HOME Top Market Reports Function-as-a-Service Market by User Type (Developer-Centric and Operator-Centric), Application (Web & Mobile Based, Research & Academic), Service Type, Deployment Model, Organization Size, Industry Vertical, and Region - Global Forecast to 2021

Function-as-a-Service Market by User Type (Developer-Centric and Operator-Centric), Application (Web & Mobile Based, Research & Academic), Service Type, Deployment Model, Organization Size, Industry Vertical, and Region - Global Forecast to 2021

By: marketsandmarkets.com
Publishing Date: February 2017
Report Code: TC 5008

 

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The Function-as-a-Service (FaaS) market size is estimated to grow from USD 1.88 Billion in 2016 to USD 7.72 Billion by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 32.7%.

The FaaS report aims at estimating the market size and future growth potential of the market across different segments such as user type, service type, application, deployment model, organization size, industry vertical, and region. The primary objectives of the report is to provide a detailed analysis of the major factors influencing the growth of this market (drivers, restraints, opportunities, industry-specific challenges, and burning issues) and analyze the opportunities in the market for stakeholders and details of a competitive landscape for market leaders.

The research methodology used to estimate and forecast the Function-as-a-Service market begins with capturing data on key vendor revenues through secondary literature such as annual reports, company websites, public databases, and MarketsandMarkets data repository. The vendor’s offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global FaaS market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments. The breakdown of profiles of primary participants is depicted in the below figure:

Function-as-a-Service Market

To know about the assumptions considered for the study, download the pdf brochure

The Function-as-a-Service market comprises number of intermediaries involved in the ecosystem of this market space. It starts with service providers such as IBM (U.S.), Google Inc. (U.S.), Microsoft Corporation (U.S.), Amazon Web Services (U.S.), SAP SE (Germany), Dynatrace LLC (U.S.), Infosys Ltd. (India), Rogue Wave Software Inc. (U.S.), TIBCO Software Inc. (U.S.), and Fiorano Software and Affiliates (U.S.).

Target Audience

  • Cloud brokers
  • Application development platform providers
  • Managed Service Providers (MSPs)
  • Cloud Service Providers (CSPs)
  • System integrators
  • Consultancy firms/advisory firms

“The research study answers several questions for the stakeholders, primarily which market segments to focus in during the next two to five years for prioritizing the efforts and investments”.

Scope of the Report

The research report categorizes the Function-as-a-Service market to forecast the revenues and analyze the trends in each of the following sub-markets:

By User Type

  • Developer-Centric FaaS
  • Operator-Centric FaaS

By Service Type

  • Automation and Integration Service
  • Microservice Monitoring and Management Service
  • API Management Service
  • Support and Maintenance
  • Training and Consulting
  • Others (Metering and Billing)

By Application

  • Web-based and Mobile Application
  • Research and Academic Application
  • Others (Stream Processing and Media Processing)

By Deployment Model

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Organization Size

  • Small and Medium Enterprise (SME)
  • Large enterprise

By Industry Vertical

  • BFSI
  • Telecommunication and ITES
  • Consumer Goods and  Retail
  • Healthcare and Life Sciences
  • Government and Public Sector
  • Manufacturing
  • Media and Entertainment
  • Others

By Region

  • North America
  • Europe
  • Middle East and Africa (MEA)
  • Asia-Pacific (APAC)
  • Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Vendor Comparison Analysis

  • Vendor comparison analysis provides information about major players that offer FaaS solutions and outlines the findings and analysis on how well each Function-as-a-Service market vendor performs within our criteria.

Geographic Analysis

  • Further breakdown of the European Function-as-a-Service market
  • Further breakdown of the APAC FaaS market
  • Further breakdown of the MEA FaaS market
  • Further breakdown of the Latin American FaaS market  

Company Information

  • Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered in the Report
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
    2.3 Market Breakdown and Data Triangulation
    2.4 Vendor Dive Matrix Methodology
    2.5 Research Assumptions

3 Executive Summary (Page No. - 28)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Market Opportunities in the Function-as-a-Service Market
    4.2 Market Share of Top Three Services and Regions, 2016
    4.3 Lifecycle Analysis, By Region
    4.4 Market Investment Scenario
    4.5 Function-as-a-Service Market: By Deployment Model, 2016–2021

5 Market Overview (Page No. - 35)
    5.1 Introduction
    5.2 Demand Analysis
    5.3 Market Evolution
    5.4 Market Segmentation
           5.4.1 By User Type
           5.4.2 By Service Type
           5.4.3 By Application
           5.4.4 By Deployment Model
           5.4.5 By Organization Size
           5.4.6 By Industry Vertical
           5.4.7 By Region
    5.5 Market Dynamics
           5.5.1 Drivers
                    5.5.1.1 Easy to Deploy, Manage, and Run
                    5.5.1.2 Maturity of Hosted Services
                    5.5.1.3 Shift From Devops to Serverless Computing
           5.5.2 Restraints
                    5.5.2.1 Application Portability on Various Cloud Environments
           5.5.3 Opportunities
                    5.5.3.1 Microservice-Based Deployment
           5.5.4 Challenges
                    5.5.4.1 Issues With Third-Party Services
                    5.5.4.2 Architectural Complexity
                    5.5.4.3 Operational Complexity

6 Industry Trends (Page No. - 44)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Ecosystem
    6.4 Strategic Benchmarking

7 Function-as-a-Service Market Analysis, By User Type (Page No. - 48)
    7.1 Introduction
    7.2 Operator-Centric Function-as-a-Service
    7.3 Developer-Centric Function-as-a-Service

8 Market Analysis, By Service Type (Page No. - 52)
    8.1 Introduction
    8.2 Automation and Integration Services
    8.3 Microservice Monitoring and Management Services
    8.4 API Management Services
    8.5 Support and Maintenance Services
    8.6 Training and Consulting Services
    8.7 Others

9 Function-as-a-Service Market Analysis, By Application (Page No. - 60)
    9.1 Introduction
    9.2 Web-Based and Mobile Application
    9.3 Research and Academic Application
    9.4 Others

10 Market Analysis, By Deployment Model (Page No. - 65)
     10.1 Introduction
     10.2 Public Cloud
     10.3 Private Cloud
     10.4 Hybrid Cloud

11 Function-as-a-Service Market Analysis, By Organization Size (Page No. - 69)
     11.1 Introduction
     11.2 Small and Medium Enterprises
     11.3 Large Enterprises

12 Market Analysis, By Industry Vertical (Page No. - 73)
     12.1 Introduction
     12.2 Banking, Financial Services, and Insurance (BFSI)
     12.3 Telecommunication and Ites
     12.4 Consumer Goods and Retail
     12.5 Healthcare and Life Sciences
     12.6 Government and Public Sector
     12.7 Manufacturing
     12.8 Media and Entertainment
     12.9 Others

13 Geographic Analysis (Page No. - 81)
     13.1 Introduction
     13.2 North America
     13.3 Europe
     13.4 Asia-Pacific
     13.5 Middle East and Africa
     13.6 Latin America

14 Competitive Landscape (Page No. - 99)
     14.1 Overview
     14.2 Function-as-a-Service Market: MnM Dive - Vendor Comparison
     14.3 Growth Strategies (2015–2017)
     14.4 Competitive Situations and Trends
           14.4.1 Partnerships, Agreements, and Collaborations
           14.4.2 New Product Launches
           14.4.3 Expansions
           14.4.4 Mergers and Acquisitions

15 Company Profiles (Page No. - 108)
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
     15.1 Introduction
     15.2 International Business Machines Corporation
     15.3 Google Inc.
     15.4 Microsoft Corporation
     15.5 Amazon Web Services Inc.
     15.6 SAP SE
     15.7 Dynatrace LLC
     15.8 Infosys Limited
     15.9 Rogue Wave Software, Inc.
     15.10 Tibco Software Inc.
     15.11 Fiorano Software and Affiliates
*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.
     15.12 Key Innovators
           15.12.1 Manjrasoft Pty Ltd
           15.12.2 Flowgear
           15.12.3 Sixsq Sΰrl

16 Appendix (Page No. - 132)
     16.1 Key Industry Insights
     16.2 Discussion Guide
     16.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     16.4 Introducing RT: Real-Time Market Intelligence
     16.5 Available Customizations
     16.6 Related Reports
     16.7 Author Details


List of Tables (67 Tables)

Table 1 Function-as-a-Service Market Size and Growth Rate, 2014–2021 (USD Billion, Y-O-Y %)
Table 2 Market Size, By User Type, 2014-2021 (USD Million)
Table 3 Operator-Centric: Market Size, By Region, 2014–2021 (USD Million)
Table 4 Developer-Centric: Market Size, By Region, 2014–2021 (USD Million)
Table 5 Function-as-a-Service Market Size, By Service Type, 2014–2021 (USD Million)
Table 6 Automation and Integration Services: Market Size, By Region, 2014–2021 (USD Million)
Table 7 Microservice Monitoring and Management Services: Market Size, By Region, 2014–2021 (USD Million)
Table 8 API Management Services: Market Size, By Region, 2014–2021 (USD Million)
Table 9 Support and Maintenance Services: Market Size, By Region, 2014–2021 (USD Million)
Table 10 Overview of Training and Consulting Services in the Function-as-a-Service Market
Table 11 Training and Consulting Services:Market Size, By Region, 2014–2021 (USD Million)
Table 12 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 13 Function-as-a-Service Market Size, By Application, 2014–2021 (USD Million)
Table 14 Web-Based and Mobile Application: Market Size, By Region, 2014–2021 (USD Million)
Table 15 Research and Academic Application: Market Size, By Region, 2014–2021 (USD Million)
Table 16 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 17 Function-as-a-Service Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 18 Public Cloud: Market Size, By Region, 2014–2021 (USD Million)
Table 19 Private Cloud: Market Size, By Region, 2014–2021 (USD Million)
Table 20 Hybrid Cloud: Market Size, By Region, 2014–2021 (USD Million)
Table 21 Function-as-a-Service Market Size, By Organization Size, 2014–2021 (USD Million)
Table 22 Small and Medium Enterprises: Market Size, By Region, 2014–2021 (USD Million)
Table 23 Large Enterprises: Market Size, By Region, 2014–2021 (USD Million)
Table 24 Function-as-a-Service Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 25 Banking, Financial Services, and Insurance: Market Size, By Region, 2014–2021 (USD Million)
Table 26 Telecommunication and Ites: Market Size, By Region, 2014–2021 (USD Million)
Table 27 Consumer Goods and Retail: Market Size, By Region, 2014–2021 (USD Million)
Table 28 Healthcare and Life Sciences: Market Size, By Region, 2014–2021 (USD Million)
Table 29 Government and Public Sector: Market Size, By Region, 2014–2021 (USD Million)
Table 30 Manufacturing: Market Size, By Region, 2014–2021 (USD Million)
Table 31 Media and Entertainment: Market Size, By Region, 2014–2021 (USD Million)
Table 32 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 33 Function-as-a-Service Market Size, By Region, 2014–2021 (USD Million)
Table 34 North America: Market Size, By User Type, 2014–2021 (USD Million)
Table 35 North America: Market Size, By Service Type, 2014–2021 (USD Million)
Table 36 North America: Market Size, By Application, 2014–2021 (USD Million)
Table 37 North America: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 38 North America: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 39 North America: Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 40 Europe: Function-as-a-Service Market Size, By User Type, 2014–2021 (USD Million)
Table 41 Europe: Market Size, By Service Type, 2014–2021 (USD Million)
Table 42 Europe: Market Size, By Application, 2014–2021 (USD Million)
Table 43 Europe: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 44 Europe: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 45 Europe: Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 46 Asia-Pacific: Function-as-a-Service Market Size, By User Type, 2014–2021 (USD Million)
Table 47 Asia-Pacific: Market Size, By Service Type, 2014–2021 (USD Million)
Table 48 Asia-Pacific: Market Size, By Application, 2014–2021 (USD Million)
Table 49 Asia-Pacific: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 50 Asia-Pacific: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 51 Asia-Pacific: Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 52 Middle East and Africa: Market Size, By User Type, 2014–2021 (USD Million)
Table 53 Middle East and Africa: Market Size, By Service Type, 2014–2021 (USD Million)
Table 54 Middle East and Africa: Market Size, By Application, 2014–2021 (USD Million)
Table 55 Middle East and Africa: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 56 Middle East and Africa: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 57 Middle East and Africa: Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 58 Latin America: Market Size, By User Type, 2014–2021 (USD Million)
Table 59 Latin America: Market Size, By Service Type, 2014–2021 (USD Million)
Table 60 Latin America: Market Size, By Application, 2014–2021 (USD Million)
Table 61 Latin America: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 62 Latin America: Market Size, By Organization Size, 2014–2021 (USD Million)
Table 63 Latin America: Function-as-a-Service Market Size, By Industry Vertical, 2014–2021 (USD Million)
Table 64 Partnerships, Agreements, and Collaborations, 2015–2017
Table 65 New Product Launches, 2015–2016
Table 66 Expansions, 2016
Table 67 Mergers and Acquisitions, 2015–2016


List of Figures (55 Figures)

Figure 1 Function-as-a-Service Market: Research Design
Figure 2 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 Vendor Dive Matrix: Criteria Weightage
Figure 7 Faasmarket: Assumptions
Figure 8 Market By User Type (2016 vs 2021)
Figure 9 Market By Organization Size (2016 vs 2021)
Figure 10 Market By Industry Vertical (2016 vs 2021)
Figure 11 North America is Expected to Hold the Largest Market Share in 2016
Figure 12 Easy Deployment of Function-as-a-Service is A Major Factor Boosting the Growth of the Market
Figure 13 Automation & Integration and North America to Have the Largest Market Shares in 2016
Figure 14 Regional Lifecycle Analysis: Asia-Pacific is Expected to Grow Exponentially During the Forecast Period (2016 – 2021)
Figure 15 Market Investment Scenario: Asia-Pacific Would Emerge as the Best Market for Investments in the Next Five Years
Figure 16 Public Deployment Model is Expected to Have the Largest Market Size in 2016
Figure 17 Function-as-a-Service Market: Evolution
Figure 18 Market Segmentation: By User Type
Figure 19 Market Segmentation: By Service Type
Figure 20 Market Segmentation: By Application
Figure 21 Market Segmentation: By Deployment Model
Figure 22 Market Segmentation: By Organization Size
Figure 23 Market Segmentation: By Industry Vertical
Figure 24 Market Segmentation: By Region
Figure 25 Market Drivers, Restraints, Opportunities, and Challenges
Figure 26 Market Value Chain Analysis
Figure 27 Function-as-a-Service Ecosystem
Figure 28 Function-as-a-Service Market: Strategic Benchmarking
Figure 29 Operator-Centric Function-as-a-Service is Expected to Have the Highest Growth Rate During the Forecast Period
Figure 30 Automation and Integration Services Segment is Expected to Have the Largest Market Size in 2016
Figure 31 Web-Based and Mobile Application is Expected to Hold the Largest Market Size in 2016
Figure 32 Public Cloud Deployment Model is Expected to Hold the Largest Market Size During the Forecast Period
Figure 33 Large Enterprises Segment is Expected to Hold the Largest Market Size in 2016
Figure 34 Banking, Financial Services, and Insurance Vertical Expected to Hold the Largest Market Size in the Function-as-a-Service Market in 2016
Figure 35 North America is Expected to Have the Largest Market Size in 2016
Figure 36 North America Market Snapshot
Figure 37 Asia-Pacific Market Snapshot
Figure 38 Product Offerings Comparison
Figure 39 Business Strategies Comparison
Figure 40 Companies Adopted New Product Launches as the Key Growth Strategy From 2015 to 2017
Figure 41 Product Portfolio Comparison of the Top Five Companies
Figure 42 Market Evaluation Framework
Figure 43 Battle for Market Share: New Product Launches is the Key Strategy Adopted By the Market Players in the Function-as-a-Service Market During 2015–2017
Figure 44 Geographic Revenue Mix of Top Market Players
Figure 45 International Business Machines Corporation: Company Snapshot
Figure 46 International Business Machines Corporation: SWOT Analysis
Figure 47 Google Inc.: Company Snapshot
Figure 48 Google Inc.: SWOT Analysis
Figure 49 Microsoft Corporation: Company Snapshot
Figure 50 Microsoft Corporation: SWOT Analysis
Figure 51 Amazon Web Services Inc.: Company Snapshot
Figure 52 Amazon Web Services Inc.: SWOT Analysis
Figure 53 SAP SE: Company Snapshot
Figure 54 SAP SE: SWOT Analysis
Figure 55 Infosys Limited: Company Snapshot

The Function-as-a-Service (FaaS) market is expected to grow from USD 1.88 Billion in 2016 to USD 7.72 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 32.7% during the forecast period. The major drivers of this market include agility & scalability, maturity of hosted services, and shift from DevOps to serverless computing.

The report provides detailed insights into the Function-as-a-Service market, which is segmented by user type, service type, application, deployment model, organization size, industry vertical, and region.

Among the user types, the developer-center FaaS segment is anticipated to hold the largest market share whereas operator-centric FaaS segment is anticipated to grow at the highest CAGR. FaaS provides the ability to easily deploy, manage, and run an application which is why this segment is growing rapidly.

The automation and integration service type is anticipated to hold the largest market share whereas the microservice monitoring and management service is anticipated to grow at the highest CAGR during the forecast period. Organizations continuously require these service types to help them in managing multiple platforms and optimizing the micro services which is expected to further drive the overall Function-as-a-Service market.

Among the applications, the web and mobile applications is expected to hold the largest market share whereas the research and academic applications is expected to grow at the highest CAGR. FaaS is easier to deploy and is being used by various applications to optimize their performance further driving the growth of this market.

The public cloud deployment model is estimated to hold the largest market size in the Function-as-a-Service market. However, the hybrid cloud deployment model is anticipated to grow at the highest CAGR. The main reason for high adoption of public cloud is its ease of access and faster deployment. Moreover, rising demand of scalability, reliability, and flexibility is anticipated to contribute to the overall growth of this segment.

The large enterprises segment is anticipated to hold the largest market share whereas the SMEs are moving towards the adoption of FaaS and growing rapidly at the highest CAGR during the forecast period. FaaS architecture is more economical and easier to scale further contributing to the adoption of these services among the SMEs.

The BFSI vertical is expected to hold the largest market and the consumer goods and retail vertical has the highest growing CAGR during the forecast period. The Function-as-a-Service market caters to various industry verticals and these services help these industries in the reduction of Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) furthering the growth of these services across the verticals.

North America is expected to have the largest market share in 2016, whereas the APAC region is expected to grow at the highest CAGR from 2016 to 2021 in the Function-as-a-Service market. High penetration rate into various industry verticals, increasing demand for business flexibility and agility, and a large number of FaaS providers located in the U.S are some of the major driving factors contributing to the growth of this market. APAC is expected to be growing at a higher rate in the near future owing to large investments being made in the cloud service providers in this region to make better customer experiences and streamline the business operations.

Function-as-a-Service Market

The need for easy deployment and management & availability of strong pre-existing cloud infrastructure are the driving factors in the market. However, issues with portability on various cloud environments are anticipated to hinder the growth of the market. The key vendors in the Function-as-a-Service market are IBM (U.S.), Google Inc.  (U.S.), Microsoft Corporation (U.S.), Amazon Web Services(U.S.), SAP SE (Germany), Dynatrace LLC (U.S.), Infosys Ltd. (India), Rogue Wave Software Inc. (U.S.), TIBCO Software Inc. (U.S.), and  Fiorano Software and Affiliates (U.S.).. These players have adopted various strategies, such as new product developments, acquisitions, and partnerships, to serve the FaaS market. Continuous technology innovation is an area of focus for these players in order to maintain its competitive position in the market and promote customer satisfaction.

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