Kuwait serverless computing market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Kuwait Serverless Computing Market Overview

• The Kuwait Serverless Computing Market is valued at USD 150 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of cloud technologies, the need for cost-effective computing solutions, and the rising demand for scalable applications. Organizations are increasingly shifting towards serverless architectures to enhance operational efficiency and reduce infrastructure management burdens. The broader Kuwait ICT market is valued at USD 26.37 billion, with cloud solutions forecast to grow at a 14.62 percent CAGR through 2030, reflecting strong underlying momentum for cloud-native and serverless adoption.
• Kuwait City is the dominant hub for the serverless computing market, primarily due to its advanced telecommunications infrastructure and the presence of major cloud service providers. The city benefits from a growing number of tech startups and established enterprises that are leveraging serverless solutions to innovate and improve service delivery. Additionally, the government's push for digital transformation has further solidified Kuwait's position in the market. Kuwait’s 5G network, covering 97 percent of the population with pilot speeds up to 10 Gbps, enables low-latency applications and edge-computing services, which are increasingly supported by serverless architectures.
• In 2023, the Kuwaiti government implemented the Cloud Computing Regulatory Framework, issued by the Communication and Information Technology Regulatory Authority (CITRA). This framework establishes licensing requirements, data localization rules, and compliance standards for cloud service providers, while also offering incentives for businesses adopting cloud and serverless technologies. The regulation aims to accelerate digital transformation, enhance cybersecurity, and ensure that local enterprises can leverage scalable, cost-effective cloud solutions to improve operational capabilities and competitiveness in the digital economy.

Kuwait Serverless Computing Market Segmentation

By Service Type:

The service type segmentation includes Function as a Service (FaaS) and Backend as a Service (BaaS). Among these, Function as a Service (FaaS) is currently the leading sub-segment, driven by its ability to allow developers to run code in response to events without the complexity of managing servers. This model is particularly appealing to startups and enterprises looking to streamline their development processes and reduce costs. The flexibility and scalability offered by FaaS solutions are key factors contributing to its dominance in the market. The segmentation aligns with global trends, where FaaS is widely recognized as the core of serverless computing due to its event-driven, scalable nature.

By Deployment Model:

The deployment model segmentation includes Public Cloud, Private Cloud, and Hybrid Cloud. The Public Cloud segment is the most prominent, as it offers cost-effective solutions and easy scalability for businesses of all sizes. Organizations are increasingly opting for public cloud services due to their flexibility and the reduced need for on-premises infrastructure. The growing trend of remote work and digital services has further accelerated the adoption of public cloud solutions in Kuwait. Public cloud revenue in Kuwait is projected to reach USD 287.78 million, with Software as a Service (SaaS) dominating this segment, indicating robust demand for cloud-native, serverless platforms. Cloud solutions are the fastest-growing segment in Kuwait’s ICT market, driven by government cloud-first mandates and the need for agile, scalable IT infrastructure.

Kuwait Serverless Computing Market Competitive Landscape

The Kuwait Serverless Computing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, IBM Cloud, Oracle Cloud Infrastructure, Alibaba Cloud, Zain Kuwait (Cloud Services Division), Ooredoo Kuwait (Cloud Solutions), stc Kuwait (Cloud and Data Center Services), Gulfnet Communications Company, Solutions by STC, Huawei Cloud, Red Hat OpenShift, VMware Cloud Services, Cloudflare contribute to innovation, geographic expansion, and service delivery in this space.

Kuwait Serverless Computing Market Industry Analysis

Growth Drivers

• Increased Demand for Scalability:The Kuwait IT sector is projected to grow at a rate of 5.5% annually, driven by the need for scalable solutions. Businesses are increasingly adopting serverless computing to handle fluctuating workloads without the need for extensive infrastructure investments. In the future, the number of cloud service users in Kuwait is expected to reach 1.5 million, highlighting the growing reliance on scalable cloud solutions to meet dynamic business needs.
• Cost Efficiency in IT Operations:Organizations in Kuwait are increasingly focused on reducing operational costs, with IT budgets expected to decrease by 8% in the future. Serverless computing offers a pay-as-you-go model, allowing businesses to only pay for the resources they use. This model is particularly appealing in a region where operational efficiency is paramount, as it enables companies to allocate resources more effectively and reduce wasteful spending.
• Rapid Adoption of Cloud Technologies:Kuwait's cloud computing market is anticipated to reach $1.8 billion in the future, reflecting a significant shift towards cloud-based solutions. This rapid adoption is fueled by the increasing availability of high-speed internet and government initiatives promoting digital transformation. As more businesses migrate to the cloud, serverless computing becomes an attractive option for its flexibility and ease of integration with existing systems.

Market Challenges

• Security and Compliance Concerns:Security remains a critical challenge for the serverless computing market in Kuwait, with 65% of organizations citing data protection as a primary concern. The lack of robust security frameworks can lead to vulnerabilities, making businesses hesitant to fully embrace serverless solutions. Compliance with local regulations, such as data sovereignty laws, further complicates the adoption of these technologies, necessitating enhanced security measures.
• Limited Awareness and Expertise:A significant barrier to serverless computing adoption in Kuwait is the limited awareness among IT professionals. Approximately 55% of businesses report a lack of in-house expertise to implement serverless architectures effectively. This skills gap can hinder the transition to serverless solutions, as organizations may struggle to find qualified personnel to manage and optimize these technologies, ultimately affecting their competitiveness in the market.

Kuwait Serverless Computing Market Future Outlook

The future of the serverless computing market in Kuwait appears promising, driven by ongoing digital transformation initiatives and increasing investments in technology. As businesses continue to prioritize agility and cost-effectiveness, serverless solutions are likely to gain traction. Furthermore, the integration of advanced technologies such as AI and IoT will enhance the capabilities of serverless architectures, enabling organizations to innovate and respond to market demands more effectively. The focus on security and compliance will also shape the development of this market.

Market Opportunities

• Growth in IoT and Edge Computing:The rise of IoT devices in Kuwait, projected to reach 6 million in the future, presents a significant opportunity for serverless computing. These devices require efficient data processing and real-time analytics, which serverless architectures can provide, enabling businesses to harness the full potential of IoT technologies and improve operational efficiency.
• Expansion of AI and Machine Learning Applications:The AI market in Kuwait is expected to grow to $250 million in the future, creating opportunities for serverless computing to support machine learning workloads. Serverless architectures can facilitate the deployment of AI models without the need for extensive infrastructure, allowing businesses to innovate rapidly and leverage data-driven insights for competitive advantage.