Function As A Service (FaaS) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Deployment Model (Public, Private, Hybrid), By Enterprise Size (Small, Medium, Large), By End-User Industry (BFSI, Communication And Technology, Retail, Media And Entertainment, Others), And By Geography - Forecasts From 2021 To 2026

The Function as a Service (FaaS) market is evaluated at US$0.816 billion for the year 2019 and is projected to grow at a CAGR of 24.80% to reach a market size of US$3.847 billion by the year 2026.

The growth of the function as a service (FaaS) market is majorly attributed to the increasing focus of enterprises on agility of infrastructure and cost reduction. As these remain the key focal points for many enterprises, the popularity of serverless computing has been increasing significantly over the past few years.

Companies are shifting from legacy DevOps trend to serverless computing on account of significantly high ease of deployment and management associated with it besides the huge cost savings which come with it. This increasing shift towards serverless computing is driving with it the demand for Function as a Service and hence is anticipated to boost the growth of the market. Also, the companies are constantly evolving their services, which is anticipated to further increase the demand. For instance, recently, in February 2021, AWS announced Node.js version 14 support for its Function as a Service (FaaS), Lambda. However, challenges associated with the running of various applications in a cloud environment, owing to the incompatibility of such applications with various cloud environments, are expected to limit the growth of this market to some extent.

The recent outbreak of the novel coronavirus disease affected the Function as a Service (FaaS) market positively. The Covid-19 pandemic saw a surge in the Function as a Service (FaaS) market even after the economic downturn, and more companies shifted to cloud computing during the pandemic. Due to the pandemic, many companies shifted to operate as work-from-home and the burden of online data was increased. As cloud computing provided the flexibility, scalability, and other advantages needed by the companies, it saw a huge surge. Even after the companies resume work from offices, the growth of the Function as a Service (FaaS) market is anticipated to continue surging in the coming years.

The Function as a Service (FaaS) market has been classified on the basis of deployment model, enterprise size, end-user, and geography. By Deployment Model, the market has been classified on the basis of Public, Private, and Hybrid. On the basis of Enterprise Size, the segmentation has been done into Small and Medium Enterprises, and Large Enterprises. By End User, the categorization has been done into BFSI, IT and Telecommunication, Retail, Healthcare and Life Sciences, and others. Geographically, the market for Function as a Service (FaaS) has been distributed in North America, South America, Europe, the Middle East, and Africa, and the Asia Pacific.

Growing shift toward serverless computing

Serverless computing has been gaining popularity over the years owing to its advantages and companies have been shifting to serverless computing, which is anticipated to propel the growth of the Function as a Service (FaaS) market during the forecast period. Serverless computing mitigates the need for most operational concerns which is the major reason for its rising adoption around the world. It lets the development team focus solely on the front end and lets the back end operations be completely managed by the cloud computing providers, resulting in increased speed and efficiency. The serverless computing providers are addressing the limitations and constantly evolving the product which is further increasing the demand for serverless computing. Google announced in November 2020 that its Function-as-a-Service (FaaS) offering with cloud functions would support .NET Core 3.1. These developments by the companies are anticipated to rise the adoption rate. In serverless computing, the scaling of the infrastructure is done automatically for running the code. The user just needs to simply sort out a proper trigger for an event and the code runs at the same time. These advantages over other platforms are contributing to the rising popularity of serverless computing and are anticipated to surge the growth of the Function as a Service (FaaS) market during the forecast period.

Cost-effectiveness of Function as a Service (FaaS)

Along with providing the technological advancements, Function as a Service (FaaS) reduces the infrastructure costs which is one of the prominent drivers anticipated to people the growth of the Function as a Service (FaaS) market in the coming years. As all the resources are created on-demand, so when the service is not being utilized, the running computing expense will be zero. After the launch of its computing service, Function Compute, in 2017, Alibaba Cloud worked on its limitations, improved its features, and provided a prepaid model which was first by any company in the industry. Consequently, the total expense during stable workloads was brought down. Also, it lowered the resource price by 70%. There is no extra expense for scaling the application and the user pays only according to what the user uses. Also, because the requirement for management of server infrastructure is mitigated as it is done by the cloud service providers, the operational expenses are decreased. This reduction in expenses is one of the major factors driving the growth of the Function as a Service (FaaS) market and is anticipated to bolster the market growth during the assessment period.

North America to hold a prominent share in the market

Geographically, the North American region is anticipated to hold a significant market share in the Function as a Service (FaaS) market owing to the technological advancements, the existence of already well-developed could infrastructure and the presence of major FaaS providers in the region like Amazon Web Services, Microsoft Corporation, IBM Corporation, and various others. The Asia Pacific region is anticipated to witness substantial growth due to the large investments being made in the region.

Competitive Insights

Prominent/major key market players in the Function as a Service (FaaS) market are Amazon, Google, Inc., and IBM Corporation, among others. The players in the Function as a Service (FaaS) market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Function as a Service (FaaS) market.

Function as a Service (FaaS) Market Scope:

Segmentation

• By Deployment Model
  • Public
  • Private
  • Hybrid
• By Enterprise Size
  • Small and Medium Enterprises
  • Large Enterprises
• By End-User
  • BFSI
  • IT and Telecommunication
  • Retail
  • Healthcare and Life Sciences
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the function as a service (FaaS) market size by 2026?
A1. The function as a service (FaaS) market is projected to reach a market size of US$3.847 billion in 2026.

Q2. What is the size of the global function as a service (FaaS) market?
A2. Function As A Service (FaaS) Market was valued at US$0.816 billion in 2019.

Q3. What are the growth prospects for the function as a service market?
A3. The global function as a service (FaaS) market is projected to grow at a CAGR of 24.80% during the forecast period.

Q4. What factors are anticipated to drive the function as a service (FaaS) market growth?
A4. The growth of the function as a service (FaaS) market is majorly attributed to the increasing focus of enterprises towards agility of infrastructure and cost reduction.

Q5. Which region holds the maximum market share of the function as a service market?
A5. The North American region is anticipated to hold a significant market share in the function as a service market owing to the technological advancements, the existence of already well-developed could infrastructure and the presence of major FaaS providers in the region.