Global Serverless Security Market Assessment, By Service Model [Function as a Service, Backend as a Service], By Security Type [Data Security, Application Security, Network Security, Perimeter Security, Others], By Deployment Mode [Cloud, On-Premise], By Enterprise Size [Small and Medium Enterprise, Large Enterprises], By End-user Industry [Banking, Financial Services, and Insurance, Energy and Utilities, Healthcare, IT and Telecom, Retail, Manufacturing, Others], By Region, Opportunities and Forecast, 2018-2032F

Global serverless security market is projected to witness a CAGR of 24.67% during the forecast period 2025-2032, growing from USD 3.18 billion in 2024 to USD 18.56 billion in 2032. The global serverless security market is expected to grow due to an increasing trend of adoption of serverless computing, increasing cybersecurity threats to security and the need for a real-time response to threat detection, coupled with cost-efficiency. Businesses are universally adopting serverless computing to facilitate agility, performance, and regulatory compliance across multi-cloud environments.

Report Attribute	Details
Base Year	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 24.67% between 2024 and 2032
Revenue Forecast in 2032	USD 18.56 billion

The global serverless security market is rising, with businesses increasingly using serverless computing to make operations faster and more dynamic. This shift raises new security challenges, such as how to manage vulnerabilities without servers in the first place. Today, businesses are rolling out smart, cloud-based security walls that detect threats as they occur and secure apps. As cyber threats evolve and compliance demands grow, robust serverless security will become increasingly critical. Finance, health care and retail have been among the types of industry, with more cloud use, propelling demand for simple and dependable serverless security solutions is expected to keep increasing.

For instance, in May 2025, Amazon Web Services, Inc. announced the general availability of Amazon Aurora DSQL, its new serverless, distributed SQL database offering active-active architecture, multi-region strong consistency, and ultra-fast performance, all without infrastructure management. Built for global, high-availability applications, it scales seamlessly and supports PostgreSQL compatibility, AWS Backup, Private Link, CloudFormation, CloudTrail, KMS, and AI use cases.

Growing Penetration of Serverless Compute Boosts Market Demand

Serverless computing is increasingly popular as organizations look for greater agility and cost savings. This allows the applications to be deployed without needing to micromanage server resources less overhead and quicker time to deploy. This increases the demand for security solutions that are tailor-made for serverless and can track code execution as well as detect vulnerabilities in real‐time. The increasingly common adoption of serverless as a service for enterprises (in the form of use cases such as Finance, Health Care, Retail, etc.) is now introducing yet more demand for custom-built security tooling. Any such tooling capabilities should be deeply integrated with offerings such as AWS Lambda, Azure Functions and Google Cloud functions, all while meeting the security standards and needs of enterprises, without sacrificing performance or the freedom to innovate. This specialized market is growing quickly because of the explosion in serverless computing.

For example, in March 2023, Amazon Web Services, Inc. released new security enhancements for AWS Lambda that segment to better encrypt data transported to and from, and at rest. This is a powerful addition to help prevent data leaks and unauthorized access in serverless apps.

Rising Cybersecurity Risks and Compliance Requirements Fuel Market Growth

Cyber threats such as frequency and complexity are on the rise, and cloud environments are a victim of sophisticated attacks as well. Due to their dynamic/messaging-based characteristic, serverless architectures have also introduced emerging attack surfaces. Poorly configured security settings, weak functions and supply chain exposure can lead to breaches or downtime. At the same time, businesses are under more pressure to meet standards such as GDPR, HIPAA, and PCI-DSS, since all require tight data privacy and threat response, driving the market demand. According to the report, the industry requires cloud technology that supports continuous, real-time monitoring, automatic detection of threats, and policy enforcement that is tailored to serverless operations. Furthermore, companies in the market are expanding their market presence by launching new products and platforms to offer better security.

For instance, in May 2024, StackHawk, Inc. combined its platform with Microsoft Corporation for Cloud to boost secure software development. Security teams obtain better visibility into API security conditions during development through this integration, which supports the runtime features of Defender for APIs.

Network Security Dominates Global Serverless Security Market Share

Network security dominates the global market share as it protects data movement and communication systems in serverless cloud-native settings. Organizations that choose serverless architecture for scalability now require essential protection for their network pathways. Serverless applications depend on APIs and microservices communication across the network, which opens multiple attack points for data interception and man-in-the-middle attacks, coupled with insecure endpoints. Real-time threat detection and blocking are achieved by network security solutions that include web application firewalls (WAFs) and runtime protection and traffic encryption. These tools protect data transmission while maintaining secure connections between distributed components, which is important for multi-cloud environments. Businesses now focus on network-layer defense owing to sophisticated attacks which have increased in frequency to protect their applications from damage and maintain operational availability and regulatory adherence. Network security operates as the most preferred and reliable protection layer throughout the serverless environment.

For instance, in August 2024, Critical Start, Inc. announced the launch of its Vulnerability Management Service (VMS) and Prioritization Tools designed to improve serverless security. Powered by Qualys VMDR, this provides automated vulnerability detection and tracking from quality information, to enable organizations to reduce cyber risk in these dynamic, serverless environments.

North America Registers Largest Global Serverless Security Market Share

North America maintains its position as the leading region for the global serverless security market. The early and broad implementation of cloud technologies throughout the United States and North America have led to this regional dominance. North American cloud service providers, including AWS and Microsoft Azure, and Google Cloud, have led the development of serverless computing along with security solutions. The region features numerous tech-forward businesses together with excellent digital infrastructure and strict regulatory standards, including HIPAA, CCPA, and SOX, which drive organizations toward investing in serverless security. Serverless architecture adoption by finance, healthcare, and retail sectors in North America drives the demand for specialized security tools. North America leads the market in serverless security solutions through its strong technology ecosystems and high cybersecurity risk awareness, which drives innovation and implementation, and spending.

For instance, in November 2024, Datadog, Inc. unveiled better security features together with observability tools that support AWS serverless applications running on AWS Lambda and Step Functions. Users can detect security threats and view state machine performance snapshots, as well as track open telemetry service monitoring through these new capabilities.

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Impact of U.S. Tariffs on Global Serverless Security Market

The global serverless security market experiences substantial cost increases as U.S. tariffs impose higher expenses on crucial cloud service hardware and infrastructure. Data centers face higher expenses due to tariffs on imported semiconductors, steel, and electronics, which leads to increased costs for deploying serverless security solutions. The higher costs create difficulties for smaller providers to manage, which could restrict their ability to innovate. The trade tensions between nations have led to global supply chain disruptions while forcing companies to keep their data within specific regions, thus creating new regional obstacles. The rising need for affordable software-based serverless security solutions exists despite tariff-induced economic pressure and provides market advantages.

Report Scope

“Global Serverless Security Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global serverless security market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Service Model, Security Type, Deployment Mode, Enterprise Size, End-user Industry
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	Amazon Web Services, Inc., Microsoft Corporation, Google LLC, Palo Alto Networks, Inc., Rackspace US, Inc., IBM Corporation, Fortinet, Inc., Oracle Corporation, Cloudflare, Inc., Sysdig, Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global serverless security market has been segmented into the following categories: 

• By Service Model
  • Function as a Service (FaaS)
  • Backend as a Service (BaaS)
• By Security Type
  • Data Security
  • Application Security
  • Network Security
  • Perimeter Security
  • Others
• By Deployment Mode
  • Cloud
  • On-Premises
• By Enterprise Size
  • Small and Medium Enterprise (SMEs)
  • Large Enterprises
• By End-user Industry
  • Banking, Financial Services, and Insurance (BFSI)
  • Energy and Utilities
  • Healthcare
  • IT and Telecom
  • Retail
  • Manufacturing
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

The global serverless security market is developing very quickly with the development of cloud native technologies. A rising number of organizations selecting serverless computing due to scalability and organizational efficiency is leading to a high demand for custom security solutions. The market continues to evolve through constant innovation that emphasizes automated processes and immediate threat identification, and major cloud platform integration. Serverless security has evolved beyond an option because organizations in finance and healthcare, and e-commerce now require it as a key component of their cloud strategies. The market maintains a positive outlook because businesses need to protect sophisticated event-driven systems while following increasingly strict regulatory requirements. Organizations that develop a better understanding of serverless technology and improve their cloud maturity will drive substantial investment and market growth in serverless security solutions. Serverless security will continue to be an indispensable part of the cybersecurity ecosystem because of its deployment simplicity and scalability, and direct visibility into operations.

For instance, in May 2024, Palo Alto Networks, Inc. and IBM Corporation formed a partnership to develop serverless security solutions that utilize artificial intelligence. IBM delivers professional consulting services to customers through Palo Alto's Cortex XSIAM and Prisma Cloud platforms to assist organizations in achieving AI-based serverless workload security and enhanced threat detection and compliance support, and expert deployment assistance.

Key Players Operating in, Global Serverless Security Market are:

• Amazon Web Services, Inc.
• Microsoft Corporation
• Google LLC
• Palo Alto Networks, Inc.
• Rackspace US, Inc.
• IBM Corporation
• Fortinet, Inc.
• Oracle Corporation
• Cloudflare, Inc.
• Sysdig, Inc.

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