Industry Insights
The global serverless architecture market size will grow by USD 9.16 billion during 2019-2023 at CAGR close to 26%. The reduced operating cost of serverless architecture and digital transformation are a few factors that are expected to drive market growth in the coming years. This report provides a detailed analysis of the market by end-users (BFSI, government, telecommunication, healthcare, retail, media and entertainment, and other end-users) and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors, including Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., IBM Corp., Microsoft Corp., and Oracle Corp.
Serverless architecture involves the use of cloud platforms. The cloud provider runs the server. As a result, end-users do not have to install physical servers, eliminating maintenance tasks such as server or cluster provisioning, patching, operating system maintenance, and capacity provisioning.
Key Insights from Serverless Architecture Market – Global Forecast 2019-2023
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The rising need for enterprises to optimize business operations has been encouraging them to opt for an effective IT infrastructure. However, a physical setup includes significant infrastructure cost that primarily depends on server capacity and type. Moreover, in-house server infrastructure has limited storage and processing capacity. This has led to constant digital transformation to address the mentioned drawbacks associated with physical servers. The need for enterprises to scale-up their businesses at reduced cost has given rise to a serverless architecture. The use of serverless architecture has become crucial for companies as it can offer an unlimited number of servers for testing and deployments at low cost. The trend of digital transformation and the benefits of serverless infrastructure will boost the growth of the market in focus in the coming years.
Benefits such as the reduction in operating cost will also contribute to the growth of the serverless architecture market. End-users availing serverless architecture services do not have to bear the burden of purchasing, provisioning, and managing backend servers. Many companies from the end-user industries are using flexible IT solutions such as serverless architecture to reduce cost pressure. The on-premise deployment model includes expenses associated with licensing, system design and customization, implementation, training, and maintenance. These upfront costs can be avoided with the use of serverless architecture. As a result of these factors, the serverless architecture market will register over 26% CAGR during 2019-2023.
Industry Analysis
Quantitative Data
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Qualitative Data
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End-user Insights
The end-user segment has been broadly categorized into BFSI, government, telecommunication, healthcare, retail, media and entertainment, and other end-users. The BFSI segment accounted for the highest serverless architecture market share in 2018. During the forecast period, this segment is expected to grow slower compared with the overall market. The healthcare, retail, and media and entertainment will record faster growth rates compared with the overall market during the forecast period.
Regional Insights
North America accounted for the highest market share in 2018. Growth of the market in this region will be slower than the market’s growth in the other regions. However, the market will account for the largest serverless architecture market share throughout the forecast period. The US is a key market for serverless architecture in North America.
The presence of leading vendors in the region and the availability of cloud solution-based technical expertise are primarily contributing to the growth of the market in the region. Many data-driven companies are upscaling their business processes to the serverless architecture platform. Moreover, the demand for cloud services is increasing to reduce operational cost and improve business efficiency. These factors will remain prevalent in the coming years and will directly influence the growth of the serverless architecture market in North America during the forecast period.
Top Serverless Architecture Providers
The market is moderately fragmented. The serverless architecture market analysis provides insights into the market’s competitive landscape and offers information on the services offered by various companies. To enable companies in creating strategies to make the most of future growth opportunities, the report also provides information on the upcoming serverless architecture market trends and challenges that will influence the market growth.
The report offers a detailed analysis of several companies, including:
- Alibaba Group Holding Ltd.
- Alphabet Inc.
- Amazon.com Inc.
- IBM Corp.
- Microsoft Corp.
- Oracle Corp
Segments covered in the report
Serverless architecture market by end-users
- BFSI
- Government
- Telecommunication
- Healthcare
- Retail
- Media and entertainment
- Other end-users
Serverless architecture market by geography
- APAC
- Europe
- MEA
- North America
- South America
Key Highlights of the Serverless Architecture Market Forecast Report for the Period 2019-2023
- CAGR of the market during the forecast period 2019-2023
- Detailed information on factors that will accelerate the growth of the serverless architecture market size during the next five years
- Precise estimation of the global serverless architecture market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the serverless architecture industry across APAC, Europe, MEA, North America, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on several vendors
- Comprehensive details of factors that will challenge the growth of serverless architecture providers
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