retain their revenue. Only before the pandemic, the growth was not stable, but during the lockdown time, people were forced to stay at the house. Later on, people started to spend their time viewing the applications. So the application manufacturing companies are using their codes again multiple times via which the people get access to use the application. This process of using the code multiple times saves time, as well as the developing engineers, feels comfortable while working.
The growth of the Function as a Market Share was great during these locks down. But like other industries, the Function as a Service Market also got some losses because of the pandemic. As the growth of the FAAS has been seen in the sectors like defence, telecommunication, banking and finance, health care, media and entertainment, the hi-tech industry, manufacturing and etc. The increase in the usage of the FAAS in the application and the demand in creating the new technology are the main driving force for the growth of the Function as a Service Market.
As North America is been calculated as the largest market shareholding in 2020, it is expected to get the growth of CAGR of 13% during the Function as Service Market Analysis period of 2018-2023. The growth of North America is great because of the advancement in technology and also they are providing the FaaS as cost-effective in nature. The second main reason for the growth of North America in the market is that the availability of the key players is high.
The second largest growing shareholder of the FaaS is the Asia Pacific region. This is being calculated with the 4% with the CAGR during the forecast period. The growth is being witnessed in the Asia Pacific regions is because of the adoption of cloud technology and also because of the highest population. The second main reason for the growth is the development in many sectors after the spread of the pandemic.
With the increase in the development and the use of the FaaS, the main key players are working hard by using new strategies to develop their business. The key vendors are wishing to keep them up-to-date to maintain their business and also to keep their stakeholders engaged. Even many medium-sized companies are collaborating with the other companies so that they can compensate for the loss which was raised due to the spread of the pandemic.
In December 2022, In a bid to enhance economic value for organizations leveraging cloud technology globally, Tech Mahindra, a prominent provider of digital transformation, consulting, and business re-engineering services, has unveiled Cloud BlazeTech. This integrated platform, designed to be industry-neutral, aims to optimize and streamline cloud-powered operations. Tech Mahindra is committed to furthering its investment in cloud services and strengthening partnerships with hyperscalers, with a focus on expediting digital transformation initiatives for businesses.
In June 2022, Kyndryl, the premier global IT infrastructure services provider, has joined forces with Oracle in a strategic partnership aimed at expediting businesses' transition to the cloud. This collaboration involves Kyndryl offering comprehensive managed cloud solutions on a global scale. Under this partnership, Kyndryl assumes a pivotal role as a primary delivery partner for Oracle Cloud Infrastructure (OCI), leveraging its extensive expertise in supporting and collaborating with clients utilizing Oracle's suite of products and services.
In May 2022, Red Hat Inc., a global leader in open-source solutions, has deepened its longstanding strategic collaboration with Accenture, extending a partnership of nearly 12 years. The intensified alliance is dedicated to driving innovation in open hybrid cloud solutions for enterprises on a global scale. Through joint investments, both companies are actively engaged in co-developing cutting-edge solutions. The focus is on assisting organizations in efficiently navigating the complexities of a multi- and hybrid cloud environment. This collaboration aims to empower enterprises in defining their cloud strategy and expediting the innovation process to achieve value more rapidly.
In August 2022, Ridge, a leading-edge cloud service provider, has introduced a comprehensive hybrid cloud service, marking a significant expansion in its offerings. Leveraging its distributed cloud architecture, Ridge enables businesses to seamlessly integrate mission-critical applications across diverse locations, including on-premises setups and Ridge-managed locations. The innovative architecture allows for the smooth transfer of workloads between various environments. Additionally, businesses gain the advantage of centralized management through a unified portal, ensuring a cohesive and streamlined cloud experience across both public and private locations.
| Report Attribute/Metric | Details |
| Â Â Market Size | Â Â USD 81.8 Billion |
| Â Â CAGR | Â Â 21.2% |
| Â Â Base Year | Â Â 2022 |
| Â Â Forecast Period | Â Â 2023-2032 |
| Â Â Historical Data | Â Â 2018- 2022 |
| Â Â Forecast Units | Â Â Value (USD Billion) |
| Â Â Report Coverage | Â Â Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Â Â Segments Covered | Â Â By Type, Application |
| Â Â Geographies Covered | Â Â North America, Europe, Asia-Pacific |
| Â Â Key Vendors | Â Â Amazon Web Services Inc Dynatrace LLC Fiorano Software And Affiliates Flowgear Microsoft Corporation SAP SE Tibco Software Inc International Business Machines Corporation Google Inc Manjrasoft Private Limited Rogue Wave Private Limited Sixsq Sarl Infosys Limited |
| Â Â Key Market Opportunities | Â Â Rapid advancement in the technology and the development of the application without the use of the server or even by the minimizer of the server usage has created the growth opportunity for the Function as a Service Market. |
| Â Â Key Market Drivers | Â Â The main reason which is driving the Function as a Service Market Size is the increase in the usage of the application in recent days. |
Frequently Asked Questions (FAQ) :
By vertical, the segments of the function as a service market are BFSI, healthcare, manufacturing, IT and telecommunication and others
BFSI and manufacturing segments, on the basis of vertical, are expected to exhibit robust growth.
By user type, the segments of the market are developer centric and operator centric.
The developer centric segment is projected to dominate the global market.
By service type, the segments are: automation and integration, API management services, support and maintenance services, microservice monitoring and management services, and others.
The automation and integration segment is likely to register 36.5% CAGR and dominate the market.
The BFSI segment is assessed to expand at 36.4% CAGR.
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Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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