Serverless Computing - Global Strategic Business Report

The global market for Serverless Computing was estimated at US$21.2 Billion in 2024 and is projected to reach US$48.8 Billion by 2030, growing at a CAGR of 14.8% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Serverless Computing market.

Global Serverless Computing Market - Key Trends & Drivers Summarized

Is the Promise of Zero Infrastructure Management Driving Serverless Momentum?

Serverless computing has rapidly evolved from a niche cloud-native concept into a mainstream approach for modern application development. At its core, serverless computing allows developers to run code without provisioning, managing, or scaling physical servers or virtual machines, with resources automatically allocated by the cloud provider on demand. This architecture significantly streamlines the development lifecycle by abstracting infrastructure management and enabling teams to focus purely on writing and deploying functionality. As businesses increasingly prioritize speed, agility, and cost-efficiency in their digital transformation strategies, serverless models are becoming highly attractive for a wide range of use cases - from APIs and microservices to backend automation, event-driven processing, and real-time data streams. Major cloud platforms like AWS (Lambda), Microsoft Azure (Functions), Google Cloud (Cloud Functions), and others have heavily invested in serverless ecosystems, offering tightly integrated tools, scalable runtimes, and simplified pricing models. Enterprises adopting DevOps and continuous delivery pipelines are also embracing serverless to reduce deployment overhead and accelerate time to market. This shift represents a fundamental change in how applications are built and operated in the cloud era, driving widespread interest and adoption of serverless architectures.

Is Application Complexity Creating a New Demand for Event-Driven Architectures?

Modern digital applications are becoming increasingly modular, distributed, and event-driven, creating an ideal environment for serverless computing to thrive. As companies move toward microservices architecture, serverless functions offer a lightweight, scalable, and efficient way to execute discrete tasks in response to triggers such as HTTP requests, database changes, file uploads, or IoT signals. The growing reliance on real-time analytics, user personalization, fraud detection, and data transformation workflows is fueling the need for scalable event processing systems - which serverless platforms are uniquely positioned to deliver. Furthermore, serverless computing supports automatic scaling, meaning workloads can instantly adjust to fluctuations in demand without manual intervention, which is particularly valuable in unpredictable, bursty applications like streaming media, e-commerce, or travel booking platforms. Startups and enterprises alike are using serverless to avoid overprovisioning and minimize idle resource costs. These dynamics are driving the evolution of backend-as-a-service (BaaS) and function-as-a-service (FaaS) models, and pushing cloud providers to expand runtimes, support more programming languages, and enhance integration with APIs, queues, and third-party services.

Are Ecosystem Maturity and Cost Optimization Accelerating Adoption Across Enterprises?

Initially perceived as suitable only for lightweight or stateless workloads, serverless computing has matured into a robust solution capable of supporting complex, mission-critical applications. Improvements in observability, security, cold start latency, and resource limits have expanded the viability of serverless in enterprise environments. Vendors have responded with better monitoring tools, service meshes, and security policies tailored for serverless workloads. In parallel, the rise of multi-cloud and hybrid deployments has led to the emergence of open-source frameworks such as OpenFaaS, Knative, and Kubeless, offering portability and abstraction across cloud environments. Another major factor boosting serverless adoption is cost optimization. The pay-per-execution model ensures that organizations only pay for actual usage rather than reserved capacity, which aligns well with unpredictable or intermittent workloads. This cost control mechanism is particularly attractive for startups, development teams, and innovation labs experimenting with new services without incurring high infrastructure costs. Serverless also plays a critical role in accelerating digital product development, enabling agile prototyping, seamless scaling, and faster go-to-market cycles. These advantages are driving organizations across finance, media, retail, and healthcare to experiment with or transition workloads to serverless platforms, especially for backend automation, mobile app support, and IoT integrations.

What's Fueling the Rapid Growth of the Serverless Computing Market?

The growth in the serverless computing market is driven by several factors directly linked to technological evolution, enterprise IT strategies, and changing developer workflows. First, the surge in cloud-native development and the widespread adoption of containerization are creating a fertile ground for serverless frameworks that support modular, loosely coupled architectures. Second, the growing demand for real-time data processing in applications like financial transactions, content recommendations, and smart devices is accelerating the deployment of event-driven, serverless architectures. Third, the shift toward DevOps and agile development practices is boosting interest in infrastructure automation and CI/CD integration, both of which are naturally aligned with serverless platforms. Fourth, startups and digital-native companies seeking lean infrastructure are turning to serverless to launch services without heavy upfront capital investment. Fifth, the broader enterprise shift toward API-first and microservices-based architectures is reinforcing demand for serverless functions that can be deployed independently and scaled automatically. Sixth, improved tooling for monitoring, debugging, and securing serverless environments is increasing enterprise confidence and reducing adoption barriers. Lastly, the expansion of edge computing and 5G networks is opening new use cases for serverless, particularly in low-latency, decentralized applications that benefit from localized function execution. Together, these trends are positioning serverless computing as a foundational layer in the future of cloud infrastructure and application delivery.

Scope of Study:

The report analyzes the Serverless Computing market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Service Type (Compute Service, Serverless Storage Service, Serverless Database Service, Application Integration Service, Monitoring & Security Service, Other Service Types); Service Model (Function as a Service, Backend as a Service); Vertical (IT & Telecom Vertical, BFSI Vertical, Retail & Consumer Goods Vertical, Healthcare & Life Sciences Vertical, Government & Defense Vertical, Other Verticals)
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Compute Service segment, which is expected to reach US$13.7 Billion by 2030 with a CAGR of a 16.8%. The Serverless Storage Service segment is also set to grow at 16.5% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $5.8 Billion in 2024, and China, forecasted to grow at an impressive 20.0% CAGR to reach $10.7 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Serverless Computing Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Serverless Computing Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Serverless Computing Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Akamai, Alibaba Cloud, Amazon Web Services (AWS), Backendless, Cloudflare and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 42 companies featured in this Serverless Computing market report include:

• Akamai
• Alibaba Cloud
• Amazon Web Services (AWS)
• Backendless
• Cloudflare
• Datadog
• DigitalOcean
• Elastic
• Fastly
• Google Cloud Platform (GCP)
• IBM Cloud
• Microsoft Azure
• MongoDB
• Netlify
• Oracle Cloud
• Spot by NetApp
• Tencent Cloud
• Twilio
• Vercel
• VMware

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.