The Serverless Computing Market is expected to grow from USD 21.9 billion in 2024 to USD 44.7 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period.
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Top Trends in Serverless Computing Market:
Increased Adoption of Microservices Architecture: Serverless computing is driving the growth of microservices architecture, allowing developers to build and deploy applications as independent, modular services, improving flexibility, scalability, and maintainability.
Edge Computing Integration: The combination of serverless computing with edge computing is a growing trend, enabling faster processing by running functions closer to the data source. This reduces latency and is particularly beneficial for IoT and real-time applications.
AI and Machine Learning Workloads: Serverless platforms are increasingly being used for AI and machine learning workloads, offering the ability to scale dynamically based on demand. This trend is helping developers deploy ML models without managing the underlying infrastructure.
Focus on Cost Optimization: Serverless computing’s pay-as-you-go model is attracting businesses aiming to optimize costs by paying only for the compute resources they use. This trend is making serverless a cost-effective option for handling unpredictable workloads.
Enhanced Developer Productivity: By abstracting infrastructure management, serverless computing allows developers to focus solely on writing code, increasing productivity. This shift is pushing organizations to adopt serverless to accelerate time-to-market for their applications.
Multi-Cloud and Hybrid Cloud Strategies: As businesses adopt multi-cloud and hybrid cloud strategies, serverless computing is being integrated across different cloud providers, offering flexibility and portability. This trend supports businesses in avoiding vendor lock-in and leveraging best-of-breed services from multiple cloud providers.
The expected growth in the global serverless computing market is driven by the increasing adoption of AI and machine learning technologies. The worldwide expansion of serverless computing is largely attributed to the widespread acceptance of these advanced technologies. The demand for serverless (FaaS/BaaS) solutions is expected to increase in verticals like IT, finance and healthcare that are looking at better scalability, operational efficiency and reduced costs through application development. Increased investment in an expanded analytics market along with automation technologies is expected to boost the forecasted revenues, thereby augmenting better management of applications and real-time data processing. These advances will support decision-making capabilities, additional resource alignment and enable innovative tools to work across teams. This means that serverless computing will be expanded in the future, mainly due to this service orchestration solution provided by functions becoming more and moreso outside traditional business systems.
As per service model, the backend-as-a-service (BaaS) will grow at the highest CAGR during the forecast period.
Backend-as-a-service (BaaS) is essential in the serverless computing sector, making backend tasks easier through different managed services. BaaS provides fundamental functionalities like file storage and management, user authentication and management, database management, and push notification delivery. By outsourcing these backend duties to external firms, developers can focus on front-end development and application logic, leading to faster development and decreased operating expenses. This method facilitates smoothly incorporating different backend services, allowing for scalable and effective app development. With organizations looking to improve their development processes, BaaS offers a way to increase flexibility and streamline backend operations in serverless computing.
As per vertical, IT & Telecom holds the largest share during the forecast period.
The IT & telecom industry leads the way in the serverless computing market, utilizing its features to promote innovation and productivity. Serverless computing helps telecom companies improve operations by reducing the need to manage infrastructure and scaling as needed to accommodate changing demands. This vertical sees major advantages from serverless architectures in network function virtualization (NFV), real-time data processing, and content delivery networks (CDNs). Implementing serverless models enables IT & telecom providers to improve service delivery, decrease latency, and optimize resource usage. By incorporating serverless computing into their operations, these businesses can quickly implement new capabilities, uphold high availability, and meet the rising need for digital services, all while cutting operational costs and complexity to stay ahead in a fast-changing tech environment.
As per region, Asia Pacific will grow at the highest CAGR during the forecast period.
The rapid growth of the serverless computing market in the Asia-Pacific region is due to the quick uptake of cloud technologies, digital transformation projects, and strong tech communities in nations such as China, India, and Japan. This area, with its different economies and levels of technology, is starting to realize more and more the advantages of serverless computing for scalability, cost saving, and speeding up innovation. Effective and economical cloud options are vital in industries like e-commerce, finance, telecommunications, and manufacturing, where serverless designs are improving functions and service provision. However, in addition to the opportunity that challenges such as adhering regulations or where data needs to (or does not need to) reside may provide, there are also level differences of cloud infrastructure readiness across the region. Companies which provide clouds on a massive scale, AWS, Microsoft Azure and Alibaba Cloud are spending up large in Asia at the moment building data centers right across every country making sure they meet all of these key regulations. Furthermore, governments in the area are pushing for digitization and positive regulatory environments driving interest towards cloud technology as well. Continued digital infrastructure investments and growing adoption of cloud-native technologies in enterprises in Asia-Pacific are expected to drive strong growth in the market for serverless computing, particularly among companies in the digital economy sector.
Key Players
Some of the key players operating in the Serverless Computing Market are – AWS (US), Microsoft (US), IBM (US), Google (US), Oracle (US), Alibaba Cloud (China), Tencent Cloud (China), Twilio (US), Cloudflare (US), MongoDB (US), Netlify (US), Fastly (US), Akamai (US), Digitalocean (US), Datadog (US), Vercel (US), Spot by NetApp (US), Elastic (US), VMware (US), Backendless (US), Faundb (US), Scaleway (US), 8Base (US), Supabase (US), Appwrite (US).
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