Serverless Computing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Serverless Computing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Serverless Computing Market is expected to register a healthy CAGR of over 23.17% during the forecast period (2021 - 2026).

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.

Key Highlights

• 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.
• The rising security concerns have been limiting the adoption of serverless computing technology. According to the recent survey by SaltStack, a Utah-based provider of intelligent IT automation software, even though two-thirds of organizations have more than 10% of their applications containerized, 40% of the organizations remain concerned that their container strategy does not adequately invest in security. Another 34% reported that their approach lacks enough detail.​
• COVID-19 has impacted the adoption of new technologies. This is because many organizations are unable to deal with new technology due to the other tasks that have taken precedence due to COVID-19, however at the same time it is anticipated to be likely a temporary slowdown.

Key Market TrendsProfessional 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 everchanging 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 the market across the region.
• Further, a startup called Lightbend Inc. is trying to get around the limitations of the serverless computing model that often prevent its adoption for more complex, data-hungry applications. In June 2021, the company announced a new, open-source developer platform called Akka Serverless, which it said will set a new standard for cloud-native application development.
• As developers assume more responsibility for managing their applications, many of them are starting to embrace platforms that automate the management of IT infrastructure on their behalf without intervention from an IT operations team. In June 2021, Render, a provider of cloud services that automates DevOps processes, announced it is adding the ability to automatically scale compute and memory resources up and down in real time as developers require. Such factor would cater the market growth adoptions.

Competitive Landscape

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.

• June 2021, Alibaba Cloud, has launched an initiative aimed at investing an initial US$1 billion of funding and resources to empower 100,000 developers and foster the growth of 100,000 tech startups in Asia Pacific over the next three years.
• March 2021, Alibaba Cloud launches its first personal cloud product, challenging Baidu and Tencent. China’s personal cloud service market, which had 404 million users last year, continues to grow amid a rapid uptake of online services by consumers, and the service, by Alibaba Cloud, offers users up to two terabytes of free storage and ‘unlimited’ uploading and downloading speeds.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Amazon Web Services Inc.
Microsoft Corp.
Google LLC
Alibaba Group Holding Limited
SAP SE
IBM Corp.
Iron.io
Oracle Corp.
Webtask.io
VMware Inc.

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