Serverless computing is a new hotspot in software architecture. Serverless is first used to describe a (technique) mainly or entirely composed of third-party cloud applications and services used to manage the logic and state of the server. Typical rich client applications-such as single-page web applications or mobile applications will use a large number of cloud databases, authentication services, etc. Serverless architecture is also known as serverless computing or function as a service. FaaS is a software design pattern where applications are hosted by a third-party service, eliminating the need for management of server software and hardware by the developer.
The global serverless architecture market size was stood at USD 4.96 billion in 2019 and likely to reach USD 26.88 billion by 2027, registering at a CAGR of 19.55% during the forecast period, 2020-2027. The growth of the market is driven by growing shifting from CAPEX to OPEX by removing the need to manage servers and reducing the infrastructure cost. Additionally, the emergence of cloud-based technologies, along with third-party vendors to manage server components, will spur the global serverless architecture industry. The surge in demand for software to build and run applications & services without managing the infrastructure is estimated to drive the robust growth of the serverless architecture market. Further, the increasing demand for serverless architecture in reducing cost, on account of eliminating the server infrastructure requirement and its maintenance, will foster the growth of serverless architecture market share.
Moreover, the deployment of managed services and others such as software and functions are easy to deploy and manage using a serverless architecture; these factors will complement the industry growth. The upsurge in applications of serverless architecture in extreme optimization in the distributed computing scenarios of the IT sector as it eliminates manual provision, maintain, and scale compute resources is anticipated to trigger the expansion of the market. The adoption of serverless architecture in reducing expensive traditional and time-consuming approaches such as purchasing new hardware components, installing, configuring, and troubleshooting will propel the serverless architecture demand globally. Also, the surge in the application of serverless architecture for enterprise-level security, automatic scaling, and ease in handling data makes it easy to draw resources from different physical hubs and expand the market growth.
The Internet of Things fully applies the new generation of IT technology in various industries, specifically, embeds and equips sensors in power grids, railways, bridges, tunnels, highways, buildings, water supply systems, dams, oil and gas pipelines, etc. The rapid development of the mobile Internet and the popularization of fixed-line broadband are the foundations of a large amount of information transmission and interaction in the Internet of Things. The following are some popular applications and uses of the Internet of Things: improve manufacturing efficiency through machine monitoring and product quality monitoring and strengthen the tracking of physical assets and fence protection.
The IoT also strengthen the tracking of physical assets and fence protection and improve the efficiency of existing processes and create new possibilities.
Serverless computing is not a newly proposed concept; it is a result of the rapid development of cloud services, a new mechanism for cloud computing communication data transmission. Amazon, Google, IBM, and Microsoft are all providing their serverless computing models based on their cloud systems. Server computing is also known as FaaS (Function as a Service). Users can use the standard model in the FaaS system to complete rapid deployment and charge per second. Regardless of repeated availability, FaaS provides more powerful resource integration efficiency. The advantage of serverless computing is to change the transfer mechanism of intermediate process data, rather than letting developers reinvent the wheel to achieve the extensibility and demand on existing IaaS and PaaS workloads.
Based on the service type, the global serverless architecture market classified into automation and integration, monitoring, API management, security, analytics, design and consulting, and others. The monitoring is expected to capture the highest revenue share for the serverless architecture market during the forecast period. The segment’s growth is primarily attributed to it providing a complete picture of the health of the serverless infrastructure by providing visibility across various cloud deployments and providing key network metrics. The monitor services help reduce blind spots by detecting issues with containers, load balancers, disconnected hosts, and third-party providers.
The automation and integration segment will witness a lucrative growth rate in the estimated period. These services help establish a robust serverless architecture in any organization and allow third-party vendors to manage microservices efficiently.
Based on the deployment model, the global serverless architecture market bifurcates into a public cloud and private cloud. The public cloud segment held a higher market share in 2019 and likely to dominate the global serverless architecture market by 2027. It is due to the public cloud offers various benefits to the enterprises, such as scalability, reliability, flexibility, and remote location access.
The private cloud will grow at a significant CAGR in the forecast period. It is owing to the private cloud provides the developer abstraction that enables event-driven functions and the comfort of predictability in the costs.
By the organization size, the global serverless architecture market bifurcates into small and medium-sized enterprises and large enterprises. The large enterprise segment estimated significant growth over the analysis timeframe due to the ever-increasing demand for cloud automation and reduced CAPEX and OPEX of infrastructure.
The small and medium-sized estimated to exhibit a significant rate during the forecast period due to it offers flexibility and reduces overall infrastructure cost.
By the end-user industry, the global serverless architecture market segmented into BFSI, telecommunication & IT, retail & e-commerce, healthcare and life sciences, manufacturing, government and public sector, and others. The BFSI segment will dominate the global serverless architecture market by 2027. Because the serverless architecture helps, BFSI optimizes bank workflow and provides quick responses and increases customer satisfaction.
The telecommunication & IT accounted for the largest share of the serverless architecture market in 2019. It accounted for various benefits, such as high scalability, cost-efficiency, and growing demand for serverless architecture in app developers.
Based on geography, the global serverless architecture market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is expected to hold the largest market size during the forecast period, 2020-2027. Due to the presence of prominent players in the U.S., the adoption of Industry 4.0, & emerging technologies and growth of the app development market.
Europe will capture a prominent share of the serverless architecture market by 2027. Due to the swelling in the number of IT companies, growth in small & medium businesses, and demand for serverless technologies by cloud providers.
Companies such as Google LLC, Amazon Web Services (AWS), Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, CA Technologies, Inc., Rackspace, Inc., Alibaba Group Holding Limited, Nasuni Corporation, TIBCO Software Inc., Platform9 Systems, Inc., Syncano, Inc., NTT Data Corporation, Joyent, Iron.io, StdLib, Realm, Galactic Fog, and ModuBiz are the key players in the global serverless architecture market.
By Service Type
By Deployment Model
By Organization Size
By End-User Industry