Serverless Architecture Market By Size, Demand Analysis, Type, Statistics, Regions and Forecast - 2025

Serverless architecture market has significant potential in the near future. Serverless architecture is an architecture which enables a user to develop and run applications that significantly hosted by third-party services or on custom code that’s run in ephemeral containers. Applications are varied into individual functions that can be appealed and scaled individually. Serverless architecture allows applications to be developed without concerns for tweaking, implementing or scaling a server.

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Serverless architecture allows to only focus on the individual functions in the application code. All the physical hardware, virtual machine operating system, and web server software management are taken care of by the services such as AWS Lambda, Twilio Functions and Microsoft Azure Functions. However, the only thing which needs to be taken care of is the application codes. Serverless architecture is also known as serverless computing or FaaS (Functions as a Service).

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Moreover, FaaS provides resources to reach the serverless vision allowing developers to execute code in response to events without building out or maintaining a complex infrastructure. Further, the FaaS concept was first commercialized in 2014 by hook.io and is now applicable in services such as Google Cloud Functions, AWS Lambda, IBM OpenWhisk, and Microsoft Azure Functions. Serverless architecture has various benefits such as elastic scalability, reduced cloud & development cost, improved resource management, reduced DevOps and agile-friendly development.

One of the major advantages of using serverless includes cost reduction; serverless computing allows developers to purchase backend services on a flexible ‘pay-as-you-go’ basis, developers only have to pay for the services used. However, serverless computing can significantly reduce development costs, this isn’t always true with different cloud computation approaches. For instance, serverless functions are currently most preferred for CPU-bound computations, while I/O bound functions are not as affordable as on dedicated virtual machines or containers. Furthermore, serverless architecture faces various challenges such as resource limits, high-security risk, execution time limitation, and lack of operational tools.

Additionally, with the adoption of serverless architecture, costly traditional and time-consuming approaches such as purchasing new hardware components, configuring, installing and troubleshooting can be eliminated. Awareness about cloud technology and serverless architecture have played a vital role in adoption. Moreover, serverless architecture has made it possible for small and medium enterprises to adopt IT services normally used in large enterprises due to the high scalability that serverless architecture offers. The advancement in computing technology is the primary driving factor for the serverless architecture market. The digital era has accelerated the evolution of new products, services, and new business model.

Factors such as elimination of managing servers are reducing the infrastructure cost, the proliferation of the microservices architecture, and the ease of deployment, management, and execution are driving the serverless architecture market. The companies proposing serverless architecture solutions include Pivotal Software, Inc., Amazon Web Services, Inc., Platform9, Microsoft Corp., Google LLC, IBM Corp., 99x Technology, and Coding Sans, Ltd.

Current Market Trends Covered in the Market Report:

• Rapid advancement in technology pressuring companies to release new products and features as well as reduce the time to market to meet the growing consumer expectation.
• The emergence of IoT (internet of things) applications
• Increasing adoption of cloud-based applications
• Amazon launched its cloud storage service (AWS S3) in 2006, which was also a ‘serverless service’ that provided unlimited storage at infinite scale without having to maintain servers.

Global Serverless Architecture Market- Segmentation

by Organization
• LargeEnterprises
• Small and Medium-Sized Enterprises (SMEs)

by Applicatio
• Banking,FinancialServicesandInsuranceBFSI)
• Manufacturing
• TelecommunicationandIT
• Others (Retail, Government, Healthcare, Media, Transport, and Energy)

Global Serverless Architecture Market –Region
North America
• US
• Canada

Europe
• Germany
• UK
• France
• Spain
• Italy
• Rest of Europe

Asia-Pacific
• China
• Japan
• India
• Rest of Asia-Pacific

Rest of the World
• MiddleEast&Africa
• Latin America

Company Profiles
• 99x Technology, Ltd.
• Amazon Web Services, Inc.
• Coding Sans, Ltd.
• Dynatrace LLC
• Google, LLC
• IBM Corp.
• Joyent, Inc.
• Microsoft Corp.
• Mode2

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