Serverless Architecture Market Trends

Growth Drivers

• Growing Number of Video Streamers - About 84% of American households had access to a streaming video service as of December 2021. Streaming video apps frequently employ serverless architecture. In addition to delivering video material to end users, serverless functions may be utilized to handle video processing chores including encoding, transcoding, and resizing. Hence, with growing video streamers the serverless architecture market is estimated to grow.
• Rise in Use of Telemedicine Application - In 2022, telemedicine was used by about 36% of Americans over the age of 18.  For applications such as telemedicine that need to be scalable, compliant with healthcare laws, and handle data in real-time, healthcare businesses are utilizing serverless architecture.
• Surge in Online Education - More than 2 million students are pursuing their higher education entirely online, globally currently.  In the education sector, serverless architecture is being utilized to develop and deploy applications that need to be scalable and affordable, such student analytics systems and online learning platforms. Hence, it is anticipated to boost the growth of the serverless architecture market in the upcoming years.
• Growth in Online Shopping - Over the past few years, there has been an increase in the number of online shoppers across the globe. There are about 79 million more online buyers in 2023 than there were in 2022, a rise of approximately 2% annually. However, online shopping platforms frequently see increases in traffic during busy times including the holidays and sales occasions. Owing to serverless architecture, the platform could automatically scale up or down in response to these traffic surges, guaranteeing that it could manage the increased demand without the need for manual assistance.
• Upsurge in People Playing Games - Globally, there are around 2 billion active video game players. Around the world, about 3 billion gamers are projected to exist by 2024. Hence, the demand for serverless architecture is growing. Gaming firms are utilizing serverless architecture to design and implement gaming applications that need scalability and real-time data processing, such as multiplayer games and game analytics systems.

Challenges

• Security Concern Related to Serverless Architecture
• Vendor Lock-In - One potential serverless architecture market limitation is vendor lock-in, that occurs when a company gets dependent on a specific cloud service supplier's serverless platform. This may make it more difficult for the business to switch to a different supplier, which could pose an issue if the current provider increases rates or alters the services it offers.
• Unpredictable Cost of Serverless Architecture