Jan 14, 2020 1:09 AM ET
Serverless Architecture Market is forecast to Grow at CAGR of 23.3% During 2020-2025
iCrowd Newswire -
Jan 14, 2020
Serverless Architecture Market is forecast to reach $22.3 billion by 2025, after growing at a CAGR of 23.3% during 2020-2025. The driving factor for the serverless market during the forecast period is analyzed to be the rise in demand for Function-as-a-service and backend-as-a-service as it eliminates the need of server management.
- Owing to the well-established cloud structure and the further developments in this technology are leading the North-America to hold a major market share in Serverless market.
- IT and Telecom industry is holding the major market share owing to the significant rise in adoption of this technology in the app developers.
- The major driving factor of the Serverless market is the shift from DevOps to serverless computing.
Organization Size-Segment Analysis
The large enterprises hold the major market share in 2018 with 58.7% owing to a significant adoption rate of the serverless technology by app developers as this eliminates the need for server management as serverless architecture is a software design pattern where applications are hosted by a third party service with cloud storage. Usually hosting a software application on the internet involves management of physical but it is eliminated while employing serverless architecture and it can perform all the cloud based applications. It provides the enterprises with low IT & infrastructure costs and high scalability. Moreover, the use of real time web applications and data processing in the large enterprises is contributing to the market share. However the small & medium scale enterprises are analyzed to have the higher growth rate during the forecast period 2020-2025 owing to the increasing demand for the cost-efficient scalable technology offered by serverless computing.
Industry – Segment Analysis
Owing to the wide range of benefits of serverless architecture the IT and telecom industry has dominated the Serverless architecture market
in 2018. It is also analyzed to grow at a CAGR of 26.40% during the forecast period 2020-2025. The use of this technology provides extreme optimization in the distributed computing scenarios of the IT sector as it eliminates manual provision, maintain and scale compute resources. It provides the auto-scaling of resources in case of voluminous and variable workloads. In E-commerce, retail and healthcare industries this technology can be used for combining the traditional and big data workloads for advanced analytics and real-time decision support.
Geography – Segment Analysis
North America is holding the major market share of 48% in 2018, owing to the increased demand from app development market in this region and the significantly high adoption of serverless architecture for IoT applications. Moreover the increase in number of startups in the past five years and the investments poured into these firms is also contributing to the major market share. However, APAC is analyzed to grow at highest CAGR in serverless architecture market due to the rise in IT modernization observed in the telecommunications industries in countries such as China, India and Japan. The major factor such as the increase in the adoption of IoT based devices in countries such as Taiwan and South Korea are analyzed to boost the market during the forecast period 2020-2025.
Drivers – Serverless Architecture Market
- Cost effective due to the elimination of management of the servers
Server management is defined as monitoring the activities and apps running on a server and managing them accordingly. Server management incurs higher costs and is a complex task. However, in the serverless architecture functions and the third-party services are used that do not involve any kind of managed servers and impacting on the lower costs. Owing to various advantages and cost efficiency of the serverless architecture many vendors such as Amazon, Google and so on are investing in this technology and thereby elevating the serverless architecture market.
- Shift from DevOps to serverless computing
DevOps is used to bridge the gap between the developers and operators. However with the development of serverless architecture there has been a significant shift towards this technology by the major vendors as there is no need of any management thereby acting as the driving factor for serverless architecture market.
Challenges – Serverless Architecture Market
As the serverless architecture is majorly associated with third party APIs there are security and compliance issues such as vendor control, multi-tenancy problems and so on. Due to the absence of the management system, there are issues including system downtime, forced API upgrades and so on. In addition to this, security concerns and ambiguity arise when multiple customers share the same serverless architecture. Therefore all the above factors are set to impede the growth of the Serverless architecture market during the forecast period.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Serverless Architecture Market. In 2018, the market of server less has been consolidated by the top five players including Alibaba Group, Amazon Web Services, Google LLC, IBM Corporation, Microsoft Corporation, Rackspace Inc., Oracle Corp., Platform9 Systems, Inc., Tibco Software, Syncano among others.
- As of 2018, Serverless Inc., a serverless platform provider has received investments of $13M for the development platform that allows developers to build and deploy serverless applications across multiple providers.
- In April 2019, Google has announced a new serverless compute platform with buit in Cloud Run, a fully managed serverless execution environment for containerized apps.
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