Serverless Architecture Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI3796
Serverless Architecture Market size is anticipated to expand exponentially over the forecast time span owing to growing demand for software to build and run applications & services without having to manage the infrastructure. The software helps eliminate the use of a physical or virtual server, thereby reducing the traditional time-consuming process for setting up a server and connecting it with a database. Several benefits provided by the technology are reduction in cost, configuration, and troubleshooting of the server compared to the traditional approach. Several companies are adopting this technique by deploying the use of cloud computing. For instance, Netflix, Inc. a global media service provider, has implemented the use of serverless architecture. The company is using Amazon Web Service (AWS) Lambda, an event-driven, serverless computing platform for streaming videos, thereby allowing Netflix to forgo the need for managing and handling servers. Such trends are positively impacting the serverless architecture market growth.
Advancement in cloud technology is enabling organizations to install the software, increasing the serverless architecture market demand. The platform provides enterprise-level security, automatic scaling, and ease in handling of data, making it easy to draw resources from different physical hubs. Moreover, the platform allows companies to have large space and ease in the expansion of space whenever necessary. Enterprises are focusing on internal expansion for managing high data traffic on their IT infrastructure. Companies are shifting their data from traditional systems to cloud technology. For instance, in 2016, the Coca-Cola Company, North America moved to a serverless framework for its vending machines. The newly installed serverless systems replaced the old vending machines and reduced the annual running costs to USD 4,500 down from USD 13,000. Such implementations are driving the market growth.
Europe accounted for a majority of the serverless architecture market share. With the rise in the number of IT companies and growth in small & medium businesses, the demand for serverless technologies is increasing. In the region, several companies are implementing cloud computing. These companies are using virtual servers from cloud providers, such as Microsoft and Amazon, eliminating the need for physical hardware, but still requiring some level of management of the operating system and web server software processes. With serverless architecture, companies can focus on individual functions in their applications. Services, such as Microsoft Azure Functions, AWS Lambda, and Twilio Functions, help in taking care of the virtual machine operating system, physical hardware, and web-based server software management systems for companies, thereby reducing the infrastructure costs for companies. Such factors are presenting several opportunities for the market.
Latency, loss of control, loss of performance, and security issues are hindering the serverless architecture market growth. Serverless technology inherently involves giving up full control of data to the cloud technology, which is connected digitally and is easy to hack as cyber-attack is leading to the loss of important data. Moreover, serverless technologies have virtual servers that hide the program execution. This has forbidden several coders to make changes in the performance during the peak period and impacting the business performance; hence, companies are not willing to implement this architecture, thereby impacting the market. Moreover, in the traditional data centers, users have full control over the networking equipment and can make changes on the equipment, thereby reducing the latency. Several telecom operators are focusing on improving the network latency to offer high-speed data to their customers with less buffering and loading time, propelling the market.
In the manufacturing sector, the use of cloud technology is anticipated to increase in the coming years, driving the serverless architecture market demand. Several companies in this sector are looking to enhance their production and efficiency by using advanced solutions. With the use of intelligent cloud-based systems, manufacturers are able to achieve speed, scale, and accuracy in their operations. Moreover, this architecture will help in the supply chain management, helping to predict the inventory usage & replenishment based on previous user demand and can be achieved using cloud-based architecture. The software can handle tracking and traceability, saving the manufacturer’s time & effort by checking the quality of products. Several companies are implementing the architecture, thereby reforming the manufacturing sector. Such factors will boost the serverless architecture market over the coming years.
Increase in the demand for IoT technology in several sectors has reduced human effort. Usability of serverless architecture with IoT system will improve the products in several ways, such as setting up a managing infrastructure in the cloud, to perform various functions including the processing of data generated from a network of devices in real-time, and analyzing the data to gain insights, thereby boosting the serverless architecture market. As IoT devices generate & store large data, the need for flexible space is necessary to overcome the problems caused due to the lack of space. With cloud hosting, the cost for handling the server for any IoT-based device can be reduced, increasing the efficiency for various start-up companies. For instance, Canary, a home security system provider, makes use of cloud technology to help users store data on a serverless platform. With the use of this technology in various IoT devices, the demand for market will rise.
The key players operating in the serverless architecture market are Google LLC, Amazon Web Services (AWS), Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, CA Technologies, Inc., Rackspace, Inc., Alibaba Group Holding Limited, Nasuni Corporation, TIBCO Software Inc., Platform9 Systems, Inc., Syncano , Inc., NTT Data Corporation, Joyent, Iron.io, StdLib, Realm, Galactic Fog, and ModuBiz. These companies are trying to incorporate several changes in the usage of serverless architecture in various sectors. For instance, Nasuni Corporation has developed a cloud storage solution for the manufacturing industry helping to meet the production deadlines with continuous access to design files regardless of the location. With the use of cloud technology in the manufacturing sector, the demand for market will increase.
Serverless Architecture Market, By Model
- Private cloud
- Public cloud
- Hybrid cloud
Serverless Architecture Market, By Organization Size
- Large enterprises
Serverless Architecture Market, By Type
- API management
- Automation & integration
- Support & maintenance
- Training & consulting
Serverless Architecture Market, By Model
- IT & telecom
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa (MEA)
- South Africa
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