Low-Code Development Platform Market Research Report: By Offering (Solution, Service), Deployment Type (Cloud, On-Premises), Enterprise (Large Enterprises, SME), Vertical (IT, BFSI, Retail, Healthcare, Government, Manufacturing, Media and Entertainment, Education, Energy and Utilities) - Global Industry Analysis and Growth Forecast to 2030

Low-Code Development Platform Market Overview

The global low-code development platform market generated the revenue of $10.3 billion in 2019, and it is projected to witness a CAGR of 31.1% during the forecast period (2020–2030). Increasing demand for business digitization, less dependency on information technology (IT) professionals, and stringent government norms are the key factors driving the low-code development platform industry.

Segmentation Analysis

Solution Category Witnessed the Highest Adoption in the Market

In 2019, the solution offering category accounted for the largest market size in the low-code development platform market. This is primarily due to the increasing adoption of low-code development platform across all verticals to reduce operational costs for long term. As it is for citizen developers, companies are not required to hire software developer, which helps save a significant amount of operational costs.

Cloud Deployment Expected to Witness Faster Growth during Forecast Period

During the forecast period, the cloud deployment category is expected to witness faster growth in the low-code development platform market. This is primarily attributed to the fact that the majority of market players are offering low-code development platform over the cloud. In addition, cloud-based deployment offers increased scalability, 24/7 service, high speed, and enhanced management capabilities for application development. Therefore, due to low IT infrastructural cost coupled with high scalability, the demand for cloud deployment is projected to grow in the coming years.

Large Enterprises Generated Higher Revenue in the Market

In 2019, the large enterprises category dominated the low-code development platform market. This is due to the fact that large enterprises have significantly higher budget to adopt low-code development platform to develop a large number of new applications in less time for their operations. For instance, Genpact Limited and Yahoo Inc. have already adopted low-code development platform to increase their work efficiency.

IT Vertical Generated Highest Revenue in the Industry

The IT category held the largest share in the low-code development platform market in 2019 and is expected to retain the trend in the near future as well. This is primarily attributed to the early adoption of new technologies. IT companies develop a large number of mobile and web applications and other third-party solutions. Moreover, these companies frequently face backlogs with increasing requests for new app and third-party packaged solutions from various businesses. As a result, these companies are increasingly adopting low-code development platforms that offer visual app creation, update, and sharing facilities, which take notably less time as compared to manual coding application development. Thus, to enhance the productivity and optimal utilization of resources, IT companies are adopting low-code development platforms to scale up their application development capacity.

Geographical Outlook

North America Held the Largest Share in the Market

During the historical period (2014–2019), North America accounted for the largest share in the low-code development platform market, globally. This is due to the early adoption of new technologies, large IT spending, high disposable income, and technically inclined population in the region. Further, presence of a large number of low-code development platform providers and growing smartphone penetration are also supporting the growth of the market in the region. With increasing smartphone penetration, people are heavily using mobile applications for various purposes, such as online purchasing, banking, social media interactions, online gaming, and messaging. This digital inclination is directly fueling the growth of the mobile application market, which is further increasing the demand for low-code development platforms.

Asia-Pacific (APAC) is Expected to Be the Fastest-Growing Regional Market

The low-code development market is projected to attain the fastest growth in the APAC region during the forecast period. This is due to the rising internet penetration, increasing smartphone penetration, rapid economic growth in major countries, and growing IT service industry in the region. Rising disposable income in several developing countries is substantially increasing the demand for mobile devices, which, in turn, further fuels the growth of the low-code development platform market. Furthermore, APAC countries are the most preferred destination for IT outsourcing. Owing to this, IT companies receive large-scale requests for application development, which further boosts the advance of the market.

Due to the widespread impact of COVID-19, several organizations are focusing on cost cutting to sustain their businesses. Owing to this, a large number of companies are adopting low-code development platform to reduce the operation costs. As it is also for citizen developers, companies are not required to hire software developer or outsource their work, which may save their expenditure up to some extent. Thus, the increasing focus on reduction of operational costs in the wake of the pandemic is positively shaping the low-code development platform market outlook across all regions.

Trends & Drivers

Increasing Preferences toward Cloud-Based Low-Code Development Platform Is the Key Market Trend

Cloud-based systems have much lower operational costs as compared to the on-premises set-up. This is primarily due to the fact that cloud-based systems do not require on-site data servers, which otherwise is a huge operational expenditure (OPEX) for organizations. Moreover, with cloud-based low-code development platform, feature updates are pushed automatically, which ensures that it is running on the latest software version. Further, the scalability of cloud-based low-code platform is limitless. Cloud deployment enables an organization to simply scale up, or scale down when needed, without any additional purchases of hardware by themselves. Such factors are leading to the rising trend of the adoption of cloud-based low-code platforms.

Increasing Demand for Business Digitization Is Highly Impacting the Market Growth

With the digital transformation, companies operating in banking, financial services, and insurance (BFSI); manufacturing; automotive; oil & gas; and several other verticals are forced to adopt digital technologies in order to stay ahead in the market. Low-code development platform plays a critical role in the digital transformation journey of an organization, where it helps reduce time and resources, as compared to traditional software development process. With increase in demand for business applications across industries, the platform is expected to play a pivotal role in enabling quick digitization of business processes, such as sales, accounting and finance, and operations. Thus, the rising focus on digitization results increased growth of the low-code development platform market, globally.

Less Dependency on IT Professionals Moderately Impacting the Market Growth

Application development backlog is the biggest obstacle faced by the IT department across industries. Various business departments, such as human resource (HR), operations, and accounting and finance, require different applications to improve process efficiency; however, delay in applications’ delivery affects the overall productivity. To reduce the workload from the IT department, organizations have started to adopt low-code solutions. These solutions help citizen developers (non-professional developers) to develop business applications, reduce the overall cost, and minimize the workload for the IT professionals, which, in turn, drives the growth of the low-code development platform market.

Stringent Government Norms Moderately Impacting the Market

With the growing number of data breaches, the European Union has introduced General Data Protection Regulation (GDPR) Act, which defines how organizations are permitted to use the personal data. Therefore, organizations need to comply by such strict regulatory norms before processing personal data, which complicates the application development process. However, with low-code development platform, organizations are able to develop business applications in compliance with governments’ rules and regulations. Therefore, stringent government regulatory norms are driving the growth of the market, globally.

Competitive Landscape

Market Players Launching New Products to Gain Competitive Edge

The low-code development platform market is fragmented and competitive in nature, with the presence of a large number of players. Some of the key players that hold significant market share are Oracle Corporation, Salesforce.com Inc., Appian Corporation, Siemens AG, and Outsystems Inc.

In recent years, players in the low-code development platform market have launched a number of products to stay ahead of their competitors. For instance:

• In October 2019, Genesis Global Technology Limited announced the launch of the genesis platform, a low-code development platform designed specifically for capital markets. The platform enables the delivery of robust, secure products and solutions at high speed by radically reducing the amount of coding needed. The platform itself is available as platform as a service (PaaS), resulting by default cloud deployment of solutions.
• In April 2019, Siemens AG integrated Mendix Inc.’s Mendix low-code solution in its internet of things (IoT) platform MindSphere. MindSphere is a cloud-based IoT operating system that helps developers to build, test, and deliver IoT-based applications. Further, this is expected to boost company’s investment in connected sensor technology.

Some of the key players covered in the low-code development platform market report are mentioned here:

Low-Code Development Platform Market Size Breakdown by Segment

The low-code development platform market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Offering

• Solution
  • General purpose
  • Process app
  • Database app
  • Mobile-first app
  • Request handling
• Service
  • Professional
  • Managed

Based on Deployment Type

• Cloud
• On-Premises

Based on Enterprise

• Large Enterprises
• Small & Medium Enterprises (SME)

Based on Vertical

• Information Technology (IT)
• Banking, Financial Services, and Insurance (BFSI)
• Retail
• Healthcare
• Government
• Manufacturing
• Media and Entertainment
• Education
• Energy and Utilities

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • Japan
  • South Korea
  • India
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Turkey
  • Saudi Arabia
  • U.A.E.
  • South Africa