Serverless Computing Market
Serverless Computing Market
The market for Serverless Computing was estimated at $23.70 billion in 2024; it is anticipated to increase to $80.5 billion by 2030, with projections indicating growth to around $222 billion by 2035.
Report Summary
Table of Contents
Methodology
Market Data
Global Serverless Computing Market Outlook
Revenue, 2024 (US$B)
$23.7B
Forecast, 2034 (US$B)
$181B
CAGR, 2024 - 2034
22.6%
The Serverless Computing industry revenue is expected to be around $29.1 billion in 2025 and expected to showcase growth with 22.6% CAGR between 2025 and 2034. Its fundamental features. Scalability, lowered expenses and improved development efficiency are actively influencing the direction of cloud computing.</p>
Market Key Insights
- 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.
- Amazon Web Services together with Microsoft Azure and Google Cloud Platform dominate this market segment through their influence on competitive dynamics.
- U.S. and China are the top markets within the Serverless Computing market and are expected to observe the growth CAGR of 21.7% to 31.6% between 2024 and 2030.
- Emerging markets including Brazil, South Africa and United Arab Emirates are expected to observe highest growth with CAGR ranging between 17.0% to 23.5%.
- The Serverless Computing market will experience a $23.1 billion growth boost because of the transition to Microservices by 2030.
- 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
AI along, with ML relies on computational resources.
Growth Opportunities in North America and Asia-Pacific
North America Outlook
<p>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.</p>
Asia-Pacific Outlook
<p>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.</p>
Market Dynamics and Supply Chain
01
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.<br>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.
02
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.
03
Opportunity: 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<br>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.
04
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
1
Stage - Research & Development
Amazon Web Services
Google Cloud Platform
Microsoft Azure
2
Stage - Software Production
IBM
Oracle
SAP
3
Stage - Distribution & Deployment
Salesforce
Adobe
SAP
4
Stage - End User Applications & Maintenance
E-commerce
Financial Services
Healthcare
1
Stage - Research & Development
Amazon Web Services
Google Cloud Platform
Microsoft Azure
2
Stage - Software Production
IBM
Oracle
SAP
3
Stage - Distribution & Deployment
Salesforce
Adobe
SAP
4
Stage - End User Applications & Maintenance
E-commerce
Financial Services
Healthcare
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Serverless Computing in Real-time File Processing, Real-time Data Analytics and Microservice Architectures
Real-time File Processing
<p>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.</p>
Microservice Architectures
<p>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.</p>
Real-time Data Analytics
<p>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.</p>
Recent Developments
December 2024
<p>Google Cloud has introduced an enhanced edition of Serverless Computing services designed specifically for AI and ML tasks.</p>
November 2024
<p>Amazon Web Services has added serverless computing capabilities to its IoT Core service to facilitate interaction, between IoT devices and serverless computing environments.</p>
October 2024
<p>Microsoft Azure revealed that they have added AI elements to their Serverless Architecture to enhance processing and decision making abilities.</p>
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 Software & Platforms 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 Software & Platforms 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.
01
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.
02
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.