Serverless Architecture Market is Expected to Reach USD 25.49 Billion By 2026

The rise in awareness regarding the benefits of serverless architecture, such as increased process agility and reduced operational cost, is fueling the growth of the market.  

Serverless Architecture Market Size – USD 4.18 Billion in 2018, Market Growth – CAGR of 24.7%, Market Trends – The emergence and rapid adoption of cloud-based services.

The global serverless architecture market is forecast to reach USD 25.49 Billion by 2026, according to a new report by Reports and Data. Serverless architecture is the application that depends on third-party services or on custom code that is run in ephemeral containers. Despite the name, it does not involve running the code without servers. The name ‘serverless computing’ is applied because the business or person that owns the system does not have to rent, purchase or provision servers or virtual machines for the back-end code to run on.

Application of serverless architecture by developers are made so that they can focus on the core product instead of handling, managing and operating server issues, either in the cloud or on-premises. The reduced time with the serverless architecture helps developers reclaim time and energy that can be spent on developing new reliable products.

Serverless architecture benefits from significant amount of cost reduction, complexity, and engineering lead time, at the cost of increased reliance on vendors and comparatively immature supporting services. Serverless architecture is being applied by cloud vendors such as AWS, in conferences to meetups to blog posts. It assures the possibility of ideal business implementation, which is cost-efficient as well.

Key participants include – Amazon Web Services, Inc, Alibaba Cloud, CA Technologies, Dynatrace LLC, Fiorano Software, Inc., Google LLC, IBM Corporation, Microsoft Corporation, NIT Data Corporation, and Oracle Corporation, among others.

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Further key findings from the report suggest

  • Serverless architecture is breaking ground by disrupting server infrastructure. Serverless architecture is used by companies such as Reuters, Netflix, Telenor, and AOL. Companies are increasingly adopting the market. The ‘Big Three’ cloud vendors such as Google, Amazon, and Microsoft are also heavily invested in serverless.
  • Large enterprise held a market share of 59.1% in the year 2018 owing to the enterprise’s superior capabilities to run real-time applications on a large scale. Moreover, large enterprises are adopting serverless architecture for critical tasks, such as essential web applications and data processing.
  • Automation and Integration is the effective amalgamation of software and hardware, combining several subsystems for working together as a single unit. It held the largest market share of 21.3% in the year 2018.
  • Increase in the number of users and the rising adoption of several technologies associated with media and digital content are propelling the demand for secure and efficient serverless architecture across the telecommunication and IT sectors. Telecom and IT held the largest market share of 21.9% in the year 2018.
  • The Banking, Financial Services, and Insurance sector is constantly evolving and consists of intense competition, consolidation, worldwide expansion, changing consumer demand, and varied regulatory norms. The serverless architecture supports real-time applications and offers a secure and scalable platform to provide real-time information as demanded by the BFSI sector. It is forecasted to grow with a CAGR of 23.9% during the forecast period.
  • High adoption of cloud infrastructure solutions and increasing penetration of IoT devices are fuelling the demand for serverless architecture in North America. The region is forecasted to hold the largest market share of 44.6% in the year 2026.

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For the purpose of this report, Reports and Data have segmented into the global serverless architecture market on the basis of services, organization size, vertical, and region:

Services Outlook (Revenue, USD Billion; 2016-2026)

  • Automation & Integration
  • Api Management Services
  • Monitoring Services
  • Security
  • Support and Maintenance
  • Training and Consulting
  • Others

Organization Size Outlook (Revenue, USD Billion; 2016-2026)

  • Large Enterprises
  • Small and Medium Enterprises

Vertical Outlook (Revenue, USD Billion; 2016-2026)

  • Healthcare
  • Retail and E-commerce
  • Telecom & IT
  • Media and Entertainment
  • BFSI
  • Manufacturing
  • Government and Public
  • Others

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Regional Outlook (Revenue, USD Billion; 2016-2026)

  • North America
  • Europe
  • Asia Pacific
  • MEA
  • Latin America

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