Serverless Architecture Market

According to Stratistics MRC, the Global Serverless Architecture Market is accounted for $11.81 billion in 2022 and is expected to reach $44.43 billion by 2028 growing at a CAGR of 24.7% during the forecast period. One of the main factors driving the market's growth is the growing understanding of the advantages of serverless architecture, such as enhanced process agility and lower operational costs. Additionally, advantages like quicker setup, simpler operational management, and no system administration are enhancing developers' apps. The development of cloud-based technologies and the use of outside vendors to handle server components is also anticipated to fuel market expansion. By adopting serverless architecture, businesses may successfully do away with costly, time-consuming methods like buying new hardware components, installing, configuring, and debugging. The management of servers, databases, and application logic is shifted, which lowers setup and maintenance expenses. Organizations are able to use serverless environments thanks to developments in computing technology, which is expanding the market.

According to a recent survey by Salt Stack, a Utah-based provider of intelligent IT automation software, even though two-thirds of organizations have more than 10% of their applications containerized, 40% of the organizations still need to be concerned that their container strategy needs to invest in security adequately.

Market Dynamics:

Driver:

Increasing adoption of serverless architecture

A wide range of application innovations have been sped up by the serverless architectural revolution. Customer relationship management (CRM), business intelligence and analytics, the information system for human resources, finance, e-commerce, and other industries all use serverless architecture. Software applications can be swiftly and readily changed using a serverless architectural approach, which also enables organisations to handpick the services based on requirements. Cloud-based technologies are being fully utilised by serverless architecture. Instead of managing traffic on their IT infrastructure, it enables businesses to concentrate on their core services and goods.

Restraint:

Technical issues regarding vendor lock-in and data security issues

Serverless architecture totally depends on a third-party vendor or provider to run mobile or web applications. After deploying to a serverless architecture, application developers are not able to further modify a feature depending on user or client requirements. The user data may become trapped in a closed system as a result of these technical problems, which can cause system outages, required API changes, loss of functionality, unanticipated constraints, and costs. Serverless platforms are vulnerable to denial-of-service (DoS) attacks that could overwhelm the user system and disable critical functionality for numerous users. These elements are the main market inhibitors for serverless architecture.

Opportunity:

Expansion of Hybrid IT to Accelerate Market Growth

In a hybrid serverless architecture, some apps will operate on AWS, some in the company's own data centre, and yet others across several public clouds. Hybrid serverless solutions can scale across multi-cloud and data centre environments, allowing operators additional flexibility. In the near future, it is projected that the technology will be widely used in enterprise applications and will integrate with both traditional application architectures and micro-services. Additionally, serverless architecture makes it simple to monitor apps, which fosters market expansion. The monitoring help offered by different providers varies, and it frequently has to be augmented by other services.

Threat:

Complexities in Testing and Debugging, Cyber Threats

Debugging issues after deployment and replicating the serverless environment to test how code will operate are challenging tasks. A major market barrier is a lack of visibility into backend operations. Applications that manage sensitive or personal data may encounter cyber threats and security breaches. In a serverless architecture, businesses are not given their own unique physical servers; instead, service providers run code from a number of their clients on a single server, a practise known as multitenancy or sharing hardware. If the multi-tenant servers are not set correctly, multi-tenancy may expose critical data to hackers.

Covid-19 Impact

The market for serverless architecture has experienced an increase in demand thanks to COVID-19. Serverless architecture is what businesses need to finish their digital transformation, and the COVID-19 epidemic has boosted this market even more. Due to lockdown and operational constraints imposed by the government and municipal authorities, many organisations have changed their work-from-home policies. As a result, serverless architecture adoption has experienced significant growth in application sectors like banking and financial services, media and entertainment, and retail and e-commerce. The demand and revenue from these companies have been seen by serverless architecture vendors.

The large enterprises segment is expected to be the largest during the forecast period

The large enterprises segment is estimated to have a lucrative growth, due to the widespread use of serverless technology by app developers, which reduces the need for server maintenance since serverless architecture is a software design style that hosts applications using a third-party service with cloud storage. Serverless architecture eliminates the need to manage physical infrastructure, which is often involved in hosting software applications online and allows it to run all cloud-based applications. It offers the businesses exceptional scalability and inexpensive IT & infrastructure costs.

The telecommunications and IT segment is expected to have the highest CAGR during the forecast period

The telecommunications and IT segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the vast variety of advantages it offers. Using this technology eliminates the need for manual provisioning, upkeep, and scaling of compute resources in distributed computing scenarios used in the IT industry. It offers automatic resource scaling in the event of heavy and fluctuating workloads. This technology can be utilised in the E-commerce, retail, and healthcare sectors to combine traditional and big data workloads for sophisticated analytics and real-time decision support.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The market for serverless architecture in this area is growing quickly due to digital transformation. Major cloud providers like Amazon Web Service, Microsoft Azure, Google Cloud Platform, and others have greatly benefited from the switch from traditional server design to serverless architecture as they continue to grow their businesses in the area. Additionally, growing investments in various mobile application firms from angel investors, venture capitalists, and government funding programmes are actively boosting the demand for serverless architecture services in this area.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, as a result of growing investments in the implementation of internet architectures in developing sectors including the Internet of Things (IoT), machine-to-machine (M2M) communication, and database infrastructure. The government will place a financial priority on developing fresh approaches for federating cloud or serverless architecture, according to the European Union (EU).

Key players in the market

Some of the key players profiled in the Serverless Architecture Market includeOracle Corporation, Amazon Web Services, Inc., IBM Corporation, Google LLC, Microsoft Corporation, TIBCO Software Inc., Platform9 Systems, Inc., Alibaba Group, Serverless, Inc., Cloudflare, NTT DATA, Rackspace, Stackpath, Kong, EnterpriseWeb,Snyk, OpenLegacy, Innominds, Stackery and Twistlock.

Key Developments:

In March 2021, Alibaba Cloud launched its first personal cloud product, challenging Baidu and Tencent. The service, by Alibaba Cloud, offers users up to two terabytes of free storage and 'unlimited' uploading and downloading speeds.

In April 2020, Amazon Web Services launched Fargate 1.4. It is an update to its serverless container platform that adds support for shared Elastic File System storage and removes the use of Docker Engine. This update makes it easy to run stateful workloads in container applications.

In April 2018, Google LLC launched a new version of cloud function for Firebase SDK to enhance debugging, implementation, and management functions in an application.

Components Covered:
• Monitoring
• Analytics
• Automatation and Integration
• Service Types
• Design and Consulting
• API Management
• Security
• Training and Consulting
• Support and Maintenance
• Other Components

Deployment Models Covered:
• Private Cloud
• Public Cloud
• Hybrid

Organization Sizes Covered:
• SMEs
• Large Enterprises

Software Types Covered:
• Backend-as-a-Service (BaaS)
• Function-as-a-Service (FaaS)
• Database

Applications Covered:
• Finance
• Human Resource Information System
• Customer Relationship Management (CRM)
• Data Analytics
• Real-Time File/Stream Processing
• Web Application Development
• IoT Backend
• Other Applications

End Users Covered:
• Retail and eCommerce
• Healthcare and Life Sciences
• Telecommunications and IT
• Government and Public Sector
• Banking, Financial Services and Insurance (BFSI)
• Media and Entertainment
• Manufacturing
• Public Sector
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances