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Serverless Architecture Market Landscape to 2034: Key Forces Shaping the Next Decade of Growth
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsHow Large Will the Serverless Architecture Market Size By 2025?
In recent times, the serverless architecture market has experienced significant expansion. The market size, projected to increase from $14.57 billion in 2024 to $17.88 billion in 2025, boasts a compound annual growth rate (CAGR) of 22.8%. The historic period's growth largely results from advances in computing technology, scale-up and cost-cutting measures, unrestricted development and deployment, the abandonment of outdated tactics, and a growing demand for automation and integration.
How Big Is the Serverless Architecture Market Size Expected to Grow by 2029?
A significant surge is anticipated in the serverless architecture market size in the coming years, with its projected growth to reach $41.14 billion in 2029, representing a compound annual growth rate (CAGR) of 23.2%. This expansion during the forecast period can be linked to anticipated market size augmentation, segmentation and regional expansion, widespread adoption across various sectors, improved scalability and speed to market, as well as growth in end-user industries. Key trends for this forecast period encompass business models centered on digital technology, progress in computing technology, an increase in vertical utilization, a surge in the adoption of DevOps, and the expansion and investments across different geographical regions.
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Which Key Market Drivers Powering Serverless Architecture Market Expansion and Growth?
The serverless architecture market is projected to expand, driven by the increasing demand for serverless computing in DevOps practices. Serverless computing, a form of cloud computing, allows developers to build and deploy applications on an Infrastructure managed by external parties. This eliminates the worries over capacity planning, configuration, management, maintenance, resilience, or scaling of containers, virtual machines, or physical servers. Moreover, serverless cloud computing improves DevOps practices by enabling automatic scaling, simplifying operational complexity, and allowing fast deployment of microservices. For example, AAG IT reports that in January 2024, Infrastructure as a Service, a branch of IT services company based in the UK, saw a 29.7% rise in revenue, nearing $120.3 billion in 2022. In addition, more than 98% of firms utilize cloud services, which include SaaS applications and fully cloud-native networks. Forecasts also suggest an expected 23% increase in cloud infrastructure expenditure in 2023. Consequently, the escalating demand for serverless computing in DevOps practices is propelling the growth of the serverless architecture market.
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Which Fast-Growing Trends Are Poised to Disrupt the Serverless Architecture Market?
Prominent players in the serverless architecture industry are focusing on the evolution of technology, specifically the creation of advanced serverless solutions to enhance the services they offer to their customers. Serverless solutions mean that all tasks relating to server management, provisioning, and upkeep are wholly entrusted to the cloud provider. This is a shift that allows developers to concentrate on creating code for precise functions or services, without the burden of managing the underlying structure. In May 2022, as an example, Digital Ocean Holdings Inc., a US technology firm and cloud infrastructure supplier, introduced a fresh serverless solution named Digital Ocean Functions. This is designed for developers and small to medium enterprises, allowing rapid app development without concern for infrastructure. This solution offers rapid, scalable, economical strategies, giving companies the ability to build websites and mobile applications swiftly, scale them automatically, and save money by avoiding charges for unused resources.
What Are the Emerging Segments in the Serverless Architecture Market?
The serverless architecture market covered in this report is segmented -
1) By Service: Automation And Integration, Application Programming Interfaces (APIs) Management, Monitoring, Security, Support And Maintenance, Training And Consulting, Other Services
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organization: Large Enterprise, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Real-Time File And Stream Processing, Web Application Development, IoT Backend
5) By Vertical: Information Technology (IT) And Telecommunications, Banking, Financial Services And Insurance (BFSI), Retail, Healthcare, Government, Manufacturing, Media And Entertainment, Other Verticals
Subsegments:
1) By Automation And Integration: Workflow Automation, Event-Driven Automation
2) By Application Programming Interfaces (APIs) Management: API Gateway Services, API Lifecycle Management
3) By Monitoring: Performance Monitoring, Logging and Analytics
4) By Security: Access Control, Data Encryption
5) By Support And Maintenance: Technical Support, System Updates
6) By Training And Consulting: Implementation Consulting, Best Practices Training
7) By Other Services: Custom Development, Migration Services
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Who Are the Global Leaders in the Serverless Architecture Market?
Major companies operating in the serverless architecture market are Google LLC, Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., Salesforce.com Inc, NTT Data Corporation, VMware Inc, Alibaba Cloud, Palo Alto Networks Inc, Twilio Inc, Red Hat Inc, Rackspace Technology Inc, Tibco Software, Cloudflare Inc, Dynatrace Inc., Auth0 Inc, Joyent Inc, Spotinst Ltd, Fiorano Software Inc., Platform9 Systems Inc, PubNub Inc, OpenStack Foundation, Iron.io Inc, Nimbella Corporation, Stackery Inc, Computer Associates International Inc., OpenLegacy Inc
Which are the Top Profitable Regional Markets for the Serverless Architecture Industry?
North America was the largest region in the serverless architecture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the serverless architecture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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