Serverless Computing Market Size, Growth & Forecast 2024-2032

The serverless computing market is experiencing rapid growth, with an impressive projected compound annual growth rate (CAGR) of 22.2% from 2024 to 2032. This technology enables developers to build and run applications without managing the underlying infrastructure. As organisations continue to adopt cloud-based technologies and seek scalable, cost-efficient solutions, the serverless computing market is expected to expand significantly. This blog explores the market overview, size, trends, growth drivers, and forecasts for the serverless computing market, along with a competitive analysis of the key players in the sector.

Serverless Computing Market Overview

Serverless computing is a cloud-computing execution model where cloud service providers automatically manage the infrastructure, allowing developers to focus on writing code. In a serverless environment, the cloud provider is responsible for the provisioning, scaling, and managing of servers. Serverless computing is often associated with Function as a Service (FaaS), a subset of cloud computing where individual functions or small blocks of code are executed in response to events or triggers.

The primary appeal of serverless computing lies in its ability to provide automatic scaling and reduce operational complexity. It also offers a pay-per-use model, meaning companies only pay for the compute time they use, rather than for dedicated server space. This makes it an attractive option for businesses looking to reduce infrastructure costs and optimise resource usage.

With increased cloud adoption, digital transformation efforts, and the growing demand for scalable computing solutions, the serverless computing market is poised for continued growth over the next decade.

Serverless Computing Market Size

The serverless computing market was valued at approximately USD 9.5 billion in 2023 and is expected to grow at a robust pace, reaching an estimated market size of USD 75 billion by 2032. This growth can be attributed to the increasing demand for scalable computing solutions across various industries, including IT, telecommunications, and financial services.

Serverless computing is particularly popular among startups and enterprises that want to avoid the overhead of managing physical infrastructure. As more businesses shift their operations to the cloud, the adoption of serverless computing is likely to increase exponentially, driving the overall market growth.

Serverless Computing Market Trends

Increased Cloud Adoption and Digital Transformation
As businesses continue their digital transformation journeys, there is a growing shift towards cloud-based solutions. Serverless computing plays a key role in this transition by enabling faster application deployment, easier scaling, and more efficient cost management.

Rise in Microservices Architecture
Serverless computing aligns perfectly with microservices architecture, where large applications are broken into smaller, independent services. This trend is driving the adoption of serverless computing as businesses seek more flexible, modular application architectures.

Integration with Edge Computing
Edge computing involves processing data closer to the source, improving latency and reducing bandwidth. The integration of serverless computing with edge computing is emerging as a significant trend, enabling businesses to process data in real-time without relying on centralised cloud resources.

Automated Scaling and Reduced Latency
One of the primary advantages of serverless computing is its ability to automatically scale applications based on demand, ensuring optimal performance during peak loads and reducing costs during low usage periods. This automated scaling, along with the reduction in latency, is driving the widespread adoption of serverless models.

Serverless Computing Market Segmentation

Service
Professional
Managed

Type
Hybrid Cloud
Multi-Cloud

End User Industry
IT and Telecommunication
BFSI
Retail
Government
Industrial
Others

Region
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa

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Serverless Computing Market Growth

The serverless computing market is expected to grow rapidly over the forecast period, driven by several key factors:

Cost Efficiency: With the pay-per-use model, businesses can significantly reduce costs by paying only for the compute resources they actually use. This is particularly beneficial for startups, small and medium-sized businesses, and companies with fluctuating workloads.

Increased Automation: Serverless computing allows for greater automation in application deployment and scaling. As more companies look to automate their infrastructure management, serverless computing is becoming a key solution.

Faster Time-to-Market: Serverless computing accelerates application development, allowing developers to focus on writing code rather than managing servers. This leads to faster time-to-market for new applications and features, which is crucial in today’s competitive business landscape.

Growing DevOps Adoption: Serverless computing is closely aligned with DevOps practices, enabling development and operations teams to work more collaboratively and efficiently. As DevOps adoption continues to rise, so too will the adoption of serverless technologies.

Serverless Computing Market Forecast

The serverless computing market is projected to grow at a CAGR of 22.2% between 2024 and 2032. This growth will be driven by increasing cloud adoption, the rise of microservices architectures, the need for scalable and cost-effective solutions, and the automation of IT operations.

By 2032, the market size is expected to reach USD 75 billion, reflecting the expanding role of serverless computing in powering applications and services across industries worldwide.

Competitor Analysis

Key players in the serverless computing market include:

Microsoft Corp.: Microsoft Azure offers a comprehensive suite of serverless computing solutions, including Azure Functions and Azure Logic Apps, allowing businesses to deploy, scale, and manage applications without managing infrastructure.

Google LLC: Google Cloud provides serverless computing solutions such as Google Cloud Functions and Google App Engine, designed to simplify application deployment and management in the cloud.

Alibaba Group Holding Limited: Alibaba Cloud offers serverless computing solutions through Alibaba Cloud Function Compute, enabling businesses to deploy and scale applications without managing physical servers.

SAP SE: SAP offers a range of serverless computing services for enterprises, helping organisations scale their applications and reduce infrastructure costs.

Others: Other notable players in the serverless computing market include Amazon Web Services (AWS), IBM, Oracle, and Red Hat.

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