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The function as a service market share is expected to increase by USD 15.73 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 29.84%.
This function as a service market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers function as a service market segmentation by deployment (public, private, and hybrid) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The function as a service market report also offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Bronze.io Dba Iron.io Inc., Cloudflare Inc, Ekinops SA, Flowgear, Infosys Ltd., International Business Machines Corp., Manjrasoft Pty Ltd., Microsoft Corp., Netlify Inc., Oracle Corp., and TIBCO Software Inc. among others.
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The growing shift to serverless computing is notably driving the function as a service market growth, although factors such as the increase in cyberattacks may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the function as a service industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Function as a Service Market Driver
One of the key factors driving market growth in the function as a service market is the growing shift to serverless computing. The growing shift of DevOps toward serverless computing, flexibility and scalability, and the growth of hosted services are the growth drivers of the market. In addition, the trend of enterprises toward optimizing small services and managing multiple platforms is expected to drive the growth of the market during the forecast period. Large corporations invest heavily in innovative technologies to increase productivity and overall business performance. With the increasing amount of data, large companies invest in IT infrastructure and technical expertise to automate various tasks on a regular basis. Large enterprises are focused on investing heavily to deploy the right types of serverless architecture services that will enable them to save on infrastructure costs, improve business operations, and withstand stiff competition.
Key Function as a Service Market Trend
The increasing adoption of cloud computing services is a function as a service market trend that is expected to have a positive impact in the coming years. Businesses with their existing infrastructure are moving toward cloud adoption and are ready to adopt a hybrid approach so they can reap the benefits of both on-premises and off-premises services. SMEs are widely adopting cloud computing services due to their key benefits, such as no upfront infrastructure setup costs and availability of IT services as required. These factors are contributing to the growth of hybrid cloud services in the enterprise. Hybrid cloud services provide the benefits of improved workload management, increased security and compliance, and efficient integration across DevOps teams. Such factors are expected to drive the growth of the global FaaS market.
Key Function as a Service Market Challenge
The increase in cyberattacks will be a major market challenge for the function as a service market during the forecast period. Cloud computing services help businesses improve business efficiency and reduce costs. In addition, these services offer a variety of benefits, including flexibility, scalability, and agility. While the cloud offers various advantages and security measures, data stored in the cloud is still vulnerable to cyberattacks. With the increasing volume of data and the increasing initiatives of businesses toward digital transformation, the number of cyberattacks is increasing rapidly. Cyberattacks, such as Specter, Meltdown, cloud malware, account or service takeover, and cloud man-made attacks, create vulnerable threat attacks on corporate data. These threats can lead to losses and business closures. Thus, increased cases of cyberattacks may hinder the growth of the global FaaS market.
This function as a service market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global function-as-a-service (FaaS) market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the function as a service market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the function as a service market encompasses successful business strategies deployed by the key vendors. The function as a service market is concentrated and the vendors are deploying growth strategies such as new product launches, expansions, agreements, joint ventures, partnerships, and acquisitions to compete in the market.
amazon.com - The company offers Function as a Service such as AWS Fargate and AWS Lambda.
amazon.com - The North American segment includes retail sales of consumer products and subscriptions through North America-focused online and physical stores. The segment also includes export sales from these online stores.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The function as a service market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.
Our report provides extensive information on the value chain analysis for the function as a service market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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38% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for function as a service in North America. Market growth in this region will be slower than the growth of the market in the South American, APAC and MEA regions.
North America holds the highest share of the market. The region is among the leading innovators and pioneers in the adoption of new technologies such as 5G, autonomous driving, IoT, Blockchain, games, and artificial intelligence. This will facilitate the function as a service market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic affected the corporate profits of businesses. This compelled governments to impose lockdown and travel restrictions in the region. Due to this, all the organizations were temporarily closed. However, in 2021, the lifting of lockdown restrictions, the initiation of large-scale vaccination drives, and the resumption of business accelerated the growth of the FaaS market in the region. Moreover, the growing demand for cloud automation will boost the growth of the FaaS market in the region during the forecast period. Such factors will moderately impact the growth of the FaaS market in North America during the forecast period.
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The function as a service market share growth by the public segment will be significant during the forecast period. The public cloud segment accounted for the largest market size in 2021. By using development and operations (DevOps) solutions, businesses are developing new and better ways to improve operational benefits while reducing costs. Companies adopting DevOps are increasingly deploying DevOps solutions to perform their critical business functions. Faster deployment, scalability and agility, regulatory compliance requirements, and the need to reduce capital expenditures (CAPEX) and operational expenditures (OPEX) are expected to drive the demand for DevOps solutions and services during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the function as a service market size and actionable market insights on post COVID-19 impact on each segment.
Function as a Service Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.84% |
Market growth 2022-2026 |
$ 15.73 billion |
Market structure |
Concentrated |
YoY growth (%) |
29.72 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key consumer countries |
US, Canada, China, India, Germany, and Italy |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Bronze.io Dba Iron.io Inc., Cloudflare Inc, Ekinops SA, Flowgear, Infosys Ltd., International Business Machines Corp., Manjrasoft Pty Ltd., Microsoft Corp., Netlify Inc., Oracle Corp., and TIBCO Software Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Deployment
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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