What Transformation Has the Function-as-a-Service Market Undergone?
The function-as-a-service market has seen considerable growth due to a variety of factors.
• The market size of function-as-a-service has witnessed swift expansion in the past few years. The market, which was valued at $11.15 billion in 2024, is projected to surge to $13.11 billion in 2025, growing at a compound annual growth rate (CAGR) of 17.5%.
The notable growth during the historic phase is believed to be a result of the popularity of serverless computing, the transition to microservices architecture, the requirement for scalability and flexibility, emphasis on cost-effectiveness, and the simplification of development and deployment.
How Will The Function-as-a-Service Market Size Evolve In The Foreseeable Future?
The function-as-a-service market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of function-as-a-service is anticipated to witness tremendous growth in the upcoming years. By 2029, it is projected to expand to $29.28 billion, with a compound annual growth rate (CAGR) of 22.2%.
The growth during the forecast period can be ascribed to innovative progress and evolution of functionality, its growing acceptance across various sectors, its increased role in IoT and AI integration, edge computing integration, and the expansion of service providers and their offerings. The forecast period will be marked by significant trends such as endeavors towards cost reduction, integration with automation and CI/CD, the creation of serverless platforms, upgradation of security and compliance protocols, continual enhancements in scalability and performance, along with integration with edge computing.
Which Drivers Are Accelerating Growth In The Function-as-a-Service Market?
The surge in app creation activities is anticipated to propel the function-as-a-service (FaaS) market's expansion. Applications are gaining more traction due to their user-friendly nature and improved access. As the need for apps intensifies, the requirement for app development frameworks like paid cloud or function-as-a-service also escalates. This serverless backend procedure develops a computer program or a group of programs to execute the tasks assigned by the client. This burgeoning demand for apps has led to a rise in the utilization of FaaS services. As per the store stats 2022 report by Swiss software firm 42matters AG, an average of 1,300 new Android apps are launched daily on the Google Play Store, and around 1,130 new iOS apps are made available daily in the Apple App Store. Consequently, the boost in app creation activities fuels the growth of the function-as-a-service market.
What Are The Core Segments Of The Global Function-as-a-Service Market?
The function-as-a-service market covered in this report is segmented –
1) By Service: Tablets, Smartphones, Gaming Consoles, Laptops Or PCs
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Enterprise: Small And Medium Enterprises, Large Enterprises
4) By End-User: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunication, Retail, Healthcare And Life Sciences, Other End-Users (Media And Entertainment, Government, Educational Institutions)
Subsegments:
1) By Tablets: IOS Tablets, Android Tablets, Windows Tablets
2) By Smartphones: IOS Smartphones, Android Smartphones, Feature Phones
3) By Gaming Consoles: Home Consoles, Handheld Consoles, Cloud Gaming Services
4) By Laptops Or PCs: Ultrabooks, Gaming Laptops, Workstations
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Which Emerging Trends Are Reshaping The Function-as-a-Service Market Size?
In the function-as-a-service industry, major participants are prioritizing collaborations and partnerships in an effort to achieve common objectives that can be more efficiently attained by merging their skills, assets, or know-how. To illustrate, Amazon Web Services Inc. (AWS), an American cloud services firm, cemented its alliance with the New Zealand government in March 2023. This move affirmed their commitment to deliver cloud computing education to 100,000 people via 600 complimentary online courses. This Memorandum of Understanding (MoU) sets the foundation for ongoing cooperation between AWS and the New Zealand government, with a focus on cloud adoption, technological innovation, advanced digital capabilities, sustainability, and cybersecurity.
Who Are the Key Players in the Function-as-a-Service Market?
Major companies operating in the function-as-a-service market include:
• Google Inc.
• Oracle Corporation
• Microsoft Corporation
• Amazon Web Services
• SAP SE
• International Business Machines Corporation
• TIBCO Software Inc.
• Fiorano Software and Affiliates
• Dynatrace LLC
• FaunaDB
• Infosys Ltd.
• VMware Inc.
• Red Hat Inc.
• Rackspace Inc.
• Joyent Inc.
• Iron.io Inc.
• OpenFaaS Ltd.
• Nuweba
• Twistlock Ltd.
• StackPath LLC
• Nimbella Inc.
• TriggerMesh Inc.
• Serverless Inc.
• Platform9 Systems Inc.
• Auth0 Inc.
• Cloudflare Inc.
• Kong Inc.
• Fission Labs Inc.
• Kubeless Inc.
• Bitnami Inc.
What are the Regional Insights into the Function-as-a-Service Market?
North America was the largest region in the function-as-a-service market in 2024.Asia-Pacific expected to be the fastest-growing region in the forecast period. The regions covered in the function-as-a-service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
