The global function as a service (FaaS) market has been witnessing a huge growth over the last few years. The factors responsible for the growing adoption of FaaS include agility and scalability features and growing demand for serverless architecture. The FaaS platform provides organizations with auto-scalable architecture and helps in reducing costs as the resources are adjusted according to the requirement of an application. It also eliminates the need to manage servers on cloud and replace them with pervasive use of functional computing resources. Therefore, the cost efficiency of the FaaS architecture is driving the growth of function as a service market. However, complex architecture and security concerns are restraining the market for function as a service on a global scale.
The global function as a service market is expected to reach approximately USD 11,932.95 million by 2023, growing at a CAGR of 34.32% from 2017 to 2023.
The market has been divided into various segments based on user type, deployment type, service, application, vertical, and region.
By user type, the market is segmented into developer-centric and operator-centric. The approach of function as a service platform is designed according to the user type so that the entire code can be executed as a single function. Function as a service is a developer-centric architecture that lets the cloud functions to build and deploy services at the level of a single function. It also provides a connective layer of logic that enables the developers to write code to connect and extend cloud services. Operator-centric approach features a specialized operator that processes data as would any other relational operator. In operator-based function as a service, the operator decides the need to increase or decrease the container count.
By deployment type, the market is segmented into public, private, and hybrid cloud. Function as a service indicates computing without a physical server i.e. via serverless architecture. The software developers take advantage of this to deploy an individual ’function’, action, or piece of business logic. Function as service is trending among developers, as many developers are adopting function as a service platform for developing new applications.
By services, the market is broadly classified into automation & integration, microservice monitoring & management services, API management services, support & maintenance services and training & consulting. Microservices are designed to speed up deployment cycles, foster innovation, and ownership, and improve maintainability and scalability of software applications which enable them to significantly contribute to the market growth.
The application segment is broadly classified into web & mobile based, research & academic and other applications. The web and mobile based applications are significantly contributing to the FaaS market. FaaS requires less management and provides application servers, storage, databases, content delivery, cache, search, and other application services that make it easier to build and run applications. FaaS is implemented at mobile backend processing which are set of HTTP APIs that are initialized from a mobile client using the WebHook URL.
The vertical segment in the function as a service market comprises manufacturing, BFSI, retail, IT & telecommunication, government, medical and others. The digital revolution today demands industrial manufacturers to adapt and develop leading edge ’operations and supplier collaboration’ ecosystems. This includes the need to develop smart products, roll out platforms for collaboration leading to reduced cost and enhance service capability due to which manufacturing services are leading the FaaS market.
The key players of function as a service market include IBM Corporation (US), Google Inc. (US), Microsoft Corporation (US), Amazon Web Services (US), SAP SE (Germany), Dynatrace LLC (US), Infosys Ltd. (India), Rogue Wave Software Inc. (US), TIBCO Software Inc. (US) and Fiorano Software & Affiliates (US).
Global Function as a service Market Analysis & Forecast, from 2017 to 2023
- To provide a detailed analysis of the market structure along with a forecast of the various segments and sub-segments of the function as a service market
- To provide insights into factors affecting the market growth
- To analyze the function as a service market based on Porter’s five force analysis
- To provide historical and forecast revenue of the market segments and sub-segments with respect to four main geographies and their countries? North America, Europe, Asia-Pacific, and the rest of the world
- To provide country-level analysis of the market with respect to the current market size and future perspective
- To provide country-level analysis of the market for a segment on the basis of user type, deployment type, services, application, verticals, and region
- To provide strategic profiling of key players in the market, comprehensively analyzing their core competencies, and drawing a competitive landscape for the market
- To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and developments in the function as a service market
- Electronic component manufacturers
- Research organizations
- Original equipment manufacturers
- System Integrators
- Network equipment vendors
- Chipset vendors
- Software/application providers
- User equipment manufacturers
- Network infrastructure integrators
- Government Organizations
- Research/Consultancy firms
- The global function as a service market is expected to reach USD 11,932.95 million by 2023
- By user type, developer-centric approach led the market, generating the highest revenue of USD 1,479.31 million in 2017 and is expected to grow at 33.3% CAGR. Whereas, operator-centric approach is expected to account for the leading market segment in the future, growing at 36.9% CAGR
- By deployment type, the public cloud led the market, generating the highest revenue of USD 1,257.85 million in 2017 and expected to grow at 33.1% CAGR. Whereas private cloud is expected to be the leading market in the future, growing at 36.4% CAGR
- By services, automation & integration was leading the market by generating the highest revenue of USD 692.9 million in 2017 and is expected to grow at 36.5% CAGR. Whereas microservice monitoring & management segment is expected to be the leading market in the future, growing with 39.2% CAGR
- By application, web & mobile based market segment was leading the market by generating the highest revenue of USD 960.8 million in 2017 and is expected to be the fastest growing market growing at a 36.8% CAGR.
- By vertical, manufacturing sector is expected to witness a high market growth in coming years. It is expected to grow at the highest CAGR of 37.1% and estimated to generate high market value of USD 3,097.6 million by 2023
- Geographically, North America has been projected to hold the largest market share in the global function as a service market followed by Europe. Whereas, Asia-Pacific is expected to be the fastest growing region for function as a service market with a CAGR of 37.70%. ?
Regional and Country Analysis of Function as a service Market Estimation and Forecast
Geographically, North America is dominating the function as a service market due to advanced network infrastructure and presence of function as a service (FaaS) providers with strong technical expertise. The US is a prominent market due to a mature market of cloud services and increasing use of FaaS to monitor financial market. Asia-Pacific is the fastest growing region, accounting for a 37.70% share of the overall market where major contribution is witnessed from countries like China and Japan, due to market presence of leading players such as AWS Lambda and Microsoft Azure, improving network infrastructure and increasing adoption of cloud computing services.
The report on the global function as a service market also covers the following country-level analysis:
- North America
o Rest of Europe
o Rest of Asia-Pacific
- Rest of the World
o Middle East