Serverless Computing Market Overview
As per MRFR analysis, the Serverless Computing Market Size was estimated at 13.06 (USD Billion) in 2022.
The Serverless Computing Market Industry is expected to grow from 16.32(USD Billion) in 2023 to 120.91 (USD Billion) by 2032. The Serverless Computing Market CAGR (growth rate) is expected to be around 24.92% during the forecast period (2024 - 2032).
Key Serverless Computing Market Trends Highlighted
The serverless computing market is currently in high demand due to its cost-effectiveness, scalability, and ease of use. Businesses are increasingly moving towards serverless architectures to modernize their IT infrastructure while reducing operational expenses. The increase in cloud-native applications and the need for agile development have led to wide adoption of serverless computing.
However, key growth opportunities are available through expanding serverless offerings beyond cloud vendors. Examples of this include edge computing, acceleration of 5G networks and integration of Artificial Intelligence (AI) as well as Machine Learning (ML), which creates new uses for serverless computing. In addition, industries like healthcare, financial services and manufacturing are witnessing increased uptake of serverless architectures where scalability, flexibility and data security are critical.
Some examples include the emergence of platforms that support multiple cloud providers within the server-less domain, enabling organizations to take advantage of a combination of agreeable features between vendors and their best pricing models. Besides that, there has been an upsurge in development tools, such as frameworks, that have made it simpler for developers to build or deploy these apps, hence increasing the number of people who can write them easily.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Serverless Computing Market Drivers
Rising Adoption of Cloud Computing
The increasing adoption of cloud computing services is driving the growth of the Serverless Computing Market Industry. Businesses are shifting their IT infrastructure to the cloud to benefit from scalability, flexibility, and cost-effectiveness. Serverless computing complements cloud computing by eliminating the need to manage servers, allowing businesses to focus on developing and deploying applications without worrying about infrastructure.As cloud computing continues to gain traction, the demand for serverless computing is expected to surge, driving market growth.
Growing Need for Agile and Scalable Applications
The increasing demand for agile and scalable applications is another major driver of the Serverless Computing Market Industry. Businesses need to respond quickly to changing market demands and customer expectations. Serverless computing enables developers to build applications that can scale automatically, handling sudden spikes in traffic without compromising performance. This scalability and agility are essential for businesses operating in dynamic and competitive environments.
Cost Optimization and Efficiency
Serverless computing offers significant cost optimization and efficiency benefits, contributing to its growing adoption. With serverless, businesses only pay for the resources they consume, eliminating the need for upfront investments in servers and infrastructure. This pay-as-you-go model reduces IT costs and allows businesses to optimize their resource utilization. Additionally, serverless computing simplifies operations and maintenance, freeing up IT teams to focus on strategic initiatives and innovation.
Serverless Computing Market Segment Insights
Serverless Computing Market Deployment Model Insights
Public cloud, private cloud, and hybrid cloud are the three deployment models for serverless computing. The public cloud deployment model is the most popular, as it offers scalability, flexibility, and cost-effectiveness. The private cloud deployment model offers more control and security than the public cloud, but it is also more expensive.The hybrid cloud deployment model offers a combination of the benefits of public and private clouds.
It allows organizations to deploy serverless applications in a public cloud while maintaining control and security over sensitive data in a private cloud. The choice of deployment model depends on the specific needs of the organization. Organizations that need scalability, flexibility, and cost-effectiveness should consider the public cloud. Organizations that need more control and security should consider the private cloud.
Organizations that need a combination of benefits should consider the hybrid cloud.The key factors driving the growth of the public cloud deployment model include scalability, flexibility, and cost-effectiveness. The key factors driving the growth of the private cloud deployment model include control and security. The key factors driving the growth of the hybrid cloud deployment model include the ability to combine the benefits of public and private clouds.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Serverless Computing Market Service Type Insights
Service Type Segment Insights and Overview The Serverless Computing Market segmentation by service type includes Function-as-a-Service (FaaS), Backend-as-a-Service (BaaS), Microservices, and Event-Driven Computing. FaaS held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growing adoption of cloud-native applications, serverless frameworks, and microservices architectures is driving the demand for FaaS.
BaaS is witnessing significant growth due to its ability to simplify backend development and reduce operational costs.Microservices are gaining traction as enterprises embrace a distributed and scalable architecture for their applications. Event-Driven Computing is expected to exhibit a notable growth rate as organizations seek to leverage event-driven architectures for real-time data processing and analytics.
Serverless Computing Market Industry Vertical Insights
The Serverless Computing Market segmentation by Industry Vertical into Financial Services, Healthcare, Retail, Manufacturing, and Media and Entertainment offers critical insights into the specific needs and adoption patterns of serverless computing across various industries. In 2023, the Financial Services sector held a significant share of the Serverless Computing Market. The industry's need for secure and scalable infrastructure, coupled with the growing adoption of cloud-based services, drives market growth.
Serverless computing enables financial institutions to modernize their systems, reduce costs, and improve agility, contributing to the segment's growth.The Healthcare industry is also witnessing a surge in serverless computing adoption, expected to reach a valuation of USD 15.23 billion by 2024. The demand for personalized medicine, remote patient monitoring, and data analytics is fueling the market's expansion. Serverless computing provides healthcare providers with a cost-effective and flexible way to develop and deploy applications that handle sensitive patient data.
The Retail sector is leveraging serverless computing to enhance customer experiences and optimize operations. With a projected market value of USD 12.69 billion in 2024, the segment is driven by the need for personalized recommendations, real-time inventory management, and seamless checkout processes.Serverless computing enables retailers to quickly scale their applications to meet seasonal demands and provide a better customer experience. In the Manufacturing industry, serverless computing is gaining traction for its ability to automate processes, improve efficiency, and reduce costs. The segment is expected to reach a valuation of USD 9.87 billion by 2024.
Serverless computing allows manufacturers to build applications that monitor production lines, optimize supply chains, and predict maintenance needs, leading to increased productivity and reduced downtime.The Media and Entertainment industry is also embracing serverless computing to create and deliver immersive experiences. With a projected market size of USD 7.42 billion in 2024, the segment is driven by the demand for on-demand content, personalized recommendations, and interactive experiences. Serverless computing enables media companies to quickly adapt to changing consumer preferences and deliver high-quality content across multiple devices.
Serverless Computing Market Organization Size Insights
The Serverless Computing Market is segmented by organization size into Small and Medium Enterprises (SMEs) and Large Enterprises. Among these segments, Large Enterprises held the largest market share in 2023, accounting for approximately 65% of the Serverless Computing Market revenue.
This dominance is attributed to the high adoption of serverless computing by large enterprises to enhance their operational efficiency, reduce IT costs, and accelerate innovation. SMEs, on the other hand, are expected to witness significant growth in the coming years due to the increasing awareness of the benefits of serverless computing and the availability of cost-effective solutions tailored to their needs.
Serverless Computing Market Application Area Insights
The Serverless Computing Market is segmented by Application Area into Web and Mobile App Development, Data Analytics, AI and Machine Learning, DevOps and Continuous Delivery, and Cloud Migration. Among these, Web and Mobile App Development segment is expected to witness the highest growth rate during the forecast period owing to the increasing demand for serverless computing solutions for developing and deploying web and mobile applications.
The Data Analytics segment is also expected to grow significantly due to the growing adoption of serverless computing for analyzing large datasets in real-time.The AI and Machine Learning segment is expected to witness substantial growth due to the increasing demand for serverless computing for training and deploying AI and ML models.
The DevOps and Continuous Delivery segment is expected to grow steadily due to the increasing adoption of serverless computing for automating and streamlining DevOps processes. The Cloud Migration segment is expected to grow significantly as enterprises are increasingly migrating their applications and workloads to the cloud. Overall, the Serverless Computing Market is expected to grow at a CAGR of 24.92% during the forecast period, reaching a valuation of USD 120.91 billion by 2032.
Serverless Computing Market Regional Insights
The Serverless Computing Market segmentation by region unveils distinct market dynamics and growth trajectories. North America dominates the market with a significant share, driven by the presence of leading cloud providers, early adoption of serverless technologies, and a thriving startup ecosystem. Europe follows closely with a sizable market share, owing to the increasing adoption of serverless computing in industries such as automotive, healthcare, and retail.
The APAC region is poised for substantial growth, fueled by the rapidly expanding cloud market and government initiatives promoting digital transformation.South America and MEA exhibit promising growth potential as businesses recognize the benefits of serverless computing for cost optimization and innovation. These regions are expected to witness significant investments in serverless infrastructure and adoption across various industries in the coming years, contributing to the overall growth of the Serverless Computing Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Serverless Computing Market Key Players And Competitive Insights
Major players in the Serverless Computing Market are constantly striving to gain a competitive edge in the industry. They are investing heavily in research and development to create innovative solutions that cater to the evolving needs of customers. Leading Serverless Computing Market players are focusing on expanding their product portfolio and geographical reach through strategic partnerships and acquisitions.
The Serverless Computing Market industry is highly competitive, with a number of established players and emerging startups vying for market share. Serverless Computing Market development is driven by the increasing adoption of cloud computing and the growing demand for cost-effective and scalable solutions. The competitive landscape is expected to remain fragmented, with a number of players focusing on specific niches.Amazon Web Services (AWS) is a leading provider of serverless computing services.
The company offers a wide range of serverless products and services, including AWS Lambda, AWS Fargate, and AWS Step Functions. AWS has a strong track record of innovation and is constantly expanding its serverless offerings. The company has a large customer base and is well-positioned to continue to grow its market share in the years to come. Microsoft Azure is another major player in the serverless computing market.
The company offers a comprehensive suite of serverless products and services, including Azure Functions, Azure Container Instances, and Azure Logic Apps. Microsoft Azure is known for its reliability and scalability and has a large customer base across a variety of industries.Google Cloud Platform (GCP) is a leading provider of serverless computing services. The company offers a wide range of serverless products and services, including Google Cloud Functions, Google Cloud Run, and Google Cloud Scheduler. GCP has a strong focus on innovation and is constantly expanding its serverless offerings. The company has a large customer base and is well-positioned to continue to grow its market share in the years to come.
Key Companies in the Serverless Computing Market Include:
- Canonical
- Alibaba Cloud
- Rackspace
- HashiCorp
- Red Hat
- Oracle
- Microsoft
- IBM
- SAP
- Mirantis
- VMware
- Platform9
- Amazon Web Services
- Google Cloud
- Verizon
Serverless Computing Market Industry Developments
The serverless computing market is projected to reach USD 120.91 billion by 2032, exhibiting a CAGR of 24.92% during the forecast period (2024-2032). The growing adoption of cloud computing, the increasing popularity of microservices architectures, and the rising demand for serverless applications are the key factors driving the growth of the market.Recent news developments in the serverless computing market include the launch of new serverless platforms and services by major cloud providers such as AWS, Microsoft Azure, and Google Cloud.
These new offerings provide improved performance, scalability, and security features, making serverless computing more attractive to enterprises. Additionally, the growing adoption of serverless computing in industries such as healthcare, finance, and retail is expected to drive the market's growth in the coming years.
Serverless Computing Market Segmentation Insights
Serverless Computing Market Deployment Model Outlook
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- Public Cloud
- Private Cloud
- Hybrid Cloud
Serverless Computing Market Service Type Outlook
-
- Function-as-a-Service (FaaS)
- Backend-as-a-Service (BaaS)
- Microservices
- Event-Driven Computing
Serverless Computing Market Industry Vertical Outlook
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- Financial Services
- Healthcare
- Retail
- Manufacturing
- Media and Entertainment
Serverless Computing Market Organization Size Outlook
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- Small and Medium Enterprises (SMEs)
- Large Enterprises
Serverless Computing Market Application Area Outlook
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- Web and Mobile App Development
- Data Analytics
- AI and Machine Learning
- DevOps and Continuous Delivery
- Cloud Migration
Serverless Computing Market Regional Outlook
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-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
13.06(USD Billion) |
| Market Size 2023 |
16.32(USD Billion) |
| Market Size 2032 |
120.91(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
24.92% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Canonical, Alibaba Cloud, Rackspace, HashiCorp, Red Hat, Oracle, Microsoft, IBM, SAP, Mirantis, VMware, Platform9, Amazon Web Services, Google Cloud, Verizon |
| Segments Covered |
Deployment Model, Service Type, Industry Vertical, Organization Size, Application Area, Regional |
| Key Market Opportunities |
Cost Optimization Faster Time to Market Improved Scalability Enhanced Security Increased Developer Productivity |
| Key Market Dynamics |
Increasing demand for cloud-native applications Growing adoption of microservices architectures Need for improved scalability and flexibility Rise of serverless first development Focus on cost optimization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Serverless Computing Market is expected to reach a valuation of USD 16.32 billion in 2023.
The Serverless Computing Market is projected to grow at a CAGR of 24.92% from 2024 to 2032.
The Serverless Computing Market is expected to reach a valuation of USD 120.91 billion by 2032.
North America is expected to hold the largest market share in the Serverless Computing Market, followed by Europe and Asia Pacific.
Key applications of Serverless Computing include web and mobile application development, data processing and analytics, and Internet of Things (IoT) applications.
Key competitors in the Serverless Computing Market include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), IBM Cloud, and Oracle Cloud.
Key growth drivers of the Serverless Computing Market include the increasing adoption of cloud computing, the growing demand for agile and scalable applications, and the need for cost-effective IT solutions.
Key challenges faced by the Serverless Computing Market include security concerns, vendor lock-in, and the lack of skilled professionals.
Key trends shaping the Serverless Computing Market include the increasing adoption of serverless computing in enterprise applications, the emergence of new serverless computing platforms, and the growing popularity of serverless functions.
Serverless Computing is expected to revolutionize the IT industry by enabling the development and deployment of applications without the need for managing infrastructure. This will lead to significant cost savings, increased agility, and improved scalability for businesses.
