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Serverless Computing Market: By Service Type, Backend-as-a-Service ), By Deployment Model, By End User, Healthcare & Life Sciences, Retail & eCommerce, Media & Entertainment, Manufacturing, Government & Public Sector, Others) and Region 2020-2031
Serverless Computing Market was valued at US$ 22.3 billion in 2024 and is projected to reach US$ 60.0 billion by 2031 at a CAGR of 15.2% from 2025-2031. The market refers to a cloud computing model where cloud providers automatically manage the infrastructure, allowing developers to focus solely on writing and deploying code. In this model, resources are dynamically allocated, and billing is based on actual usage rather than pre-purchased capacity. Serverless computing eliminates the need for server management tasks such as provisioning, scaling, and maintenance, making it a cost-effective and scalable solution for modern application development.
The market has been witnessing rapid growth, driven by the increasing demand for agile development, reduced operational complexity, and cost optimization. With enterprises shifting towards microservices architectures and DevOps practices, serverless platforms are enabling faster deployment cycles and better scalability. Key sectors such as BFSI, retail, healthcare, and IT & telecom are embracing serverless frameworks for real-time data processing, API management, and backend services. The rise in adoption of cloud-native technologies and the growing developer ecosystem around FaaS (Function-as-a-Service) are expected to further propel market expansion over the coming years.
Based on the service type
Based on service type, Function-as-a-Service (FaaS) is anticipated to lead the serverless computing market during the forecast period. The growing demand for agile application development and event-driven architecture is a key driver for FaaS adoption. Organizations are increasingly shifting towards microservices, where FaaS enables execution of discrete functions without the need to manage servers. It allows automatic scaling, efficient resource utilization, and a pay-as-you-go pricing model, which significantly reduces operational costs. With its ability to support dynamic workloads, FaaS is widely used in real-time data processing, automation, and backend services, making it the most dominant segment in the serverless ecosystem.
Based on the deployment model
Based on the deployment model, the Public Cloud segment is expected to dominate the serverless computing market. This leadership is driven by its cost-effectiveness, scalability, and ease of deployment, making it highly attractive for businesses of all sizes, particularly startups and SMEs. Public cloud platforms like AWS, Microsoft Azure, and Google Cloud offer robust Function-as-a-Service (FaaS) and Backend-as-a-Service (BaaS) solutions with global infrastructure and developer-friendly tools. Organizations benefit from reduced infrastructure management and a flexible pay-per-use model, which aligns well with agile development needs. The increasing adoption of SaaS applications and the rapid shift toward digital transformation further fuel the growth of public cloud serverless services.
Based on the end user
Based on end-user segmentation, the IT & Telecom sector is anticipated to lead the serverless computing market. This dominance is driven by the sector's continuous need for high-performance, scalable, and cost-efficient infrastructure to support dynamic workloads and digital services. Serverless computing enables IT and telecom companies to deploy microservices-based applications quickly, automate backend processes, and manage high volumes of real-time data with minimal latency. The rising adoption of 5G, edge computing, and cloud-native technologies further strengthens the need for serverless architecture in this sector. Additionally, as telecom operators modernize their networks and services, serverless platforms offer flexibility and agility, ensuring faster time-to-market and optimized resource usage.
Study Period
2025-2031Base Year
2024CAGR
15.2%Largest Market
North-AmericaFastest Growing Market
Asia-Pacific
Increased demand for faster application deployment and the elimination of infrastructure management overhead is expected to drive the market. As businesses move toward digital transformation, the need for speed and agility in software development has become critical. Serverless architectures allow developers to focus purely on writing code while the cloud service provider handles scaling, patching, and server maintenance. This not only reduces time-to-market but also significantly lowers the burden on IT operations teams. Organizations, especially startups and SMEs, benefit from serverless models as they can rapidly build and iterate products without investing heavily in backend infrastructure. Additionally, serverless computing supports event-driven workflows, making it ideal for use cases such as real-time file processing, chatbot engines, and IoT data pipelines. These benefits are collectively accelerating the adoption of serverless architectures across various industry verticals.
Despite its advantages, one significant restraining factor in the serverless computing market is vendor lock-in and the limited control developers have over the underlying infrastructure. Organizations adopting serverless models often become highly dependent on specific cloud providers, such as AWS Lambda, Google Cloud Functions, or Azure Functions. This dependency makes it challenging to migrate applications across platforms due to differences in runtime environments, APIs, and orchestration models.
Furthermore, since the infrastructure is abstracted, developers have little visibility or control over how resources are provisioned or managed, which can lead to unpredictable performance, debugging difficulties, and security concerns. In highly regulated industries, such as finance and healthcare, this lack of control may pose compliance and governance risks. The fear of losing flexibility and control over mission-critical applications often makes enterprises cautious about full-scale serverless adoption, despite its potential for cost and time efficiency.
A promising opportunity for the serverless computing market lies in its integration with edge computing and real-time data processing applications. As organizations increasingly deploy connected devices and IoT systems, the demand for low-latency and location-aware computing is rising. Serverless architectures, when extended to the edge, can enable on-demand execution of functions close to the data source, reducing response times and conserving bandwidth. This combination is particularly beneficial in use cases like autonomous vehicles, smart manufacturing, and remote healthcare monitoring, where real-time responsiveness is critical.
Additionally, edge-based serverless computing can help enterprises minimize cloud egress costs and meet local compliance requirements by processing sensitive data near the point of origin. Cloud providers are already investing in edge-native serverless platforms, such as AWS Lambda@Edge and Azure IoT Edge, to address this growing need. This convergence of serverless and edge technologies is poised to unlock significant value across distributed and latency-sensitive applications.
An emerging trend in the serverless computing market is the rising adoption of microservices architecture and DevOps methodologies. Organizations are increasingly decomposing monolithic applications into smaller, independent services to improve scalability, maintainability, and deployment speed. Serverless computing aligns seamlessly with microservices, allowing each function or service to be independently deployed and scaled based on demand. This modular approach enables faster iteration cycles, easier fault isolation, and more granular control over application components.
Simultaneously, DevOps teams are leveraging serverless platforms to automate CI/CD pipelines, implement infrastructure as code, and streamline deployment workflows. The flexibility and event-driven nature of serverless functions empower development teams to innovate rapidly without being hindered by infrastructure constraints. As microservices and DevOps become standard practices in modern software engineering, serverless computing is expected to serve as a foundational pillar, driving adoption across a wide range of industries from fintech to e-commerce and beyond.
Report Benchmarks |
Details |
Report Study Period |
2025-2031 |
Market Size in 2024 |
US$ 22.3 billion |
Market Size in 2031 |
US$ 60.0 billion |
Market CAGR |
15.2% |
By Service Type |
|
By Deployment Model |
|
By End User |
|
By Region |
|
PBI Analysts anticipate that the serverless computing market is experiencing rapid growth, driven by the rising demand for scalable, cost-effective, and agile cloud solutions. Businesses across various industries are adopting serverless models to accelerate development cycles, reduce infrastructure overhead, and support real-time, event-driven applications. Function-as-a-Service (FaaS) is emerging as the leading service type, while public cloud dominates deployment due to its flexibility and affordability. North America holds the largest market share, but Asia-Pacific is the fastest-growing region. With increasing reliance on microservices, DevOps, and IoT, the serverless computing market is poised for continued expansion in both enterprise and startup ecosystems.
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The serverless computing market was valued at US$ 22.3 billion in 2024 and is projected to reach US$ 60.0 billion by 2031 at a CAGR of 15.2% from 2025-2031.
Serverless computing is a cloud computing model where the cloud provider automatically manages the infrastructure, allowing developers to deploy code without provisioning or managing servers.
It offers benefits like reduced infrastructure management, automatic scaling, faster deployment, and a pay-as-you-use pricing model, making it highly cost-efficient and agile.
Function-as-a-Service (FaaS) is the leading segment due to its flexibility, scalability, and suitability for microservices and real-time applications.
Key challenges include vendor lock-in, limited control over infrastructure, debugging complexities, and compliance concerns in regulated industries.
1.Executive Summary |
2.Global Serverless Computing Market Introduction |
2.1.Global Serverless Computing Market - Taxonomy |
2.2.Global Serverless Computing Market - Definitions |
2.2.1.Service Type |
2.2.2.Deployment Model |
2.2.3.End-User |
2.2.4.Region |
3.Global Serverless Computing Market Dynamics |
3.1. Drivers |
3.2. Restraints |
3.3. Opportunities/Unmet Needs of the Market |
3.4. Trends |
3.5. Product Landscape |
3.6. New Product Launches |
3.7. Impact of COVID 19 on Market |
4.Global Serverless Computing Market Analysis, 2020 - 2024 and Forecast 2025 - 2031 |
4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) |
4.3. Market Opportunity Analysis |
5.Global Serverless Computing Market By Service Type, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
5.1. Function-as-a-Service (FaaS) |
5.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.1.3. Market Opportunity Analysis |
5.2. Backend-as-a-Service (BaaS) |
5.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.2.3. Market Opportunity Analysis |
6.Global Serverless Computing Market By Deployment Model, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
6.1. Public Cloud |
6.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.1.3. Market Opportunity Analysis |
6.2. Private Cloud |
6.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.2.3. Market Opportunity Analysis |
6.3. Hybrid Cloud |
6.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.3.3. Market Opportunity Analysis |
7.Global Serverless Computing Market By End-User, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
7.1. IT & Telecom |
7.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.1.3. Market Opportunity Analysis |
7.2. BFSI (Banking, Financial Services, and Insurance) |
7.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.2.3. Market Opportunity Analysis |
7.3. Healthcare & Life Sciences |
7.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.3.3. Market Opportunity Analysis |
7.4. Retail & eCommerce |
7.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.4.3. Market Opportunity Analysis |
7.5. Media & Entertainment |
7.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.5.3. Market Opportunity Analysis |
7.6. Manufacturing |
7.6.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.6.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.6.3. Market Opportunity Analysis |
7.7. Government & Public Sector |
7.7.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.7.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.7.3. Market Opportunity Analysis |
7.8. Others |
7.8.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.8.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.8.3. Market Opportunity Analysis |
8.Global Serverless Computing Market By Region, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
8.1. North America |
8.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.1.3. Market Opportunity Analysis |
8.2. Europe |
8.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.2.3. Market Opportunity Analysis |
8.3. Asia Pacific (APAC) |
8.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.3.3. Market Opportunity Analysis |
8.4. Middle East and Africa (MEA) |
8.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.4.3. Market Opportunity Analysis |
8.5. Latin America |
8.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
8.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
8.5.3. Market Opportunity Analysis |
9.North America Serverless Computing Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
9.1. Service Type Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.1.1.Function-as-a-Service (FaaS) |
9.1.2.Backend-as-a-Service (BaaS) |
9.2. Deployment Model Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.2.1.Public Cloud |
9.2.2.Private Cloud |
9.2.3.Hybrid Cloud |
9.3. End-User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.3.1.IT & Telecom |
9.3.2.BFSI (Banking, Financial Services, and Insurance) |
9.3.3.Healthcare & Life Sciences |
9.3.4.Retail & eCommerce |
9.3.5.Media & Entertainment |
9.3.6.Manufacturing |
9.3.7.Government & Public Sector |
9.3.8.Others |
9.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.4.1.United States of America (USA) |
9.4.2.Canada |
10.Europe Serverless Computing Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
10.1. Service Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.1.1.Function-as-a-Service (FaaS) |
10.1.2.Backend-as-a-Service (BaaS) |
10.2. Deployment Model Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.2.1.Public Cloud |
10.2.2.Private Cloud |
10.2.3.Hybrid Cloud |
10.3. End-User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.3.1.IT & Telecom |
10.3.2.BFSI (Banking, Financial Services, and Insurance) |
10.3.3.Healthcare & Life Sciences |
10.3.4.Retail & eCommerce |
10.3.5.Media & Entertainment |
10.3.6.Manufacturing |
10.3.7.Government & Public Sector |
10.3.8.Others |
10.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.4.1.Germany |
10.4.2.France |
10.4.3.Italy |
10.4.4.United Kingdom (UK) |
10.4.5.Spain |
11.Asia Pacific (APAC) Serverless Computing Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
11.1. Service Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.1.1.Function-as-a-Service (FaaS) |
11.1.2.Backend-as-a-Service (BaaS) |
11.2. Deployment Model Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.2.1.Public Cloud |
11.2.2.Private Cloud |
11.2.3.Hybrid Cloud |
11.3. End-User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.3.1.IT & Telecom |
11.3.2.BFSI (Banking, Financial Services, and Insurance) |
11.3.3.Healthcare & Life Sciences |
11.3.4.Retail & eCommerce |
11.3.5.Media & Entertainment |
11.3.6.Manufacturing |
11.3.7.Government & Public Sector |
11.3.8.Others |
11.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.4.1.China |
11.4.2.India |
11.4.3.Australia and New Zealand (ANZ) |
11.4.4.Japan |
11.4.5.Rest of APAC |
12.Middle East and Africa (MEA) Serverless Computing Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
12.1. Service Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.1.1.Function-as-a-Service (FaaS) |
12.1.2.Backend-as-a-Service (BaaS) |
12.2. Deployment Model Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.2.1.Public Cloud |
12.2.2.Private Cloud |
12.2.3.Hybrid Cloud |
12.3. End-User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.3.1.IT & Telecom |
12.3.2.BFSI (Banking, Financial Services, and Insurance) |
12.3.3.Healthcare & Life Sciences |
12.3.4.Retail & eCommerce |
12.3.5.Media & Entertainment |
12.3.6.Manufacturing |
12.3.7.Government & Public Sector |
12.3.8.Others |
12.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.4.1.GCC Countries |
12.4.2.South Africa |
12.4.3.Rest of MEA |
13.Latin America Serverless Computing Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
13.1. Service Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.1.1.Function-as-a-Service (FaaS) |
13.1.2.Backend-as-a-Service (BaaS) |
13.2. Deployment Model Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.2.1.Public Cloud |
13.2.2.Private Cloud |
13.2.3.Hybrid Cloud |
13.3. End-User Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.3.1.IT & Telecom |
13.3.2.BFSI (Banking, Financial Services, and Insurance) |
13.3.3.Healthcare & Life Sciences |
13.3.4.Retail & eCommerce |
13.3.5.Media & Entertainment |
13.3.6.Manufacturing |
13.3.7.Government & Public Sector |
13.3.8.Others |
13.4. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
13.4.1.Brazil |
13.4.2.Mexico |
13.4.3.Rest of LA |
14. Competition Landscape |
14.1. Market Player Profiles (Introduction, Brand/Product Sales, Financial Analysis, Product Offerings, Key Developments, Collaborations, M & A, Strategies, and SWOT Analysis) |
14.2.1.Amazon Web Services (AWS) |
14.2.2.Microsoft Corporation (Azure) |
14.2.3.Google LLC (Google Cloud Platform) |
14.2.4.IBM Corporation |
14.2.5.Oracle Corporation |
14.2.6.Alibaba Cloud |
14.2.7.Tencent Cloud |
14.2.8.Cisco Systems, Inc. |
14.2.9.SAP SE |
14.2.10.Cloudflare, Inc. |
15. Research Methodology |
16. Appendix and Abbreviations |
Key Market Players