Serverless Computing Market Size, Demand, Growth, Business Challenges and Future Opportunities Till 2034
Serverless Computing Market Growth, Size, Trends Analysis - By Service Model, By Deployment, By Enterprise Size, By End-User - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Mar-2025 | Report ID: IACT2554 | Pages: 1 - 272 | Formats*: |
| Category : Information & Communications Technology | |||
Serverless Computing Market Introduction and Overview
According to SPER Market Research, the Global Serverless Computing Market is estimated to reach USD 94.6 billion by 2034 with a CAGR of 14.33%.
The report includes an in-depth analysis of the Global Serverless Computing Market, including market size and trends, product mix, Applications, and supplier analysis.
The global serverless computing market size was estimated at USD 24.79 billion in 2024 and is expected to grow at a rate of 14.33% from 2025 to 2034. This industry is set for major growth due to companies' digital transformation efforts, increasing cloud technology use, and the demand for flexible, affordable Function-as-a-Service (FaaS). Serverless computing changes how organizations manage costs by removing the need for maintaining physical or virtual servers. Businesses pay only for the computing resources they use, which helps lower expenses, especially for small and medium enterprises (SMEs) with tight IT budgets.
By Service Model Insights: The function-as-a-service (FaaS) sector led the serverless computing market with the largest share in 2024. The increase in event-driven architecture boosts FaaS adoption, as it effectively manages specific tasks like IoT data processing and real-time analytics. FaaS is suited for dynamic uses that need scalable event processing. Its pay-per-use pricing model further encourages businesses by eliminating idle infrastructure costs, making it attractive for variable workloads and helping organizations reduce operational costs while responding quickly to events.
By Deployment Insights: The public cloud segment had the largest market share in 2024. As companies move their infrastructure to the cloud, they seek flexible, scalable, and cost-effective solutions for their needs. Serverless computing eliminates manual infrastructure management, allowing businesses to concentrate on developing and deploying applications without server maintenance. The public cloud's scalability and on-demand resources make serverless computing appealing for businesses, increasing its adoption.
By Enterprise Size Insights: The large enterprises segment held the biggest market share in 2024. These enterprises often deal with high operational costs for maintaining and scaling their infrastructure. Serverless computing provides cost savings with a pay-per-use model, removing the need for upfront server costs and allowing payment only for used resources. It also speeds up development and deployment by simplifying infrastructure management, enabling teams to focus on coding and innovation, which enhances agility and allows quicker launches of products and services. This speed is essential for large enterprises in fast-changing industries.
By End-User Insights: The BFSI segment had the largest market share in 2024. This sector experiences changing workloads, particularly during busy times like month-end or tax season, which requires scalable infrastructure for smooth operations. Serverless computing meets this need with auto-scaling, helping financial institutions manage demand spikes without wasting resources. Additionally, BFSI relies on real-time data analytics for fraud detection, risk assessment, and personalized experiences. Serverless computing supports real-time data processing, improving efficiency and decision-making in financial services.
Regional Insights: North America had the largest share of the global serverless computing industry in 2024. The region leads in cloud computing adoption due to major providers like AWS, Microsoft Azure, and Google Cloud. Its strong cloud infrastructure and early adoption of serverless models drive market growth. North America is also a center for technological advancements, with businesses investing in IoT, AI, and big data. Serverless computing helps these innovations by providing scalable, event-driven architectures for easier development and deployment.
The Asia Pacific serverless computing industry is growing rapidly at a high CAGR from 2025 to 2034. The region is seeing quick cloud adoption in both developed and emerging markets. Countries like China, Japan, India, and Australia are adopting cloud computing, promoting serverless solutions. As firms shift from traditional on-premises setups, serverless computing provides scalable, cost-effective options that boost market growth.
Market Competitive Landscape
The main players in the global serverless computing market include Amazon Web Services (AWS), Microsoft Corporation, Google, Inc, IBM Corporation, Alibaba Cloud, Oracle Corporation, Red Hat, Inc, Cloudflare, Inc, Tencent Cloud, and SAP SE. These companies are pursuing strategies like new product development, partnerships, and agreements to improve their competitive edge. For example, in April 2024, Cloudflare, Inc. acquired Baselime, a cloud-native observability platform. This acquisition boosts Cloudflare's developer platform by providing advanced tools for serverless observability, assisting developers in analyzing performance, errors, and behavior for better debugging, optimization, and cost management.
Recent Developments:
- In January 2024, Alibaba Cloud launched a serverless version of its Platform for AI (PAI)-Elastic Algorithm Service (EAS) for efficient model deployment and inference. It also added vector engine technology to products like Hologres, Elasticsearch, and OpenSearch, allowing enterprises to create custom generative AI applications.
- In November 2023, Amazon launched three new serverless innovations to make database and analytics scaling easier for high-demand situations. These are Amazon Aurora Limitless Database, which scales automatically beyond a single database's write limits; Amazon ElastiCache Serverless for quick cache creation without managing infrastructure; and Amazon Redshift Serverless, which uses AI to optimize resource usage.
- In December 2024, Microsoft launched Neon Serverless Postgres as a preview in Azure. This integration allows developers to use Neon’s serverless PostgreSQL database solution within Azure. It features instant setup, automatic scaling, and smooth workflows, supporting Single Sign-On (SSO) and unified billing for easier database management.
Scope of the Report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Service Model, By Deployment, By Enterprise Size, By End-User. |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa. |
| Companies Covered | Amazon Web Services (AWS), Microsoft Corporation, Google, Inc, IBM Corporation, Alibaba Cloud, Oracle Corporation, Red Hat, Inc, Cloudflare, Inc, Tencent Cloud, SAP SE. |
Key Topics Covered in the Report
- Global Serverless Computing Market Size (FY’2021-FY’2034)
- Overview of Global Serverless Computing Market
- Segmentation of Global Serverless Computing Market By Service Model (Function-as-a-service, Backend-as-a-service)
- Segmentation of Global Serverless Computing Market By Deployment (Public Cloud, Private Cloud, Hybrid Cloud)
- Segmentation of Global Serverless Computing Market By Enterprise Size (Large Enterprises, Small & Medium Sized Enterprises)
- Segmentation of Global Serverless Computing Market By End-User (IT & Telecom, BFSI, Healthcare & Life Sciences, Retail & Consumer Goods, Government & Defense, Transportation & Logistics, Manufacturing, Others)
- Statistical Snap of Global Serverless Computing Market
- Expansion Analysis of Global Serverless Computing Market
- Problems and Obstacles in Global Serverless Computing Market
- Competitive Landscape in the Global Serverless Computing Market
- Details on Current Investment in Global Serverless Computing Market
- Competitive Analysis of Global Serverless Computing Market
- Prominent Players in the Global Serverless Computing Market
- SWOT Analysis of Global Serverless Computing Market
- Global Serverless Computing Market Future Outlook and Projections (FY’2025-FY’2034)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data2.1.2. Primary Data2.1.3. SPERs internal database2.1.4. Premium insight from KOLs
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers4.1.2. Restraints4.1.3. Opportunities4.1.4. Challenges
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths5.1.2. Weaknesses5.1.3. Opportunities5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape5.2.2. Economic Landscape5.2.3. Social Landscape5.2.4. Technological Landscape5.2.5. Environmental Landscape5.2.6. Legal Landscape
5.3. PORTERs Five Forces
5.3.1. Bargaining power of suppliers5.3.2. Bargaining power of buyers5.3.3. Threat of Substitute5.3.4. Threat of new entrant5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. Global Serverless Computing Market Manufacturing Base Distribution, Sales Area, Product Type6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Serverless Computing Market
7. Global Serverless Computing Market, By Service Mode (USD Million) 2021-2034
7.1. Function-as-a-service (FaaS)7.2. Backend-as-a-service (BaaS)
8. Global Serverless Computing Market, By Deployment (USD Million) 2021-2034
8.1. Public Cloud8.2. Private Cloud8.3. Hybrid Cloud
9. Global Serverless Computing Market, By Enterprise Size (USD Million) 2021-2034
9.1. Large Enterprises9.2. Small & Medium Sized Enterprises
10. Global Serverless Computing Market, By End-User (USD Million) 2021-2034
10.1. IT & Telecom10.2. BFSI10.3. Healthcare & Life Sciences10.4. Retail & Consumer Goods10.5. Government & Defense10.6. Transportation & Logistics10.7. Manufacturing10.8. Others
11. Global Serverless Computing Market, (USD Million) 2021-2034
11.1. Global Serverless Computing Market Size and Market Share
12. Global Serverless Computing Market, By Region, (USD Million) 2021-2034
12.1. Asia-Pacific
12.1.1. Australia12.1.2. China12.1.3. India12.1.4. Japan12.1.5. South Korea12.1.6. Rest of Asia-Pacific
12.2. Europe
12.2.1. France12.2.2. Germany12.2.3. Italy12.2.4. Spain12.2.5. United Kingdom12.2.6. Rest of Europe
12.3. Middle East and Africa
12.3.1. Kingdom of Saudi Arabia12.3.2. United Arab Emirates12.3.3. Qatar12.3.4. South Africa12.3.5. Egypt12.3.6. Morocco12.3.7. Nigeria12.3.8. Rest of Middle-East and Africa
12.4. North America
12.4.1. Canada12.4.2. Mexico12.4.3. United States
12.5. Latin America
12.5.1. Argentina12.5.2. Brazil12.5.3. Rest of Latin America
13. Company Profile
13.1. Amazon Web Services (AWS)
13.1.1. Company details13.1.2. Financial outlook13.1.3. Product summary13.1.4. Recent developments
13.2. Microsoft Corporation
13.2.1. Company details13.2.2. Financial outlook13.2.3. Product summary13.2.4. Recent developments
13.3. Google, Inc
13.3.1. Company details13.3.2. Financial outlook13.3.3. Product summary13.3.4. Recent developments
13.4. IBM Corporation
13.4.1. Company details13.4.2. Financial outlook13.4.3. Product summary13.4.4. Recent developments
13.5. Alibaba Cloud
13.5.1. Company details13.5.2. Financial outlook13.5.3. Product summary13.5.4. Recent developments
13.6. Oracle Corporation
13.6.1. Company details13.6.2. Financial outlook13.6.3. Product summary13.6.4. Recent developments
13.7. Red Hat, Inc
13.7.1. Company details13.7.2. Financial outlook13.7.3. Product summary13.7.4. Recent developments
13.8. Cloudflare, Inc
13.8.1. Company details13.8.2. Financial outlook13.8.3. Product summary13.8.4. Recent developments
13.9. Tencent Cloud
13.9.1. Company details13.9.2. Financial outlook13.9.3. Product summary13.9.4. Recent developments
13.10. SAP SE
13.10.1. Company details13.10.2. Financial outlook13.10.3. Product summary13.10.4. Recent developments
13.11. Others
14. Conclusion
15. List of Abbreviations
16. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Serverless Computing Market is projected to reach USD 94.6 billion by 2034, growing at a CAGR of 14.33% during the forecast period.
Serverless Computing Market grew in Market size from 2025. The Market is expected to reach USD 94.6 billion by 2034, at a CAGR of 14.33% during the forecast period.
Serverless Computing Market CAGR of 14.33% during the forecast period.
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Serverless Computing Market size is USD 94.6 billion from 2025 to 2034.
Serverless Computing Market is covered By Product, By Function, By Application, By End-User.
The North America is anticipated to have the highest Market share in the Serverless Computing Market.
The key players in the Market include Companies Covered Amazon Web Services (AWS), Microsoft Corporation, Google, Inc, IBM Corporation, Alibaba Cloud, Oracle Corporation, Red Hat, Inc, Cloudflare, Inc, Tencent Cloud, SAP SE.
This industry is set for major growth due to companies' digital transformation efforts, increasing cloud technology use, and the demand for flexible, affordable Function-as-a-Service (FaaS).
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