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, 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 Growth & Trends

The global serverless architecture market size is expected to reach USD 50.09 billion by 2030, registering to grow at a CAGR of 28.2% from 2024 to 2030 according to a new report by Grand View Research, Inc. Growing demand for economizing operations and increasing profitability has been driving the market. Emergence of cloud technology, coupled with advancements in serverless computing, has further strengthened the market. As the business model of serverless operations is execution based, enterprises can eliminate the cost of provisioning and maintaining the server round the clock. Charges are billed on number of executions, which in turn, reduces cost.

Application development processes are a major beneficiary of a serverless architecture. DevOps and agile development culture within an organization are driving enterprises to change the way they develop business applications fundamentally. Monolithic applications are paving the way for application programming interface (API), micro-services, and function-based execution units, resulting in a paradigm shift of organizational mindset. These trends have changed the way enterprises approach IT infrastructure. In such an environment, serverless architecture enables organizations to streamline their operations, hire optimal resources, and allow developers to focus on core product development.

Cloud service providers (CSP) manage serverless architecture, enabling the platform to provide automatic scaling, enterprise-level global security, and promote continuous building, integration, and development efforts. Such factors positively impact an enterprise’s time-to-market, market share, and sustainability.

From a business perspective, serverless architecture eliminates the cost of hiring back-end infrastructure engineers, provides process agility, and reduces overall operational cost by a significant amount. From a developer perspective, it offers reduced liability and zero system administration as well as fosters adoption of microservices and nano-services.

However, there are several risks involved in deploying serverless architecture. As CSPs control the underlying infrastructure, users cannot customize/optimize the infrastructure to suit specific needs of an enterprise and developer. Moreover, as the organization has no control over the infrastructure, adding multiple customers on the same platform may raise security concerns. Furthermore, as a consumer, there is no authorization to do penetration tests and vulnerability scanning on infrastructure underlying the serverless offerings. Thus, increasing need for compliance concerns adopters and thereby acts as a restraint to market growth.

Serverless Architecture Market Report Highlights

• 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.
• 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.
• 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 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.

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