- Summary
- Table Of Content
- Methodology
Serverless Architecture Market Size:
Serverless Architecture Market size is estimated to reach over USD 64,899.15 Million by 2032 from a value of USD 15,346.35 Million in 2024 and is projected to grow by USD 18,110.23 Million in 2025, growing at a CAGR of 22.2% from 2025 to 2032.
Serverless Architecture Market Scope & Overview:
Serverless architecture refers to cloud computing model, also known as serverless computing that allows the cloud provider to dynamically control server allocation and provisioning. Further, serverless computing eliminates the need for infrastructure management which allows businesses to focus on application development. Moreover, it offers various benefits such as dynamic scalability, efficient use of resources, streamlined development, low cost, and others. Additionally, serverless computing is used in various industries including IT & telecom, BFSI, retail, healthcare, and others.
Serverless Architecture Market Dynamics - (DRO) :
Key Drivers:
Rising adoption of cloud solutions and technologies are driving the serverless architecture market growth
There is an increasing utilization of cloud technologies and solutions by large enterprises and SMEs for building and testing applications. Further, cloud technology offers various benefits to businesses by improving flexibility, enhancing scalability, reducing overall operational cost, and others. Additionally, in a serverless environment, code can run closer to the end user, which in turn decreases the latency.
- For instance, in November 2024, SAP SE launched the general availability of its sovereign cloud capabilities in the United Kingdom for data sovereignty and security, in compliance with the UK’s Data Protection Act 2018.
Thus, as per the analysis, the rising utilization of cloud solutions and technologies are further driving the market.
Key Restraints:
Security and compliance challenges are restraining the serverless architecture market growth
The adoption of serverless computing faces challenges related to security and regulatory compliance. As serverless applications rely on third party cloud providers for infrastructure management, organizations have limited control over data security, access management, and others.
Additionally, industries handling sensitive data, such as finance and healthcare, must comply with strict regulatory requirements general data protection regulation (GDPR), health insurance portability and accountability act (HIPAA) privacy rule, and others. Thus, as per the analysis, the security and compliance challenges related to serverless computing are restraining the serverless architecture market expansion.
Future Opportunities :
Rising adoption of serverless computing in AI and IoT (Internet of Things) applications are expected to drive the serverless architecture market opportunities
There is an increasing integration of serverless computing with AI and IoT applications due to real time data processing and analytics without dedicated infrastructure management. Further, in IoT environments, serverless solutions facilitate seamless communication between connected devices in real time through data pipelines. Additionally, the combination of AI and serverless computing enables businesses to take advantage of artificial intelligence’s advanced features without dealing with the expenses and complications associated with managing traditional infrastructure and hardware.
- For instance, in February 2025, Accenture collaborated with Google Cloud for accelerating the adoption of generative AI capabilities and cloud technologies within the Kingdom of Saudi Arabia.
Thus, as per the serverless architecture market analysis, rising utilization of serverless computing in AI and IoT are projected to drive the global serverless architecture market opportunities during the forecast period.
Serverless Architecture Market Segmental Analysis :
By Component:
Based on the component, the market is segmented into function-as-a-service (FaaS), event-driven architecture, managed services, and others.
Trends in the Component:
- There is an increasing trend towards utilization of function-as-a-service for developers to avoid high cost.
- Increasing utilization of event-driven architecture by triggering events from various sources such as database changes, requests, scheduled timers, or file uploads.
Function-as-a-service (FaaS) segment accounted for the largest revenue in the total serverless architecture market share in 2024.
- Function-as-a-service is a cloud-computing service that enables developers to run code in response to events, without having to maintain their own infrastructure.
- Further, function-as-a-service allows a cost effective approach for developers to pay per function invocation.
- For instance, in May 2023, Gcore launched its function-as-a-service platform which enables developer to run code without VMs (Virtual Machines) with various features including automated scaling, DDoS protection, tier III–IV data centers worldwide, and others.
- Thus, the rising advancements in function-as-a-service segment are driving the serverless architecture market trends.
Managed services segment is anticipated to register a substantial CAGR growth during the forecast period.
- Serverless architectures heavily rely on managed services provided by cloud providers, such as storage, databases, authentication, and messaging services.
- Further, these services reduce operational overhead by eliminating infrastructure management, allowing developers to focus on business logic.
- For instance, in October 2024, SATO Corporation launched SATO ID AUTH, a SSO (Single Sign-On) service that allows label printer users to access SATO's cloud applications.
- Thus, the rising adoption of managed services are expected to drive the serverless architecture market trends during the forecast period.
By Deployment Mode:
Based on the deployment mode, the market is segmented into private cloud, public cloud, and hybrid cloud.
Trends in the Deployment Mode:
- There is an increasing trend towards utilization of public cloud for storing large scale data.
- Rising adoption of private cloud due to various benefits including improved security, enhanced customization, improved data governance, and others.
Public cloud accounted for the largest revenue share of 60.44% in the total serverless architecture market share in 2024, and it is anticipated to register substantial CAGR growth during the forecast period.
- Public cloud is a type of computing where resources are offered by a third-party provider through the internet and shared by individuals and organizations for purchase and use.
- Further, public cloud offers its services by selling the services on demand or free to customers, based on usage of storage, CPU cycles, or bandwidth they consume.
- For instance, October 2024, SoftwareOne collaborated with Amazon Web Services and launched a SoftwareOne Cloud Competency Centre with support in AWS cloud services and local expertise, including generative AI tool, Amazon Bedrock.
- Thus, the rising advancements in public cloud infrastructure is further driving the market.
By Enterprise Size:
Based on the enterprise size, the market is segmented into large enterprises and small and medium enterprises (SMEs).
Trends in the Enterprise Size:
- There is an increasing utilization of serverless solutions by large enterprises due to automatic scalability and flexibility.
- Increasing utilization of cloud technologies by small and medium enterprises for swiftly developing, test, and deploy applications without managing servers.
Large enterprises segment accounted for the largest revenue in the total market in 2024
- Large enterprises leverage serverless architecture to automatically scale applications based on demand while reducing infrastructure costs by eliminating the need for servers all the time.
- Further, it helps large organizations to accelerate software development cycles by abstracting server management.
- For instance, Oracle offers serverless solutions in its product offerings. It offers various benefits including automatic scalability, flexible configuration, pay-as-you-go pricing, and others.
- Thus, the rising adoption of serverless solutions by large enterprises are further driving the market.
Small and medium enterprises (SMEs) segment is anticipated to register fastest CAGR growth during the forecast period.
- Small and medium-sized enterprises (SMEs) are increasingly adopting cloud based solutions due to various benefits such as cost-efficiency and scalability.
- Moreover, serverless computing enables SMEs to quickly develop, test, and deploy applications without managing servers, allowing them to scale operations efficiently as their business expands.
- For instance, in October 2023, CloudCamp4SMEs launched a cloud training program exclusively designed for small and medium-sized enterprises (SMEs) on vital digital proficiencies related to cloud solutions and technologies.
- Thus, the rising developments associated with cloud solutions and technologies for small & medium sized enterprises are projected to drive the serverless architecture market during the forecast period.
By Application:
Based on the application, the market is segmented into web and mobile backends, data processing pipelines, IoT, chatbots and voice assistants, scheduled tasks and automation, and others.
Trends in the Application:
- There is an increasing utilization of serverless functions in IoT applications for processing data from devices and sensors.
- Rising adoption of serverless functions for triggering scheduled events and performing automated tasks.
Data processing pipelines accounted for the largest revenue in the total market in 2024.
- Data processing pipelines in serverless architecture refers to collection, cleaning, and transformation of large volumes of data in real-time.
- Further, serverless computing allows users to build data processing pipelines that transform, ingest, and store data.
- Moreover, a serverless architecture processes log files, analyses the files for patterns, and stores the results in a data warehouse.
- For instance, in February 2025, SAP SE launched SAP Business Data Cloud in collaboration with SAP and Databricks for data engineering, machine learning and AI workloads.
- Thus, the rising advancements in data processing pipelines are further driving the serverless architecture market size.
Chatbots and voice assistants segment is anticipated to register a substantial CAGR growth during the forecast period.
- Chatbots and voice assistants are well-suited for development using serverless architectures due to benefits such as pay-as-you-go pricing model.
- Further, serverless functions can integrate and retrieve information from various APIs, natural language processing (NLP) services, and handle user interactions.
- For instance, in September 2024, Snap partnered with Google Cloud to power generative AI experiences to AI-powered chatbot.
- Thus, the rising adoption of chatbots and voice assistants are projected to boost the market during the forecast period.
By End-User:
Based on the end-user, the market is segmented into IT & telecom, BFSI, retail, healthcare, and others.
Trends in the End-User:
- There is an increasing utilization of serverless computing by banks for providing banking services through internet.
- Rising adoption of tools such as Microsoft Cloud by retail for connecting customers, and data.
IT & telecom accounted for the largest revenue share in the total market in 2024.
- In IT & telecom, cloud services facilitate the flow of user data from front-end clients through the internet to the cloud provider.
- Further, serverless computing offers various benefits such as disaster recovery, data backup, and cost effective, simplified business operations for IT companies.
- For instance, in December 2024, Amazon Web Services (AWS), a public cloud company, announced investment of USD 5 Billion to build new data centers.
- Thus, the rising investments in IT & telecom are further driving the serverless architecture market size.
Healthcare segment is anticipated to register a substantial CAGR growth during the forecast period.
- In healthcare sector, cloud computing offers automated backend operations, easier medical record-sharing, and also supports the maintenance of telehealth applications.
- Further, healthcare facilities can use chatbots and voice assistants in mobile applications for enhanced patient support and guidance.
- For instance, in June 2024, Cognizant launched healthcare LLM (Large Language Model) solutions on Google Cloud's generative AI (genAI) technology.
- Thus, the rising adoption of cloud technologies by healthcare facilities are projected to boost the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region is estimated to reach over USD 18,236.66 Million by 2032 from a value of USD 4,185.95 Million in 2024 and is projected to grow by USD 4,952.27 Million in 2025. Out of this, China accounted for the maximum revenue share of 34.2%. As per the serverless architecture market analysis, there is an increasing adoption of serverless solutions, particularly in countries such as China, India, and Japan by large enterprises and small and medium enterprises (SMEs) operating in the IT & telecom sector. The rapid development and growing investments in IT & telecom sector are accelerating the serverless architecture market expansion.
- For instance, according to the IBEF (India Brand Equity Foundation), the Government of India allocated USD 13.9 Billion for IT and telecom sector. This is further driving the adoption of cloud solutions, which in turn propelling the market in the Asia-Pacific region.
North America was valued at USD 5,282.46 Million in 2024. Moreover, it is projected to grow by USD 6,233.96 Million in 2025 and reach over USD 22,344.78 Million by 2032.
In North America, the growth of serverless architecture industry is driven by the rising demand for scalable and flexible IT systems. Rising adoption of serverless functions in IT, healthcare, banking, and other industries are also driving the market. Further, increasing investments in healthcare, banking, and IT sectors are contributing to the serverless architecture market demand.
- For instance, according to the Amazon, AWS invested USD 11 Billion in Georgia for expanding infrastructure to support cloud technologies and AI. This is further driving the adoption of cloud solutions, which in turn is driving the market in North America.
Additionally, the regional analysis depicts that the rising investments in IT and telecom industry and increasing adoption of cloud solutions in retail sector are driving the serverless architecture market demand in Europe. Further, as per the market analysis, the primary factors driving the market in the Middle East and African region includes increasing investments in banking and retail sector among others. The rising demand for modern serverless systems in corporate offices, banks, and others are driving the market demand in the Latin America region.
Top Key Players and Market Share Insights:
The serverless architecture market is highly competitive with major players providing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global serverless architecture market. Key players in the serverless architecture industry include -
Recent Industry Developments :
Partnerships & Collaborations:
- In February 2025, Laravel launched laravel Cloud with various plans including sandbox, production, and enterprise for various applications and industries including IT.
Serverless Architecture Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2032 |
| Market Size in 2032 | USD 64,899.15 Million |
| CAGR (2025-2032) | 22.2% |
| By Component |
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| By Deployment Mode |
|
| By Enterprise Size |
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| By Application |
|
| By End-Use |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the serverless architecture market? +
The serverless architecture market was valued at USD 15,346.35 Million in 2024 and is projected to grow to USD 64,899.15 Million by 2032.
Which is the fastest-growing region in the serverless architecture market? +
Asia-Pacific is the region experiencing the most rapid growth in the serverless architecture market.
What specific segmentation details are covered in the serverless architecture report? +
The serverless architecture report includes specific segmentation details for component, deployment mode, enterprise size, application, end-user and region.
Who are the major players in the serverless architecture market? +
The key participants in the serverless architecture market are Microsoft (US), IBM (US), Oracle (US), Amazon (US), Google (US), Alibaba (China), Cloudflare (US), NTT DATA (Japan), Rackspace (US), and TIBCO Software (US).
