Function-as-a-Service market growing rapidly to $24 billion by 2026
A rise in the app development market, an increasing shift from DevOps to serverless computing, and a surge in the need to eliminate server management challenges drive the growth of the global function-as-a-service market. On the other hand, issues associated with third-party APIs impedes the growth to some extent. However, the emergence of function-as-a-service applications in the growing IoT landscape, and growth in the cloud the infrastructure service market are expected to create lucrative opportunities in the industry.
According to the report, based on user type, the developer-centric segment accounted for the highest share in 2018, contributing to nearly three-fifths of the total revenue of the global function-as-a-service market. This is attributed to a significant rise in usage of FaaS by developers, and increased utility in FaaS for simpler coding and developing as compared to other monolithic architectures.
On the other hand, the operator-centric segment will manifest the largest CAGR of 31.3% from 2019 to 2026. This is driven by operators shifting towards the function-as-a-service model to provide secure and reliable multi-cloud connectivity services. In addition, it aids the introduction of SDN to improve existing networks and achieve rapid service provisioning and network optimization.
Based on deployment model, the public cloud segment accounted for the maximum share in 2019, holding nearly three-fifths of the total share of the global function-as-a-service market. This is due to an increase in the adoption of function as a service in public clouds as it can improve the functionality as well as overall development process. On the other hand, the hybrid cloud segment is estimated to portray the highest CAGR of 34.8% during the forecast period. This is attributed to the increase in adoption of the hybrid cloud in IT service management models and growing demand for cost-effective, scalable and agile computing.
Geographically, North America held the largest share, holding nearly half of the global function-as-a-service market share in 2019, and will maintain its dominant contribution during the forecast period. The growth in demand for scalable and cost-effective computing, and availability of major market players in this region fuels the growth of this market. Contrarily, the region across Asia-Pacific is expected to grow at the highest CAGR of 34.1% during the forecast period. This is attributed to the rise in adoption of cloud technology in Asia-Pacific countries.
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