Serverless Architecture Market Size By Service (API Management, Automation & Orchestration, Monitoring, Security, Support & Maintenance, Training & Consulting), By Deployment Model (Public, Private, Hybrid), Organization Size, Application, 2023-2032

Serverless Architecture Market Size

Serverless Architecture Market size exceeded USD 9 billion in 2022 and is projected to expand at over 25% CAGR from 2023 to 2032. Rising adoption of DevOps will positively influence the industry growth. Over the last decade, organizations have ramped up the adoption of DevOps to efficiently deliver software-based services. Serverless computing plays a crucial role in this context as it enables the migration of computing infrastructure on the cloud.
 

It also allows DevOps operations to streamline and optimize development processes. Such cross-platform integration capabilities of serverless architecture are enticing companies seeking application development. Growing scalability needs across operation processes such as scaling, provisioning, clustering, and patching will pave the way for serverless cloud computing tools.

 

Critical risks to impede adoption of serverless architecture

Digital characteristics of serverless architecture pose a considerable risk associated with increased attack surface complexity. The architecture may also showcase dependency on third-party vendors and witness insecure application storages with deployment configuration issues. Third-party dependencies and the dearth of a robust security framework add to the cybersecurity concerns of users. Moreover, maintenance and storage of sensitive application databases such as APIs and encryption keys in serverless architecture is highly complex and could lead to inadequate functional abilities.

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.
 

Serverless Architecture Market Share

Some of the leading participants in the serverless architecture industry include:

• Alibaba Group Holding Limited
• Alphabet (Google) Inc
• Asseco Group
• AWS (Amazon) Inc
• Enfo Oyj
• Capgemini SE
• CloudFlare Inc
• Digital Ocean Inc
• Dynatrace LLC
• Hexaware Technologies
• Microsoft Corporation
• Nimbella
• IBM Corporation
• NTT Data Corporation
• Oracle Corporation
• Rackspace Inc
• Redpill Linbro AB
• Tencent Holding Limited
• Tibco Software Inc TietoEVERY
   

These leaders are focusing on new investments to grow their geographic footprint. For instance, in June 2021, Alibaba Cloud infused USD 1 billion worth of funding and resources to empower 100,000 tech startups in APAC.
 

COVID-19 Impact

The COVID-19 pandemic positively influenced industry trends and introduced new opportunities for competitors. The unprecedented crisis caused significant economic, social, and industrial losses. However, the pandemic amplified digital transformation with a quantum leap across the healthcare sector to address the burgeoning pressures associated with surging hospitalization rates.
 

In the wake of the pandemic, several healthcare companies increased spending on cloud migration amidst the growing popularity of serverless platforms. Additionally, serverless architecture has emerged as a vital component of cloud, sensors, AI, streaming, and event functions in the post-pandemic era. Serverless architecture is also picking pace across new normal applications such as healthcare supply chain logistics, wide-area mobility, and shared-space occupancy.
 

The serverless architecture market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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Market Insights, By Service

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

Market Insights, By Deployment Model

• Public
• Private
• Hybrid

Market Insights, By Organization Size

• Large Organizations
• SMEs

Market Insights, By Application

• IT & Telecom
• BFSI
• Retail
• Healthcare
• Government
• Manufacturing
• Media & Entertainment
• Others      

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Nordics
  • RoE
• Asia Pacific
  • China
  • India
  • Japan
  • ANZ
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • UAE
  • Saudi Arabia
  • Israel
  • RoMEA