Serverless Architecture Market Forecasts to 2028 - Global Analysis By Software Type (Backend-as-a-service (BaaS), Database and Function-as-a-service (FaaS)), Service (Monitoring, API Management, Automation & Orchestration, Support & Maintenance, Security

Serverless Architecture Market Forecasts to 2028 - Global Analysis By Software Type (Backend-as-a-service (BaaS), Database and Function-as-a-service (FaaS)), Service (Monitoring, API Management, Automation & Orchestration, Support & Maintenance, Security and Training & Consulting), Deployment Model (Private, Public and Hybrid), Organization Size (Small and Medium-Sized Enterprises (SMEs) and Large Organizations), Application (IT & Telecom, Finance, Human Resource Information System, Data Analytics, Customer Relationship Management (CRM), BFSI, Retail, Healthcare, Manufacturing, Government, Media & Entertainment, E-commerce and Other Applications) and Geography

According to Stratistics MRC, the Global Serverless Architecture Market is accounted for $16.30 billion in 2022 and is expected to reach $51.15 billion by 2028 growing at a CAGR of 21.0% during the forecast period. The market for serverless architecture is experiencing revenue growth as a result of the incorporation of digital technology across all divisions of a business and the expansion of mobile application development. Large businesses are first implementing serverless architecture to improve business performance, and then they are implementing serverless technology to simplify business operations. The market's revenue growth is also being fueled by a variety of advantages of serverless architecture, including enhanced scalability and cost effectiveness.

According to the European Union (EU), the government will give financial importance to working on novel solutions for federating cloud or serverless architecture. Moreover, the government is focusing more on high-standard requirements with regards to data protection, performance, resilience, and energy efficiency.

Market Dynamics:

Driver:

Increasing adoption of serverless architecture

Innovation in a wide range of applications has accelerated due to the serverless architectural revolution. Customer relationship management (CRM), business intelligence and analytics, the information system for human resources, finance, e-commerce, and other industries all use serverless architecture. Software applications can be rapidly and easily changed using a serverless architectural approach, which also enables organisations to handpick the services based on requirements. Cloud-based technologies are being fully utilised by serverless architecture. Instead of managing traffic on their IT infrastructure, it enables businesses to focus on their primary products and services. Additionally, serverless deployment is being developed by modern applications so that application developers can boost the agility of data stores, computers, and integration stacks.

Restraint:

Technical issues

A third-party vendor or provider is required in order to run mobile or web applications using serverless architecture. After a feature has been deployed in a serverless architecture, application developers are not able to modify it further based on user or client needs. These technological issues can result in significant problems in business operations, including forced API changes, lost functionality, unexpected fees, and system unavailability, which leaves user data stuck in a closed system. Furthermore, due to potential security vulnerabilities, providers of serverless architecture could potentially lose a substantial chunk of their customer base.

Opportunity:

Growing IoT ecosystem

Rapid technological development and innovation have led to a shift in many industries toward a data-driven framework, which offers immense potential. Additionally, businesses that are utilising this technology to enhance their operations in an effort to boost productivity and cost-efficiency are playing a significant role in the substantial increase in IoT adoption.

Threat:

Critical risks

Because of their enhanced attack surface complexity, serverless architecture's digital characteristics pose a significant risk. The architecture might also display a dependence on outside vendors and exhibit insecure application storages with deployment configuration problems. Users' worries about cybersecurity are magnified by third-party dependencies and a lack of a strong security framework. Additionally, serverless architecture's maintenance and storage of delicate application databases, such as APIs and encryption keys, is incredibly difficult and may result in functional limitations.

Covid-19 Impact

The market for serverless architecture has seen increased demand owing to COVID-19. The COVID-19 epidemic has further propelled a market where businesses are relying on serverless architecture to achieve their digital transformation. Due to operating limitations imposed by the federal government and municipal authorities, many organisations have switched to a work-from-home model. As a result, the adoption of serverless architecture has significantly increased in application domains like banking and financial services, media and entertainment, and retail and e-commerce. Providers of serverless architecture have witnessed demand and income from these companies.

The function-as-a-service (FaaS) segment is expected to be the largest during the forecast period

Because it enables installing apps for websites and other cloud-based applications simpler, the FaaS segment had the largest revenue share and is expected to continue to hold the same during the forecast period. Containers are used by FaaS to rapidly deploy websites and mobile applications across all platforms. Every coding programme has a set number of packages that can be used to execute a specific code. Furthermore, individual functions in the application code are made possible by this feature, and this is causing the segment's income to expand.

The finance segment is expected to have the highest CAGR during the forecast period

Because serverless architecture is used in finance for always-on banking services, as a SaaS model for storage, and in cloud providers' managed services, the finance segment is expected to grow at the highest CAGR over the forecast period. Furthermore, by implementing serverless architecture, financial services businesses can reduce operational expenses and enable the simpler and more secure launch of new services and functionalities.

Region with largest share:

Over the forecast period, North America is anticipated to experience the largest revenue share as the market for serverless architecture in this region is expanding rapidly due to digital transformation. Major cloud providers like Amazon Web Service, Microsoft Azure, Google Cloud Platform, and others have highly benefited from the shift from traditional server architecture to serverless architecture as they continue to grow their businesses in the region. Moreover, the serverless architecture market in this region is anticipated to increase in terms of revenue due to these advancements and the region's rapid economic development.

Region with highest CAGR:

Due to factors such as an increase in IT modernization in developed telecommunication industries in nations like China, India, and Japan, Asia-Pacific is anticipated to have the highest rate of growth throughout the market forecast period. Additionally, the rapid uptake of IoT-based devices in nations like Taiwan and South Korea is anticipated to offer lucrative opportunities for the market expansion of serverless architecture.

Key players in the market

Some of the key players in Serverless Architecture market include Computer Associates International, Inc., Oracle Corporation, Alibaba Cloud, Fiorano Software, Inc., Google Inc., Amazon Web Services, Inc., NTT Data Corporation, IBM Corporation, Capgemini SE, Dynatrace, Inc., CloudFlare Inc, Microsoft Corporation, Digital Ocean Inc., Hexaware Technologies, Nimbella, Rackspace Inc., Redpill Linbro AB, Tencent Holding Limited, TietoEVRY, Tibco Software Inc., CA Technologies and Platform9 Systems, Inc.

Key Developments:

In May 2022, DigitalOcean, Inc., a U.S.-based cloud infrastructure provider, launched a serverless solution for developers and small and medium businesses. DigitalOcean will allow developers to easily construct or expand their apps without worrying about the infrastructure. The solution will provide fast, scalable, and cost-effective solutions, which will enable organizations to build websites and mobile-based applications fast, automatically scale, and save money by eliminating the need to pay for unused resources.

Software Types Covered:
• Backend-as-a-service (BaaS)
• Database
• Function-as-a-service (FaaS)

Services Covered:
• Monitoring
• API Management
• Automation & Orchestration
• Support & Maintenance
• Security
• Training & Consulting

Deployment Models Covered:
• Private
• Public
• Hybrid

Organization Sizes Covered:
• Small And Medium-Sized Enterprises (SMEs)
• Large Organizations

Applications Covered:
• IT & Telecom
• Finance
• Human Resource Information System
• Data Analytics
• Customer Relationship Management (CRM)
• BFSI
• Retail
• Healthcare
• Manufacturing
• Government
• Media & Entertainment
• E-commerce
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements