PUBLISHER: The Business Research Company | PRODUCT CODE: 1973538
PUBLISHER: The Business Research Company | PRODUCT CODE: 1973538
Function-as-a-service (FaaS) refers to a category of cloud computing service that is used to build, run, manage, and compute, application packages as functions without the need of having to maintain their own infrastructure. FaaS is a category of cloud computing services that. It divides servers into functions. So, they can automatically scale into microservices without the requirement for independent infrastructure management.
The main services of function as a service are tablets, smartphones, gaming consoles and laptops/PCs. Tablets service refers to providing FaaS services to cloud customers to run on tablet devices. The FaaS deployed on public, private, and hybrid clouds. These services are used by small, medium, and large enterprises in banking, financial services and insurance (BFSI), information technology (IT), and telecommunication, retail, healthcare, life sciences, and other sectors.
Tariffs are impacting the function-as-a-service market by increasing costs related to imported data center hardware, networking equipment, and specialized processors used by cloud service providers. Enterprises in North America and Europe are most affected due to dependence on imported infrastructure components, while Asia-Pacific faces cost pressures on cloud infrastructure expansion. These tariffs are increasing service pricing and infrastructure investment costs. However, they are also encouraging regional data center development, localized cloud infrastructure sourcing, and increased adoption of software-optimized serverless platforms.
The function-as-a-service market research report is one of a series of new reports from The Business Research Company that provides function-as-a-service market statistics, including function-as-a-service industry global market size, regional shares, competitors with a function-as-a-service market share, detailed function-as-a-service market segments, market trends and opportunities, and any further data you may need to thrive in the function-as-a-service industry. This function-as-a-service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The function-as-a-service market size has grown exponentially in recent years. It will grow from $13.08 billion in 2025 to $15.91 billion in 2026 at a compound annual growth rate (CAGR) of 21.6%. The growth in the historic period can be attributed to growth in cloud computing adoption, expansion of mobile and web applications, rising demand for scalable computing resources, adoption of agile development practices, increased availability of public cloud services.
The function-as-a-service market size is expected to see exponential growth in the next few years. It will grow to $34.98 billion in 2030 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to increasing demand for real-time application scalability, rising adoption of hybrid and multi-cloud strategies, expansion of edge computing use cases, growing focus on developer productivity, increasing use of ai-driven cloud optimization tools. Major trends in the forecast period include increasing adoption of serverless application architectures, rising use of event-driven computing models, growing integration of faas with microservices, expansion of cloud-native development practices, enhanced focus on cost-optimized computing.
The increasing adoption of DevOps practices is anticipated to drive the expansion of the function-as-a-service (FaaS) market in the coming years. DevOps is a methodology in the software development and IT sectors that focuses on integrating and automating the tasks of software development (Dev) and IT operations (Ops) teams. FaaS, as a serverless computing model, naturally automates infrastructure management and resource provisioning, aligning closely with DevOps automation principles. For example, in 2024, Spacelift, a US-based platform that assists in managing cloud infrastructure and services, predicts that organizations will boost their investment in DevSecOps automation by 35%. Consequently, the rising adoption of DevOps is expected to drive the growth of the function-as-a-service market.
Major players operating in the Function-as-a-Service market are focusing on partnerships and collaborations to work towards common goals that can be more effectively achieved by combining resources, expertise, or capabilities. For instance, in March 2023, Amazon Web Services Inc. (AWS), a US-based cloud computing services provider, formalized its strategic partnership with the New Zealand government, solidifying its commitment to provide computer cloud training to 100,000 individuals through 600 free online courses. This Memorandum of Understanding (MoU) establishes the framework for a lasting collaboration between AWS and the New Zealand government, focusing on cloud adoption, innovation, advanced digital skills, sustainability, and cybersecurity.
In April 2025, AkamAI Technologies, a US-based cloud computing and cybersecurity service provider, joined forces with Fermyon Technologies for an undisclosed sum. Through this partnership, AkamAI seeks to support ultra-low-latency edge-native serverless applications by combining Fermyon's WebAssembly-powered FaaS platform with Akamai's global edge network. Fermyon Technologies is a US-based company offering serverless WebAssembly (Wasm) platforms and developer tools for edge-first computing.
Major companies operating in the function-as-a-service market are Google Inc.; Oracle Corporation; Microsoft Corporation; Amazon Web Services; SAP SE; International Business Machines Corporation; TIBCO Software Inc.; Fiorano Software; Dynatrace LLC; FaunaDB; Infosys Ltd.; VMware Inc.; Red Hat Inc.; Rackspace Inc.; Joyent Inc.; Iron.io Inc.; OpenFaaS Ltd.; Nuweba; StackPath LLC; Nimbella Inc.; TriggerMesh Inc.; Serverless Inc.; Platform9 Systems Inc.; Cloudflare Inc.; Kong Inc.; Kubeless; Bitnami Inc.
North America was the largest region in the function-as-a-service market in 2025.Asia-Pacific expected to be the fastest-growing region in the forecast period. The regions covered in the function-as-a-service market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the function-as-a-service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The function-as-a-service (FaaS) market includes revenues earned by entities by providing cloud computing services that enable cloud customers to develop applications and deploy functionalities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Function-as-a-Service Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses function-as-a-service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for function-as-a-service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The function-as-a-service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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