What Has Been the Growth of the Serverless Architecture Market So Far?
The serverless architecture market has seen considerable growth due to a variety of factors.
• The market size of serverless architecture has seen significant growth in the past few years. It is projected to increase from $14.57 billion in 2024 to $17.88 billion in 2025, with a compound annual growth rate (CAGR) of 22.8%.
This historic growth can be linked to advances in computing technology, cost-effectiveness and scalability, unhindered development and deployment, the dispensation of conventional methods, and an increased demand for automation and integration.
What Are the Future Growth Projections for the Serverless Architecture Market?
The serverless architecture market is expected to maintain its strong growth trajectory in upcoming years.
• The projected expansion of the serverless architecture market size is anticipated to be significant in the approaching years, expected to reach a value of $41.14 billion by 2029 with a compound annual growth rate (CAGR) of 23.2%.
The advancement during the forecast period is due to anticipated expansion of the market size including segmentation and growth across regions, increased acceptance across various sectors, superior scalability, and accelerated time-to-market, and development in end-user industries. The key trends anticipated during the forecast period comprise digital-centric business paradigms, progress in computing technology, enhanced vertical application, increasing adoption of DevOps, as well as geographical proliferation and investment.
What Are The Core Factors Supporting Growth In The Serverless Architecture Market?
The serverless architecture market's expansion is anticipated to be spurred by the increasing demand for serverless computing in DevOps operations. Serverless computing, a concept in cloud computing, facilitates developers to develop and launch applications on infrastructures maintained by third parties. This eradicates worries over capacity planning, management, configuration, maintenance, scaling of physical servers, and fault tolerance among virtual machines or containers. Serverless cloud computing boosts DevOps operations by allowing automatic scaling, minimizing operational complications, and accelerating the deployment of microservices. For instance, Infrastructure as a Service (IaaS) revenues surged by 29.7% to $120.3 billion in 2022, according to a report by AAG IT, a British IT services firm, in January 2024. In addition, more than 98% of companies utilize cloud services, which encompass SaaS applications and entirely cloud-native networks. Projections suggest a 23% increase in cloud infrastructure expenditure for 2023. Thus, the burgeoning demand for serverless computing in DevOps operations is fueling the progress of the serverless architecture market.
What Are The Major Segments Within The Global Serverless Architecture Market?
The serverless architecture market covered in this report is segmented –
1) By Service: Automation And Integration, Application Programming Interfaces (APIs) Management, Monitoring, Security, Support And Maintenance, Training And Consulting, Other Services
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organization: Large Enterprise, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Real-Time File And Stream Processing, Web Application Development, IoT Backend
5) By Vertical: Information Technology (IT) And Telecommunications, Banking, Financial Services And Insurance (BFSI), Retail, Healthcare, Government, Manufacturing, Media And Entertainment, Other Verticals
Subsegments:
1) By Automation And Integration: Workflow Automation, Event-Driven Automation
2) By Application Programming Interfaces (APIs) Management: API Gateway Services, API Lifecycle Management
3) By Monitoring: Performance Monitoring, Logging and Analytics
4) By Security: Access Control, Data Encryption
5) By Support And Maintenance: Technical Support, System Updates
6) By Training And Consulting: Implementation Consulting, Best Practices Training
7) By Other Services: Custom Development, Migration Services
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How Are New Trends Impacting The Size Of The Serverless Architecture Market?
Leading entities in the serverless architecture sector are embracing advanced technologies, including serverless solutions, to provide superior, cutting-edge features to their clients. A serverless solution is an innovative software architecture and deployment model that hands over the responsibilities of server management, provisioning, and maintenance completely to the cloud provider. Within this model, developers are able to concentrate on generating code specifically for certain functions or services, with no need to oversee the supporting infrastructure. For example, in May 2022, Digital Ocean Holdings Inc., an American tech firm and cloud infrastructure service, introduced a novel serverless solution called Digital Ocean Functions, created for both developers and small-to-medium businesses. This solution enables developers to swiftly build or grow their applications, freeing them of infrastructure concerns. It offers quick, scalable, and cost-effective solutions, helping organizations rapidly develop website and mobile-app applications, seamlessly scale, and save costs by cutting out payment for idle resources.
Who Are the Key Players In The Serverless Architecture Market?
Major companies operating in the serverless architecture market are:
• Google LLC
• Microsoft Corporation
• Amazon Web Services Inc.
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Broadcom Inc.
• Salesforce.com Inc
• NTT Data Corporation
• VMware Inc
• Alibaba Cloud
• Palo Alto Networks Inc
• Twilio Inc
• Red Hat Inc
• Rackspace Technology Inc
• Tibco Software
• Cloudflare Inc
• Dynatrace Inc.
• Auth0 Inc
• Joyent Inc
• Spotinst Ltd
• Fiorano Software Inc.
• Platform9 Systems Inc
• PubNub Inc
• OpenStack Foundation
• Iron.io Inc
• Nimbella Corporation
• Stackery Inc
• Computer Associates International Inc.
• OpenLegacy Inc
What Is The Most Dominant Region In The Serverless Architecture Market?
North America was the largest region in the serverless architecture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the serverless architecture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
