PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423503
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423503
Global Serverless Computing Market reached US$ 9.3 Billion in 2023 and is expected to reach US$ 40.9 Billion by 2031, growing with a CAGR of 20.6% during the forecast period 2024-2031.
Serverless computing includes function-as-a-service is a cloud service that conceals the hardware infrastructure from users. As a result, users are relieved from the need to worry about provisioning, administration and maintenance of the underlying infrastructure. Serverless computing streamlines both the development and deployment processes. Developers can concentrate on coding without the necessity of handling infrastructure, thereby diminishing the time required to launch applications in the market.
Growing major key players' spending on serverless computing helps to boost regional market growth over the forecast period. For instance, on October 10, 2023, Omdia's CNC Tracker, an innovative analysis of the cloud-native computing (CNC) market, revealed that serverless computing is the prevailing force in the CNC market. Furthermore, the forecast indicates that serverless is poised to maintain its dominance, with an anticipated increase in market share over the next five years.
North America is a dominating region in the market due to the early adoption of the technologies. Major key players in the region launched new products in the market that helped to boost regional market growth over the forecast period. For instance, on November 27, 2023, Datadog Inc. expanded Observability and Security Support for AWS Serverless Workloads. The features introduced by AWS aim to assist users of AWS Lambda and Step Functions in identifying security threats, obtaining a comprehensive overview of their state machine's performance at a specific moment and monitoring services equipped with OpenTelemetry.
Cost-Effective Scaling Capabilities of Global Serverless Computing
Serverless Computing allows for granular resource allocation, enabling organizations to scale resources precisely based on the demand for specific functions. Organizations are billed only for the actual execution time and resources consumed during the processing of functions. The model aligns costs directly with usage, providing a cost-effective solution for varying workloads.In the conventional cloud computing model, expenses are primarily influenced by server provisioning, requiring businesses to pay for server capacity irrespective of utilization. The frequently leads to over-provisioning to accommodate peak demand, resulting in elevated costs during periods of lower activity.
The pay-per-use model of serverless computing presents a more cost-efficient solution, particularly well-suited for applications experiencing variable traffic. The approach removes the necessity for predicting traffic patterns and enables automatic scaling, ensuring costs directly correspond to real usage. By employing a serverless architecture, such as AWS Lambda and Amazon S3, the platform efficiently managed surges in user traffic and video uploads.
Rapid Growth in the Cloud Computing
The growing adoption of cloud infrastructure has created a conducive environment for serverless computing. Increasingly, companies are moving their apps to the cloud, which provides an ideal environment for serverless cloud to be implemented. Serverless computing services have been created and improved by major cloud service providers including Microsoft Azure, Google Cloud Platform, Amazon Web Services and others. Due to this, serverless computing is widely available and integrated into the larger cloud ecosystem.
Cloud computing has gained popularity due to an increased awareness of the benefits of serverless computing. Growing educational initiatives by cloud service providers have helped major key players to take advantage of serverless computing in terms of scalability, costs, and streamlined development. The dynamic nature of the cloud ecosystem, with continuous updates and services, has facilitated the growth of serverless computing. The fine-tuned approach ensures optimal resource utilization, reducing the costs associated with over-provisioning.
Security Concerns about Serverless Computing
When processing and storing sensitive data in a serverless environment, privacy and data security issues arise. Major key players must confirm that serverless services have robust security measures in place to prevent hackers and unauthorized access to data. In serverless systems, appropriate permission and authentication protocols are essential. Unauthorized access to functions may result from inadequate access restrictions or misconfigurations, which may expose private data or give rise to harmful activity.
Serverless applications often rely on various interconnected services and APIs. Inadequate network security measures may expose vulnerabilities that attackers could exploit. Secure communication between services becomes crucial to prevent data interception or manipulation. Third-party libraries or external dependencies are frequently used by serverless functions. If these dependencies involve vulnerabilities, attackers may be able to leverage them to risk the serverless application's security.
The global serverless computing market is segmented based on services, deployment, enterprise size, application, end-user and region.
Growing Demand for Monitoring Services Globally
Based on the services, the serverless computing market is segmented into monitoring services, API management services, integration services, security, support and maintenance and others. Serverless computing often involves distributed architectures where functions are executed in response to events. To see these dispersed components' interactions, performance and overall health, monitoring services become essential.
Robust monitoring solutions are becoming more and more necessary as serverless applications grow in functionality. Monitoring services give businesses information about how well serverless operations are doing, enabling them to identify obstacles, maximize resource use and boost productivity all around. The need for monitoring services is increasing as companies work to create high-performing applications and ensure outstanding performance.
The growing consumer demand for Monitoring Services serverless computing helps to boost segment growth over the forecast period. For instance, on February 09, 2022, Software intelligence company Dynatrace announced that it has extended the Dynatrace platform's broad and deep observability and advanced AIOps capabilities to all major serverless architectures. It helps to increase monitoring services segment growth.
North America is Dominating the Serverless Computing Market
North America accounted for the largest market share in the global serverless computing market due to the early adoption and innovation of new technologies that play an important role in the serverless computing ecosystem. Several leading cloud services providers, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform are based in North America and help to boost market growth by offering services and solutions of serverless computing. The enterprises provide serverless computing services as components of their cloud solutions, adding to the overall market share of the region.
Some of the major key players in the region follow merger and acquisition strategies which help to boost regional market growth over the forecast period. For instance, on August 29, 2023, Google Cloud Next and NVIDIA announced the AI infrastructure and software for customers to build and deploy massive models for generative AI and speed data science workloads. Moreover, the firms disclosed Google's incorporation of serverless Spark with NVIDIA GPUs via Google's Dataproc service. The integration is designed to accelerate Apache Spark workloads, aiding data scientists in expediting the preparation of data for AI development.
The major global players in the market include Google LLC, Alibaba Cloud, CA Technologies, Microsoft Corporation oracle Corporation, Dynatrace, Fiorano Software Inc., Joyent Inc., Modubiz Ltd. and NTT Data Corporation.
The COVID-19 epidemic helps to boost demand of the cloud computing, as enterprises seek adaptable and expandable solutions to facilitate their distant workforce. A cloud-based service called serverless computing probably saw an increase in demand during the epidemic. Numerous organizations hastened their digital transformation efforts to adjust to the changing circumstances. Serverless computing, recognized for its agility and scalability, might have been instrumental in these initiatives as businesses sought effective methods to deploy and oversee applications.
Businesses prioritized optimizing expenses due to the economic uncertainty brought up by the epidemic. With its pay-as-you-go pricing framework, serverless computing allowed businesses to modify resource scaling in response to demand, which may have resulted in cost savings over traditional infrastructure. Even though the demand for cloud services increased overall, several businesses had difficulties because they reduced IT spending, which hindered the adoption of serverless solutions. The industries include travel, hospitality and retail.
Geopolitical tensions between the countries lead to disruptions in the supply chain, affecting the production and availability of hardware components or cloud infrastructure. The impacts the deployment and operation of serverless computing services. Uncertainty created by geopolitical events leads to cautious spending by businesses. Organizations delay or reconsider their technology investments, including the adoption of serverless computing solutions.
Geopolitical tensions raise concerns about data privacy and security. Organizations reevaluate their choice of cloud service providers and serverless platforms to ensure the security and integrity of their data. The specific regions involved in geopolitical conflicts experience economic challenges, which could, in turn, affect the adoption of technology solutions, including serverless computing.
The global serverless computing market report would provide approximately 78 tables, 77 figures and 226 Pages.
Target Audience 2024
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