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    US Serverless Architecture Market

    ID: MRFR/ICT/12902-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    US Serverless Architecture Market Research Report By Application (Web Applications, Mobile Applications, API Backend, IoT Applications, Data Processing), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Service Type (Function as a Service, Backend as a Service, Database as a Service, Event Streaming) and By End User (Small and Medium Enterprises, Large Enterprises, Startups)-Forecast to 2035

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    US Serverless Architecture Market Infographic
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    US Serverless Architecture Market Summary

    As per MRFR analysis, the US serverless architecture market size was estimated at 2640.0 USD Million in 2024. The US serverless architecture market is projected to grow from 2933.04 USD Million in 2025 to 8403.36 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 11.1% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US serverless architecture market is experiencing robust growth driven by technological advancements and evolving business needs.

    • The largest segment in the US serverless architecture market is the application development segment, which continues to expand rapidly.
    • The fastest-growing segment is expected to be the data processing segment, reflecting the increasing demand for real-time analytics.
    • Hybrid cloud solutions are gaining traction as organizations seek to balance flexibility and control in their IT environments.
    • Cost efficiency and resource optimization are major drivers propelling the adoption of serverless architecture in the US market.

    Market Size & Forecast

    2024 Market Size 2640.0 (USD Million)
    2035 Market Size 8403.36 (USD Million)

    Major Players

    Amazon Web Services (US), Microsoft (US), Google (US), IBM (US), Oracle (US), Alibaba Cloud (CN), Red Hat (US), Salesforce (US), Cloudflare (US)

    US Serverless Architecture Market Trends

    The serverless architecture market is currently experiencing a notable transformation, driven by the increasing demand for efficient and scalable computing solutions. Organizations are increasingly adopting this model to streamline operations, reduce costs, and enhance agility. This shift appears to be influenced by the growing need for businesses to respond swiftly to market changes and customer demands. As a result, serverless architecture is becoming a preferred choice for developers and enterprises alike, enabling them to focus on core functionalities without the burden of managing infrastructure. Furthermore, the integration of advanced technologies such as artificial intelligence and machine learning into serverless platforms is likely to enhance their capabilities, making them even more appealing to a diverse range of industries. In addition, the serverless architecture market is witnessing a rise in the adoption of hybrid cloud environments. This trend suggests that organizations are looking to combine the benefits of both public and private clouds, allowing for greater flexibility and control over their resources. The emphasis on security and compliance is also becoming increasingly prominent, as businesses seek to protect sensitive data while leveraging the advantages of serverless solutions. Overall, the current landscape indicates a robust growth trajectory for the serverless architecture market, with numerous opportunities for innovation and development in the coming years.

    Increased Adoption of Hybrid Cloud Solutions

    Organizations are increasingly integrating serverless architecture with hybrid cloud environments. This trend indicates a desire for flexibility, allowing businesses to utilize both public and private cloud resources effectively. Such an approach may enhance operational efficiency and provide better control over data management.

    Focus on Security and Compliance

    As the serverless architecture market evolves, there is a growing emphasis on security measures and compliance standards. Businesses are prioritizing the protection of sensitive information while leveraging serverless solutions, suggesting a shift towards more secure deployment practices.

    Integration of Advanced Technologies

    The incorporation of artificial intelligence and machine learning into serverless platforms is becoming more prevalent. This trend indicates that organizations are seeking to enhance the capabilities of their applications, potentially leading to improved performance and innovative solutions.

    US Serverless Architecture Market Drivers

    Scalability and Flexibility

    Scalability and flexibility are critical drivers propelling the serverless architecture market forward. Businesses are increasingly drawn to serverless solutions due to their ability to automatically scale applications in response to varying workloads. This capability is particularly advantageous for companies experiencing fluctuating demand, as it allows them to handle spikes in traffic without the need for manual intervention. According to recent data, approximately 70% of organizations report that scalability is a primary factor in their decision to adopt serverless technologies. Additionally, the flexibility offered by serverless architectures enables developers to focus on writing code rather than managing infrastructure, which can lead to faster deployment times and improved time-to-market for new applications. This dynamic is likely to enhance the competitive edge of businesses utilizing serverless solutions in the evolving digital landscape.

    Enhanced Developer Productivity

    The serverless architecture market is significantly influenced by the drive for enhanced developer productivity. By abstracting the underlying infrastructure, serverless platforms allow developers to concentrate on writing and deploying code without the complexities of server management. This shift can lead to a reduction in development time by as much as 40%, enabling teams to deliver applications more rapidly. Furthermore, the integration of serverless frameworks with popular development tools and environments fosters a more streamlined workflow, which is appealing to organizations aiming to innovate quickly. As businesses increasingly prioritize agility and speed in their software development processes, the serverless architecture market is poised for growth, as it aligns with the need for efficient and effective development practices.

    Cost Efficiency and Resource Optimization

    The serverless architecture market is experiencing a notable shift towards cost efficiency and resource optimization. Organizations are increasingly adopting serverless models to reduce operational costs associated with traditional server management. By leveraging serverless solutions, companies can eliminate the need for provisioning and maintaining servers, which can lead to savings of up to 30% in infrastructure costs. This trend is particularly pronounced among small to medium-sized enterprises (SMEs) that seek to maximize their IT budgets. Furthermore, the pay-as-you-go pricing model inherent in serverless architectures allows businesses to only pay for the compute resources they actually use, further enhancing financial efficiency. As a result, the serverless architecture market is likely to see continued growth as more organizations recognize the financial benefits of this approach.

    Growing Demand for Real-Time Data Processing

    The growing demand for real-time data processing is a pivotal driver in the serverless architecture market. Organizations are increasingly seeking solutions that can handle large volumes of data in real-time, particularly in sectors such as finance, e-commerce, and IoT. Serverless architectures facilitate this need by providing the capability to process data streams efficiently without the overhead of managing servers. Recent statistics indicate that around 60% of enterprises are investing in real-time analytics solutions, which often leverage serverless technologies. This trend is likely to continue as businesses recognize the value of timely insights for decision-making and customer engagement. Consequently, the serverless architecture market is expected to expand as more organizations adopt these solutions to meet their real-time processing needs.

    Increased Focus on Innovation and Experimentation

    An increased focus on innovation and experimentation is driving growth in the serverless architecture market. Organizations are increasingly adopting serverless models to foster a culture of experimentation, allowing teams to test new ideas and features without the constraints of traditional infrastructure. This approach not only accelerates the development cycle but also encourages creativity among developers. Data suggests that companies utilizing serverless architectures are 50% more likely to experiment with new technologies and methodologies. As businesses strive to remain competitive in a rapidly evolving market, the ability to innovate quickly becomes paramount. Thus, the serverless architecture market is likely to benefit from this trend, as more organizations seek to leverage serverless solutions to enhance their innovation capabilities.

    Market Segment Insights

    By Application: Web Applications (Largest) vs. IoT Applications (Fastest-Growing)

    In the US serverless architecture market, web applications hold the largest share, driven by businesses seeking efficient and scalable solutions. API backend services are also significant, facilitating seamless integrations and supporting both web and mobile applications. Mobile applications, while substantial, have a smaller market share compared to web applications, which dominate due to their broad user base. IoT applications, although currently less prevalent, are rapidly gaining traction as companies realize the potential for transformation through real-time data processing and connectivity. Over recent years, the growth of the US serverless architecture market has been propelled by the increasing demand for agility and cost-efficiency in application development. Particularly, IoT applications are emerging as the fastest-growing segment, spurred by advancements in connectivity technologies and the rise of the Internet of Things. The desire for real-time data processing and the proliferation of smart devices have further fueled this trend, highlighting the shift towards serverless computing where infrastructure management is minimized and scalability is maximized.

    Web Applications (Dominant) vs. IoT Applications (Emerging)

    Web applications remain the dominant force in the US serverless architecture market due to their extensive use across various sectors. Their ability to scale seamlessly and handle increased traffic without significant upfront infrastructure investment makes them attractive to businesses. Conversely, IoT applications are recognized as an emerging segment, poised for significant growth as organizations harness the capabilities of connected devices. The shift towards serverless solutions in IoT enables seamless integration and real-time analytics, thereby enhancing operational efficiencies. As businesses continue to explore IoT solutions, the market positioning of both web and IoT applications highlights the adaptability and evolving nature of the serverless architecture landscape.

    By Deployment Model: Public Cloud (Largest) vs. Private Cloud (Fastest-Growing)

    The US serverless architecture market is witnessing a prominent shift in deployment models, with Public Cloud solutions leading in market share. This segment benefits from extensive scalability, accessibility, and a lower cost of ownership, appealing to a broad spectrum of end-users across various industries. Meanwhile, Private Cloud is gaining traction among organizations seeking heightened security and compliance, though it holds a smaller overall segment share compared to Public Cloud. In terms of growth trends, Private Cloud is the fastest-growing segment as more enterprises transition to serverless models to benefit from its enhanced security features and customization options. The increasing demand for hybrid solutions is also influencing this trend, as organizations are looking for flexibility between on-premises and cloud resources. The growing acceptance of serverless technologies across sectors, combined with a favorable regulatory environment, is propelling this segment forward.

    Public Cloud (Dominant) vs. Private Cloud (Emerging)

    Public Cloud solutions dominate the deployment model landscape in the US serverless architecture market, offering unmatched scalability and reducing operational costs for businesses. Companies utilizing Public Cloud services benefit from the flexibility and ease of deployment, allowing them to scale resources up or down seamlessly according to demand. Meanwhile, Private Cloud is emerging rapidly as organizations prioritize data security and regulatory compliance, particularly in industries dealing with sensitive information. This model enables organizations to have more control over their infrastructure while still harnessing the advantages of serverless computing. As more companies recognize the significant benefits of both models, the interaction between Public and Private Clouds is becoming a pivotal aspect of their overall cloud strategies.

    By Service Type: Function as a Service (Largest) vs. Backend as a Service (Fastest-Growing)

    In the US serverless architecture market, the distribution of market share among various service types reveals that Function as a Service (FaaS) occupies the largest segment due to its extensive adoption for building applications without managing servers. This segment is closely followed by Backend as a Service (BaaS), Database as a Service (DBaaS), and Event Streaming. Each service caters to specific needs, enhancing flexibility and scalability in application development, yet FaaS remains the preferred choice for many developers. Recent trends indicate a robust growth trajectory for Backend as a Service, which is emerging as a key player within this segment. Factors driving this growth include the increasing demand for rapid application development and the need for seamless integration with third-party services. This trend reflects a broader shift towards microservices and event-driven architectures, enabling businesses to optimize their operations and innovate faster, reinforcing Backend as a Service's position as a vital component in modern application ecosystems.

    Function as a Service (Dominant) vs. Backend as a Service (Emerging)

    Function as a Service (FaaS) is leading the market, providing developers with an environment to run code in response to events without provisioning servers. This model significantly reduces operational overhead, allowing teams to focus on writing and deploying code. As businesses increasingly adopt this model, FaaS becomes synonymous with agility and efficiency. In contrast, Backend as a Service (BaaS) is emerging, offering server-side functionalities through API integrations, which appeal to developers looking to accelerate time-to-market. BaaS helps streamline development processes by managing cloud infrastructure and backend services, filling a crucial gap for companies aiming to innovate rapidly while minimizing resource costs.

    By End User: Small and Medium Enterprises (Largest) vs. Startups (Fastest-Growing)

    In the US serverless architecture market, Small and Medium Enterprises (SMEs) dominate the end user segment, accounting for a significant share due to their agility and ability to leverage serverless solutions for optimizing costs. They are particularly drawn to the flexibility and scalability offered by serverless architectures, allowing them to focus more on core business activities while reducing overheads. Following closely are Large Enterprises, which adopt serverless solutions for enhancing operational efficiencies, although they face challenges in transitioning from legacy systems. Startups represent the fastest-growing segment in this market, fueled by their innovative approaches and drive to minimize infrastructure costs. This demographic is increasingly adopting serverless architectures to quickly scale applications without the heavy burden of managing underlying infrastructure. The surge in digitalization and the need for rapid deployment capabilities are key factors contributing to their growth, as well as the rising demand for new applications that cater to their unique market needs.

    Small and Medium Enterprises: Dominant vs. Startups: Emerging

    Small and Medium Enterprises (SMEs) are recognized as the dominant force in the end user segment of the US serverless architecture market, driven by their desire for cost efficiency and operational flexibility. These enterprises leverage serverless solutions to enhance agility and achieve faster time-to-market for their products. Conversely, Startups, identified as the emerging segment, are characterized by their innovative spirit and adaptability. They are rapidly adopting serverless architectures, enabling them to push out new features and applications with minimal upfront investment in infrastructure. The combination of speed and continuous integration practices positions startups to harness serverless technology effectively, presenting them with competitive advantages in a fast-paced market.

    Get more detailed insights about US Serverless Architecture Market

    Key Players and Competitive Insights

    The serverless architecture market is currently characterized by intense competition and rapid innovation, driven by the increasing demand for scalable and cost-effective cloud solutions. Major players such as Amazon Web Services (US), Microsoft (US), and Google (US) are at the forefront, each adopting distinct strategies to enhance their market presence. Amazon Web Services (US) continues to lead with a focus on expanding its serverless offerings, emphasizing integration with machine learning and AI capabilities. Microsoft (US) is strategically positioning itself through partnerships and acquisitions, enhancing its Azure platform's functionality. Google (US) is leveraging its strengths in data analytics and machine learning to differentiate its serverless solutions, indicating a trend towards specialization in service offerings.

    The competitive structure of the market appears moderately fragmented, with a mix of established giants and emerging players. Key tactics such as localizing services and optimizing supply chains are prevalent among these companies, allowing them to respond swiftly to regional demands. The collective influence of these major players shapes the market dynamics, fostering an environment where innovation is paramount, and customer-centric solutions are prioritized.

    In October 2025, Amazon Web Services (US) announced the launch of its new serverless framework designed to simplify the deployment of machine learning models. This strategic move is likely to enhance AWS's competitive edge by attracting data scientists and developers seeking efficient solutions for AI integration. The emphasis on machine learning aligns with broader industry trends towards automation and intelligent applications, potentially increasing AWS's market share in the serverless domain.

    In September 2025, Microsoft (US) unveiled a significant update to its Azure Functions, introducing enhanced support for event-driven architectures. This update is crucial as it positions Azure as a more robust option for enterprises looking to implement serverless solutions. By focusing on event-driven capabilities, Microsoft (US) appears to be responding to the growing demand for real-time data processing, which could solidify its standing in the competitive landscape.

    In August 2025, Google (US) expanded its Cloud Run service to include support for additional programming languages, thereby broadening its appeal to developers. This strategic enhancement is indicative of Google's commitment to fostering a diverse ecosystem, which may attract a wider range of users and applications. By catering to various programming preferences, Google (US) is likely to enhance user engagement and retention, further intensifying competition in the serverless market.

    As of November 2025, the competitive trends in the serverless architecture market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaborative solutions. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future differentiation will hinge on the ability to innovate and deliver tailored solutions that meet evolving customer needs.

    Key Companies in the US Serverless Architecture Market market include

    Industry Developments

    In the recent developments within the US Serverless Architecture Market, significant growth is evident as companies like Amazon Web Services, Microsoft, and Google continue to enhance their serverless offerings to meet increasing demand among enterprises seeking scalable solutions.

    Twilio, SAP, and Red Hat have seen expansions in their serverless capabilities, reflecting the turning tide towards more flexible architectures. Notably, Oracle announced in September 2023 its intention to enhance its Autonomous Database service to better support serverless computing.

    A merger of interest was the acquisition of a startup by Salesforce in October 2023, which aims to bolster its cloud-native application development capabilities.

    Meanwhile, Cloudflare and Netlify are making strides towards optimizing performance with serverless functions. The overall market valuation has surged, primarily driven by increased adoption from startups and established companies alike in the US.

    Recent data from government sources indicate that the serverless architecture sector within the US is projected to grow by over 25% annually through 2025, spurred on by the push for digital transformation across multiple industries.

    The increasing focus on security and compliance also plays a critical role in shaping this evolving market landscape.

    Future Outlook

    US Serverless Architecture Market Future Outlook

    The serverless architecture market is projected to grow at 11.1% CAGR from 2024 to 2035, driven by increased demand for scalability, cost efficiency, and rapid deployment.

    New opportunities lie in:

    • Development of industry-specific serverless solutions for finance and healthcare sectors.
    • Integration of AI-driven analytics tools to enhance serverless application performance.
    • Expansion of serverless platforms to support multi-cloud environments for greater flexibility.

    By 2035, the serverless architecture market is expected to be a cornerstone of digital transformation strategies.

    Market Segmentation

    US Serverless Architecture Market End User Outlook

    • Small and Medium Enterprises
    • Large Enterprises
    • Startups

    US Serverless Architecture Market Application Outlook

    • Web Applications
    • Mobile Applications
    • API Backend
    • IoT Applications
    • Data Processing

    US Serverless Architecture Market Service Type Outlook

    • Function as a Service
    • Backend as a Service
    • Database as a Service
    • Event Streaming

    US Serverless Architecture Market Deployment Model Outlook

    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

    Report Scope

    MARKET SIZE 2024 2640.0(USD Million)
    MARKET SIZE 2025 2933.04(USD Million)
    MARKET SIZE 2035 8403.36(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 11.1% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled Amazon Web Services (US), Microsoft (US), Google (US), IBM (US), Oracle (US), Alibaba Cloud (CN), Red Hat (US), Salesforce (US), Cloudflare (US)
    Segments Covered Application, Deployment Model, Service Type, End User
    Key Market Opportunities Growing demand for scalable solutions drives innovation in the serverless architecture market.
    Key Market Dynamics Growing demand for scalable solutions drives innovation and competition in the serverless architecture market.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Serverless Architecture Market in 2024?

    The US Serverless Architecture Market is expected to be valued at 2.65 USD Billion in 2024.

    What is the projected market size for the US Serverless Architecture Market by 2035?

    By 2035, the US Serverless Architecture Market is projected to reach a valuation of 8.0 USD Billion.

    What is the compound annual growth rate (CAGR) for the US Serverless Architecture Market from 2025 to 2035?

    The expected CAGR for the US Serverless Architecture Market from 2025 to 2035 is 10.566%.

    Which application segment is projected to dominate the US Serverless Architecture Market by 2035?

    The Web Applications segment is projected to dominate the market, expected to reach 3.4 USD Billion by 2035.

    What will be the market size for Mobile Applications in the US Serverless Architecture Market by 2035?

    The Mobile Applications segment is projected to grow to 2.3 USD Billion by 2035.

    Who are the major players in the US Serverless Architecture Market?

    Some of the major players in the market include Oracle, Twilio, Google, and Amazon Web Services.

    What is the anticipated market value for Data Processing applications in the US Serverless Architecture Market by 2035?

    The Data Processing applications segment is anticipated to reach a valuation of 0.3 USD Billion by 2035.

    How is the IoT Applications segment expected to grow in the US Serverless Architecture Market by 2035?

    The IoT Applications segment is expected to grow to 0.8 USD Billion by 2035.

    What growth opportunities exist within the US Serverless Architecture Market?

    The market presents growth opportunities driven by increasing adoption of cloud services and demand for scalable applications.

    What are the key challenges faced by the US Serverless Architecture Market?

    The key challenges include security concerns and ensuring compliance with regulatory standards.

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