Global Serverless Computing Market Size, Share & Trends Analysis Report By Service Model, By Enterprise Size, By Deployment, By Industry Vertical, By Regional Outlook and Forecast, 2024 - 2031

Global Serverless Computing Market Size, Share & Trends Analysis Report By Service Model, By Enterprise Size, By Deployment, By Industry Vertical, By Regional Outlook and Forecast, 2024 - 2031

The Global Serverless Computing Market size is expected to reach $56.41 billion by 2031, rising at a market growth of 13.6% CAGR during the forecast period.

The BFSI (Banking, Financial Services, and Insurance) segment is driven by the need for secure, scalable, and efficient computing solutions to manage sensitive financial transactions and customer data. Serverless computing enables BFSI organizations to process large volumes of data in real-time, supporting applications like digital banking, mobile payments, fraud detection, and personalized customer experiences. The scalability and pay-as-you-go model allows these institutions to optimize operational costs while maintaining the flexibility to handle fluctuating workloads. Additionally, serverless solutions align with the sector's focus on innovation, enabling the rapid deployment of new financial services and technologies. Thus, the BFSI segment procured 24% revenue share in the market in 2023.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2025, Alibaba Cloud launched its Alibaba Cloud Container Service (ACS) to optimize workload deployment using container technology. This serverless service, featuring a Kubernetes interface, eliminates the need for managing underlying nodes and clusters, reducing costs and technical barriers. It offers a pay-as-you-go model for on-demand scaling, enhancing cost-efficiency. The introduction of ACS aims to increase productivity by making container deployment easier and more accessible for enterprises. Additionally, In May 2022, Cloudflare, Inc. launched D1, a serverless database on its Workers API, enabling instant, edge-stored data access via SQL. Built on Cloudflare’s global network, D1 simplifies full-stack development by eliminating storage management complexities, leveraging Edge computing for speed. However, CDN outages like Cloudflare’s highlight potential single-point vulnerabilities in such infrastructures.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Serverless Computing Market. Companies such as Amazon Web Services, Inc., Alibaba Cloud, Tencent Holdings Ltd. are some of the key innovators in Serverless Computing Market. In December, 2024, Microsoft Azure unveiled serverless GPUs in Azure Container Apps, using NVIDIA A100 and T4 GPUs for scalable AI inferencing and ML tasks. This managed platform enables flexible deployment, scale-to-zero capabilities, per-second billing, and seamless Azure integration, competing with providers like Google Cloud Run, Modal, and RunPod for GPU acceleration.

Market Growth Factors

Serverless computing has revolutionized how organizations manage and deploy applications by eliminating the need to provision, maintain, and manage physical or virtual servers. In traditional server-based models, businesses are often required to invest heavily in infrastructure, ensure its maintenance, and account for unused resources during periods of low activity. Hence, these factors will aid in the expansion of the market.

Additionally, Cloud providers such as Amazon Web Services (AWS Lambda), Google Cloud (Cloud Functions), and Microsoft Azure (Functions) have been at the forefront of advancing serverless technologies. These platforms offer comprehensive and feature-laden environments, allowing developers to execute codes in response to specific events, dynamically scale resources, and incur costs solely for the compute time utilized. Thus, as reliance on cloud services grows, serverless computing is expected to play an even more central role in helping organizations achieve their digital transformation goals efficiently and effectively.

Market Restraining Factors

One significant challenge in the serverless computing market is vendor lock-in, where businesses become heavily dependent on specific cloud providers. These platforms often utilize proprietary tools, frameworks, and services that are not easily transferable or compatible with other providers. As a result, migrating applications or integrating serverless functions across multiple platforms becomes a complex and resource-intensive process. Hence, these challenges highlight critical barriers to widespread serverless adoption.

Services Model Outlook

Based on service model, the market is bifurcated into function-as-a-service (FaaS) and backend-as-a-service (BaaS). The backend-as-a-service (BaaS) segment procured 40% revenue share in the market in 2023. This service paradigm allows developers to concentrate on front-end development and business logic, alleviating concerns regarding the complexities of infrastructure.

Deployment Outlook

On the basis of deployment, the market is classified into public cloud, private cloud, and hybrid cloud. The hybrid cloud segment recorded 19% revenue share in the market in 2023. This deployment model allows organizations to balance scalability and cost-efficiency with security and control by leveraging public clouds for non-sensitive workloads and private clouds for critical applications.

Enterprise Size Outlook

By enterprise size, the market is divided into large enterprises and small & medium sized enterprises. The large enterprises segment witnessed 58% revenue share in the market in 2023. Large enterprises often deal with complex operations, massive workloads, and the need to maintain global business continuity, making serverless computing an ideal choice.

Industry Vertical Outlook

Based on industry vertical, the market is segmented into IT & telecom, BFSI, healthcare & life sciences, retail & consumer goods, government & defense, transportation & logistics, manufacturing, and others. The healthcare & life sciences segment acquired 16% revenue share in the market in 2023. The segment leverages serverless computing to address the increasing need for secure and efficient data management, real-time analytics, and telemedicine solutions.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 28% revenue share in the market in 2023. Rapid digital transformation and economic growth across emerging economies such as China, India, and Southeast Asia drive the Asia Pacific segment.

Recent Strategies Deployed in the Market

• Jan-2024: Alibaba Cloud introduced a serverless version of its AI platform, PAI-Elastic Algorithm Service (EAS), cutting inference costs by 50%. It also integrated vector engine technology into Hologres, Elasticsearch, and OpenSearch, enhancing access to large language models (LLMs) for customized AI applications, supporting Retrieval-Augmented Generation (RAG) for improved enterprise efficiency and decision-making.
• Sep-2023: Cloudflare, Inc. partnered with Hugging Face, an open platform for AI builders, to optimize the deployment of Generative AI models on Cloudflare's serverless infrastructure. This collaboration enables developers to easily deploy Hugging Face’s AI models globally, without managing infrastructure or paying for unused compute capacity, providing a seamless, scalable solution for AI-powered applications with low-latency performance.
• Mar-2023: Alibaba Cloud partnered with ClickHouse, Inc., a global leader in online analytical processing (OLAP) databases, to offer ClickHouse as an enterprise, first-party service on Alibaba Cloud’s platform. This exclusive partnership will expand Alibaba Cloud’s database offerings in mainland China and the APAC region, enabling businesses to leverage ClickHouse’s fast, resource-efficient analytical capabilities.
• Nov-2022: Alibaba Cloud launched ModelScope, an open-source Model-as-a-Service (MaaS) platform offering over 300 AI models, including cutting-edge pre-trained models like Tongyi and OFA. This platform aims to make AI model development easier and more cost-effective for global developers and researchers. Additionally, Alibaba Cloud upgraded its suite of serverless database products, including PolarDB and AnalyticDB, allowing businesses to scale automatically and reduce costs. These innovations are designed to help customers embrace AI and cloud technologies with minimal infrastructure management and enhanced agility.
• May-2022: Cloudflare, Inc. launched D1, a serverless database on its Workers API, enabling instant, edge-stored data access via SQL. Built on Cloudflare’s global network, D1 simplifies full-stack development by eliminating storage management complexities, leveraging Edge computing for speed. However, CDN outages like Cloudflare’s highlight potential single-point vulnerabilities in such infrastructures.

List of Key Companies Profiled

• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Microsoft Corporation
• Google LLC (Alphabet Inc.)
• IBM Corporation
• Oracle Corporation
• Alibaba Cloud (Alibaba Group Holding Limited)
• Cloudflare, Inc.
• Tencent Holdings Ltd.
• SAP SE
• Salesforce, Inc.

Global Serverless Computing Market Report Segmentation

By Service Model

• Function-as-a-service (FaaS)
• Backend-as-a-service (BaaS)

By Enterprise Size

• Large Enterprises
• Small & Medium-sized Enterprises

By Deployment

• Public Cloud
• Hybrid Cloud
• Private Cloud

By Industry Vertical

• BFSI
• IT & Telecom
• Healthcare & Life Sciences
• Retail & Consumer Goods
• Manufacturing
• Government & Defense
• Transportation & Logistics
• Other Industry Vertical

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA