San Francisco, 26 September 2025, – The global function as a service market size is anticipated to reach USD 62.52 billion by 2030 and is expected to expand at a CAGR of 27.8% during the forecast period, according to a new report by Grand View Research, Inc. The market is being propelled by the widespread adoption of cloud computing across industries.

As organizations increasingly seek scalable and cost-effective solutions, FaaS emerges as a compelling alternative to traditional infrastructure-heavy models. Its serverless architecture allows businesses to deploy code on demand, paying only for the resources consumed during execution. This pay-as-you-go model is particularly attractive to startups and small enterprises, enabling them to innovate and scale operations without significant capital investment. Larger enterprises also benefit from this flexibility, especially when managing seasonal or fluctuating workloads.

Another significant driver is the shift from monolithic application structures to microservice architecture. This transition allows businesses to break down complex applications into smaller, independently deployable components. FaaS complements this approach by enabling developers to run individual functions as standalone units, enhancing modularity and maintainability. This architectural evolution accelerates development cycles and improves system reliability and responsiveness, particularly in industries such as e-commerce, banking, and entertainment where dynamic workloads are common.

Advancements in artificial intelligence and machine learning are further enhancing the appeal of FaaS. By integrating these technologies, organizations can streamline complex computational processes without the burden of infrastructure management. FaaS platforms support event-driven architectures, allowing functions to execute in response to real-time triggers, which is crucial for applications requiring immediate responsiveness. Additionally, the rise in remote work and the growing demand for business continuity solutions have underscored the need for agile, cloud-native services, positioning FaaS as a strategic enabler of digital transformation across sectors.

Order a free sample PDF of the Function as a Service Market Intelligence Study, published by Grand View Research.

Further key findings from the report suggest:

• By type, the developer-centric FaaS segment dominated the market and accounted for a revenue share of over 64.0% in 2024.
• By deployment, the public cloud segment accounted for the largest revenue share of nearly 53.0% in 2024, driven by the increasing adoption of cloud-native technologies, scalability, and cost efficiency.
• By enterprise size, the large enterprises segment accounted for the largest revenue share of over 56.0% in 2024.
• By end-use, the BFSI segment accounted for the largest revenue share of over 19.0% in 2024.
• North America function-as-a-service market held the largest share of over 37.0% in 2024, driven by the rapid adoption of cloud-native technologies.
• The function-as-a-service market in Asia Pacific is growing significantly at a CAGR of 31.2% from 2025 to 2030. 

List of Key Players in the Function as a Service Market

• Amazon Web Services, Inc.
• Google
• Oracle
• IBM
• Microsoft
• SAP SE
• Red Hat
• Dynatrace LLC.
• Infosys Limited
• Fiorano Software and Affiliates

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