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Serverless Architecture Market Trends

Report ID: GMI3796
Published Date: Aug 2024
Report Format: PDF

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Serverless Architecture Market Trends

The serverless architecture industry is witnessing robust growth, driven by widespread adoption across various industries. Key sectors, including finance, healthcare, e-commerce, and entertainment, are harnessing serverless computing to boost scalability, cut operational costs, and expedite application time-to-market.

For instance, in November 2023, AWS launched key products including the AI assistant Amazon Q, Graviton4 processor chip, new cybersecurity solutions for Amazon Bedrock, and advancements in serverless architecture. These innovations highlight AWS's push to lead in generative AI and cloud computing markets. This advantage empowers them to rival larger organizations, emphasizing innovation and customer experience. With rising awareness of serverless benefits, its adoption across diverse industry verticals are poised for rapid acceleration.

Emerging technologies such artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) are increasingly integrating with serverless architecture. This integration empowers businesses to develop more advanced and responsive applications. For example, serverless platforms are now instrumental in creating AI-driven chatbots, solutions for real-time data analytics, and IoT applications that demand minimal latency and dynamic scaling.

For instance, in July 2024, Microsoft, in collaboration with Meta, announced Llama 3.1 405B as a serverless API endpoint via Azure AI’s Models-as-a-Service, emphasizing AI in serverless architecture. This includes fine-tuned Llama 3.1 models (8B, 70B) and managed computer deployments for advanced synthetic data generation and distillation, enhancing AI-driven applications across various industries with scalable, cost-efficient serverless solutions.

Authors: Suraj Gujar, Rutvij Kshirsagar

Frequently Asked Questions (FAQ) :

The market size of serverless architecture reached USD 12.08 billion in 2023 and is set to register over 20% CAGR from 2024 to 2032, due to enabling companies to cut operational costs by removing the necessity to manage and provision servers.

Serverless architecture industry from the public cloud segment is expected to reach over USD 28.6 billion by 2032, owing to its extensive scalability, cost-efficiency, and ease of access.

North America market held over 32% share in 2023, attributed to the presence of major cloud service providers and technological innovators such as AWS, Google Cloud, and Microsoft Azure in the region.

Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), IBM Cloud, and Oracle Cloud, are some of the major serverless architecture companies worldwide.