According to DataM Intelligence, the global Serverless Computing Market reached US$ 9.3 billion in 2023 and is expected to reach US$ 40.9 billion by 2031, growing at a CAGR of 20.6% during the forecast period 2024-2031.

Monitoring services dominate the market due to the need for visibility into distributed architectures and performance optimization in event-driven applications, while Asia-Pacific is the largest and fastest-growing region, thanks to rapid cloud adoption, tech startups, and demand for scalable solutions in e-commerce and IoT. The global serverless computing market is experiencing robust growth, driven by its ability to abstract infrastructure management, enabling developers to focus on code while benefiting from automatic scaling and pay-per-use pricing. Serverless computing, often delivered as Function-as-a-Service (FaaS), supports agile development for web/mobile apps and IoT, reducing time-to-market and operational overhead compared to traditional cloud models.

𝗚𝗲𝘁 𝗮 𝗦𝗮𝗺𝗽𝗹𝗲 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗥𝗲𝗽𝗼𝗿𝘁 (𝗨𝘀𝗲 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗘𝗺𝗮𝗶𝗹 𝗜𝗗 𝗳𝗼𝗿 𝗮 𝗤𝘂𝗶𝗰𝗸 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗲): 

https://www.datamintelligence.com/download-sample/serverless-computing-market?sindhuri

Market Segmentation

Based on the DataM Intelligence report, the serverless computing market is segmented as follows:

By Services:

Monitoring Services

API Management Services

Integration Services

Security

Support and Maintenance

Others

By Deployment:

Private Cloud

Public Cloud

By Enterprise Size:

Large Enterprises

Small and Medium Enterprises

By Application:

Web and Mobile Applications

IoT (Internet of Things)

By End-User:

BFSI

IT and Telecom

Retail

Healthcare

Manufacturing

Media and Entertainment

Others

Market Share

Regionally, Asia-Pacific holds the largest market share in the global serverless computing market, driven by widespread cloud migration, booming e-commerce, and government initiatives promoting digital infrastructure in countries like China and India. This region benefits from major providers like Alibaba Cloud expanding serverless offerings.

North America accounts for the second-largest share, with strong innovation from AWS, Azure, and Google Cloud, particularly in BFSI and IT sectors for secure, real-time processing.

The Asia-Pacific region is also expected to register the fastest growth, fueled by increasing adoption among SMEs for cost-efficient scaling and the rise of event-driven IoT applications.

Market Drivers

· Cost-effective scaling through granular resource allocation and pay-per-use billing, ideal for variable workloads and reducing over-provisioning costs compared to traditional servers.

· Rapid growth in cloud computing adoption, with providers like AWS, Azure, and Google Cloud enhancing serverless integrations for seamless scalability and developer productivity.

· Demand for agile development in web/mobile apps and IoT, where automatic event-triggered execution shortens deployment times and supports real-time processing.

· Educational initiatives by cloud providers highlighting benefits like streamlined operations and optimal resource utilization, encouraging broader enterprise uptake.

· Innovations in hybrid models combining serverless with other compute types, enabling flexible architectures for complex, high-traffic applications.

Market Challenges

· Security concerns in distributed environments, including data privacy risks, misconfigurations leading to unauthorized access, and vulnerabilities in interconnected APIs or third-party dependencies.

· Need for robust authentication, encryption, and network protections to safeguard sensitive data in multi-tenant setups, potentially increasing compliance burdens.

· Vendor lock-in risks and potential latency from cold starts in infrequent executions, requiring careful design for mission-critical workloads.

Key Players

The serverless computing market is competitive, with several major players actively innovating and expanding their product portfolios. Key market participants include Google LLC, Alibaba Cloud, CA Technologies, Microsoft Corporation, Oracle Corporation, Dynatrace, Fiorano Software Inc., Joyent Inc., Modubiz Ltd., and NTT Data Corporation.

Recent Developments (2024-2025):

In December 2024, Microsoft Azure unveiled serverless GPUs in Azure Container Apps, using NVIDIA A100 and T4 GPUs to enable scalable AI inferencing and ML tasks for data-intensive workloads.

In January 2024, Alibaba Cloud launched a serverless version of its AI platform, PAI-Elastic Algorithm Service (EAS), reducing inference costs by 50% and integrating vector engine technology for enhanced LLM access and Retrieval-Augmented Generation (RAG) in enterprise AI applications.

In April 2024, Cloudflare acquired Baseline, a cloud-native observability platform, to bolster monitoring and security in serverless environments, improving visibility for distributed applications.

In July 2024, Databricks announced general availability of serverless computing for notebooks, workflows, and Delta Live Tables on AWS and Azure, simplifying data engineering and AI model training.

In January 2025, Alibaba Cloud introduced Container Service (ACS) optimizations for serverless workload deployment, enhancing containerized app scalability and integration with edge computing.

Conclusion

The serverless computing market is poised for sustained expansion, driven by cost efficiencies, cloud-native innovations, and the shift to event-driven architectures. Asia-Pacific leads in scale and speed, while opportunities in AI-integrated serverless solutions and edge deployments will attract players targeting SMEs and IoT growth. As security tools mature and hybrid models evolve, serverless will empower faster innovation, helping organizations optimize resources and respond dynamically to global demands.

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