Function as a Service Market

Global Function as a Service Market Size (2024 to 2029)

The global function-as-a-service (FaaS) market is anticipated to grow at a CAGR of 22.7% from 2024 to 2029 and be worth USD 37.26 billion by 2029 from USD 13.4 billion in 2024. There is a surge in a number of users adopting FaaS, owing to its easy deployment and execution ability.

FaaS, which is 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 and hence, making it easier to leverage and scale complex automation areas. The key 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, like that of 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.

Global Function as a Service Market Drivers:

• Simple Installation And Manageable
• Matured Hosted Services
• Switch To Serverless Computing From DevOps
• Microservice-Based Deployment

Global Function as a Service Market Restraints:

• Easy transferability of applications
• Issues with third-party services
• Architectural & operational complexity
• Security and compliance concern due to loss of control over infrastructure

Impact of COVID-19 on the global function as a service market:

The outbreak of the COVID-19 pandemic hurts different sectors. The end-user verticals that use cloud applications like manufacturing, consumer goods, retail, etc., are completely shut down in almost all parts of the world. On the flip side, several companies are now turning towards cloud automation and increasing their presence on the cloud to combat the COVID-19 impact on overall productivity and efficiency. With the increasing number of companies implementing work-from-home policy, cloud technology is likely to burgeon in the coming years in traditional business functions, such as IT, telecommunication, BFSI, government, and so on.

REPORT COVERAGE:

This research report on the global function as a service market has been segmented and sub-segmented based on user type, application, service type, deployment model, organization size, vertical and region.

Global Function as a Service Market - By User Type:

• Developer-centric FaaS
• Operator-centric FaaS

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.

Global Function as a Service Market - By Application:

• Web-based and Mobile Applications
• Research and Academic Application
• Others
  • Stream Processing
  • Media Processing

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.

Global Function as a Service Market - By Service Type:

• Automation and Integration Service
• Microservice Monitoring and Management Service
• API Management Service
• Support & Maintenance
• Training & Consulting
• Metering and Billing

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.

Global Function as a Service Market - By Deployment Model:

• Public Cloud
• Private Cloud
• Hybrid Cloud

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.

Global Function as a Service Market - By Organization Size:

• Small and Medium Enterprise (SME)
• Large enterprise

The large enterprises segment is foreseen to witness a considerable revenue share while the SMEs are growing with the highest CAGR.

Global Function as a Service Market - By Industry Vertical:

• BFSI (Banking, Financial Services and Insurance)
• Telecommunication and ITES
• Consumer goods and retail
• Healthcare and life sciences
• Government and Public sector
• Manufacturing
• Media and entertainment
• Others

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.

Global Function as a Service Market - By Region:

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa

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.

KEY MARKET PLAYERS:

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.

RECENT HAPPENINGS IN THE MARKET:

• 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 May 2019, Microsoft upgraded its existing Event Grid Platform to enable users to create higher-powered and event-driven applications that do not require any server.
• 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.