Serverless PaaS Market

Serverless PaaS Market Overview

The global Serverless PaaS Market size was valued at USD 12.53 billion in 2023 and is predicted to reach USD 51.58 billion by 2030 with a CAGR of 22.4% from 2024-2030. The serverless PaaS market also known as platform as a service market involves the utilization of cloud services that empower businesses to develop, deploy, and manage applications without the burden of infrastructure management. This approach allows companies to focus resources directly on enhancing application functionality and user experience, rather than on backend maintenance. Advantages include cost efficiency through usage-based billing, automatic scalability to handle varying workloads, reduced operational complexity, faster time-to-market for new features, and the ability to concentrate on core business goals. Thus, serverless PaaS enables enterprises to innovate rapidly and effectively by leveraging scalable cloud resources without the overhead of traditional infrastructure management.

Market Dynamics and Trends

Growing utilization of serverless cloud computing among the IT service providers to boost their product as a service solution among the various industry and businesses is driving the serverless PaaS market growth. For instance, in May 2023, HCL Technologies collaborated with Red Hat to launch SmartPaaS, a platform as a service (PaaS) offering which is designed to accelerate enterprise cloud adoption. This collaboration aims to help businesses in their digital transformation journey by providing a comprehensive and unified approach to continuous modernization. It is built in Red Hat's Enterprise Linux and OpenShift platform, which provides a comprehensive solution for hybrid multi-cloud environments.

Also, increasing adaption of cloud network for the digital uprise in multiple business sectors is boosting the global serverless PaaS industry growth. For instance, in February 2023, Google Cloud partnered with Starhub, a Singaporean multinational telecommunications association, to provide a cloud-native network for enterprises in Singapore. This collaboration is in line with StarHub's Cloud Infinity transformation initiative, which aims to enhance the digital capabilities of Singaporean businesses.

Moreover, rising demand for the implementation of subscription-based cloud platform service which provides seamless integration among the large and SMEs is driving the growth of serverless PaaS industry. For instance, in June 2022, Secure Kloud Technologies launched its Cloud Edge platform, a fully managed and highly automated cloud foundation platform designed to ease cloud adoption for enterprises. The platform is available as a subscription or freemium model, offering hyper-automation capabilities to help businesses deploy enterprise cloud and maximize their cloud potential.

However, the adoption of the pay-as-you-go pricing model in serverless platforms, determined by real-time resource consumption which introduces cost unpredictability is posing an obstacle to the overall growth of the serverless PaaS market.

On the contrary, integration of serverless computing with machine learning services that enables developers to easily incorporate AI capabilities into their applications without managing the underlying infrastructure. This integration includes the deployment and scalability of machine learning models, fostering innovation in AI-driven serverless applications. For instance, in February 2024, Fujitsu launched a new AI strategy that focuses on deepening human-AI collaboration that supports and augments productivity and creativity. This plans to offer data intelligence PaaS to its Uvance portfolio and consulting services for AI and related technologies for users in Japan and further expand to the global market.

Market Segmentation and Scope of Study

The serverless PaaS market report is divided on the basis of type, deployment, organization size, end-user and region. On the basis of type, the market is categorized into application PaaS (APaaS), integration PaaS (IPaaS), and database PaaS (DBPaaS). On the basis of deployment, the market is classified into public, private, and hybrid. On the basis of organization size, the market is segmented into large enterprises, and small and medium enterprises (SMEs). On the basis of end-users, the market is bifurcated into BFSI, consumer goods and retail, telecommunication, IT and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominating share of serverless PaaS industry trends during the forecast period. This is attributed to the growing innovations and development towards technological advancement for the use of serverless PaaS in programming field such as coding is driving the growth of the market.

For instance, in April 2023, Cosmonic launched its WebAssembly (Wasm) platform as a service (PaaS) into open beta to enable developers to write their code once and run it anywhere by acquiring the power and flexibility of WebAssembly. The platform emphasizes the WebAssembly component model, which allows developers to assemble their applications in different components and run that code anywhere.

Also, rising adoption of serverless PaaS among the healthcare institutes in the developed countries such as the U.S. and Canada for customers to access the use of cloud platforms, is driving the market growth.

For instance, in May 2023, InterSystems Corporation, a data technology provider launched its HealthShare for Health Connect Cloud in the AWS marketplace. This cloud platform as a service (PaaS) offering allows AWS customers to access a fully managed, enterprise-grade Interoperability service for developing innovative healthcare applications using standard-based interoperability.

On the other hand, Asia-Pacific is considered fastest growing region in the serverless PaaS industry owing to the growing implementation of digital technology including cloud enterprise resource planning (ERP) in their platform solution is further driving the market expansion.

As an example, Yonyou introduced their latest cloud enterprise resource planning (ERP) product, Yonyou BIP (Business Innovation Platform), in September 2022 to foster business innovation by connecting companies through the industrial internet. The platform's goal is to eliminate typical obstacles in the digital transformation process and assist companies in utilizing cloud computing's capabilities for their activities.

Furthermore, the leading companies are adopting various business strategies including acquisition which in turn is boosting the market growth. In February 2023, Tech Data Corp in Australia introduced Click-to-Run solutions to streamline cloud deployments in the Asia Pacific region. These solutions are designed to help channel partners quickly meet regional market demands for complex cloud environments.

Competitive Landscape

Various key players in the serverless PaaS industry includes Google LLC, IBM Corporation, Amazon Web Services, Inc, Microsoft Corporation, Oracle Corporation, Salesforce, Inc, Alibaba Group, Zoho Corporation Pvt. Ltd, VMware, Inc, Mendix Technology BV and others. These market players are opting various strategies such as service launch and collaboration to maintain their dominance in the global the market.

For instance, in May 2023, IBM Corporation announced the launch of IBM Hybrid Cloud Mesh, a platform as a service (PaaS) platform that aims to help enterprises regain control of their multi-cloud infrastructure. This solution provides organizations with a network that is automated, intelligent, and optimized for seamless operations, running over public cloud infrastructure.

For instance, in June 2023, Salesforce, Inc collaborated with Google Cloud to help business utilize data and artificial intelligence (AI) in customer relationship management (CRM). This partnership aims to empower organizations to leverage AI insights, personalize customer experiences, and generate more value and insights from their trusted data.

Key Benefits

• The report provides quantitative analysis and estimations of the serverless PaaS market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the serverless PaaS market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the serverless PaaS market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders

Serverless PaaS Market Key Segments

By Type

• Application PaaS (APaaS)

• Integration PaaS (IPaaS)

• Database PaaS (DBPaaS)

By Deployment

• Public

• Private

• Hybrid

By Organization Size

• Large Enterprises

• Small and Medium Enterprises

By End-User

• BFSI

• Consumer Goods and Retail

• Telecommunication

• IT

• Other End-User

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 12.53 Billion
Revenue Forecast in 2030	USD 51.58 Billion
Growth Rate	CAGR of 22.4% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Growing utilization of serverless cloud computing among the IT service providers thrives the market expansion. Increasing adaption of cloud network for the digital uprise in multiple business industry drives the growth of market. Rising demand for subscription-based cloud service among the large and SMEs is propelling the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Google LLC

• IBM Corporation

• Amazon Web Services, Inc

• Microsoft Corporation

• Oracle Corporation

• Salesforce, Inc

• Alibaba Group

• Zoho Corporation Pvt. Ltd

• VMware, Inc

• Mendix Technology BV