Serverless Computing Market is expected to register a healthy CAGR of over 25% during the forecast period (2020 - 2025). Advancements in computing technology are enabling organizations to incorporate a serverless environment, thereby augmenting the market. The benefits of Serverless Computing such as unconditional development and deployment, built-in scalability among others are playing an important role in supporting the rapid adoption of Serverless Computing thereby fueling the growth of the market.
- With the adoption of serverless architecture, organizations can effectively eliminate expensive traditional and time-consuming approaches such as purchasing new hardware component, installing, configuring, and troubleshooting, thereby shifting the responsibility of managing servers, databases, and application logic, which reduces set-up and maintenance costs.
- With the rapid technological shift over the business environment, companies are releasing new products and feature thereby focusing on reduced time-to-market to meet the exponentially growing consumer expectations. The increasing prominence of such trends is expected to drive the market during the forecast period.
- In the competitive marketplace, startups are anticipated to scale rapidly and deliver enhanced features for their products and services, thereby improving their business values. Hence, in order to achieve minimum lead time and positively impact their business, they are anticipated to adopt serverless technology, thereby propelling the growth of the market.
Scope of the Report
Serverless architecture has emerged as an innovative step in leveraging cloud-based technologies to their full potential thereby enabling enterprises to focus on their core products and services, instead of managing the load of traffic on their IT infrastructure. It has disrupted the cloud thereby widely synonymous with Functions-as-a-Service (FaaS), which are cloud-native, usually stateless, functions that scale on demand. It brings to the Cloud a set of properties that are central to the serverless having little to no concern about operations, auto-provisioning and autoscaling, pay-per-use with zero cost for idle time.
Key Market Trends
Professional Services are Expected to Grow at a Significant Rate
- The digital era has greatly accelerated the change and evolution of new products, services, and business models. Enterprises are facing pressure to release new features and products that meet the growing expectations of customers. Serverless architecture offers significant advantages to SMEs, in terms of flexibility and reduces overall infrastructure cost.
- There have been significant innovations in the enterprise IT space, that has enabled business agility, improved resiliency, thereby driving cost effectiveness. In such scenarios, serverless computing has emerged as a vital element for the deployment of cloud services and applications across the ever changing business environment.
- Moreover, the growth of microservices and serverless computing is fundamentally changing DevOps by blurring the line between development and operations, where organizations are envisioned to scale rapidly in delivering enhanced features through their products and services offering, thereby improving their business values.
- Further, businesses are moving toward cloud services, adding to the existing competition, however, security still remains a major concern among adopters and cloud service providers and are continuously working with cybersecurity vendors to reduce any risk of cyber-attacks.
North America is Expected to Hold the Largest Market Share
- North America is anticipated to capture the largest market share regarding revenue, owing to rapid advancement in technologies and the presence of various prominent players across the industries such as retail, BFSI, manufacturing, healthcare, and IT & Telecom boasting of a large user base across the region.
- Due to high digitalization and high adoption of new cloud computing services by the enterprises to remain competitive in the dynamic market and deliver new features and products quickly, they are constantly innovating and adopting new technologies, thereby fueling the demand of market across the region.
The serverless computing market is moderately competitive and consists of a few major players. In terms of market share, some of the players are currently dominating the market. However, with the advancement in the cloud platform across the professional services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- March 2019 - Alibaba Cloud unveiled its new strategy to develop the company into a more technologically inclusive platform publicly on the strategic upgrade of the business evolving to serve as a key component of the Alibaba Business Operating System, and empowering customers and ecosystem partners to win in the digital era.
- March 2019 - Amazon Web Services, Inc. announced the general availability of Amazon S3 Glacier Deep Archive, a new storage class that provides secure, durable object storage for long-term retention of data that is rarely accessed. S3 Glacier Deep Archive offers the lowest cost storage in the cloud at USD 0.00099 per GB per month that is significantly lower than storing and maintaining data in on-premises magnetic tape libraries or archiving data off-site.
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