Serverless Architectures Market Size to Reach USD 21,988 Million by 2025 - Valuates Reports

Serverless Architectures Market Size to Reach USD 21,988 Million by 2025 - Valuates Reports

PR Newswire

BANGALORE, India, July 7, 2020

BANGALORE, India, July 7, 2020 /PRNewswire/ -- Serverless architectures are applications designed using functions that utilize third-party hosting services, thereby eliminating the need for infrastructure management tasks such as server or cluster provisioning, patching, operating system maintenance, and capacity provisioning. In the Serverless Architecture, applications are split into individual functions that can be invoked and scaled individually.



The global serverless architecture market size was valued at USD 3,105.64 Million in 2017 and is projected to reach USD 21,988.07 Million by 2025, registering a CAGR of 27.8% from 2018 to 2025.

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Growth of global serverless architecture market size is driven by the rapid development of apps, rising need to eliminate server management, and shifting from DevOps to serverless computing. Additionally, several advantages, such as scalability and cost-efficiency propel, enhanced serverless architecture market growth.

Continuous growth in cloud adoption and the increasing IoT environment is expected to further fuel the growth of serverless architecture market size. Serverless computing can be used to run batch processing, access external APIs, and route data through just HTTP requests from the user's device, reducing the load from the hardware.

Increasing demand for useful apps in various platforms like Android and iOS has created business opportunities for app developers. Moreover, an increase in the number of smartphones and an increase in the adoption of BYOD have resulted in a significant increase in the demand for technologies suitable for app development. Serverless architecture is considered one of the ideal solutions for agile apps building, testing, and releasing cycles, thus increasing the productivity of developers. Additionally, the serverless approach enables developers to deliver massively scalable and event-driven applications without any underlying infrastructure issues like server management, storage systems, networking, and others. As a result of the aforementioned benefits, large numbers of companies and their developers are embracing serverless architecture, thus driving the serverless architecture market size. 

However, third party API issues such as lock-in problems, compliance, security concerns, and vendor dependence can affect serverless architecture market growth.

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Large enterprises segment is expected to hold a significant market share during the forecast period. This dominance of large enterprises is due to the ever-increasing demand for cloud automation, 

The monitoring services segment is estimated to record the highest growth rate during the forecast period. Monitoring services give a complete picture of the serverless infrastructure's health by providing visibility across different cloud deployments and key network metrics. Furthermore, these tools help to reduce blind spots by detecting issues with containers, load balancers, disconnected hosts, and third party providers.

Based on the region, North America held the largest serverless architecture market share during 2017. This dominance of North America is due to the well-established cloud industry, growth in the software development sector, and serverless architecture adoption for IoT applications.

Due to factors such as increased IT modernization in well-established telecommunications industries in countries such as China, India, and Japan, Asia-Pacific is expected to experience the highest growth rate during the forecast period. In addition, a rise in the adoption of IoT-based devices in countries such as Taiwan & South Korea is expected during the forecast period to provide remunerative opportunities for serverless architecture market expansion.

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The global Serverless Computing market size is projected to reach USD 7712.7 Million by 2026, from USD 6276.6 Million in 2020, at a CAGR of 20.8%% during 2021-2026.

North America is estimated to account for the largest market share in the serverless computing market in 2018. North American countries are early adopters of serverless computing technology. Some of the major vendors operating in this region are Microsoft (US), AWS (US), Google (US), and IBM (US).

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Growing demand for virtual workforce and the rising cost of automation software and services are main drivers for the growth of Automation-as-a-Service Market size.

The major regions covered in the report are North America, Europe, China, Rest of Asia Pacific, Central & South America, Middle East & Africa. The report lists the major players in the regions and their respective market share on the basis of global revenue. It also explains their strategic moves in the past few years, investments in product innovation, and changes in leadership to stay ahead in the competition.

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The major drivers of Function-as-a-Service Market size include agility & scalability, the maturity of hosted services, and shift from DevOps to serverless computing.

The automation and integration service type is anticipated to hold the largest market share, whereas the microservice monitoring and management service is anticipated to grow at the highest CAGR during the forecast period.

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The global market size for cloud computing in 2018 was US$ 36,700 million and is anticipated to achieve US$ 28,5300 million by the end of 2025, with a CAGR of 29.2% in 2019-2025

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