Technavio has announced its latest market research report on the global serverless architecture market during 2019-2023.The global serverless architecture market size is poised to reach USD 9.17 billion by 2023, according to a new report by Technavio, progressing at a CAGR of more than 26% during the forecast period. The reduction in operating cost is projected to augment the market over the forecast period.
Serverless architecture works as a pay-per-use model in which developers are only charged for the server space they use and only when they use. The increase in cost pressure due to uncertain business and economic conditions has compelled several companies to adopt flexible IT solutions, according to Technavio. This is driving the adoption of serverless architecture as it has the ability to reduce the operating costs. Serverless architecture would be capable of providing an unlimited number of testing and staging servers on a much lower cost than other methods.
The North-American serverless architecture market accounted for more than 41% of the overall revenue in 2018, owing to the presence of major vendors and the availability of cloud solution-based technical expertise in the region.
The increasing demand for vast server space and speed is expected to increase the number of serverless architecure vendors in the market and further adoption of serverless architecture. It will provide new opportunities for vendors to expand their service offerings, which will intensify the market competition, according to the Technavio report.
Technavio report: Serverless architecture –adoption by verticals
- The BFSI (Banking, financial services and insurance) market segment – represented close to 25% of the overall serverless architecture market volume in 2018 owing to the growing demand for scale and resilience from financial institutions, which increases the requirement for servers.
- The Healthcare market segment – is expected to register a CAGR of close to 28% in terms of revenue from 2019 to 2023. Healthcare vendors can use serverless application repository to enable a new marketplace of serverless applications that can be consumed by clients to solve real-life problems.
- The Telecommunication market segment – commanded over 15% of serverless architecture volume share in 2018, owing to the rising Internet and mobile penetration, along with the high demand for high-speed Internet and mobile services.
- The Government market segment – is likely to register a CAGR of more than 5% in terms of revenue from 2019 to 2023 on account of the increasing adoption of cloud technologies by governments.
Serverless architecture collects data from various sources and multiple events, such as cloud storage, and IoT devices. These sources can potentially increase the threat from web applications and introduce complexities. There is a high probability of misconfiguring critical configuration settings, which can lead to damage and loss of critical data. Thus, the security concerns associated with serverless architecture may hamper the growth of the market, according to the report.
Technavio has segmented the global serverless architecture market based on the application (passenger cars, and commercial vehicles) and region (APAC, Europe, North America, South America, and MEA).
This 126-page research report by Technavio, “Serverless Architecture Market Analysis Report by end-user (BFSI, government, telecommunication, healthcare, retail, media and entertainment, and others) and segment forecasts for 2019 to 2023,” can be found here.