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Function as a Service (FaaS) Market - Forecasts from 2021 to 2026

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    Report

  • May 2021
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5332641
The Function as a Service (FaaS) market is evaluated at US$0.816 billion for the year 2019 and is projected to grow at a CAGR of 24.80% to reach a market size of US$3.847 billion by the year 2026. The growth of the function as a service (FaaS) market is majorly attributed to the increasing focus of enterprises towards agility of infrastructure and cost reduction. As these remain the key focal points for many enterprises, the popularity of serverless computing has been increasing significantly over the past few years. Companies are shifting from legacy DevOps trend to serverless computing on account of significantly high ease of deployment and management associated with it besides huge cost savings which come with it. This increasing shift towards serverless computing is driving with it the demand for Function as a Service and hence is anticipated to boost the growth of the market. Also, the companies are constantly evolving their services, which is anticipated to further increase the demand. For instance, recently, in February 2021, AWS announced Node.js version 14 support for its Function as a Service (FaaS), Lambda. However, challenges associated with the running of various applications in a cloud environment, owing to the incompatibility of such applications with various cloud environments, are expected to limit the growth of this market to some extent.





The recent outbreak of the novel coronavirus disease affected the Function as a Service (FaaS) market positively. The Covid-19 pandemic saw a surge in the Function as a Service (FaaS) market even after the economic downturn, and more companies shifted to cloud computing during the pandemic. Due to the pandemic, many companies shifted to operate as work-from-home and the burden of online data was increased. As cloud computing provided the flexibility, scalability, and other advantages needed by the companies, it saw a huge surge. Even after the companies resume work from offices, the growth of the Function as a Service (FaaS) market is anticipated to continue surging in the coming years.

The Function as a Service (FaaS) market has been classified based on deployment model, enterprise size, end-user, and geography. By Deployment Model, the market has been classified into Public, Private, and Hybrid. Based on enterprise size, the segmentation has been done into Small and Medium Enterprises, and Large Enterprises. By End User, the categorization has been done into BFSI, IT and Telecommunication, Retail, Healthcare and Life Sciences, and others. Geographically, the market for Function as a Service (FaaS) has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.

Growing shift towards serverless computing.

Serverless computing has been gaining popularity over the years owing to its advantages and companies have been shifting to serverless computing, which is anticipated to propel the growth of the Function as a Service (FaaS) market during the forecast period. Serverless computing mitigates the need for most operational concerns which is one of the major reasons for its rising adoption around the world. It lets the development team focus solely on the front end and lets the back end operations being completely managed by the cloud computing providers, resulting in increased speed and efficiency. The serverless computing providers are addressing the limitations and constantly evolving the product which is further increasing the demand for serverless computing. Google announced on November 2020 that its Function-as-a-Service (FaaS) offering with cloud functions would support .NET Core 3.1. These developments by the companies are anticipated to rise the adoption rate. In serverless computing, the scaling of the infrastructure is done automatically for running the code. The user just needs to simply sort out a proper trigger for an event and the code runs at the same time. These advantages over other platforms are contributing to the rising popularity of serverless computing and are anticipated to surge the growth of the Function as a Service (FaaS) market during the forecast period.

Cost-effectiveness of Function as a Service (FaaS).

Along with providing the technological advancements, Function as a Service (FaaS) reduces the infrastructure costs which is one of the prominent drivers anticipated to people the growth of Function as a Service (FaaS) market in the coming years. As all the resources are created on-demand, so when the service is not being utilized, the running computing expense will be zero. After the launch of its computing service, Function Compute, in 2017, Alibaba Cloud worked on its limitations, improved its features, and provided a prepaid model which was first by any company in the industry. Consequently, the total expense during stable workloads was brought down. Also, it lowered the resource price by 70%. There is no extra expense for scaling the application and the user pays only according to what the user uses. Also, because the requirement for management of server infrastructure is mitigated as it is done by the cloud service provider, the operational expenses are decreased. This reduction in expenses is one of the major factors driving the growth of the Function as a Service (FaaS) market and is anticipated to bolster the market growth during the assessment period.

North America to hold a prominent share in the market.

Geographically, the North American region is anticipated to hold a significant market share in the Function as a Service (FaaS) market owing to the technological advancements, the existence of already well-developed could infrastructure and the presence of major FaaS providers in the region like Amazon Web Services, Microsoft Corporation, IBM Corporation, and various others. The Asia Pacific region is anticipated to witness substantial growth due to the large investments being made in the region.

Competitive Insights

Prominent/major key market players in the Function as a Service (FaaS) market are Amazon, Google, Inc., and IBM Corporation, among others. The players are implementing various growth strategies to gain a competitive advantage. Major market players have been covered along with their relative competitive strategies and the report also mentions recent deals and investments. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Function as a Service (FaaS) market.

Segmentation:

By Deployment Model
  • Public
  • Private
  • Hybrid

By Enterprise Size
  • Small and Medium Enterprises
  • Large Enterprises

By End User
  • BFSI
  • IT and Telecommunication
  • Retail
  • Healthcare and Life Sciences
  • Others

By Geography
  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • Germany
  • France
  • UK
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Others
Frequently Asked Questions about the Function as a Service (FaaS) Market

What is the estimated value of the Function as a Service (FaaS) Market?

The Function as a Service (FaaS) Market was estimated to be valued at $0.82 billion in 2019.

What is the growth rate of the Function as a Service (FaaS) Market?

The growth rate of the Function as a Service (FaaS) Market is 24.8%, with an estimated value of $3.85 billion by 2026.

What is the forecasted size of the Function as a Service (FaaS) Market?

The Function as a Service (FaaS) Market is estimated to be worth $3.85 billion by 2026.

Who are the key companies in the Function as a Service (FaaS) Market?

Key companies in the Function as a Service (FaaS) Market include Amazon, Google, Inc., IBM Corporation, Microsoft Corporation, SAP SE, Dynatrace LLC, Tibco Software Inc., Oracle Corporation and Netlify.

Table of Contents

1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Function as a Service (FaaS) Market Analysis, by Deployment Model
5.1. Introduction
5.2. Public
5.3. Private
5.4. Hybrid
6. Function as a Service (FaaS) Market Analysis, by Enterprise Size
6.1. Introduction
6.2. Small and Medium Enterprises
6.3. Large Enterprises
7. Function as a Service (FaaS) Market Analysis, by End User
7.1. Introduction
7.2. BFSI
7.3. IT and Telecommunication
7.4. Retail
7.5. Healthcare and Life Sciences
7.6. Others
8. Function as a Service (FaaS) Market Analysis, by Geography
8.1. Introduction
8.2. North America
8.2.1. North America Function as a Service (FaaS) Market, By Deployment Model
8.2.2. North America Function as a Service (FaaS) Market, By Enterprise Size
8.2.3. North America Function as a Service (FaaS) Market, By End User
8.2.4. By Country
8.2.4.1. USA
8.2.4.2. Canada
8.2.4.3. Mexico
8.3. South America
8.3.1. South America Function as a Service (FaaS) Market, By Deployment Model
8.3.2. South America Function as a Service (FaaS) Market, By Enterprise Size
8.3.3. South America Function as a Service (FaaS) Market, By End User
8.3.4. By Country
8.3.4.1. Brazil
8.3.4.2. Argentina
8.3.4.3. Others
8.4. Europe
8.4.1. Europe Function as a Service (FaaS) Market, By Deployment Model
8.4.2. Europe Function as a Service (FaaS) Market, By Enterprise Size
8.4.3. Europe Function as a Service (FaaS) Market, By End User
8.4.4. By Country
8.4.4.1.1. Germany
8.4.4.1.2. France
8.4.4.1.3. UK
8.4.4.1.4. Others
8.5. Middle East and Africa
8.5.1. Middle East and Africa Function as a Service (FaaS) Market, By Deployment Model
8.5.2. Middle East and Africa Function as a Service (FaaS) Market, By Enterprise Size
8.5.3. Middle East and Africa Function as a Service (FaaS) Market, By End User
8.5.4. By Country
8.5.4.1. Saudi Arabia
8.5.4.2. UAE
8.5.4.3. Others
8.6. Asia Pacific
8.6.1. Asia Pacific Function as a Service (FaaS) Market, By Deployment Model
8.6.2. Asia Pacific Function as a Service (FaaS) Market, By Enterprise Size
8.6.3. Asia Pacific Function as a Service (FaaS) Market, By End User
8.6.4. By Country
8.6.4.1. China
8.6.4.2. India
8.6.4.3. Japan
8.6.4.4. South Korea
8.6.4.5. Others
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Amazon
10.2. Google, Inc.
10.3. IBM Corporation
10.4. Microsoft Corporation
10.5. SAP SE
10.6. Dynatrace LLC
10.7. Tibco Software Inc.
10.8. Oracle Corporation
10.9. Alibaba Cloud
10.10. Netlify

Companies Mentioned

  • Amazon
  • Google, Inc.
  • IBM Corporation
  • Microsoft Corporation
  • SAP SE
  • Dynatrace LLC
  • Tibco Software Inc.
  • Oracle Corporation
  • Alibaba Cloud
  • Netlify