Serverless Architecture Market size worth $30 Bn by 2027
Published Date: June 16, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Serverless Architecture Market size is set to reach USD 30 billion by 2027, according to a new research report by Global Market Insights Inc.
Increasing demand for cloud computing services and cost benefits associated with serverless architecture is likely to boost the market demand. The enterprise-wide trend of reducing complexities associated with server provisioning and focusing on the development of core cloud services are expected to fuel the adoption of serverless architecture solutions.
Rising emphasis on enhancing DevOps capabilities across organizations to fuel the market revenue
The serverless architecture market is estimated to witness 20% CAGR during 2021 to 2027 on account of the increasing popularity of DevOps and agile practices. Serverless architecture helps DevOps operations to optimize development processes. As the infrastructure is managed in a cloud environment, serverless architecture helps developers in reducing the configuration time. Serverless architecture also provides enterprises with a scalable execution architecture and simplifies the operation processes.
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Growing emphasis on the integration of microservices is driving the market demand for API management
The API management is estimated to hold above 20% of the serverless architecture market share by 2027. The serverless architecture enables enterprises to host API applications for efficient services including to publish, transform, maintain, secure, and monitor APIs. API management helps enterprises to decrease internal complexity and reduce the time taken to run the microservices through deeper integration with the cloud, AI, and networking tools.
Browse key industry insights spread across 270 pages with 324 market data tables and 35 figures & charts from the report, “Serverless Architecture Market Size By Service (API Management, Automation & Orchestration, Monitoring, Security, Support & Maintenance, Training & Consulting), By Organization Size (Large Enterprises, SMEs), By Deployment Model (Public, Private, Hybrid), By Application (IT & Telecom, BFSI, Retail, Healthcare, Government, Manufacturing, Media & Entertainment), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increased focus on critical data security is enhancing the significance of private cloud market
The private cloud segment is forecast to witness exponential growth through 2027. Serverless architecture based on private clouds is increasingly being used by government agencies, BFSI enterprises, and organizations with critical data, such as military facilities and nuclear power stations, to ensure control over the data. Private clouds do not share computing resources with other customers (single tenancy), offering a high level of data control and security.
Rising awareness of cloud computing amid increasing market competitiveness to drive SME growth
The SMEs segment is likely to observe a rapid growth spike in the adoption of serverless architecture, which is attributed to the increasing popularity of cloud computing benefits among SMEs such as remote computing, reduced costs, and the availability of on-demand computing resources. The limited budget of small enterprises makes serverless architecture highly suitable to their requirements as serverless computing is priced on actual usage and can be downscaled or upscaled based on dynamic compute loads.
The serverless architecture market across the BFSI industry buoyed by digital banking trends
In the application segment, the adoption of serverless architecture by the BFSI industry is expected to grow significantly during 2021 to 2027. The increased modernization across the BFSI sector and rising market pressure to offer innovative digital channels are boosting market expansion. For instance, in March 2021, Skandinaviska Enskilda Banken AB, a Swedish fintech, entered into a strategic partnership with Google Cloud to enhancing its banking infrastructure with Google’s serverless architecture solutions.
Well-established IT infrastructure and matured cloud landscape supporting European market growth
Europe serverless architecture market is predicted to account for more than USD 5 billion revenue by 2027 owing to favorable conditions that foster the growth of cloud computing. For instance, as per the Nordic IT Sourcing & Cloud Survey 2020 Report, Norway registered 31% spending in IT infrastructure and cloud technologies. Moreover, the European Union is taking favorable efforts to establish a government marketplace for cloud services and increase the benefits of the technology in the public & private sectors.
Addition of new serverless architecture functionalities by key players to augment market share
Companies providing serverless architecture solutions are emphasizing on advanced product developments to cater to the enterprise demand. For instance, in November 2020, Oracle announced new features for Oracle Functions. The feature includes increased limits, improved logging, and log triggers. This launch helped the company to address enterprise-wide demand for serverless cloud functions and strengthen its competitive position.
Some of the key serverless architecture market players include Alibaba Group, Alphabet Inc., Amazon Web Services, Inc., Asseco Denmark A/S, Capgemini SE, Cloudflare, Digital Ocean, LLC., Dynatrace LLC., Enfo Oyj, Hexaware Technologies, IBM Corporation, Microsoft Corporation, Nimbella, NTT DATA Corporation, Oracle Corporation, Rackspace, Inc., Redpill Linpro AB, Tencent Holdings Ltd., TIBCO Software, and TietoEVRY.