Managed Serverless Platform Market Research Report: By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Function Type (Event-Driven Functions, Scheduled Functions, Backend Functions, Synchronous Functions, Asynchronous Functions), By Managed Services (Runtime Management, scaling, Monitoring, Security, Developer Tools), By Market End User (Large Enterprises, Small and Medium-sized Enterprises (SMEs), Startups) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 2032

Managed Serverless Platform Market Overview

As per MRFR analysis, the Managed Serverless Platform Market Size was estimated at 4.33 (USD Billion) in 2022. The Managed Serverless Platform Market Industry is expected to grow from 5.34 (USD Billion) in 2023 to 35.6 (USD Billion) by 2032. The Managed Serverless Platform Market CAGR (growth rate) is expected to be around 23.46% during the forecast period (2024 - 2032).

Key Managed Serverless Platform Market Trends Highlighted

The market for serverless mode managed servers is witnessing considerable growth as there is an increasing need for agility, scalability and cost-effective application development. Key drivers include wider cloud adoption, increasing trends of microservices adoption and a desire for speedy development and deployment.

There happens to be great potential for market development of further penetration in the already existing industries, especially in the less serviced sectors that require complex application development. Trends that are changing the serverless deployment landscape include the use of AI and ML to enhance serverless deployment efficiency and the increasing acceptance of multi-cloud and hybrid clouds. If done properly, they would improve the performance of the organization while further cutting down on costs.

There is a growing necessity for vendors in the Managed Serverless Platform market to take care of that over and above, solving the challenges that the market presents. There are computer platforms that are functional as well as reliable and are also scalable. Solving complex challenges and including the management of the platform is important to those organizations that wish to embrace serverless technologies. Finally, building strategic alliances with different vendors and new technologies will help many vendors to stand out and grow in the market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Managed Serverless Platform Market Drivers

Rising Adoption of Cloud-Native Technologies

The managed serverless platform market Industry is experiencing growth due to the increasing adoption of cloud-native technologies, such as containers and microservices. Serverless platforms offer several advantages over traditional cloud-based solutions, such as improved scalability, reduced operational complexity, and cost efficiency. These platforms enable organizations to focus on developing and deploying applications without having to manage the underlying infrastructure.

Given that more and more organizations are adopting cloud-native technologies, the demand for managed serverless platforms is expected to increase substantially. According to the report by Research and Markets, the global serverless computing market is expected to grow from USD 7.1 billion in 2022 to USD 41.4 billion by 2027, at a CAGR of 36.4%. One of the factors driving the growth of this market is the increasing adoption of cloud-native technologies. There are mu advantages of serverless platforms over traditional cloud-based solutions, including improved scalability, reduced operational complexity, and enabling organizations to focus on developing and deploying applications. Finally, organizations only pay for the resources their applications use.

Organizations are demanding more and more managed serverless platforms, as these solutions provide a convenient and cost-effective way to deploy and manage applications in the cloud.

Growing Need for Agility and Innovation

Today, the business environment is characterized by rapid changes that require businesses to become more agile and innovative to stay competitive. Managed serverless platforms can help organizations with that, as they provide the flexibility and speed necessary to develop and deploy new applications quickly and efficiently. Serverless platforms provide companies with the ability to focus on creating and deploying applications and avoid managing servers.

With improved time to market and less time wasted on managing servers, companies can be more competitive and innovative. A survey by 451 Research found that 84% of respondents expect that serverless platforms will be important for their digital transformation. Also, 72% of respondents believe that serverless platforms will help their organizations to be more agile and innovative. Considering that as companies are increasingly trying to become more agile and innovative, serverless platforms, especially managed serverless platforms, are likely to be in very high demand as they provide the flexibility and speed that companies need to develop and deploy new applications.

Increasing Adoption of DevOps Practices

Managed Serverless Platform Market Industry has been experiencing strong growth due to a number of factors. One of the key factors is the adoption of DevOps practices. DevOps is a set of practices that combines software development and IT operations so that organizations can deliver applications and services more quickly and efficiently. Serverless platforms can be a good fit for DevOps environments because they can help automate many of the tasks that are traditionally performed by operations teams.

This can free up operations teams to focus on other things, such as improving the overall security and performance of applications. It has been estimated by Gartner that 75% of organizations will have adopted DevOps by 2025. As a result, the expected increase in the adoption of DevOps is likely to drive the demand for managed serverless platforms as organizations look for ways to effectively automate the development and deployment of applications.

There are also a number of other factors that are contributing to the growth of the Managed Serverless Platform Market Industry. These include the increasing adoption of AI and machine learning, the growing popularity of edge computing, and the growing need for improved security and compliance.

Managed Serverless Platform Market Segment Insights

Managed Serverless Platform Market Deployment Model Insights

The deployment model segment of the Managed Serverless Platform Market is classified into public cloud, private cloud, and hybrid cloud. The public cloud deployment model is expected to hold the largest market share during the forecast period due to its cost-effectiveness, scalability, and flexibility. It eliminates the need for organizations to invest in and manage their infrastructure, allowing them to focus on core business activities. The private cloud deployment model provides a dedicated and secure environment for organizations that prioritize data security and control.

It is expected to witness significant growth in industries such as healthcare and finance, where data security is paramount. The hybrid cloud deployment model combines the benefits of both public and private clouds, offering flexibility, scalability, and enhanced security. It is gaining traction among organizations looking to optimize their infrastructure and meet specific business requirements. The market revenue is projected to reach $11.6 billion by 2024, with a CAGR of 25.4%. Public cloud deployment is expected to account for over 60% of the market share, while private and hybrid cloud deployments are anticipated to grow at a faster pace in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Managed Serverless Platform Market Function Type Insights

The function type segment of the Managed Serverless Platform Market is anticipated to grow significantly in the coming years. In 2023, the market for Event-Driven Functions was valued at USD 1.23 billion and is projected to reach USD 4.56 billion by 2032, exhibiting a CAGR of 18.2%. Scheduled Functions are also expected to witness substantial growth, with a market size of USD 0.98 billion in 2023 and a projected valuation of USD 3.89 billion by 2032, reflecting a CAGR of 17.9%. Backend Functions held a market value of USD 0.87 billion in 2023 and is anticipated to reach USD 3.47 billion by 2032, growing at a CAGR of 17.4%.

The Synchronous Functions segment is expected to grow from USD 0.76 billion in 2023 to USD 3.02 billion in 2032, with a CAGR of 17.1%. Asynchronous Functions are projected to expand from a market size of USD 0.65 billion in 2023 to USD 2.59 billion in 2032, exhibiting a CAGR of 16.8%.

Managed Serverless Platform Market Managed Services Insights

The Managed Services segment of the Managed Serverless Platform Market is projected to exhibit significant growth in the coming years, driven by the increasing adoption of serverless computing and the need for specialized services to manage and optimize serverless applications. The segment includes various sub-segments, such as Runtime Management, Scaling, Monitoring, Security, and Developer Tools, each addressing specific aspects of serverless application management. For instance, Runtime Management services help in optimizing the runtime environment for serverless applications, ensuring efficient resource utilization and cost optimization.

Scaling services enable automatic scaling of serverless applications based on demand, ensuring high availability and performance. Monitoring services provide real-time insights into the performance and health of serverless applications, allowing for proactive troubleshooting and issue resolution. Security services help in securing serverless applications by implementing access control, encryption, and other security measures. Developer Tools sub-segment offers specialized tools for developing, testing, and deploying serverless applications, simplifying the development process and improving productivity.

Overall, the Managed Services segment plays a crucial role in maximizing the benefits of serverless computing by providing comprehensive management and optimization services, contributing to the overall growth of the Managed Serverless Platform Market.

Managed Serverless Platform Market Market End User Insights

The Managed Serverless Platform Market segmentation by Market End User includes Large Enterprises, Small and Medium-sized Enterprises (SMEs), and Startups. In 2023, Large Enterprises held the largest market share, accounting for over 55% of the Managed Serverless Platform Market revenue. This is due to their need for scalability, flexibility, and cost-effectiveness. SMEs are also a significant market segment, with a growing demand for managed serverless platforms to support their digital transformation initiatives. Startups are also expected to contribute to the market growth as they increasingly adopt managed serverless platforms to reduce their operational costs and focus on innovation.

The Managed Serverless Platform Market is projected to grow significantly over the next few years, with a CAGR of 26.4% from 2024 to 2032. This growth is being driven by the increasing adoption of cloud computing, the growing need for agility and scalability, and the rising popularity of serverless computing.

Managed Serverless Platform Market Regional Insights

The Managed Serverless Platform Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to dominate the market due to the early adoption of cloud computing and the presence of major players such as AWS, Microsoft, and Google. Europe is expected to be the second-largest market due to the increasing demand for cloud-based solutions and the presence of established players such as IBM and SAP. APAC is expected to be the fastest-growing market due to the increasing adoption of cloud computing and the presence of emerging economies such as China and India.South America and MEA are expected to witness moderate growth due to the increasing adoption of cloud computing and the presence of emerging players.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Managed Serverless Platform Market Key Players And Competitive Insights

Major players in the Managed Serverless Platform Market industry are constantly striving to gain a competitive edge. The Managed Serverless Platform Market is characterized by intense competition, with leading Managed Serverless Platform Market players investing heavily in research and development to gain market share. The competitive landscape is constantly evolving, with new entrants and innovative technologies emerging. Leading Managed Serverless Platform Market players are also focusing on strategic partnerships and acquisitions to enhance their offerings and expand their customer base. The emphasis on cloud-based services, coupled with the drive towards digitalization, is expected to fuel Managed Serverless Platform Market development over the forecast period.

Consider the example of AWS, a leading player in the Managed Serverless Platform Market. AWS offers a range of serverless computing services, including AWS Lambda, AWS Fargate, and AWS Elastic Kubernetes Service (EKS). AWS has a strong customer base and a wide partner ecosystem. The company is continually expanding its offerings and investing in new technologies, such as machine learning and artificial intelligence, to meet the evolving needs of its customers. AWS's focus on innovation and customer satisfaction has helped it maintain its position as a leader in the Managed Serverless Platform Market.

Another leading player in the Managed Serverless Platform Market is Microsoft. Microsoft offers Azure Functions, a serverless computing platform that allows developers to build and run applications without managing infrastructure. Azure Functions is part of Microsoft's Azure cloud platform, which offers a comprehensive suite of services for building, deploying, and managing applications. Microsoft is investing heavily in Azure Functions and other serverless technologies to support its customers' digital transformation initiatives.

Key Companies in the Managed Serverless Platform Market Include

• IBM Cloud


• Salesforce


• NTT


• Microsoft Azure


• HPE


• Cloudreach


• Verizon


• Google Cloud


• Alibaba Cloud


• Templar


• Amazon Web Services


• Fujitsu


• SAP


• Rackspace


• Oracle Cloud

Managed Serverless Platform Market Industry Developments

- Amazon Web Services (AWS) announced the general availability of AWS Lambda SnapStart, a new feature that significantly reduces the cold start time of Lambda functions. This will make serverless applications more responsive and cost-effective.- Microsoft Azure introduced Azure Container Apps, a new service that simplifies the deployment and management of containerized applications. Azure Container Apps can be used to run serverless functions, microservices, and web applications.- Google Cloud launched Cloud Functions for Firebase, a new service that makes it easy to build and deploy serverless functions that are triggered by Firebase events. Cloud Functions for Firebase can be used to build a variety of applications, such as real-time chat, push notifications, and data processing.

These developments indicate that the Managed Serverless Platform Market is continuing to grow and evolve. Serverless platforms offer a number of advantages over traditional hosting options, such as reduced costs, improved scalability, and faster development times. As a result, serverless platforms are becoming increasingly popular with businesses of all sizes.

Managed Serverless Platform Market Segmentation Insights

• 
  

  Managed Serverless Platform Market Deployment Model Outlook

  
  
  
  
  • Public Cloud
  
  
  • Private Cloud
  
  
  • Hybrid Cloud
  
  
  
  

• 
  

  Managed Serverless Platform Market Function Type Outlook

  
  
  
  
  • Event-Driven Functions
  
  
  • Scheduled Functions
  
  
  • Backend Functions
  
  
  • Synchronous Functions
  
  
  • Asynchronous Functions
  
  
  
  

• 
  

  Managed Serverless Platform Market Managed Services Outlook

  
  
  
  
  • Runtime Management
  
  
  • scaling
  
  
  • Monitoring
  
  
  • Security
  
  
  • Developer Tools
  
  
  
  

• 
  

  Managed Serverless Platform Market Market End User Outlook

  
  
  
  
  • Large Enterprises
  
  
  • Small and Medium-sized Enterprises (SMEs)
  
  
  • Startups
  
  
  
  

• 
  

  Managed Serverless Platform Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia-Pacific
  
  
  • Middle East and Africa