The total global serverless architecture market size is expected to grow from USD 7,585 million in 2020 to USD 21,105 million by 2025, at a Compound Annual Growth Rate (CAGR) of 22.7% during the forecast period.
The major factors driving the growth of the serverless architecture market include the rising need of shifting from CAPEX to OPEX by removing the need to manage servers, thereby reducing the infrastructure cost.
Monitoring services segment to grow at the highest CAGR during the forecast period.
Monitoring is a crucial factor in maintaining stability and protection of operation.
A successful tracking program alerts customers of failures until they impact clients, helping easily correct them and retain a high degree of service for the consumers of the application.
In a serverless context, monitoring becomes significantly more challenging due to the disparate nature of a serverless application.
Performance management services provide quick troubleshoot and debugging and help in optimizing the performance of serverless functions.
Serverless architecture assists in breaking down of the application into micro components to perform discrete functions.
These functions therefore need to be effectively monitored and managed.
Monitoring services give a complete picture of the health of the serverless infrastructure by providing visibility across various cloud deployments and provide key network metrics.
These services further help reduce blind spots by detecting issues with containers, load balancers, disconnected hosts, and third-party providers.
Banking, financial services and insurance vertical to account for the largest market size in 2020
Banking, Financial Services and Insurance (BFSI) is one of the major verticals that have leveraged the benefits of serverless architecture.
The vertical collectively includes organizations that are into banking services, such as core banking, corporate, retail, investment, private, and cards; financial services, such as payment gateways, stockbroking, and mutual funds; and insurance services covering both life and general insurance policies.
The BFSI vertical is constantly evolving and is characterized by intense competition, worldwide expansion, consolidation, varied regulatory norms, and constantly changing consumer demands.
The serverless architecture supports real-time applications and provides a scalable and secure platform for providing real-time information as required by the BFSI vertical. Hence, the BFSI vertical offers significant growth opportunities for vendors in the serverless architecture market.
Financial institutions are increasingly using serverless architecture for the automation of routing operations and facilitating cost reduction.
Serverless architecture services enable the total view of customers and financial products and further drive customer retention and new customer acquisition.
They also enable the efficient integration of multiple delivery channels for banks, which, in turn, is expected to help drive further growth of these services in the BFSI vertical.
Small and medium-sized enterprises segment to record a higher growth rate during the forecast period
The adoption of serverless architecture among SMEs is estimated to grow at a higher CAGR during the forecast period. SMEs face the greater challenge of limited budgets as compared to large enterprises, and require better methods to resolve complexities and optimize the cost of their business processes.
There are serverless architecture solutions that can scale based on budget and resource requirements.
Serverless architecture solutions are cost-effective and improves the productivity. The main focus of SMEs is to increase the ROI, which is possible with serverless architecture solutions.
North America to account for the highest market share during the forecast period
North America is expected to be the leader in the adoption and implementation of serverless architecture, followed by Europe and APAC.
The presence of major serverless architecture providers in the region and increasing investments by North American companies in advanced technologies, would drive the market growth for North America.
Moreover, the rising technological sophistication, technology adoption, and increasing demand in the region are expected to drive the high growth of the asset performance management market in APAC.
The market players are also expanding their coverage in APAC.
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