The global function-as-a-service (FaaS) market is anticipated to grow at a CAGR of 22.7% from 2024 to 2032 and be worth USD 68.84 billion by 2032 from USD 13.4 billion in 2024. There is a surge in the number of users adopting FaaS owing to its easy deployment and execution ability.
FaaS, also known as serverless computing, has created a revolution in the field of cloud computing. Serverless architectures help in supporting distributed workloads. It has played a pivotal role in increasing IT agility by releasing developers from the taxing job of managing and provisioning servers. Furthermore, FaaS cancels the need to administer servers and pay for them when not in use hence, making it easier to leverage and scale complex automation areas. The critical feature of FaaS is that it is an event-driven computing service that executes functions and codes only when required.
The global FaaS market is expected to grow at a knockout CAGR of 22.7% as organizations are tending to shift from DevOps (development & operations) to serverless computations. The market is further driven by the optimization of microservices and multiple platform management. Companies around the globe are implementing FaaS as a means to run, manage, and deploy applications. FaaS can also be employed to optimize different applications, such as research, academic, mobile, and web. Even though there are issues pertaining to portability to the cloud, the availability of robust pre-existing cloud infrastructure and easy management are forecasted to make up for the market disincentive.
Simple Installation And Manageable
Matured Hosted Services
Switch To Serverless Computing From DevOps
Microservice-Based Deployment
Easy transferability of applications
Issues with third-party services
Architectural & operational complexity
Security and compliance concerns due to loss of control over infrastructure
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
22.7% |
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Segments Covered |
By User Type, Application, Service Type, Deployment Model, Organization Size, Industry Vertical, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
IBM Corporation, Microsoft, Google Inc., Amazon Web Services, Oracle, Capgemini, NTT DATA, Cloudflare, Rackspace, Alibaba, Stackpath, Rogue Wave Software, TIBCO Software Inc., Fiorana Software, Affiliates, and others. |
The developer-centric FaaS will tend to dominate the market share during the forecast period. This has become a primary choice among developers for coding purposes due to its benefits related to cost savings.
The web and mobile applications are projected to have the largest market share while the research and academic applications is foreseen to record an exceptional CAGR.
The automation and integration segment is expected to be the most crucial type over the estimated period. The rising need for rapid and efficient integration of associated microservices is primarily driving this segment's growth.
The public cloud deployment model is estimated to hold the largest market share in the forecast period. However, the hybrid deployment is anticipated to grow at the highest CAGR.
The large enterprises segment is foreseen to witness a considerable revenue share while the SMEs are growing with the highest CAGR.
The BFSI segment is determined to develop and record the lion’s share in the worldwide marketplace, whereas, the consumer goods and retail vertical will expand with the highest CAGR.
Asia-Pacific is expected to grow at the highest CAGR over the forecast period as the leading players in this area are focusing more on enhancing operational efficiency and meeting customer demands. This is generating an immense growth potential for the APAC FaaS market. The North American FaaS market is projected to develop in a remarkable due to the presence of leading market players in the vicinity.
IBM Corporation, Microsoft, Google Inc., Amazon Web Services, Oracle, Capgemini, NTT DATA, Cloudflare, Rackspace, Alibaba, Stackpath, Rogue Wave Software, TIBCO Software Inc., Fiorana Software and Affiliates are some of the major players in the global function as a service market. The global FaaS market is highly diversified with the presence of several established and start-up companies. Development strategies like product launches, new agreements, joint ventures, partnerships, acquisitions and others are mainly implemented by enterprises across the globe. The rising trend of customer-centric approach and adoption of novel technologies are likely to improve the performance of companies in this market in the coming days.
In April 2020, Amazon Web Services launched Fargate 1.4, which is a new version of its serverless container platform that supports shared Elastic File System storage and limits the usage of the Docker engine.
In March 2020, HPE developed and launched a powerful Virtual Desktop Infrastructure (VDI) product with reliable financing terms and pre-configured solutions for working from remote locations.
In March 2020, Alibaba introduced a new series of anti-coronavirus solutions that are available over cloud.
In March 2020, Google introduced a Rapid Response Virtual Agent program that can deploy Contact Center AI agents for managing online conversations or over the phone to aid during the COVID-19 pandemic.
By User Type
By Application
Web-based and Mobile Applications
Research and Academic Application
Others
Stream Processing
Media Processing
By Service Type
By Deployment Model
By Organization Size
By Industry Vertical
By Region
Frequently Asked Questions
The primary drivers include the rapid adoption of microservices architecture, increased need for operational scalability, and the cost-effectiveness of the pay-as-you-go model. Other factors include rising demand for automated DevOps practices, growing use of real-time data processing, and the global shift toward digital transformation across industries.
In the finance sector, FaaS is being used to build real-time data processing applications, automate trading systems, and enhance fraud detection with scalable, event-driven architectures. In healthcare, FaaS is enabling more efficient processing of large datasets (such as patient records), improving telemedicine platforms, and supporting the development of advanced analytics for diagnostics and research.
Key trends include the rise of edge computing and IoT integration with FaaS, enabling real-time, low-latency processing at the network edge. There’s also growing adoption of multi-cloud and hybrid cloud strategies, where FaaS plays a central role in orchestrating microservices across different cloud environments. In addition, AI and ML workloads are increasingly being deployed using serverless functions for tasks like data processing, model training, and inference.
The increasing adoption of DevOps and microservices architectures is accelerating the demand for FaaS. DevOps practices emphasize automation and continuous delivery, which align well with the serverless model, enabling faster development cycles and improved scalability. Similarly, microservices, which break down applications into smaller, independent services, benefit from the FaaS model's ability to scale individual functions on demand, reducing operational complexity and costs for businesses globally.
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