Global Serverless Architecture Market Expected to Reach $21,988.07 Million by 2025


quote India is expected to exhibit fastest growth during the forecast period, owing to significant growth in adoption of serverless infrastructure, as around 43%?of the developers reported deployment of applications in a serverless environment, which is less than global adoption rate of 33%. quote

Pramod Borasi
Research Analyst, ICT at Allied Market Research

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According to a recent report published by Allied Market Research, titled, "Serverless Architecture Market by Deployment Model, Application, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018-2025," the global serverless architecture market size was valued at $3,105.64 million in 2017, and is projected to reach $21,988.07 million by 2025, registering a CAGR of 27.8% from 2018 to 2025. 

Serverless architecture is one of the fastest growing cloud service models, as the technology has reduced the need to maintain physical infrastructure and systems software. In additions, the growth of serverless architecture market can be attributed to benefits such as the high scalability & performance and the payment on the basis of resources consumed by application among the organizations. The technology has opened up several opportunities for developers focused to build apps using more dynamic and scalable cloud-native architecture and can further free up resources for business initiatives toward greater business values. Heavy demand for innovative mobile apps and growth in app development market serve as the major factors driving the market growth. Moreover, rise in shift from DevOps to serverless computing and increase in need to reduce infrastructure burdens positively impact the market growth. However, certain issues with third-party APIs such as security & compliance concerns, lock-in problems, and architecture complexities are some factors that hinder the serverless architecture market growth. 

The large enterprises segment dominated the serverless architecture market in 2017, and is projected to maintain its dominance during the forecast period, owing to its superior capabilities to run real-time applications on a massive scale in a rapid manner. In addition, large-sized organizations have been adopting serverless for critical tasks, such as data processing and essential web applications. Furthermore, the SMEs segment is expected to grow at a significant CAGR during the forecast period, owing to cost and reduced infrastructure benefits possessed by this architecture. In addition, more number of SMEs are expected to move toward the adoption of serverless technology, as it removes infrastructure management burdens and reduces costs for redundant infrastructure, which are their major concerns.

The global serverless industry was led by the IT & telecom industry in 2017, and is projected to maintain its dominance during the forecast period. However, the media & entertainment segment is expected to witness the highest growth rate, owing to the significant adoption of serverless architecture among developers to get completely rid of concerns associated with operating system, server management, billing, and many more. In addition, number of benefits offered to web developers, including faster time-to-market, high scalability, and lower expenses boost the market growth.

In 2017, the global serverless architecture was dominated by North America, and is expected to maintain this trend during the forecast period. The major factors driving the growth of the serverless architecture market in this region include high adoption of cloud infrastructure solutions and rise in penetration of IoT devices. However, the Asia-Pacific segment is expected to witness the highest growth, owing to growth of the application development market across the developing countries such as China, India, and Japan in the region. In addition, surge in penetration of IoT-based devices in the region possess significant serverless architecture market opportunity.

Key Findings of the Serverless Architecture Market:

  • Based on organization size, the large enterprises segment led the serverless architecture market in terms of revenue in 2017.
  • By deployment model, the public cloud accounted for the highest serverless architecture market share in 2017.
  • Region wise, North America generated the highest revenue in 2017.
  • Depending on industry vertical, the media & entertainment is anticipated to exhibit substantial growth during the forecast period.
  • Based on region, Asia-Pacific is anticipated to exhibit substantial growth during the forecast period.

The global serverless architecture industry analysis include some of the key market players such as Alibaba Group, Amazon Web Services, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Platform9 Systems, Inc., Rackspace Inc., Tibco Software, and Twilio.

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quote Serverless Architecture Market by Deployment Model (Public Cloud and Private Cloud), Application (Real-time File/Stream Processing, Web Application Development, IoT Backend, and Others), Organization Size (Large Enterprises and SMEs), and Industry Vertical (BFSI, IT & Telecom, Healthcare, Manufacturing, Media & Entertainment, Public Sector, Retail & E-Commerce, and Others): Global Opportunity Analysis and Industry Forecast, 2018–2025 quote

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