Serverless Architecture Market Size, Share & Trends Analysis Report By Services, By Deployment (Public Cloud, Private Cloud, Hybrid Cloud), By Organization Size, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

Serverless Architecture Market Size & Trends

The global serverless architecture market size was valued at USD 9.42 billion in 2023 and is projected to grow at a CAGR of 28.2% from 2024 to 2030. This market is primarily driven by the factors such as increasing adoption of software technologies, advancements in information technology tools used in multiple industries, cost effectiveness accomplished through serverless architecture, faster deployments, simpler and enhanced management, and availability of multiple models based on organization size and deployment method.

The market is experiencing rapid growth as increasing number of organization worldwide are seeking effective alternatives to reduce their infrastructural burdens while enhancing the performances through cost-effective information technology solutions. Advantages provided by the adoption of serverless architecture include quicker time to market transitions, improved scalability and reduced costs are expected to generate greater demand for this market in approaching years.

Ability of to support multiple programming languages, capacity to work with micro services and modern application development, ongoing research activities by institutes and organizations, and innovation in the field are anticipated to fuel growth for this industry. The growing adoption in application industries such as retail, telecommunications, financial services, entertainment and healthcare are encouraging new entrants to offer wide portfolio of services. These aspects have contributed to the growth of the industry in recent years.

Services Insights

Automation & integration segment dominated the global industry and accounted for revenue share of 25.9% in 2023. Growth of this segment is mainly driven by the improved operational efficiency attained through implementation. Serverless architecture automates numerous infrastructure management tasks such as provisioning, scaling, and patching while eliminating the need for manual intervention, reducing operational overheads, and simplifying infrastructure management. The integration services provide built-in support for seamless integration of various services, leading to a more modular and flexible application structure. Moreover, the increasing adoption of serverless architecture enables organizations to build and deploy automation and integration applications that handle tasks efficiently and effectively.

Security segment is anticipated to experience the fastest CAGR during the forecast period, driven by growing concern about data security and innovation in security technologies. Businesses are increasingly moving critical workloads and sensitive data to serverless architectures to avoid data breaches and unauthorized access. To address these challenges, serverless architectures introduces unique security, such as securing functions at runtime, managing permissions and access control, and ensuring secure inter-service communication. Continuous advancements in security technologies tailored for serverless architectures, such as runtime application self-protection (RASP), serverless security frameworks, and automated security testing tools are expected to propel growth.

Deployment Insights

Public cloud deployment segment held largest revenue share in 2023. The growth of this segment is driven by the factors such as increasing adoption due to its cost-effectiveness and greater scalability offered by it. The public cloud model allows organizations to adjust computing and storage resources automatically, scaling them as needed while providing robust data security measures and additional services tailored to their specific requirements. Furthermore, public cloud providers have well-equipped global data center networks, enabling businesses to deploy serverless applications closer to their users for reduced latency and improved performance.

Hybrid cloud is anticipated to experience the fastest CAGR during the forecast period. The segment is primarily driven by the increasing adoption of serverless computing, which eliminates the need to maintain servers and allows organization to focus on other business functions. A hybrid cloud enables companies to keep some of the data and few applications in their private cloud while using public clouds such as AWS, Azure, and Google Cloud services for other tasks. Furthermore, advancements in networking technologies are making it easier to connect and integrate public and private clouds.

Organization Size Insights

Large enterprises segment dominated the global industry in 2023. The growth is attributed to rising demand for cloud automation and data security. Large enterprises are increasingly investing in research & development and advanced technology, such as cloud computing services, to enhance scalability and overall productivity while attaining the cost reduction. The serverless architecture eliminates the need for high investment in servers and maintenance costs that these large enterprises face during operation. Serverless architecture allows companies to pay for their cloud computing resources, eliminating high-cost requirements and cloud infrastructure.

Small and medium scale enterprise (SME) segment is anticipated to witness the fastest CAGR during the forecast period. According to The World Bank’s estimates, global industry is expected to generate approximately 600 million jobs to accommodate the global workforce by 2030 and this is likely to result in SME development turning into a high priority for multiple governments. Growing emergence of numerous SMEs in multiple industries, increasing need for cost-effective solutions in SMEs, and presence of several service providers specializing in development of technology solutions for SMEs is expected to generate greater growth for this segment in approaching years.

Vertical Insights

The BFSI segment accounted for the largest revenue share of the global industry in 2023. Modern banking and financial services are increasingly adopting serverless infrastructures to shift their focus on consumer requirements in increasingly competitive market. Serverless architecture lets developers focus on codes rather than worrying about the underlying infrastructure. Cloud computing has become instrumental in achieving the goal of the BFSI sector by offering scalability, enhanced productivity, and cost efficiency crucial for banks facing fluctuating demand and stringent security.

Media & entertainment segment is projected to grow at the fastest CAGR during the forecast period, owing to high scalability and content personalization while offering real-time analytics. With the rising use of modern technology, media and entertainment industry have experienced massive surges in traffic, such as during live streams of events, sports tournaments and movie premiers. Serverless architecture allows media & entertainment companies to quickly scale their applications without having provisional additional servers. Media & entertainment companies increasingly using cloud computing to deliver personalize content for individual users, including real-time ad insertion, content recommendation, and dynamic content assembly.

Regional Insights

North America serverless architecture market dominated the global industry and accounted for a revenue share of 37.4% share in 2023. The growth is attributed to a robust technology ecosystem and widespread adoption of cloud computing. North America has been at the forefront of cloud computing adoption and innovation. Major cloud service providers like AWS, Microsoft Azure, and Google Cloud have their headquarters and significant data center in North America. Furthermore, the region is a hub for technological innovation and investment in cloud computing and related technologies. The availability of extensive funding and ongoing research and development in the domain are also contributing to the growth of this regional industry.

U.S. Serverless Architecture Market Trends

The U.S. serverless architecture market held the largest revenue share of regional industry and accounted for 68.6%. The U.S. has been one of the early adopter of multiple technological advancements including serverless computing services, which are widely adopted by businesses globally now. The U.S. is the one of the significant contributors of serverless computing services worldwide. Moreover, a highly skilled workforce and well-developed educational institutions and training programs contribute to advancements of serverless architecture services.

Europe Serverless Architecture Market Trends

Europe serverless architecture market held significant share of global industry in 2023. The growth is driven by the increasing adoption of cloud-based services by small enterprises. Growing demand for cost effective and scalable architecture solutions are expected to generate growth for this industry in approaching years. Presence of multiple international organizations and domestic businesses that are seeking for agile technology solutions contribute to this upsurge in the demand.

Germany serverless architecture market accounted for significant revenue share of the regional industry in 2023. Presence of numerous large enterprises, demand for innovation, rising adoption of cost reduction strategies, and availability of multiple services providers offering efficient technology solutions is projected to drive growth for the serverless architecture market in Germany. Growing demand by for solutions such as automation & integration, support & maintenance and security has contributed to the growth of this market in recent years.

Asia Pacific Serverless Architecture Market Trends

Asia Pacific serverless architecture market is anticipated to witness the fastest CAGR during forecast period. This regional industry is primarily influenced by the increasing adoption of cloud computing services and technological advancements in the region. Entry of multiple international businesses operating in numerous industries have propelled growth for this regional industry in recent years. The rise of the startup ecosystem and the adoption of automation have also contributed to the upsurge in the demand. Moreover, government and companies' increasing investments and initiatives in technology and digital transformation are poised to accelerate growth over the forecast period.

China serverless architecture market held significant share of the regional industry in 2023. Owing to rapid digital transformation and growth experienced by the e-commerce industry, this market is anticipated to generate greater demand for serverless architecture solutions. Furthermore, rising small companies and favorable government initiatives boost the growth of serverless architecture adoption. For instance, China’s ambitious dream - the "Digital Silk Road" (DSR) - is expected to spark a worldwide digital revolution, gaining much popularity and investment from global investors in approaching years.

Key Serverless Architecture Company Insights

Some of the key companies in the serverless architecture marketinclude Google, IBM, Microsoft, Alibaba, Cloudflare, Inc., NTT DATA Group Corporation and others. Key companies operating in this industry are adopting strategies such as innovation, collaborations, enhanced research & development, and geographical expansions.

• NTT DATA Group Corporation, one of key companies in technology industry, offers wide range of services such as application services, data center services, business consulting, data & intelligence, digital workplace, network services, sustainability solutions, technology solutions & integrations, cybersecurity and business process outsourcing services. The company provides tailored cloud modernization solutions to multiple industries.

• Cloudflare, a smart technology organization, offers various information technology services related to various needs of the modern businesses such as risk posture, cybersecurity, digital modernization, Artificial Intelligence, data compliance & protection, network acceleration, hybrid network security, and cloud application deployment.

Recent Developments

• In April 2024, Cloudflare acquired Baseline, a cloud-native observability platform company, to expand its observability capabilities. This strategic move strengthens Cloudfare’s position in the serverless computing market and empowers Cloudflare to offer a more comprehensive and advanced serverless solution.

• In January 2024, Alibaba unveiled a serverless solution to make Generative-AI so businesses could leverage Gen-AI capabilities. The newly launched Gen-AI is a serverless version of Platform for A.I. (PAI)-Elastic Alogrithm Service (EAS), designed to offer businesses improved performance and cost-efficient solutions.

Serverless Architecture Market Report Scope

Global Serverless Architecture Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global serverless architecture market report based on services, deployment, organization size, vertical, and region:

• Services Outlook (Revenue, USD Million, 2018 - 2030)

  • Automation & Integration

  • API Management

  • Monitoring

  • Security

  • Support and Maintenance

  • Training and Consulting

  • Others

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• Organization Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Enterprise

  • SME

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • BFSI

  • Government & Public

  • Healthcare & Life Sciences

  • Manufacturing

  • Media & Entertainment

  • Retail & Ecommerce

  • Telecom & IT

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE