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Functions as a Service (FaaS) Market - By User Type ( Developer-Centric FaaS, Operator-Centric FaaS) By Service Type ( Automation and Integration Service, Microservice Monitoring and Management Service, API Management Service, Support and Maintenance, Training and Consulting, Others (Metering and Billing)) By Application ( Web-based and Mobile Application, Research and Academic Application, Others - Growth, Future Prospects, And Competitive Landscape, 2016 - 2028

Market Introduction of Functions as a Service (FaaS) Market

Function as a service (FaaS) is a group of cloud computing services that gives users a platform to create, use, and manage application functions without having to deal with the hassle of setting up and maintaining the infrastructure generally involved in creating and launching an app. This concept is frequently used when creating microservices applications and is one method of creating a "serverless" architecture. FaaS use cases are linked to "on-demand" capabilities, which enables the supporting infrastructure to be shut down and not be charged when not in use.

What is the Market Size of Functions as a Service (FaaS) in terms of value?

The global Functions as a Service (FaaS) Market is projected to increase at a significant CAGR of 29.50% in the coming years. In 2021, the global Functions as a Service (FaaS) market was valued at USD 6829.4 million and projected to reach USD 32210.774 million by 2028. Functions as a Service (FaaS) will increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 25381.37 million during the forecast period between 2022 and 2028.

functions-as-a-service-market

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Which is the key Deployment Model segment in the Functions as a Service (FaaS) Market?

The hybrid cloud segment registered a revenue share of over 35.0% of the total Functions as a Service (FaaS) in 2021. Due to their increased usage compared to other clouds, hybrid clouds are predicted to fuel the market expansion. When a firm needs to free up local resources for more sensitive data or applications or when it has to handle short-term spikes in demand, hybrid cloud deployment can help.

Hybrid cloud deployment allows businesses to scale out their on-premises infrastructure to the public cloud to handle any overflow without providing third-party data centers access to all of their data in response to the growth in fluctuating demand for computing and processing. End-users' worries about the security of their data and past reluctance to adopt this solution have been satisfactorily addressed by these developments. Retailers are constantly looking to implement hybrid cloud technology. In its most recent enterprise cloud index survey, Nutanix, one of the leading providers of enterprise cloud computing solutions, found that 87.5% of the merchants that responded chose hybrid cloud as their optimal I.T. operating model.

Interesting Facts about Functions as a Service (FaaS) Industry

  • The top countries in the Functions as a Service (FaaS) market are the U.S., Mexico, Canada, China, Germany, and France.
  • The market is expanding due to the increased need for solutions to server management problems, the explosive growth of the app development industry, and the transition from DevOps to serverless computing.
  • The obstacles related to third-party APIs, such as lock-in issues, security and compliance issues, and other architectural complications, are the restraints of the market.
  • In terms of volume and value, the North American region dominated the global Functions as a Service (FaaS) market in 2021. It is anticipated that this dominance will persist over the forecast period.
  • Healthcare and Life Sciences to witness high growth during the forecast period.

Who are the Top players/companies in the Functions as a Service (FaaS) market in terms of value?

The key players in the global Functions as a Service (FaaS) market in terms of value include Microsoft Corporation (U.S.), IBM (U.S.), Google Inc. (U.S.), Infosys Ltd. (India), TIBCO Software Inc. (U.S.), Amazon Web Services(U.S.), Rogue Wave Software Inc. (U.S.), SAP SE (Germany), Dynatrace LLC (U.S.), and Fiorano Software and Affiliates (U.S.). To improve their production of Functions as a Service (FaaS) and increase their competitive market share on a global scale, these main players are focusing on new product advancements as well as technological innovation. A few regional and national firms are also making significant investments to diversify their product offerings and boost sales. For Instance, in June 2020, Microsoft Corporation and NTT DATA Corporation recently announced the expansion of their partnership with a focus on quickening enterprise customers' digital transformations and making Microsoft Azure their go-to cloud platform to boost productivity at work.

Who are the Top 10 Countries in the Functions as a Service (FaaS) Market?

The major countries in the global Functions as a Service (FaaS) market are China, the U.S., India, Canada, the U.K., Mexico, South Korea, Germany, France, and Italy. China is the major Functions as a Service (FaaS) market, with a major volume share in the global market in 2021. Moreover, the market in developed countries is majorly driven by the increased number of infrastructure development projects and urbanization. Besides, the Functions as a Service (FaaS) market in developing countries in South Asia and South East Asian countries is projected to witness major growth in the coming years.

Which is the key Industry Vertical used in the Functions as a Service (FaaS) Market?

The Healthcare and Life Sciences category dominated the Functions as a Service (FaaS) market in 2021. The demand for solutions that can quickly develop and implement business process linkages and healthcare data transformations drives the healthcare and life sciences industry. Medical professionals, patients, employees, administrators, and the general public make up the complex organizations that comprise healthcare and life sciences facilities. They need effective data management systems for various tasks, including managing patients, hospitals' resources, doctor-patient relationships, medical supplies, and keeping patient health records data. The industry has changed to a paradigm that aids in coordinating and supporting workflows for medical data. The cloud assists the healthcare sector in storing vast amounts of data, makes it easier for doctors and hospitals to share information and enhances data tracking and analytic functions. This aids in research, prices, physician or student performance, and treatment. The healthcare and life sciences vertical is currently more concerned with value generation than volume. Organizations in the public and private healthcare sectors are under pressure to boost population health while cutting expenses.

Additionally, enterprises might need to share healthcare data, which increases the demand for a reliable platform. To share information and collaborate in an organized way to accommodate growth and improve agility, organizations can integrate their systems with other healthcare networks using FaaS service types. This helps healthcare providers further optimize and boost the effectiveness of their patients' services.

What are the Major Driving Factors for Functions as a Service (FaaS) Market?

To assess the market's general attractiveness, trends in the function-as-a-service market are detailed. The top influencing variables highlight the FaaS market opportunity throughout the forecast period. The market is expanding due to the increased need for solutions to server management problems, the explosive growth of the app development industry, and the transition from DevOps to serverless computing. Even though DevOps is one of the most popular methods for fusing development and operations, its application is occasionally seen as challenging. The growing shift to serverless computing is a result of these DevOps-related concerns. The market is expected to develop due to the growing trend toward serverless computing, fueling demand for function as a service.

What are the Major Restraints for Functions as a Service (FaaS) Market?

The main hindrance to expanding the global Functions as a Service (FaaS) industry is the difficulties associated with third-party APIs, such as lock-in problems, security and compliance problems, and other architectural difficulties. Issues relating to the incompatibility of using various apps in a cloud environment are hindering the industry.

Which Region Dominated the World Functions as a Service (FaaS) Market?

In 2021, North America dominated the global Functions as a Service (FaaS) market and accounted for a major market revenue share. The largest market share belongs to North America. The region is among the leading innovators and pioneers in the adoption of new technologies like 5G, autonomous driving, IoT, Blockchain, gaming, and artificial intelligence. This trend will probably fuel the adoption of function as a service in the area. Additionally, the region is home to FaaS vendors, contributing to the market's expansion. IBM Corporation, Microsoft Corporation, Oracle Corporation, Amazon Web Services, etc., are a few of them. As the number of data sources expands, new business insights are growing and helping the market being researched in the U.S. to grow. FaaS may significantly increase computing performance and the outcomes that directly affect company performance. The region's market demand is also rising due to the increased demand for company agility and flexibility.

Increasing demand for corporate flexibility and agility, a high penetration rate into different industry verticals, and the prevalence of FaaS providers in the U.S. are some of the key drivers fueling the expansion of this market. Due to significant investments in cloud service providers in this area to improve customer experiences and optimize business processes, APAC is anticipated to develop faster shortly.

Segmentation of Global Functions as a Service (FaaS) Market-

Global Functions as a Service (FaaS) Market – By User Type

  • Developer-Centric FaaS
  • Operator-Centric FaaS

Global Functions as a Service (FaaS) Market – By Service Type

  • Automation and Integration Service
  • Microservice Monitoring and Management Service
  • API Management Service
  • Support and Maintenance
  • Training and Consulting
  • Others (Metering and Billing)

Global Functions as a Service (FaaS) Market – By Application

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

Global Functions as a Service (FaaS) Market – By Deployment Model

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Global Functions as a Service (FaaS) Market – By Organization Size

  • Small and Medium Enterprise (SME)
  • Large enterprise

Global Functions as a Service (FaaS) Market – By Industry Vertical

  • BFSI
  • Telecommunication and ITES
  • Consumer Goods and Retail
  • Healthcare and Life Sciences
  • Government and Public Sector
  • Manufacturing
  • Media and Entertainment
  • Others

Global Functions as a Service (FaaS) Market – By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

Frequently asked questions about the global Functions as a Service (FaaS) market

Due to the epidemic, several businesses switched to work-from-home policies, which increased the load on online data. Cloud computing had a big uptick as a result of giving businesses the flexibility, scalability, and other benefits them required. In the upcoming years, it is projected that the Function as a Service (FaaS) market will continue to develop rapidly even when businesses start operating from offices again.

North America accounted for the highest share in the global Functions as a Service (FaaS) market.

The market is expanding as a result of the increased need for solutions to server management problems, the explosive growth of the app development industry, and the transition from DevOps to serverless computing are the major factors driving the growth of the market.

Hybrid Cloud had a major share in 2021 with around 35% of the market revenue share.

The Healthcare and Life Sciences segment had a major share in the global market in 2021.

Functions as a Service (FaaS) Market Scope

Report Attribute Details
Market Value in 2021 USD 6829.4 million
Market Value in 2028 USD 32210.774 million
CAGR 29.50%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Choose License Type
Budget Buying
Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
Trusted By
Godaddy
Published Date:  Aug 2022
Category:  Information and Communications Technology
Report ID:   60615
Report Format:   PDF
Pages:   189
Rating:    4.9 (75)
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