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Serverless Computing Market
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Serverless Computing Market

Author: Ranjana Pant - Research Analyst, Report ID - DS1102011, Published - January 2025

Segmented in Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Service Type (BaaS, Function as a Service), Industry Verticals, Enterprise Size and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Serverless Computing Market Outlook

The landscape of business operations in our age is being reshaped by serverless computing in a significant manner that cannot be overstated enough It has the potential to bring about a transformative shift and redefine standards within various industries as a pivotal element of the cloud technology revolution Serverless computing seamlessly blends into current cloud infrastructures and eliminates the requirement, for ongoing server upkeep This enables businesses to concentrate on delivering results efficiently and innovatively without the burden of server management


Serverless computing goes beyond being a service; it embodies a programming method, for e business platforms that unveils a wide array of possibilities. The market, for Serverless computing was estimated at $23.7 billion in 2024. It is anticipated to increase to $80.5 billion by 2030 with projections indicating a growth to around $222.9 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 22.6% over the forecast period. Its fundamental features. Scalability, lowered expenses and improved development efficiency are actively influencing the direction of cloud computing.


Market Size Forecast & Key Insights

2019
$23.7B2024
2029
$181B2034

Absolute Growth Opportunity = $158B

The Serverless Computing market is projected to grow from $23.7 billion in 2024 to $181 billion in 2034. This represents a CAGR of 22.6%, reflecting rising demand across Real-time File Processing, Real-time Data Analytics and Microservice Architectures.

The Serverless Computing market is set to add $158 billion between 2024 and 2034, with service providers targeting Healthcare & Retail Industry Verticals projected to gain a larger market share.

With Cost efficiency, and Increasing scalability, Serverless Computing market to expand 667% between 2024 and 2034.

Opportunities in the Serverless Computing Market

The Advent of AI and ML Applications

AI along, with ML relies on computational resources.

Rising Demand in Healthcare and The IoT Driven Growth

Amid the era of advancement in healthcare services is growing dependence on technology to deliver effective and economical patient care services The rise of serverless computing presents a business opportunity in handling and storing vast amounts of medical information efficiently The adaptability of serverless architecture in adjusting resources based on needs makes it a suitable choice for a range of healthcare uses such, as telehealth services remote monitoring radiology and patient care management

Serverless computings effortless ability to scale up and decrease delays makes it a great fit for IOT applications across sectors such as manufacturing and transportation as well, as consumer electronics industry.

Growth Opportunities in North America and Asia-Pacific

Asia Pacific Outlook

The serverless computing market is experiencing growth in the Asia Pacific region at a rapid pace with tech giants like Alibaba and Tencent leading the way with their strong product offerings shaping the competitive environment. The development of infrastructure and a trend toward modernizing IT systems contribute to the markets dynamism. Additionally the thriving eCommerce and online gaming industries within this region present prospects, for growth.

North America Outlook

In North America's tech scenario is booming with serverless computing thanks to players like Amazon and Google leading the way alongside Microsoft in pushing for new and improved services to meet the growing demand for efficient and cost effective solutions in resource management and scalability offered by serverless computing technology The region stands out as a ground for growth with the rising data volumes and a boom, in cloud based app usage opening up exciting prospects.

North America Outlook

In North America's tech scenario is booming with serverless computing thanks to players like Amazon and Google leading the way alongside Microsoft in pushing for new and improved services to meet the growing demand for efficient and cost effective solutions in resource management and scalability offered by serverless computing technology The region stands out as a ground for growth with the rising data volumes and a boom, in cloud based app usage opening up exciting prospects.

Asia-Pacific Outlook

The serverless computing market is experiencing growth in the Asia Pacific region at a rapid pace with tech giants like Alibaba and Tencent leading the way with their strong product offerings shaping the competitive environment. The development of infrastructure and a trend toward modernizing IT systems contribute to the markets dynamism. Additionally the thriving eCommerce and online gaming industries within this region present prospects, for growth.

Growth Opportunities in North America and Asia-Pacific

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, China, United Kingdom, Germany, Japan are expected to grow at 21.7% to 31.6% CAGR

2

Emerging Markets : Brazil, South Africa, United Arab Emirates are expected to grow at 17.0% to 23.5% CAGR

Market Analysis Chart

When it comes to what motivates the market growth for Serverless Computing mostly stems from companies realizing the cost benefits this technology can provide them with lately. Businesses utilizing Serverless Computing are charged based on the processing time their applications use rather than a fixed server space allocation. This pay as you go approach has proven to be very appealing to firms aiming to cut down their expenses and operational costs. Additionally the scalability aspect of serverless computing plays a role, in driving its adoption further.

Recent Developments and Technological Advancement

December 2024

Google Cloud has introduced an enhanced edition of Serverless Computing services designed specifically for AI and ML tasks.

November 2024

Amazon Web Services has added serverless computing capabilities to its IoT Core service to facilitate interaction, between IoT devices and serverless computing environments.

October 2024

Microsoft Azure revealed that they have added AI elements to their Serverless Architecture to enhance processing and decision making abilities.

In the technology market today serverless computing has become a game changer in years. This innovative approach involves creating and running applications without the hassle of managing servers allowin developers to concentrate on writing code without dealing with infrastructure concerns. A notable trend in serverless computing is the growing use of Function as a Service , in industries.

Impact of Industry Transitions on the Serverless Computing Market

As a core segment of the IT Services industry, the Serverless Computing market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Microservices and Increased Adoption of IoT have redefined priorities across the IT Services sector, influencing how the Serverless Computing market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Shift Towards Microservices:

The move to microservices architecture is a change affecting the serverless computing sector significantly. Through microservices architecture big applications are divided into easier to handle services that operate independently. This setup is a fit for serverless computing, which focuses on running small specific functions. Because of this shift serverless computing has become more integrated, in application development practices.

2

Increased Adoption of IoT:

The growing trend of using IOT technology is transforming the serverless computing industry. With the increasing number of devices in use comes the need for distributed processing tasks that serverless computing can efficiently manage. By making this switch to serverless computing for applications removes the requirement for individual servers for each application and results, in decreased complexity and costs involved.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the IT Services industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the IT Services industry cascade into the Serverless Computing market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Cost Efficiency, and Technological Advancements

The pay as you use system in serverless computing guarantees that companies are also charged solely for the computing resources they utilize and eliminates the expenses associated with upkeeping unnecessary server infrastructure. This approach has also significantly fueled the embrace of serverless computing, among cost businesses aiming to enhance operational efficiency.
Advancements in intelligence and ML have also accelerated the integration of serverless computing into various industries due to their reliance on extensive computing capacities that can also be efficiently met through serverless computing services along, with resource optimization measures driving market growth forward.
Serverless computing allows businesses to easily adjust the scale of their operations based on their requirements without any hassle of managing resources themselves. This flexibility in adjusting resources as needed is also particularly advantageous for both startups and established companies that face fluctuating levels of website traffic and customer demand, in the market.

Restraint: Lack of Control and Visibility

One major obstacle in the adoption of serverless computing is the control and visibility it offers users. As serverless architecture entrusts infrastructure management to service providers it restricts user control over performance and operational functions. This poses a challenge for organizations looking to integrate serverless solutions. Moreover the lack of insight, into the underlying systems can expose users to security threats and complicate problem solving and debugging processes.

Challenge: Limited Application Performance

Serverless computing faces a challenge in its development due to a limit, on application performance as each function runs independently in a microservices architecture resulting in latency issues.

Supply Chain Landscape

Stage - Research & Development

Amazon Web Services

Google Cloud Platform

Microsoft Azure

Stage - Software Production

IBM

Oracle

SAP

Stage - Distribution & Deployment
Salesforce / Adobe / SAP
Stage - End User Applications & Maintenance
E-commerce / Financial Services / Healthcare
Stage - Research & Development

Amazon Web Services

Google Cloud Platform

Microsoft Azure

Stage - Software Production

IBM

Oracle

SAP

Stage - Distribution & Deployment

Salesforce

Adobe

SAP

Stage - End User Applications & Maintenance

E-commerce

Financial Services

Healthcare

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Leading Providers and Their Strategies

Application AreaIndustryLeadingProvidersProvider Strategies
Microservices Architecture
Technology & IT Services
AWS Lambda, Google Cloud Functions, Microsoft Azure Functions
Leveraging serverless architecture to provide scalable and manageable solutions, reduction of operational demands and costs, and delivering real-time, high-performing applications.
Real-Time File Processing and Data Streaming
Media & Entertainment, Financial Services, Retail
IBM Cloud Functions, AWS Lambda, Azure Functions.
Employing serverless computing for instant file processing and analysis, enabling faster response time, improving user experiences, and providing real-time analytics by reducing infrastructure management.
API Backends
Telecommunications, Healthcare, E-commerce
Google Cloud Functions, Azure Functions, AWS Lambda.
Utilization of serverless architecture for running back-end services on an as-used basis, increasing efficiency and scalability, and decreasing the latency of applications by enabling on-demand execution of functions.
IoT-enabled Applications
Automotive, Energy, Manufacturing
AWS IoT, Microsoft Azure, Google Cloud IoT.
Harnessing serverless computing to manage and process data from numerous IoT devices, ensuring scalability and reliability, reducing system complexity and operating costs, and developing robust IoT applications and services.

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Serverless Computing market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Serverless Computing in Real-time Data Analytics, Microservice Architectures and Real-time File Processing

Real-time Data Analytics

Serverless technology allows companies to analyze streaming data in time which improves decision making and quickens customer response times by delivering fast results through swift data processing methods and seamless user query handling provided by industry leaders like Microsoft Azure Functions.

Microservice Architectures

By using serverless computing, for developing and handling microservices helps simplify systems by dividing them into function units. This serverless structure reduces resource consumption. Provides efficient scaling at a low cost. Google Cloud Functions stands out as a known microservice solution provided by Google.

Real-time File Processing

Serverless computing is great for handling tasks like real time processing of files such as image filtering or object recognition because its very efficient in doing without the need for servers to sit idle when files are not being processed properly. There is a service called AWS Lambda provided by Amazon that is well known for its serverless computing capabilities, in this regard.

Serverless Computing vs. Substitutes:
Performance and Positioning Analysis

Serverless Computing removes the need for managing servers. Allows for swift deployment. A departure from other options such as Physical Servers that demand hardware upkeep or Cloud Computing which necessitates resource management by users. Serverless Computing is poised for expansion thanks, to its scalability and cost efficiency.

Serverless Computing
  • Containerization /
  • Traditional Computing /
  • Microservices Architecture
    Scalability, Cost-effectiveness
    Vendor lock-in, Cold-start latency
    Strong physical control, high customization potential
    High initial setup cost, requires hardware management expertise

Serverless Computing vs. Substitutes:
Performance and Positioning Analysis

Serverless Computing

  • Scalability, Cost-effectiveness
  • Vendor lock-in, Cold-start latency

Containerization / Traditional Computing / Microservices Architecture

  • Strong physical control, high customization potential
  • High initial setup cost, requires hardware management expertise

Serverless Computing removes the need for managing servers. Allows for swift deployment. A departure from other options such as Physical Servers that demand hardware upkeep or Cloud Computing which necessitates resource management by users. Serverless Computing is poised for expansion thanks, to its scalability and cost efficiency.

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Research Methodology

This market research methodology defines the Serverless Computing market scope, captures reliable data, and validates findings through integrated primary and secondary research. The framework ensures accurate market sizing, demand-supply analysis, and competitive benchmarking specific to service-driven business models.


Secondary Research Approach


We begin secondary research by defining the targeted market at both global and regional levels. Positioned within the IT Services ecosystem, we analyze Serverless Computing adoption across BaaS and Function as a Service Applications. Data is systematically collected from Professional Associations, Industry-specific Service Registries, company annual reports, country level ministerial sources and other credential sources, enabling detailed mapping of service delivery models, pricing structures, regulatory compliance, and technology enablers.


Key Sources Referenced:

• Annual Business Surveys (US, EU, Japan)

• NAICS - Economic Statistics (US, Canada) / IMF DSBB

Annual Reports / Industry Magazines / Country Level

DataString Database

We benchmark service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, using industry databases, client case studies, annual reports, and partnership disclosures. This secondary research identifies market drivers and constraints, providing the foundation for validation through primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Stage - Research & Development, Stage - Software Production, and Stage - Distribution & Deployment. Our geographic coverage spans Americas (45%), Europe (30%), and Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally secure a 70% response rate, while in-depth interviews achieve 84% engagement, ensuring a 91% confidence level with ±8.5% margin of error.


Through targeted questionnaires and in-depth interviews, we capture customer satisfaction, vendor selection criteria, service delivery effectiveness, outsourcing vs in-house trade-offs, and post-service value realization. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering and Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down and Bottom-up Process


In the Top-down approach, we disaggregate the global IT Services revenues to estimate the Serverless Computing segment, guided by enterprise spending, outsourcing penetration, and service intensity ratios. In the Bottom-up approach, we aggregate project-level, contract-level, and client-spending data at the country and industry levels to construct detailed adoption models. By reconciling both methods, we ensure forecast accuracy and statistical robustness.


We evaluate the service value chain, covering Stage - Research & Development (Amazon Web Services, Google Cloud Platform), Stage - Software Production (IBM, Oracle), and Stage - Distribution & Deployment. Our parallel substitute analysis examines alternative models such as Containerization, Traditional Computing, and Microservices Architecture, highlighting diversification opportunities and competitive risks.


Company Market Share and Benchmarking


We benchmark leading service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, evaluating their strengths in workforce capacity, global delivery centers, client engagement models, pricing competitiveness, and digital transformation capabilities. By analyzing company revenues, service portfolios, and client contracts, we derive comparative market shares, competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, contract analysis, and company benchmarking, supported by our proprietary Directional Superposition methodology, ensures us precise forecasts and actionable strategic insights into the Serverless Computing market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Serverless Computing Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 29.1 billion
Revenue Forecast in 2034USD 181 billion
Growth RateCAGR of 22.6% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 202423.7 billion
Growth OpportunityUSD 158 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 202423.7 billion USD
Market Size 202743.7 billion USD
Market Size 202965.6 billion USD
Market Size 203080.5 billion USD
Market Size 2034181 billion USD
Market Size 2035222 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredDeployment Model, Service Type, Industry Verticals, Enterprise Size
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledAmazon Web Services, Microsoft Azure, Google Cloud, IBM Cloud Functions, Oracle Cloud Infrastructure, Alibaba Cloud, Kubeless, Spotinst, Cloudflare Workers, Twilio, Nimbella and Tencent Cloud
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Serverless Computing Market Size, Opportunities & Strategic Insights, by Deployment Model

4.1Public Cloud
4.2Private Cloud
4.3Hybrid Cloud
Chapter 5

Serverless Computing Market Size, Opportunities & Strategic Insights, by Service Type

5.1BaaS
5.2Function as a Service
Chapter 6

Serverless Computing Market Size, Opportunities & Strategic Insights, by Industry Verticals

6.1BFSI
6.2Healthcare
6.3Retail
6.4IT & Telecommunications
6.5Manufacturing
Chapter 7

Serverless Computing Market Size, Opportunities & Strategic Insights, by Enterprise Size

7.1Small & Medium Businesses
7.2Large Enterprises
Chapter 8

Serverless Computing Market, by Region

8.1North America Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Serverless Computing Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Amazon Web Services
9.2.2Microsoft Azure
9.2.3Google Cloud
9.2.4IBM Cloud Functions
9.2.5Oracle Cloud Infrastructure
9.2.6Alibaba Cloud
9.2.7Kubeless
9.2.8Spotinst
9.2.9Cloudflare Workers
9.2.10Twilio
9.2.11Nimbella
9.2.12Tencent Cloud