PUBLISHER: Grand View Research | PRODUCT CODE: 1654475
PUBLISHER: Grand View Research | PRODUCT CODE: 1654475
The global serverless computing market size was estimated at USD 24.51 billion in 2024 and is anticipated to grow at a CAGR of 14.1% from 2025 to 2030. The serverless computing industry is poised for significant growth, driven by enterprises' digital transformation initiatives, increasing adoption of cloud technologies, and the need for agile, cost-effective Function-as-a-service (FaaS)s. Serverless computing offers a transformative approach to cost management by eliminating the need for organizations to maintain and manage physical or virtual server infrastructure.
Unlike traditional IT environments that require upfront investments in servers, storage, and ongoing maintenance, serverless Function-as-a-service (FaaS) operate on a pay-as-you-go pricing model. This means businesses are charged only for the compute resources consumed during the execution of their end uses, significantly reducing capital expenditure and operating costs. This model is particularly advantageous for small and medium enterprises (SMEs), which often have limited IT budgets and cannot afford to invest heavily in infrastructure.
Additionally, serverless architectures offload tasks like server provisioning, patching, and capacity planning to the cloud provider, enabling organizations to focus on innovation and development rather than operational overheads. By minimizing idle resource costs and allowing precise scaling, serverless computing ensures optimal resource utilization, making it a cost-effective Function-as-a-service (FaaS) for end uses with variable or unpredictable workloads. Key players, including AWS, Microsoft Azure, and Google Cloud, dominate the serverless computing market with continuous innovations and comprehensive serverless FaaS.
Unlike traditional infrastructure, where scaling up requires manual intervention or significant lead time, serverless architectures scale automatically in response to demand. This ensures that businesses can efficiently manage peak traffic without over-provisioning resources, avoiding the risks of downtime or performance bottlenecks. For instance, an e-commerce platform can handle sudden spikes in traffic during holiday sales without requiring pre-planned infrastructure upgrades. Serverless function-as-a-service dynamically allocates computer power and resources to match workload requirements, making them ideal for event-driven end uses, such as real-time analytics or API backends. Furthermore, this scalability is achieved without upfront resource allocation, allowing businesses to pay only for the resources consumed. This flexibility not only optimizes operational efficiency but also supports innovation by enabling developers to experiment and deploy end uses rapidly without worrying about infrastructure constraints.
The future of serverless computing is bright, with significant advancements expected in AI-driven workload optimization and the integration of edge computing to enhance real-time data processing. Hybrid and multi-cloud serverless FaaS will address vendor lock-in concerns, providing organizations with greater flexibility. IoT proliferation and sustainability goals will further drive adoption, as serverless computing aligns with energy-efficient IT practices. However, addressing current challenges like security, cold starts, and monitoring complexities will be critical to unlocking its full potential across diverse industries. Cold start latency, the delay in initializing serverless functions during their first invocation, can significantly impact performance-sensitive end uses requiring real-time responsiveness. This limitation deters adoption in critical use cases like financial transactions or Healthcare & Life Sciences monitoring, where milliseconds matter, potentially slowing market growth by restricting serverless computing's applicability in such scenarios.
Global Serverless Computing Market Report Segmentation
This report forecasts market size growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the serverless computing market report based on service model, deployment, enterprise size, end use, and region: