Global Serverless Security Market Research Report: Forecast (2022-2027)

Market Definition

Serverless security refers to the security measures taken to mitigate security breaches on a serverless computing architecture. Serverless computing is a cloud-computing model which eliminates the hassle of managing on-premise IT infrastructure. The cloud provider runs the server & dynamically manages the allocation of machine resources. With the rapid adoption of serverless computing globally, there have been emerging risks of cyber-attacks on serverless applications.

Therefore, organizations involved in application development rely on serverless computing to save costs & time. Further, with the deployment of serverless security systems, the organization ensures that serverless functions are secured & are in regulatory compliance.

Market Insights

The Global Serverless Security Market is projected to grow at a CAGR of around 25.85% during the forecast period, 2022-27. With the ever-changing landscape of computing, serverless computing has managed to gain notable traction in the historical years. As more & more organizations across the globe are adopting serverless computing for easing the coding process, the requirement for serverless security has emerged as the need of the hour. The usage of serverless computing speeds up the time-to-market process and makes it easier to maintain & test individual functions over the serverless architecture. Moreover, with the increasing adoption of cloud services for application/website development & writing codes, the demand for serverless security has flourished considerably during 2017-21. Additionally, the increasing rate of misconfiguration in data analysis & security software has established a firm need for protecting applications in the serverless computing environment. This has augmented the need for serverless security in the enterprise.

Further, the major players in the serverless security market have provided security solutions for the key serverless computing platforms, such as Amazon Web Services (AWS) Lambda, Microsoft Azure Functions, and Oracle Cloud Functions, among others which have successfully exposed the vulnerability of the platforms, and have led the consumers to deploy serverless security on the platforms. Hence, it is anticipated that with the growing incorporation of serverless computing across the globe, the demand for serverless security would heighten in the upcoming years.

Key Trend in the Market

Containers are a lightweight virtualization architecture that enables the user to deploy individual applications in an isolated environment. The increasing use of containers as a platform for writing codes & building applications has been gaining momentum in the historical years. Additionally, it allows the user to maintain environment uniformity as application code moves down the delivery chain & switches applications quickly between different host servers.

Further, it also retains the ability to migrate workloads between on-premises & the cloud & has ongoing services available to it. Therefore, the coders & developers have been inclining toward containers. Consequently, the application of serverless security for protecting container architecture would bring new remunerative opportunities in the upcoming years.

Impact of COVID-19 on the Global Serverless Security Market

With the emergence of the COVID-19 pandemic in 2020, organizations of different sizes adopted remote working cultures via cloud platforms. This led to a significant rise in the demand for cloud-based applications, websites, portals, and collaborative communication platforms, among others. Subsequently, the workload for developing a new cloud platform & integrating services into their existing working business applications surged drastically.

Therefore, the coders & software engineers migrated to serverless computing for faster development of software & retrieval of data over the cloud. Furthermore, with the embracing trend of Bring Your Own Device (BYOD) & mobility across hybrid IT environments, many organizations sought to migrate data to the cloud. However, the mounting adoption of cloud computing also posed security challenges as the usage of new devices rapidly surged while working remotely.

Hence, this heightened the demand for serverless security globally to maintain a secured networking environment. Further, the growing trend of working from anywhere is expected to provide profitable opportunities in the upcoming years.

Market Segmentation

Based on the Security Type:

• Data Security
• Network Security
• Application Security
• Perimeter Security
• Others (Endpoint, policy management, etc.)

Of them all, Application Security witnessed a noteworthy growth in the Global Serverless Security market during 2017-21. The trend of organizations applying security measures to functions, such as application programming interfaces (API), within cloud applications that are hosted by third-party cloud providers, heightened the demand for application security. Moreover, prior to every step of the application function, application security provides an additional layer of security to maximize privilege access control & prevent applications from doing more than they are designed to do. This way, application security assists the organizations in enhancing their security measures & maintain regulatory compliance at every step.

In addition, the growing number of startups in the domain combined with the increasing chunks of investments made by many technology providers have escalated the demand for serverless security in the historical years. Further, following the trajectory, the demand for serverless security is expected to witness an appreciable growth in the forecast years.

Based on the Deployment Mode:

• Public Cloud
• Private Cloud

Among the two, Public Cloud assimilated a considerable market share in the Global Serverless Security market during 2017-21. Irrespective of the organization size, public cloud deployment has been the first choice for migrating from on-premise infrastructure to the cloud due to its innumerable benefits, such as on-demand faster support for technologies, including serverless computing, machine learning, and big data, & better scalability due to comprehensive assistance provided by the cloud service provider. For the global cloud service providers, such as Amazon Web Services (AWS), Google, and Microsoft, integrating new technologies or upgrading their cloud platform is much easier than the open-sourced-based private cloud.

Furthermore, with the adoption of the public cloud enterprises ensure that they have the latest available security patches on their network. On the other hand, the private cloud is specially designed according to the requirement of a particular enterprise to guarantee the maximum level of information security & access limited to its organization members only. Therefore, the demand for serverless security is expected to generate higher revenue from the public cloud & is expected to maintain the same trend during 2022-27.

Based on the End User:

• BFSI
• IT & Telecom
• Retail & Commerce
• Healthcare
• Energy & Utility
• Automotive
• Others (Education, Media & Entertainment, etc.)    

Here, IT & Telecom observed significant growth in the Global Serverless Security market during 2017-21. The continuous software development & testing of various technologies in the IT & telecommunication industries have augmented the requirement for serverless security for bringing efficiency to writing codes. The utilization of serverless computing reduces the stress of managing servers in-house, thereby resulting in cost reduction. Moreover, the rising digital transformation, expanding global fintech industry, exponential adoption of cloud platforms across various verticals, the introduction of 5G communication networks, and other next-generation technologies have paved a strong base for serverless computing in the historical years. As a result, the demand for establishing thick walls of network & application security has also stimulated noticeably during 2017-21In addition, to increase domestic software development capabilities, the government of countries, such as the US, India, the UAE, etc., have launched initiatives to nurture coding communities. This has encouraged youth to upgrade their programming skillset. Consequently, it has proliferated the usage of serverless computing to minimize costs related to IT infrastructure for coders.

• In 2021, the UAE government launched 6 Coders HQ to make the UAE a global hub for coders & create an ecosystem for new IT projects & innovation. With this initiative, the UAE government aims to solidify its coding community by assisting with different aspects, including learning, evaluating the skills & performance of coders, communicating among the software communities, and addressing challenges faced by the private sector.

Regional Landscape

Geographically, the Global Serverless Security Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Of all the regions globally, North America has been portraying a noticeable market growth during 2017-21 due to the extensive contribution made by the countries, including the US & Canada. These countries have been the early adopters of advanced technologies, such as AI, BigData, Blockchain, cloud computing, etc. Further, the countries, such as the US & Canada, have an enormous financial position that helps them to invest profoundly in the leading services of the serverless security market.

Notably, the extensive R&D investments allocated by the key cloud-native architecture providers, such as Microsoft, AWS, Google, and IBM, have standardized the application development approach to streamline the operational process. Moreover, the rapid adoption of serverless computing services by various companies & industries has further established firm grounds for serverless security services in the region.

Additionally, North America is one of the most developed & mature markets for cloud adoption due to its clear ICT standards & regulations, accessibility to advanced IT infrastructure, presence of a large number of enterprises using cutting-edge technologies, and the availability of technical know-how. Therefore, the market for serverless security in North America is expected to positively grow during the historical period.

Recent Development by Leading Companies:

• In 2021, Imperva Inc. announced the launch of Imperva Serverless Protection, which would effectively secure organizations from vulnerabilities created by misconfigured apps & code-level security risks in serverless computing environments.
• In 2021, Trend Micro launched a cloud-native, fully serverless file storage security tool for organizations building applications over the cloud. The tool is designed to mitigate threats across the cloud environment & upkeep strict compliance requirements.
• In 2019, Palo Alto Networks announced the acquisition of Twistlock, a container security company, and PureSec, a serverless security company, to extend its Prisma cloud security strategy

Market Dynamics:

Key Driver: Rising Adoption of Serverless Applications Leading to Security Vulnerabilities

The emerging incidences of misconfiguration in the application settings & features offered by the cloud service provider have elevated the requirement for serverless security. Cyber-attacks like those of Denial-of-Service (DoS) attacks in serverless applications can lead to serious compromise in an organization’s data.

Therefore, the attackers can take advantage of the exposed functions of a network or platform with unprotected datasets. In this regard, implementing serverless security as a means of preventive measure can deter the threats posed by serverless applications. Due to the efficiency provided by the server application, enterprises have been attracted to serverless computing.

Moreover, serverless platforms, such as AWS Lambda, have become increasingly famous among the programmers to migrate their back-end operations & focus on writing codes. Hence, the rising number of enterprises migrating their in-house infrastructure over cloud platforms would further cement the market growth in the forecast years.

Possible Restraint: Low Awareness of Serverless Technology Among the Enterprises to Hinder the Market

Serverless computing is a relatively new concept in the field of cloud & was first launched in 2014 as AWS Lambda for public use. Therefore, a large number of organizations across the world are unaware of serverless technology & the process of configuring them. Moreover, the organizations, migrating their IT infrastructure to public clouds, sometimes, face the challenge of improper implementation of security architecture to prevent cyberattacks.

Therefore, the lack of awareness among a sizeable number of enterprises toward the benefit of serverless technologies, including serverless security, architecture, and strategy, may act as a possible restraint for the serverless security market.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size - By Value, Forecast Numbers, Segmentation, Shares) of the Global Serverless Security Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Serverless Security Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Serverless Security Market based on the competitive landscape?
5. What are the key results derived from surveys conducted during the Global Serverless Security Market study?