Serverless Computing Market Summary

The global serverless computing market size was estimated at USD 24.51 billion in 2024 and is projected to reach USD 52.13 billion by 2030, growing at a CAGR of 14.1% from 2025 to 2030. The serverless computing industry is poised for remarkable expansion, fueled by enterprises' digital transformation strategies, the growing penetration of cloud technologies, and the rising demand for agile, cost-efficient Function-as-a-Service (FaaS) solutions. Organizations across industries are increasingly recognizing the value of serverless models in enabling faster innovation cycles and reducing the operational complexities associated with managing infrastructure.

Serverless computing introduces a transformative approach to cost optimization by completely removing the need for businesses to maintain or manage physical and virtual server environments. In contrast to traditional IT systems that involve substantial capital expenditures on servers, storage equipment, and continuous upkeep, serverless FaaS platforms operate under a consumption-based, pay-as-you-go model. With this system, enterprises are billed solely for the computing resources used during execution, effectively minimizing operational and capital costs. This approach provides particular advantages for small and medium enterprises (SMEs), which often operate with constrained IT budgets and cannot afford heavy infrastructure investments while still aiming to maintain agility and scalability.

Key Market Trends & Insights

• North America dominated the global serverless computing industry, capturing the largest share of over 35% in 2024, primarily due to the strong presence of leading cloud service providers and early adoption of advanced cloud-based solutions.
• The serverless computing industry in Europe is witnessing significant expansion and is forecasted to grow at a CAGR of over 13.0% from 2025 to 2030, driven by increased investments in digital transformation initiatives and the adoption of cloud-native technologies across multiple industries.
• The Asia Pacific serverless computing industry is projected to register the highest growth, advancing at a CAGR of over 15.0% from 2025 to 2030. This rapid rise is largely attributed to the growing startup ecosystem, widespread adoption of cloud platforms, and supportive government initiatives encouraging digital infrastructure development.
• Based on service model, the function-as-a-service (FaaS) segment led the serverless computing industry and accounted for a substantial market share of over 61% in 2024, reflecting its increasing popularity as the preferred deployment model among businesses seeking flexibility and efficiency.
• In terms of enterprise size, the large enterprises segment captured the largest share of over 59% in 2024, highlighting the growing reliance of big corporations on serverless platforms to streamline workloads, scale rapidly, and optimize IT spending.

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Market Size & Forecast

• 2024 Market Size: USD 24.51 Billion
• 2030 Projected Market Size: USD 52.13 Billion
• CAGR (2025-2030): 14.1%
• North America: Largest market in 2024

Key Companies & Market Share Insights

The key market players in the global serverless computing industry include Amazon Web Services (AWS); Microsoft Corporation; Google, Inc.; IBM Corporation; Alibaba Cloud; Oracle Corporation; Red Hat, Inc.; Cloudflare, Inc.; Tencent Cloud; and SAP SE. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In April 2024, Cloudflare, Inc. completed the acquisition of Baselime, a cloud-native observability platform. This acquisition enhances Cloudflare's developer platform, offering advanced serverless observability tools. These tools help developers gain insights into the performance, errors, and behavior of their serverless end uses, aiding in debugging, optimization, and cost management. By integrating Baselime’s capabilities, Cloudflare aims to provide comprehensive observability for serverless end uses, making it easier for developers to troubleshoot and optimize performance in real-time, thereby strengthening its position as a leading platform for modern cloud computing.  
• In December 2024, Microsoft introduced Neon Serverless Postgres as an Azure native integration in preview. This integration enables developers to leverage Neon’s serverless PostgreSQL database solution within Azure's ecosystem. Neon offers instant provisioning, automatic scaling, and seamless developer workflows, ideal for AI, SaaS, and real-time end uses. The integration supports Single Sign-On (SSO) and unified billing, simplifying database management and enhancing developer experience, making it easier for businesses to scale end uses efficiently while minimizing infrastructure complexities.
• In November 2023, Amazon Web Services (AWS) introduced three new serverless innovations to enhance data analysis and management at any scale. These innovations focus on simplifying data ingestion, processing, and visualization, offering automated scaling and increased flexibility for large-scale operations. By expanding serverless capabilities, AWS aims to streamline complex workflows, making data management more efficient and accessible for customers across industries. This approach supports businesses in handling vast amounts of data without the need for manual infrastructure management.

Key Players

• Amazon Web Services (AWS)
• Microsoft Corporation
• Google, Inc.
• IBM Corporation
• Alibaba Cloud
• Oracle Corporation
• Red Hat, Inc.
• Cloudflare, Inc.
• Tencent Cloud
• SAP SE

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Conclusion

The global serverless computing market is undergoing rapid transformation, reshaping how enterprises approach cloud adoption and IT operations. With its ability to reduce infrastructure management, optimize costs, and support scalability, serverless computing is increasingly becoming a strategic choice for organizations worldwide. The rising demand for FaaS, strong regional growth trends, and increasing reliance by large enterprises and SMEs alike underscore its expanding role in the digital economy. As cloud-native innovations continue to mature, serverless computing will remain at the forefront of enabling efficiency, agility, and competitiveness, positioning itself as a cornerstone of the next generation of enterprise IT ecosystems.