Application Platform as a Service (aPaaS) Market Research Report: By Deployment Mode (Public Cloud, Private Cloud, Hybrid Cloud), Enterprise Size (SMEs, Large Enterprises), Service (Implementation & Integration, Consulting, Maintenance) - Global Industry Analysis and Demand Forecast to 2030

Application Platform as a Service Market Overview

The global application platform as a service (aPaaS) market was valued at $6,023.3 million in 2020, and it is expected to showcase a CAGR of 14.2% during the forecast period (2021–2030). This is primarily attributed to the increasing preference of customers for advanced software and rising demand for cloud computing. Additionally, aPaaS provides a balance between the flexibility in customization and cost-effectiveness of enterprise-level applications. Moreover, the rising demand for flexibility and scalability in application development is expected to drive the market growth over the forecast years.

The COVID-19 outbreak has negatively impacted the world on economic platform, rippling its effect on technology adoption. However, the demand is expected to increase for advanced technology domain, which encompasses augmented reality (AR), artificial intelligence (AI), cloud computing, virtual reality (VR), and autonomous driving. Moreover, the rapid spread of COVID-19 has led to the implementation of the work-from-home model, which is driving the demand for cloud computing applications, thereby impacting the global aPaaS business positively.

High Demand for Improved Efficiency Led to Dominance of Hybrid Cloud Deployment Mode

In 2020, the hybrid category accounted for the largest size in the aPaaS market, on the basis of deployment mode. This is primarily attributed to the increasing adoption of hybrid cloud by enterprises to share data and apps between different clouds. Additionally, the rising deployment of multiple cloud services, for cost savings, and increasing demand for improved efficiency and productivity through centralized cloud governance are augmenting the popularity of the hybrid cloud deployment mode for aPaaS solutions.

Small and Medium Enterprises (SMEs) Are Increasingly Adopting aPaaS Solutions

The SMEs category, based on enterprise type, is projected to witness the faster growth in the market during the forecast period. This can be attributed to the increasing adoption of cloud platforms by such firms to improve the scalability of internet-based database capabilities and reducing the cost and risk associated with the implementation of database system.

Implementation & Integration Services Witnessing Rising Demand

The implementation & integration category held the largest market share in the service segment in 2020. The implementation of aPaaS solutions in an enterprise leads to a one-time high capital investment, therefore is a major source of revenue for service providers. This initial investment is associated with both the on-premises and cloud-based versions, though cloud-based integration is comparatively a cost-effective alternative.

Rapid Deployment of Cloud-Based Services Propelling North American Market

During the historical period (2014–2020), North America held the largest aPaaS market share due to the high spending on-cloud based services by enterprises. Further, the rising demand for IT solutions that offer agility, scalability, pay-per-use-based pricing, and reduced cost & time would propel the market.

High Investments by Government Would Lead to Highest CAGR of Asia-Pacific Market

The major factor driving the market growth in the region is the rising adoption of cloud computing in the retail and manufacturing industries in China, India, and Australia. Moreover, the heavy investments by governments, rapid growth in the IT infrastructure, and increasing development of the corporate sector in China and India are expected to drive the market growth in the region.

Development of Low-Code Application Platforms Is Key Market Trend

The most-prominent trend in the aPaaS market is the increasing customer preference for technologically advanced software and growing focus of software companies on innovative solutions to meet these requirements. Moreover, APAC is experiencing digital transformation by adopting low-code application platforms, which is further expected to drive the adoption of solutions.

Demand for Improved Products Propelling Usage of aPaaS

The demand for flexibility and scalability in application development is increasing across the globe. The development and deployment of on-premise applications require hardware, databases, operating systems (OS), and other types of software. PaaS provides the infrastructure over the internet to deploy the applications. Thus, by using aPaaS, enterprises can avoid unnecessary investment in the technicalities involved in modulating generic software for application-specific purposes and working from scratch. aPaaS offers a specialized software platform for the development of business applications that helps enterprises save cost, as well as time.

High Demand for Enterprise-Level Applications Driving Market

aPaaS allows for the customization of enterprise-level applications without degrading their cost-effectiveness. This is done by microservices, which enable companies to deploy applications at a lower cost and in lesser time. aPaaS has the ability to solve problems by providing user-friendly interfaces for different enterprise applications. Moreover, aPaaS offers a reliable medium to monitor additional backend services, such as computing, data storage, and coordination among various business processes within the organization.

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Market Players Launching New Products to Gain Competitive Edge

Global aPaaS market is consolidated in nature owing to the presence of prominent companies such as Amazon Web Services (AWS) Inc., IBM Corporation, Microsoft Corporation, Alphabet Inc., Salesforce.com Inc., Alibaba Group Holding Limited, SAP SE, Tencent Holdings Ltd., and Software AG. These companies hold a substantial share in the global market, and they are involved in product launches to gain more significance.

In recent years, players in the industry have launched a number of new products, and entered into mergers, acquisitions and partnerships in order to stay ahead of their competitors. For instance:

• In May 2020, Alteryx Inc. unveiled its enhanced analytic process automation (APA) platform that has combined analytics, data science, and business process automation in a single, end-to-end platform.
• In February 2020, Mastek Limited announced the acquisition of Evolutionary Systems Private Limited (Evosys or ESPL) to enhance its offerings related to application development, business intelligence (BI) and analytics, and digital commerce.
• In September 2018, Alibaba Group Holding Limited and SAP SE partnered to offer the SAP S/4HANA Cloud and SAP Cloud Platform on Alibaba Cloud's infrastructure as a service (IaaS) platform in China, to help customers transition to the cloud and build intelligent enterprises.

Some Key players in aPaaS Market Are:

Market Size Breakdown by Segment

The global application platform as a service market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Deployment Mode

• Public Cloud
• Private Cloud
• Hybrid Cloud

Based on Enterprise Size

• Small and Medium-Sized Enterprises (SMEs)
• Large Enterprises

Based on Service

• Implementation & Integration
• Consulting
• Maintenance

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan,
  • China
  • India
  • Australia
  • Macau
  • Taiwan
  • Malaysia
  • Singapore
  • South Korea
  • Greater Bay Area
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East & Africa (MEA)
  • U.A.E.
  • Saudi Arabia
  • South Africa