Serverless Security Market to Reach USD 25.3 Billion by 2032 | SNS Insider

The serverless security market is growing rapidly, driven by cloud adoption, compliance mandates, and rising cyber threats across industries.

AUSTIN, TX, UNITED STATES, February 14, 2025 /EINPresswire.com/ -- The Serverless Security Market was valued at USD 2.3 billion in 2023 and is projected to reach USD 25.3 billion by 2032, growing at a CAGR of 30.6% from 2024 to 2032. The expanding cybersecurity threat landscape, rising adoption across industries, and seamless integration with cloud platforms are driving demand for advanced security solutions. Additionally, the focus on compliance and governance, along with innovations in security technologies, is shaping market growth as organizations enhance their defenses in serverless computing environments.

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Keyplayers:
StackHawk (StackHawk API Security, StackHawk Web Application Security)
Microsoft (Defender for Cloud, Defender for APIs)
McAfee (McAfee Cloud Security, McAfee Data Loss Prevention)
Palo Alto Networks (Prisma Cloud, Prisma Cloud Compute)
Trend Micro (Cloud One, Deep Security)
Fortinet (FortiWeb, FortiGate Cloud)
Check Point Software (CloudGuard, ThreatCloud)
Cloudflare (Cloudflare Workers, Cloudflare Security)
Zscaler (Zscaler Cloud Security, Zscaler Private Access)
IBM (IBM Cloud Security, IBM QRadar)

By Service Model, Function as a Service (FaaS) Leads Serverless Security Market Growth with Strong Public Sector and Industry Adoption
Function as a Service (FaaS) dominated the serverless security market in 2023, accounting for 68% of global revenue. Its ability to run and scale code without provisioning servers drives its widespread use. The Canadian government reported that 85% of public sector cloud deployments integrated FaaS for cost-effectiveness, while the U.K. found 60% of gov-backed startups benefited from its agility. Further expanding adoption in healthcare and e-commerce fuels growth, as part of global efforts to simplify cloud-native application development through serverless solutions.

By Security Type, Application Security Dominates Serverless Security Market Amid Rising Threats and Compliance Mandates
Application security led the serverless security market in 2023, accounting for 30% of global revenue. Its growth is fueled by the requirement to defend serverless applications against injection attacks, cross-site scripting, and unauthorized access. The U.K. NCSC stated that 45% of serverless security issues arise from application vulnerabilities, while U.S. CISA focused on tighter security frameworks for API risks. With the increase in strict global compliance mandates, enterprises are now embracing application security solutions to defend serverless architectures against the latest cyber threats.

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By End Use, IT & Telecommunications Sector Leads Serverless Security Market Growth with Rising Adoption and Cloud Migration
IT & telecommunication dominated the serverless security market in 2023 with a 22% global revenue share. It was the dominant sector that made this shift toward serverless computing to enhance the scalability and efficiency of the same. According to a report from the U.S. FCC, over half of telecom operators moved to serverless models to strengthen the infrastructure's resilience and decrease latency. Meanwhile, 40% of IT firms adopted serverless frameworks under India’s MeitY Digital India initiative. With rising data traffic and cloud migration, demand for robust serverless security solutions continues to surge.

By Enterprise Size, Large Enterprises Dominate Serverless Security Market as Cyber Threats Drive Increased Investments
In 2023, large enterprises led the serverless security market, capturing 62% of global revenue. Their vast application portfolios and heightened cyber risks drive strong security adoption. The Australian Cyber Security Centre revealed that 75% of businesses had invested in serverless security investments aimed at countering the threats. The U.S. Department of Commerce issued a warning that cyber risks are surging, forcing Fortune 500 companies to invest in serverless security by 18%. The government incentives continue to expedite secure cloud adoption. In this respect, the sectors are relying heavily on advanced security frameworks for compliance and risk management.

By Deployment, Cloud Leads Serverless Security Market in 2023 as Demand for Scalable and Resilient Solutions Surges
The serverless security market was dominated in 2023 by cloud computing, because of its scalability, cost efficiency, and resilience. The adoption of cloud-based serverless architectures increased among businesses for smooth and streamlined operations and the loss of management burdens. The strong need for hybrid and multi-cloud environments expedited the explosive growth of security needs to protect the enterprise against emerging cyber threats. This includes regulatory compliance mandates and data sovereignty concerns, forcing organizations to invest in advanced cloud security solutions that solidified the leadership of the cloud in the serverless security market.

North America’s Leadership in Serverless Security Market, Asia-Pacific’s Rapid Growth in Serverless Security Driven by Digital Transformation
North America held a 38% revenue share in the global serverless security market in 2023, driven by strong investments in cloud infrastructure and stringent cybersecurity regulations. The U.S. Bureau of Economic Analysis highlights increasing federal and private sector spending on security solutions. The shift to cloud-native architectures is accelerating market expansion, as organizations migrate from legacy systems to serverless computing, demanding advanced security solutions.

Asia-Pacific recorded the fastest CAGR in the serverless security market due to rapid digital transformation in emerging economies like India and Indonesia. India's Digital India initiative reported a 30% increase in serverless deployments, particularly in public-private collaborations under the Smart Cities Mission. High mobile adoption and growing demand for cloud technologies further fuel regional growth, as businesses and governments increasingly invest in advanced serverless security solutions to support scalable and flexible digital infrastructures.

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