According to a new report, published by KBV research, The Global Function as a Service Market size is expected to reach $72.52 billion by 2031, rising at a market growth of 25.6% CAGR during the forecast period.
The Developer-Centric Segment is leading the Global Function as a Service Market by Type in 2023; thereby, achieving a market value of $43.98 billion by 2031. Developers favor FaaS as it enables them to concentrate on coding without the concerns associated with server administration. This results in expedited deployment, enhanced scalability, and diminished operational overhead. The increasing use of DevOps and CI/CD (Continuous Integration/Continuous Deployment) pipelines further boosts the demand for developer-centric FaaS, enabling seamless application development and updates.
The Small & Medium-sized Enterprises segment experiencing a CAGR of 26.1% during (2024 - 2031). Small and medium-sized businesses, particularly in e-commerce, SaaS, fintech, and startups, are embracing FaaS due to its pay-as-you-go pricing model, scalability, and ease of deployment. Unlike traditional cloud computing models that require upfront investment in infrastructure, FaaS enables SMEs to run applications with minimal operational overhead, eliminating the need for dedicated IT teams. Furthermore, the rise of digital transformation, remote work, and online services has accelerated FaaS adoption among SMEs, allowing them to compete with larger players by leveraging cloud-native architectures and automation-driven processes.
The Public Cloud segment is generating the maximum revenue in the Global Function as a Service Market by Deployment in 2023; thereby, achieving a market value of $36.28 billion by 2031. Public cloud platforms, such as AWS Lambda, Google Cloud Functions, and Microsoft Azure Functions, provide businesses with on-demand computing resources, automated scaling, and global reach, making them the preferred choice for startups, SMEs, and enterprises looking for flexibility without infrastructure management burdens. The rising adoption of cloud-native applications, serverless architectures, and event-driven computing has further propelled the growth of public cloud-based FaaS solutions, especially in industries like e-commerce, media streaming, and financial services.
The Retail & Consumer Goods segment is capturing a CAGR of 24.7% during (2024 - 2031). The segment is expanding primarily due to the rise of e-commerce, digital marketing automation, and AI-driven customer engagement. Retailers are adopting serverless computing to enhance online shopping experiences, manage inventory, and personalized recommendations using AI-driven insights. Additionally, FaaS enables seamless integration with payment processing, chatbots, and real-time analytics, allowing retailers to scale dynamically during peak sales events like Black Friday and Cyber Monday without investing in dedicated server infrastructure.
Full Report: https://www.kbvresearch.com/function-as-a-service-market/
The North America region dominated the Global Function as a Service Market by Region in 2023; thereby, achieving a market value of $25.79 billion by 2031. The Europe market is expected to witness a CAGR of 25.2% during (2024 - 2031). Additionally, The Asia Pacific market is expected to witness a CAGR of 26.2% during (2024 - 2031).
By Type
By Enterprise Size
By Deployment
By End-use
Unique Offerings 
