Global Serverless Security Market By Service Model, By Enterprise Size, By Deployment Mode, By Security Type, By End User, By Regional Outlook, Industry Analysis Report and Forecast, 2021 – 2027 – Yahoo Finance

The Global Serverless Security Market size is expected to reach $5. 7 billion by 2027, rising at a market growth of 27% CAGR during the forecast period. Serverless refers to an operational model used in cloud computing across various organizations.
New York, Oct. 26, 2021 (GLOBE NEWSWIRE) — announces the release of the report "Global Serverless Security Market By Service Model, By Enterprise Size, By Deployment Mode, By Security Type, By End User, By Regional Outlook, Industry Analysis Report and Forecast, 2021 – 2027" –
Under this model, applications of an organization depend on the managed services, which eliminate the requirement to patch, secure and manage infrastructure and virtual machines. In addition, serverless applications depend on the integration of function-as-a-service, or FaaS, and managed cloud services.

With the increasing digitalization across the world, companies need to be cautious of securing their serverless apps as this architecture utilizes a smaller approach than microservices. It utilizes miniature and independent pieces of software that connect with the help of various APIs, which become public once the interaction with cloud providers is established. Due to this mechanism, criminals get the chance to access the APIs through the major security lapse, which would become a barrier for the security of serverless apps such as complex enterprise software. Data privacy is one of the biggest concerns among the regulated industries like health, banking, and others, and this aspect is encouraging companies operating in these industries to build secure networks. As companies operate their applications and store data on the cloud, the possibilities of security breaches are always there, which creates demand for serverless security solutions across the world.

COVID-19 Impact Analysis

The imposition of various restrictions due to the outbreak of the global COVID-19 pandemic like travel ban and lockdown has motivated companies to adopt work from home model. This trend has created more demand for cloud computing solutions. However, prior to the pandemic, several companies have considered that shifting sensitive data on the cloud can increase the risk of data and privacy breaches. However, as the companies are moving towards the adoption of cloud-based solutions and services, the requirement for advanced serverless security solutions has also increased.

The rapid shift of the crucial data on the cloud by the organizations across various industrial verticals is creating lucrative opportunities for key market vendors. Although, the rising cloud consumption would add up to the security challenges of the organizations. In addition, the adoption of the latest devices, security & access patterns, and procedures utilized in maintaining cloud environments during working from home have augmented the chances of data breaches. Thus, the rising remote workforce has increased the use of security tools, which would further support the growth of the serverless security market over the forecast period.

Market Growth Factors:

Easier operational management

The serverless platform offers a clear distinction between infrastructure services and applications which are run on top of the platform. Automatic expanding functionality of FaaS reduces compute cost along with reducing operational management outlays. SREs and system engineers can concentrate on running and controlling the underlying platform and core services like databases and load balancers though product engineers manage the functions running on top of the platform.

Faster innovation

The alleviation of concerns associated with system engineering in the underlying platform has allowed product engineers to innovate at a rapid rate. Consequently, less operation time translates into a smooth implementation of DevOps and agile approaches. Regular apprehensions of an internet facing application such as identity management, storage, etc are wide-open to FaaS or managed by the underlying middleware. Product engineers can focus on development of the actual business logic of the application.

Market Restraining Factor:

Architectural complexity

Allocated computing architectures are complicated and consume a lot of time in building. This is applied to micro services and serverless architectures in similar measure. Decisions related to the size of the function consumes a lot of time in assessment, implementation, and testing. There needs to be a balance between the amounts of functions that an application must call. Managing multiple functions and overlooking granularity are cumbersome tasks and end up producing mini-monoliths.

Service Model Outlook

Based on Service Model, the market is segmented into Function as a Service (FaaS) and Backend as a Service (BaaS). FaaS helps in streamlining the implementation of applications on the cloud. On the other hand, every feature of the application is implemented into a unified independent feature, and hence, every feature is separately hosted by the provider. In comparison to BaaS, FaaS provides more control to the developers who develop personalized apps instead of depending on a library of prewritten services. Some of the major vendors operating in this industry are AWS, Microsoft Azure, Google Cloud Platform with numerous offerings, and IBM.

Enterprise Size Outlook

Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprise. Large enterprises are increasingly transitioning towards DevOps and microservices architectures. Therefore, large enterprises are installing serverless security to reduce serverless security risks like event injection, insecure app secret storage, broken authentication, and improper exception handling.

Deployment Mode Outlook

Based on Deployment Mode, the market is segmented into Public and Private. The Public market dominated the Global Serverless Security Market by Deployment Mode 2020, and would continue to be a dominant market till 2027. The Private market is expected to witness a CAGR of 31.4% during (2021 – 2027).

Security Type Outlook

Based on Security Type, the market is segmented into Data Security, Network Security, Application Security, Perimeter Security, and Others. The network security segment is estimated to exhibit a prominent growth rate over the forecast period. Network security refers to the method of safeguarding networks from advanced cyber threats across a serverless architecture.

End User Outlook

Based on End User, the market is segmented into BFSI, IT & Telecom, Healthcare, Retail & eCommerce, Media & Entertainment, Energy & Utility, Manufacturing, and Others. The growing adoption of cloud computing and various serverless platforms is motivating finance and insurance institutions to fulfill the security standards framed by the regulatory authorities. Moreover, financial service institutes are majorly expanding their partnerships with serverless security service vendors to deploy a complete and holistic serverless application security environment, which can fulfill the global and regional regulatory requirements of the company.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America would emerge as a prominent region in the serverless security market over the forecast period. The presence of developed nations like Canada and the US is supporting the growth of the regional market. The early adoption of various advanced technologies and the globalization of cloud services and solutions in this region is estimated to open new growth prospects for the regional market players. The robust financial position of the emerged economies such as the US and Canada assist the companies to significantly spend on top services of the serverless security market.

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation and Google, Inc. are the forerunners in the Serverless Security Market. Companies such as Micro Focus International PLC, Imperva, Aqua Security Software Ltd. are some of the key innovators in the market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Rackspace Technology, Inc., Fastly, Inc.,, Inc., Palo Alto Networks, Inc., Microsoft Corporation, Google, Inc., Micro Focus International PLC, Imperva, Aqua Security Software Ltd. and Serverless, Inc.

Recent Strategies Deployed in Serverless Security Market

Partnerships, Collaborations, and Agreements:

Sep-2021: Prisma Cloud has partnered with HashiCorp to deliver zero trust security built for an integrated, multi-cloud world. Together, Palo Alto Networks and HashiCorp empower organizations to securely adopt the cloud operating model. HashiCorp and Palo Alto Networks are committed to enabling enterprises to easily access and gain the significant benefits of a secure cloud operating model with our closely integrated suite of security solutions.

Sep-2021: Aqua Security is the first cloud native security PartnerWorld partner for the IBM Power E1080. As an important component of end-to-end application modernization and hybrid cloud adoption, Aqua Security integrates with Power10-based servers to provide tools to help customers further secure the full lifecycle of Red Hat OpenShift containerized workloads.

Jul-2021: Trend Micro Incorporated today announced a new collaboration with Microsoft that aims to deliver greater impact to cybersecurity for joint customers. The collaboration outlines a new cooperation on developing cloud-based cybersecurity solutions on Microsoft Azure and generating co-selling opportunities.

Mar-2021: HCL Technologies and Google Cloud announced the expansion of their strategic partnership to bring HCL Software’s Digital Experience (DX) and Unica Marketing cloud-native platforms to Google Cloud. The Google Cloud offering provides customers a cost effective and highly scalable, secure and elastic cloud deployment option with global coverage that can support deployment of HCL’s DX, Unica and Commerce cloud-native platforms. DX’s cloud-native capabilities allow customers to deploy world-class, business critical solutions significantly faster than before.

Dec-2020: Amazon continues to build new capabilities into its serverless operational mode and has launched container image support in AWS Lambda. It enables packaging and deploying Lambda functions as container images. Building on strong partnership with AWS and Aqua Security Software Ltd., we desire to offer the most complete cloud-native security solution, Aqua Security now includes advanced security capabilities that incorporate this new Lambda feature.

Feb-2020: Cloudentity today announced a partnership with Signal Sciences to provide a holistic approach for enterprise companies looking to secure their web applications and APIs. By combining Signal Sciences’ award-winning next-gen Web Application Firewall (WAF) with Cloudentity’s expertise in API Identity and Authorization, enterprise customers can protect themselves from major cyber security risks, including all 10 of the most critical risks in API security as published by the Open Web Application Security Project (OWASP).

Acquisitions and Mergers:

Jul-2021: Microsoft’s security buying spree continued today with CloudKnox, a startup that built a multi-cloud permissions management platform to protect cloud infrastructure and identities. The companies did not disclose the terms of the deal. In a security blog post, Microsoft said CloudKnox will boost Azure Active Directory’s cloud identity and access services and provide customers with granular visibility, continuous monitoring, and automated remediation for hybrid and multi-cloud permissions.

Jul-2021: Aqua Security, the pure-play cloud native security leader, today announced the acquisition of tfsec, an open-source security scanner for Infrastructure as Code (IaC). The acquisition brings an immediate integration of tfsec into Aqua Trivy, adding IaC security scanning capabilities, with additional Aqua platform integrations planned later this year.

May-2021: Imperva has entered into an agreement to acquire CloudVector to advance our mission to protect data and all paths to it. Together, we believe we can change what organizations expect from Web Application and API Protection solutions. There are multiple reasons APIs are at the top of Imperva’s key investment areas, and they are all about the future of applications and the ways they are compromised.

Oct-2020: Fastly, Inc. today announced it has successfully completed the acquisition of Signal Sciences (“Signal Sciences”). The transaction combines Signal Sciences’ powerful web application and API security solutions with Fastly’s edge cloud platform and existing security offerings to form a unified suite of modern security tools.

Aug-2020: Google has acquired StratoZone to help partners and customers plan and automate data center migrations to Google Cloud Platform. Financial terms of the deal were not disclosed.

Product Launches and Product Expansions:

Sep-2021: AWS Lambda Extensions Are Now Generally Available – Get Started with Your Favorite Operations Tools Today. As part of the GA release, the company enabled functions to send responses as soon as the function code is complete without waiting for the included extensions to finish. This enables extensions to perform activities like sending telemetry to a preferred destination after the function’s response has been returned.

Jul-2021: Palo Alto Networks and Google Cloud today announced Cloud IDS (Intrusion Detection System), a jointly developed network threat detection service to help cloud customers solve critical network security challenges.

Jul-2021: Aqua Security today rolls out the availability of its new Aqua Platform, with a unified console to ease the journey from scanning and visibility to workload protection in cloud native environments. The new platform reduces administrative burden and allows security teams to start with scanning and cloud security posture management (CSPM) capabilities, then add in sandboxing capabilities and workload protection as needed.

Jul-2021: Fastly, Inc. today announced the availability of JavaScript in [email protected], allowing developers to build with even more flexibility in Fastly’s serverless compute environment. With more JavaScript developers in the world than there are for any other development language, the availability of a faster, more secure way of building with JavaScript brings [email protected]’s safety benefits and speedy execution to more workloads around the globe.

May-2021: Palo Alto Networks today announced the release of Yor, an open-source tool that automatically tags cloud resources within infrastructure as code (IaC) frameworks Terraform, AWS CloudFormation, and Serverless Framework YAML. Yor automates the tedious work of manually tagging cloud resources, helps security teams trace security misconfigurations from code to cloud, and enables highly effective GitOps across all major cloud providers.

May-2021: Imperva, Inc., the cybersecurity leader whose mission is to protect data and all paths to it, launches Imperva Serverless Protection, a new product built to secure organizations from vulnerabilities created by misconfigured apps and code-level security risks in serverless computing environments.

Apr-2021: Palo Alto Networks today is delivering innovations to Prisma® Cloud to help organizations ensure no workload is left unprotected. The new capabilities also increase automation and detection, simplify compliance checks, and deepen visibility into malware threats for containers and hosts. Additionally, Palo Alto Networks is unveiling the industry’s first cloud native attack dashboard that extends the MITRE ATT&CK® framework.

Mar-2021: Micro Focus today announced that Voltage SecureData now supports integrations with a broad array of native cloud services on AWS, Azure, and Google Cloud Platform to run data protection functions within serverless compute (FaaS).

Jan-2021: Microsoft Releases New Version of Durable Functions. The release 2.4.0 of Durable Functions brings native support for distributed tracing, the ability to use Durable Functions in other .NET Core applications using dependency injection, and a new API to restart orchestrations.

Dec-2020: Amazon Web Services announced that CloudWatch Lambda Insights is now generally available. CloudWatch Lambda Insights provides clearer and simpler operational visibility of your functions by automatically collating and summarizing Lambda performance metrics, errors, and logs in prebuilt dashboards, saving you from time-consuming, manual work.

Dec-2020: Microsoft announced a new data governance solution in public preview on its cloud platform called Azure Purview. This new service automates the discovery of data and cataloging while minimizing compliance risk and helps customers map all their data, no matter where it resides, to provide an end-to-end view of their data estate.

Jul-2020: Introducing serverless Network Endpoint Groups. Google Cloud HTTP(S) Load Balancing already supports a number of different types of NEGs, like internet NEGs and Compute Engine zonal NEGs, and today, we’re expanding this list to include serverless NEGs, which allow External HTTP(S) Load Balancing to use App Engine, Cloud Functions, and Cloud Run services as backends.

Jul-2020: Aqua Security Software Ltd. launched a new product called Aqua Wave, which is a software-as-a-service offering that’s designed to secure both applications as they’re being built and the infrastructure they’re deployed on. Aqua Wave is made up of three separate products, including an updated version of the company’s Cloud Security Posture Management tool, and its Vulnerability Scanning and Dynamic Threat Analysis tools.

Jan-2020: Microsoft announced Azure Functions 3.0 go-live release is now available, making it possible to build and deploy 3.0 functions in production. The new capabilities in this release include support for .NET Core 3.1 and Node 12. In addition, Microsoft claims previous versions of Azure Functions should be able to run in the version 3.0 runtime without code changes due to this latest release being highly backwards compatible.

Scope of the Study

Market Segments covered in the Report:

By Service Model

• Function as a Service (FaaS)

• Backend as a Service (BaaS)

By Enterprise Size

• Large Enterprises

• Small & Medium Enterprise

By Deployment Mode

• Public

• Private

By Security Type

• Data Security

• Network Security

• Application Security

• Perimeter Security

• Others

By End User


• IT & Telecom

• Healthcare

• Retail & eCommerce

• Media & Entertainment

• Energy & Utility

• Manufacturing

• Others

By Geography

• North America

o US

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o UK

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia Pacific


o Brazil

o Argentina


o Saudi Arabia

o South Africa

o Nigeria

o Rest of LAMEA

Companies Profiled

• Rackspace Technology, Inc.

• Fastly, Inc.

•, Inc.

• Palo Alto Networks, Inc.

• Microsoft Corporation

• Google, Inc.

• Micro Focus International PLC

• Imperva

• Aqua Security Software Ltd.

• Serverless, Inc.

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