Italy Serverless Computing Market Overview, 2030

The serverless computing market in Italy is undergoing steady growth, catalyzed by the expanding maturity of cloud infrastructure, government-led digital modernization, and demand for scalable, modular IT systems across sectors. The launch of localized cloud regions by major hyper scalers AWS (Milan, 2020), Microsoft Azure Italy North and South, and Google Cloud (Milan, 2023) played a pivotal role in enabling organizations to meet stringent data residency and performance requirements. Early adoption occurred within banking and fintech, where Function-as-a-Service (FaaS) platforms powered PSD2-compliant APIs and real-time fraud detection systems. This was soon followed by retail and manufacturing sectors, which utilized serverless architectures for automation, supply chain event tracking, and IoT integrations aligned with Italy’s Industry 4.0 roadmap. Simultaneously, public administration agencies began migrating select digital citizen services to serverless platforms to improve responsiveness and cost efficiency. Initiatives such as SPID digital identity, IO national public services app, and PagoPA digital payments for public services are increasingly underpinned by BaaS and FaaS components to support secure, scalable back-end systems. Key growth drivers include increasing demand for agile development models among Italian enterprises, cost-effective IT modernization for public services, and the need for real-time scalability in e-commerce and logistics. Serverless is also enabling AI/ML deployment in use cases like video analytics, predictive maintenance, and smart city monitoring. Moreover, startups and SMEs in Milan, Bologna, and Turin are leveraging BaaS tools to reduce time-to-market for mobile and SaaS applications.

According to the research report ""Italy Serverless Computing Market Overview, 2030,"" published by Bonafide Research, the Italy serverless computing market is anticipated to add to more than USD 560 Billion by 2025–30. Italy’s serverless computing market offers promising opportunities for new entrants, especially those able to align with national regulatory frameworks and sector-specific digital transformation priorities. One major area of opportunity lies in delivering compliant, localized serverless platforms and services tailored to Italy’s public sector and highly regulated industries. Startups or vendors offering Function-as-a-Service (FaaS) or Backend-as-a-Service (BaaS) solutions with support for Italian language interfaces, SPID (Sistema Pubblico di Identità Digitale) authentication, and integration with PagoPA (national digital payment infrastructure) are well-positioned to capture demand from municipalities and regional government bodies digitizing citizen services. Additionally, tools designed for serverless observability, policy enforcement, and cost optimization can fill gaps for enterprises transitioning legacy systems to serverless environments. The regulatory landscape in Italy is firmly grounded in European data protection laws. The General Data Protection Regulation (GDPR) applies across all sectors, reinforced domestically by Italy’s Data Protection Code D.Lgs. 196/2003. For public sector projects and suppliers, compliance with AgID (Agenzia per l’Italia Digitale) guidelines is mandatory. These include Cloud First policies and alignment with the National Cloud Strategy, which emphasizes digital sovereignty, service continuity, and security standards. Cloud providers working with public administration must also consider certifications like ISO/IEC 27001 and the EU Cloud Code of Conduct. The requirement for sovereign data processing and adherence to the “Qualified Cloud Services Marketplace” Catalogo dei servizi cloud qualificati creates a unique opening for cloud native firms with secure and compliant serverless offerings.

Italy’s serverless computing landscape is expanding across all major service types, reflecting growing digital maturity across its public, financial, industrial, and retail sectors. At the forefront is Compute, where services such as AWS Lambda, Azure Functions, and Google Cloud Functions are deployed to run scalable, event-driven workloads without provisioning infrastructure. Italian banks and fintech companies increasingly use these compute services for PSD2-compliant APIs, fraud detection, and transaction automation. Public institutions have also embraced serverless compute to run real-time citizen-facing services like authentication, tax notifications, and digital form submissions through platforms such as IO and PagoPA. Serverless Storage via Amazon S3, Azure Blob, and Google Cloud Storage is being adopted to manage growing volumes of unstructured and semi-structured data. Healthcare providers and government bodies use encrypted cloud storage to host medical records, scanned documents, and video consultations, ensuring compliance with GDPR and national data protection mandates. Retail and e-commerce players use it for dynamic asset delivery, especially image and video catalogs. Serverless Database services such as Aurora Serverless, Firestore, and Azure Cosmos DB support real-time, scalable database solutions used in logistics, online retail, and app development. Italian startups and SaaS providers rely on these databases to power scalable backends for mobile and web apps, especially where unpredictable traffic or rapid scaling is a factor. Application Integration platforms such as AWS Step Functions, Azure Logic Apps, and Google Workflows help streamline business logic and process automation. These are particularly valuable in industrial and logistics automation, e-invoicing, and digital identity workflows tied to SPID. Monitoring & Security tools, including AWS CloudWatch, Azure Monitor, and third-party options like Datadog, are increasingly used to ensure serverless visibility and compliance, especially in regulated industries. Other services like API Gateways, message queues, and event schedulers are critical for building resilient, event-driven architectures, supporting Italy’s push toward agile, cloud-native systems.

FaaS solutions such as AWS Lambda, Azure Functions, and Google Cloud Functions are widely adopted across Italy’s banking, logistics, and public service sectors. Enterprises use FaaS to modularize application logic, reduce operational overhead, and rapidly deploy event-driven systems. For example, financial institutions in Milan and Turin are implementing FaaS to handle real-time payment processing, fraud detection, and compliance operations in alignment with PSD2 and GDPR frameworks. In the public sector, FaaS powers asynchronous workflows in digital citizen services, including tax systems, e-health scheduling, and document uploads through national platforms like IO and SPID. On the other hand, BaaS platforms such as Firebase, Supabase, AWS Amplify, and Hasura are gaining popularity among Italian startups and small to medium-sized enterprises (SMEs) for their low-code infrastructure and quick setup capabilities. Companies in urban tech hubs like Bologna, Florence, and Rome are using BaaS to accelerate product development, especially in e-commerce, e-learning, and mobile services. These platforms provide ready-made features such as cloud storage, real-time databases, authentication, and serverless functions all optimized for minimal backend management. The rising demand for flexible, scalable IT environments, combined with Italy’s strategic emphasis on digital transformation and sovereign data handling, positions both FaaS and BaaS as pivotal service models.

Large enterprises particularly those in finance, telecommunications, retail, and manufacturing are increasingly turning to Function-as-a-Service (FaaS) platforms such as AWS Lambda, Azure Functions, and Google Cloud Functions to modernize legacy systems, automate backend processes, and implement event-driven microservices. For instance, major Italian banks and insurance firms headquartered in Milan and Turin use serverless to power compliance workflows aligned with PSD2 and GDPR, deploy scalable APIs, and integrate intelligent automation into their customer portals. Similarly, leading manufacturers are using serverless in conjunction with IoT to handle machine data, predictive maintenance alerts, and quality control processes often in line with Industry 4.0 initiatives. Meanwhile, SMEs across Italy are adopting Backend-as-a-Service (BaaS) solutions like Firebase, Supabase, and AWS Amplify to streamline application development and reduce infrastructure costs. Startups in Rome, Bologna, and Naples increasingly rely on these platforms to launch mobile apps, SaaS platforms, and e-commerce sites without maintaining traditional backend systems. The appeal lies in BaaS’s low code flexibility, integrated security, and pay-as-you-go pricing an ideal fit for organizations with limited IT resources but strong digital ambitions. While large enterprises view serverless as a means to achieve operational scale, resilience, and regulatory compliance, SMEs see it as an enabler of innovation and speed.

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