Serverless Architecture Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on the component, the market is segmented into function-as-a-service (FaaS), event-driven architecture, managed services, and others.

Trends in the Component:

• There is an increasing trend towards utilization of function-as-a-service for developers to avoid high cost.
• Increasing utilization of event-driven architecture by triggering events from various sources such as database changes, requests, scheduled timers, or file uploads.

Function-as-a-service (FaaS) segment accounted for the largest revenue in the total serverless architecture market share in 2024.

• Function-as-a-service is a cloud-computing service that enables developers to run code in response to events, without having to maintain their own infrastructure.
• Further, function-as-a-service allows a cost effective approach for developers to pay per function invocation.
• For instance, in May 2023, Gcore launched its function-as-a-service platform which enables developer to run code without VMs (Virtual Machines) with various features including automated scaling, DDoS protection, tier III–IV data centers worldwide, and others.
• Thus, the rising advancements in function-as-a-service segment are driving the serverless architecture market trends.

Managed services segment is anticipated to register a substantial CAGR growth during the forecast period.

• Serverless architectures heavily rely on managed services provided by cloud providers, such as storage, databases, authentication, and messaging services.
• Further, these services reduce operational overhead by eliminating infrastructure management, allowing developers to focus on business logic.
• For instance, in October 2024, SATO Corporation launched SATO ID AUTH, a SSO (Single Sign-On) service that allows label printer users to access SATO's cloud applications.
• Thus, the rising adoption of managed services are expected to drive the serverless architecture market trends during the forecast period.

By Deployment Mode:

Based on the deployment mode, the market is segmented into private cloud, public cloud, and hybrid cloud.

Trends in the Deployment Mode:

• There is an increasing trend towards utilization of public cloud for storing large scale data.
• Rising adoption of private cloud due to various benefits including improved security, enhanced customization, improved data governance, and others.

Public cloud accounted for the largest revenue share of 60.44% in the total serverless architecture market share in 2024, and it is anticipated to register substantial CAGR growth during the forecast period.

• Public cloud is a type of computing where resources are offered by a third-party provider through the internet and shared by individuals and organizations for purchase and use.
• Further, public cloud offers its services by selling the services on demand or free to customers, based on usage of storage, CPU cycles, or bandwidth they consume.
• For instance, October 2024, SoftwareOne collaborated with Amazon Web Services and launched a SoftwareOne Cloud Competency Centre with support in AWS cloud services and local expertise, including generative AI tool, Amazon Bedrock.
• Thus, the rising advancements in public cloud infrastructure is further driving the market.

By Enterprise Size:

Based on the enterprise size, the market is segmented into large enterprises and small and medium enterprises (SMEs).

Trends in the Enterprise Size:

• There is an increasing utilization of serverless solutions by large enterprises due to automatic scalability and flexibility.
• Increasing utilization of cloud technologies by small and medium enterprises for swiftly developing, test, and deploy applications without managing servers.

Large enterprises segment accounted for the largest revenue in the total market in 2024

• Large enterprises leverage serverless architecture to automatically scale applications based on demand while reducing infrastructure costs by eliminating the need for servers all the time.
• Further, it helps large organizations to accelerate software development cycles by abstracting server management.
• For instance, Oracle offers serverless solutions in its product offerings. It offers various benefits including automatic scalability, flexible configuration, pay-as-you-go pricing, and others.
• Thus, the rising adoption of serverless solutions by large enterprises are further driving the market.

Small and medium enterprises (SMEs) segment is anticipated to register fastest CAGR growth during the forecast period.

• Small and medium-sized enterprises (SMEs) are increasingly adopting cloud based solutions due to various benefits such as cost-efficiency and scalability.
• Moreover, serverless computing enables SMEs to quickly develop, test, and deploy applications without managing servers, allowing them to scale operations efficiently as their business expands.
• For instance, in October 2023, CloudCamp4SMEs  launched a cloud training program exclusively designed for small and medium-sized enterprises (SMEs) on vital digital proficiencies related to cloud solutions and technologies.
• Thus, the rising developments associated with cloud solutions and technologies for small & medium sized enterprises are projected to drive the serverless architecture market during the forecast period.

By Application:

Based on the application, the market is segmented into web and mobile backends, data processing pipelines, IoT, chatbots and voice assistants, scheduled tasks and automation, and others.

Trends in the Application:

• There is an increasing utilization of serverless functions in IoT applications for processing data from devices and sensors.
• Rising adoption of serverless functions for triggering scheduled events and performing automated tasks.

Data processing pipelines accounted for the largest revenue in the total market in 2024.

• Data processing pipelines in serverless architecture refers to collection, cleaning, and transformation of large volumes of data in real-time.
• Further, serverless computing allows users to build data processing pipelines that transform, ingest, and store data.
• Moreover, a serverless architecture processes log files, analyses the files for patterns, and stores the results in a data warehouse.
• For instance, in February 2025, SAP SE launched SAP Business Data Cloud in collaboration with SAP and Databricks for data engineering, machine learning and AI workloads.
• Thus, the rising advancements in data processing pipelines are further driving the serverless architecture market size.

Chatbots and voice assistants segment is anticipated to register a substantial CAGR growth during the forecast period.

• Chatbots and voice assistants are well-suited for development using serverless architectures due to benefits such as pay-as-you-go pricing model.
• Further, serverless functions can integrate and retrieve information from various APIs, natural language processing (NLP) services, and handle user interactions.
•  For instance, in September 2024, Snap partnered with Google Cloud to power generative AI experiences to AI-powered chatbot.
• Thus, the rising adoption of chatbots and voice assistants are projected to boost the market during the forecast period.

By End-User:

Based on the end-user, the market is segmented into IT & telecom, BFSI, retail, healthcare, and others.

Trends in the End-User:

• There is an increasing utilization of serverless computing by banks for providing banking services through internet.
• Rising adoption of tools such as Microsoft Cloud by retail for connecting customers, and data.

IT & telecom accounted for the largest revenue share in the total market in 2024.

• In IT & telecom, cloud services facilitate the flow of user data from front-end clients through the internet to the cloud provider.
• Further, serverless computing offers various benefits such as disaster recovery, data backup, and cost effective, simplified business operations for IT companies.
• For instance, in December 2024, Amazon Web Services (AWS), a public cloud company, announced investment of USD 5 Billion to build new data centers.
• Thus, the rising investments in IT & telecom are further driving the serverless architecture market size.

Healthcare segment is anticipated to register a substantial CAGR growth during the forecast period.

• In healthcare sector, cloud computing offers automated backend operations, easier medical record-sharing, and also supports the maintenance of telehealth applications.
• Further, healthcare facilities can use chatbots and voice assistants in mobile applications for enhanced patient support and guidance.
• For instance, in June 2024, Cognizant launched healthcare LLM (Large Language Model) solutions on Google Cloud's generative AI (genAI) technology.
• Thus, the rising adoption of cloud technologies by healthcare facilities are projected to boost the market during the forecast period.