India Serverless Computing Market Overview, 2030

India’s serverless computing market has grown rapidly in tandem with the nation’s digital transformation, largely driven by the success of large-scale public infrastructure platforms like UPI, Aadhaar, DigiLocker, and CoWIN. These systems rely on event-driven architectures and scalable backend operations needs ideally served by serverless models. Adoption first accelerated in the fintech sector, where Function-as-a-Service (FaaS) platforms like AWS Lambda, Azure Functions, and Google Cloud Functions enabled asynchronous transaction processing, real-time alerts, and API integration. The availability of local cloud zones AWS Mumbai, GCP Mumbai, Azure Central and South India has reduced latency concerns and helped meet emerging data sovereignty norms, spurring enterprise uptake. For now, India's vibrant startup ecosystem has embraced Backend-as-a-Service (BaaS) platforms like Firebase, Supabase, and Appwrite to accelerate MVP development, especially in EdTech, health tech, SaaS, and D2C retail. Hybrid serverless solutions using Kubernetes native frameworks (Knative, OpenFaaS) are also gaining traction among large enterprises aiming to retain data control while improving infrastructure efficiency. Looking forward, serverless is set to play a critical role in India's expanding digital economy, particularly with the enforcement of the Digital Personal Data Protection (DPDP) Act and rising adoption of India Stack 2.0 components. Edge computing and 5G deployments are expected to unlock new use cases in smart manufacturing, precision agriculture, and telecom analytics. Serverless runtimes using WebAssembly and container-native platforms will support lightweight, high-frequency functions at the edge. Observability, compliance driven FinOps, and CI/CD tooling for serverless are expected to mature. System integrators like TCS and Wipro are increasingly offering sector-specific serverless frameworks. The model’s cost efficiency and elastic scalability align well with the operational priorities of India’s SMEs and public services.

According to the research report “India Serverless Computing Market Overview, 2030,"" published by Bonafide Research, the India serverless computing market is anticipated to grow at more than 18.11% CAGR from 2025 to 2030. India’s serverless computing market operates under a tightening regulatory framework shaped by the Digital Personal Data Protection (DPDP) Act of 2023, which requires organizations to process personal data lawfully, ensure purpose limitation, and implement explicit consent mechanisms. The Act also grants the central government authority to approve or restrict cross-border data transfers. For financial services, the Reserve Bank of India mandates local data storage under its Storage of Payment System Data directive and restricts outsourcing of core operations unless primary records remain within India. Sector-specific regulations from IRDAI for insurance and TRAI for telecom add further obligations around encryption, uptime, and access control, while forthcoming legislation like the DISHA Act will regulate digital health data. These regulatory pressures create strong demand for Compliance-as-a-Service (CaaS) platforms, audit-ready serverless pipelines, and data residency controls built for India’s legal environment. Consequently, there are clear opportunities for new entrants to develop localized Backend-as-a-Service (BaaS) offerings with native Aadhaar, UPI, and ONDC integration, multilingual developer tooling, and edge-ready runtimes suited for telecom and manufacturing. Startups can also capitalize on gaps in observability, CI/CD automation, and serverless-specific FinOps solutions tailored to Indian enterprise needs. The competitive landscape is dominated by global hyperscalers such as AWS (Mumbai region), Google Cloud (Mumbai), and Microsoft Azure (Central and South India), which power most enterprise serverless workloads. However, domestic players like Tata Communications, NxtGen, and Netmagic are expanding hybrid cloud and private serverless offerings to support regulated industries. Additionally, Indian system integrators such as TCS, Infosys, and Wipro are investing in building sector specific serverless solutions for BFSI, healthcare, and government.

In India, compute services form the backbone of serverless adoption, with widespread use of AWS Lambda, Google Cloud Functions, and Azure Functions across startups and enterprises. These platforms support key operations such as payment processing, KYC verifications, and dynamic API handling, especially in high-demand sectors like fintech and e-commerce. The proliferation of event-driven architectures in Unified Payments Interface (UPI) integrations and mobile first applications has made compute functions indispensable for high-throughput, low-latency services. Serverless storage is extensively used to manage vast volumes of unstructured and semi structured data, especially in D2C commerce, EdTech, and health tech platforms. Solutions like Amazon S3, Azure Blob Storage, and Google Cloud Storage are favored for their autoscaling, high availability, and seamless integration with compute functions. These services power media storage, dynamic content delivery, and secure document management in digital onboarding, online learning, and government applications like DigiLocker. Serverless databases such as Firebase, Amazon DynamoDB, and Azure Cosmos DB are critical in supporting real time apps, user analytics, and mobile backends. In India, Firebase is popular among app developers due to its ease of use, while DynamoDB is used by fintech firms for storing transaction logs, session data, and audit trails. Serverless NoSQL solutions are increasingly being paired with compute functions to deliver interactive experiences on scalable infrastructure. Application integration services like AWS Step Functions, Azure Logic Apps, and Google Cloud Workflows are commonly used to automate customer workflows, e-commerce order pipelines, and logistics orchestration. These tools reduce complexity in building distributed systems by enabling function chaining and stateful logic. Monitoring & security solutions such as AWS CloudWatch, Datadog, Sentry, and open-source options like Prometheus are vital in India’s compliance conscious sectors. Others includes services like API Gateways Amazon API Gateway, Azure API Management, IAM, job scheduling, and event buses key enablers for scalable, secure, and production-grade serverless deployments across industries.

Function-as-a-Service (FaaS) gaining strong momentum among enterprises for modular backend operations, and Backend-as-a-Service (BaaS) widely favored by startups and mobile-first developers for rapid product launches. FaaS platforms such as AWS Lambda, Google Cloud Functions, and Azure Functions are commonly used in sectors like banking, fintech, and e-governance to support asynchronous and event-driven tasks such as transaction processing, user authentication, document validation, and workflow automation. Enterprises are increasingly using FaaS in conjunction with message queues e.g., Amazon SQS, Azure Service Bus and orchestration tools like AWS Step Functions, Azure Durable Functions to scale complex business logic without managing servers or provisioning infrastructure. In highly regulated sectors like BFSI and government, FaaS adoption is often structured around hybrid and multi cloud strategies to ensure compliance with the Digital Personal Data Protection (DPDP) Act and sector specific mandates. Enterprises are also pairing FaaS with Kubernetes native solutions like Knative and OpenFaaS to achieve portability and on-prem control in private cloud environments. On the other hand, Backend-as-a-Service (BaaS) is seeing robust uptake among India’s startup and SME ecosystem. Popular platforms like Firebase, AWS Amplify, Supabase, and Appwrite are used to build scalable web and mobile apps with minimal backend effort. BaaS solutions offer pre-configured services for authentication like OTP, Aadhaar, cloud-hosted databases, file storage, and serverless APIs all essential for rapid MVP development and consumer-facing services. Indian developers often favor BaaS tools that integrate with domestic payment systems (UPI), regional SDKs, and localized user flows.

Large enterprises including major players in banking, telecommunications, e-commerce, and manufacturing are adopting Function-as-a-Service (FaaS) and hybrid serverless platforms to modernize legacy systems, improve scalability, and ensure compliance with stringent regulatory mandates. Firms like HDFC Bank, Reliance Jio, Infosys, and Tata Group entities are incorporating serverless functions into microservices based architectures for real time analytics, intelligent automation, customer onboarding, and infrastructure provisioning. They often deploy a combination of public cloud serverless services e.g., AWS Lambda, Azure Functions and container native solutions like OpenFaaS and Knative within private or hybrid clouds, particularly to maintain data residency and adhere to RBI, IRDAI, or MeitY guidelines. Conversely, India’s vast SME and startup ecosystem spread across fintech, SaaS, EdTech, and logistics is turning to serverless for rapid application development, lower infrastructure costs, and simplified operations. Backend-as-a-Service (BaaS) platforms like Firebase, Supabase, and AWS Amplify are especially popular for enabling small teams to build scalable mobile and web applications without maintaining backend servers. For these organizations, serverless computing provides a low risk, pay-as-you-go model that suits their lean operational budgets and agile deployment cycles. Startups such as Zerodha (brokerage), Khatabook (MSME finance), and Teachmint (EdTech) have implemented serverless components to support dynamic scaling, user authentication, file storage, and real-time updates. While large enterprises drive demand for compliance centric, enterprise-grade serverless orchestration, SMEs are the primary adopters of lightweight, developer-first platforms.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Serverless Computing Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Type
• Compute
• Serverless Storage
• Serverless Database
• Application Integration
• Monitoring & Security
• Others

By Service Model
• Function-as-a-Service (FaaS)
• Backend-as-a-Service (BaaS)

By Organization Size
• Large Enterprises
• Small & Medium Enterprises Show more