Serverless Architecture Market Analysis

Serverless Architecture Market Analysis

The automation & orchestration service segment is estimated to account for more than 23.5% of the serverless architecture market share by 2032. The primary function of automation is to execute a task between two separate systems without any human intervention. Orchestration helps automate processes involving massive workflows systematically. Increasing data volumes and large workflow requirements are propelling the need for high-efficiency solutions to avoid downtime. Automation & orchestration services are gaining momentum across IT infrastructures focusing on speeding up operational processes to ensure reliable and more predictable performance.
 

Serverless architecture market size from the private deployment model segment is slated to register at nearly 27.5% growth rate between 2023 and 2032. Private cloud data centers can be either physically hoisted within the premises of an organization or managed by a third-party service provider. Due to the flexibility offered by these models, organizations are increasingly establishing a presence across physical and virtual platforms. For instance, in May 2022, Telefónica Tech announced its business expansion in the U.S. with the launch of its  ‘Virtual Data Center’ service in Virginia. Similar initiatives by tech companies to foray into the virtual ecosystem will consolidate the segment growth.
 

In terms of organization size, the large enterprises segment held around 66% of the serverless architecture market share in 2022. Large enterprises are among the early adopters of cloud computing solutions due to extensive applications of SaaS models such as ERP and CRM solutions. These organizations are increasingly investing in advanced cloud computing solutions to effectively address the burgeoning demand for IT services in developed and developing nations. Furthermore, ongoing digital transformation is encouraging governments and businesses to increase their cloud spending.
 

Serverless architecture market from the healthcare applications segment is poised to observe more than 11.5% growth rate by 2032. Increasing concerns associated with healthcare security and the presence of stringent regulatory frameworks, such as the HIPPA Act will escalate the need for effective tools to ensure compliance. The advent of telehealth and telemedicine are emphasizing on serverless technologies. Growing patient preference for remote healthcare is increasing serverless applications in health IT. These technologies offer highly scalable solutions to operate high-traffic and state-of-the-art telehealth apps and healthcare platforms.
 

Europe serverless architecture market size is expected to record nearly 25% CAGR through 2032. Rapid penetration of M2M technologies, IoT, and AI across a broad spectrum of business verticals including automotive and healthcare sectors will fuel the demand for serverless architecture. Favorable government efforts empowering digital transformation across EU countries are offering lucrative business prospects for serverless providers in the region.