Serverless Architecture Global Market Report 2024

The serverless architecture market size has grown exponentially in recent years. It will grow from $11.77 billion in 2023 to $14.57 billion in 2024 at a compound annual growth rate (CAGR) of 23.8%. The growth observed in the historical period can be attributed to advancements in computing technology, cost reduction and scalability offered by serverless architecture, the flexibility of development and deployment without constraints, the departure from traditional approaches, and the increasing demand for automation and integration in various processes.

The serverless architecture market size is expected to see exponential growth in the next few years. It will grow to $33.36 billion in 2028 at a compound annual growth rate (CAGR) of 23%. The anticipated growth in the forecast period can be attributed to factors such as the expected expansion of market size, segmentation and regional growth, increasing adoption across diverse industries, improved scalability and reduced time-to-market facilitated by serverless architecture, and growth within end-user industries. Key trends expected in the forecast period include the adoption of digital-centric business models, advancements in computing technology, heightened utilization across various industry verticals, increased adoption of DevOps practices, and geographical expansion and investments in serverless technologies.

The increasing demand for serverless computing in the context of DevOps practices is poised to drive the growth of the serverless architecture market. Serverless computing, a cloud computing paradigm, empowers developers to create and deploy applications on externally managed infrastructure, alleviating concerns related to capacity planning, configuration, management, maintenance, fault tolerance, and scaling of containers, virtual machines (VMs), or physical servers. This approach enhances DevOps practices by facilitating automatic scaling, reducing operational complexity, and expediting the deployment of microservices. AAG IT, a UK-based IT services company, reported a substantial 29.7% increase in Infrastructure as a Service (IaaS) revenues, reaching $120.3 billion in 2022. With over 98% of organizations leveraging cloud services, including SaaS applications and fully cloud-native networks, the projected 23% growth in cloud infrastructure spending for 2023 underscores the rising need for serverless computing, propelling the serverless architecture market.

Prominent companies in the serverless architecture market are actively developing advanced technologies, particularly serverless solutions, to enhance customer service with cutting-edge features. A serverless solution represents a software architecture and deployment model where cloud providers assume complete responsibility for server management, provisioning, and maintenance. Developers in a serverless solution focus solely on writing code for specific functions or services, eliminating the need to manage underlying infrastructure. For example, DigitalOcean Holdings Inc., a US-based technology company and cloud infrastructure provider, introduced DigitalOcean Functions in May 2022. This serverless solution empowers developers and small to medium businesses, offering a fast, scalable, and cost-effective approach to building and expanding applications without concerns about infrastructure management, automatic scaling, and cost savings through resource optimization.

In September 2021, DigitalOcean Holdings Inc. further strengthened its position by acquiring Nimbella Corporation, a US-based serverless cloud application development platform. The undisclosed acquisition expands DigitalOcean's foothold in the rapidly growing function-as-a-service (FaaS) market, providing an additional serverless compute option to complement the existing infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings. This strategic move specifically targets developers in small and medium-sized businesses (SMBs), enhancing DigitalOcean's capabilities in serverless computing.

Major companies operating in the serverless architecture market report 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.

North America was the largest region in the serverless architecture market in 2023. 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. The countries covered in the serverless architecture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Serverless architecture is a cloud computing model that involves the cloud provider taking charge of infrastructure management and automatically allocating resources based on application requirements for execution and scaling. In this architecture, developers are relieved from traditional server management responsibilities, eliminating the need to handle tasks such as provisioning, scaling, and server maintenance.

The primary service categories include automation and integration, application programming interface (API) management, monitoring, security, support and maintenance, training and consulting, and others. Automation and integration focus on optimizing processes and connecting systems to improve operational efficiency and data flow. Serverless architecture facilitates event-driven automation and integration, allowing seamless execution of functions triggered by events. These services can be deployed in various cloud models, including public cloud, private cloud, and hybrid cloud, catering to organizations of all sizes, from large enterprises to SMEs. Serverless architecture finds applications in diverse areas such as real-time file and stream processing, web application development, and IoT backend. It is utilized across various industry verticals, including IT and telecommunications, BFSI, retail, healthcare, government, manufacturing, media and entertainment, and others.

The serverless architecture research report is one of a series of new reports that provides serverless architecture market statistics, including the serverless architecture industry's global market size, regional shares, competitors with an Serverless architecture market share, detailed serverless architecture market segments, market trends and opportunities, and any further data you may need to thrive in the serverless architecture industry. This serverless architecture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The serverless architecture market includes revenues earned by entities through functions as a service (FaaS), automatic resource provisioning, identity and access management (IAM), monitoring and logging, and networking services. The market value includes the value of related goods sold by the service provider or included within the service offering. The serverless architecture market consists of sales of backend as a service (BaaS), event sources and triggers, serverless API gateways, serverless databases, and serverless containers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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