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 - Global Industry Analysis, Trends and Growth Forecast to 2030

Market Overview

The global low-code development platform market was valued at $12,500.6 million in 2020, and it is expected to grow at a CAGR of 31.3% during 2020–2030. The key factors responsible for the growth of the market include the increase in demand for business digitization, less dependency on IT professionals, stringent government norms, rise in need for automation of workflows, and increased use of low-code development tools that minimizes the problem of “shadow IT”.

The economic consequences of the COVID-19 pandemic have validated the low-code value proposition. Low-code capabilities support remote work functions, such as digital forms and workflow automation, during the work from home (WFH) and work from anywhere (WHA) situations that arise during the pandemic. In addition, a surge in remote software development and increase in demand for custom software in support of digital transformation have sparked the emergence of citizen developers outside of IT, which, in turn, has influenced the growth of the market for low-code development platforms.

Low-Code Development Solutions and Cloud-Based Deployment Type Dominated the Market

The solution category held a larger share of the low-code development platform market in 2020, based on offering. This is majorly attributed to the increasing adoption of low-code development platforms across all verticals to reduce IT expenditure and rapidly rising digitization. For instance, Ernst & Young Global Limited stated that COVID-19 has sped up digitization for the banking sector, and further, it has been observed that there is a 72% rise in the use of fintech apps in Europe. In addition, the pandemic accelerated digital transformation in almost every sector, including manufacturing, healthcare, and banking and financial services.

The cloud category accounted for a higher share of the low-code development platform market in 2020, based on deployment type. This is because a majority of market players are offering low-code development platforms over the cloud. In addition, this type of deployment offers increased scalability, 24/7 service, high speed, and enhanced management capabilities for application development.

Small and Medium Enterprises (SMEs) and Banking, Financial Services and Information (BFSI) Sector to Witness High Growth Rate

The SMEs category is projected to register faster growth during the forecast period, based on enterprise. This can be attributed to the inclination of SMEs toward cloud-based low-code development platforms to minimize resource and cost barrier for application development. Some of the best low-code development platforms for SMEs are UiPATH robotic process automation (RPA), ClarisFileMaker, OutSystems, Retool, IAR Embedded Workbench, Spring Boot, Oracle Application Express, VINYL, Pipefy, and Ninox Database.

The BFSI category is expected to grow at the highest growth rate in the market for low-code development platform, during the forecast period, based on vertical. This can be mainly attributed to the fact that low-code platforms simplify the development process and help create flexible banking and insurance applications. Also, several BFSI organizations from different countries are adopting these platforms to manage their documents easily. Moreover, in April 2021, FintechOS raised funding of around $61 million to build a low-code platform for larger (older) banking and insurance companies to help them build new services and analytics for their existing infrastructure.

Asia-Pacific (APAC) Market To Witness Fastest Growth in the Coming Years

Geographically, North America generated the largest revenue in 2020 in the low-code development platform market, owing to the increasing mobile application usage as well as the presence of a large number of IT companies in the region.

On the other hand, the APAC market is expected to witness the fastest growth during the forecast period. This can be ascribed to the rising internet penetration, increasing smartphone penetration, surging economic growth in developing countries, and growing IT service industry in the region. Rising disposal income in several developing countries is substantially increasing the demand for mobile devices, which, in turn, fuels the demand for low-code development platforms. 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 low-code development platform market growth.

Need for Optimum Time to Market (TTM) strategy Is a Key Market Trend

Companies are constantly working on achieving more efficiency with limited resources in the present scenario, leading to the growing sales of the market for low-code development platform. It arises a major need for the effective TTM strategy to keep users engaged with new applications and features. Digital transformation across the BFSI, healthcare, education, retail, and other verticals has enhanced the functioning of respective organizations, provided high satisfaction to customers, and helped maintain data in an organized manner.

Moreover, the surge in remote development during the COVID-19 pandemic is boosting the low-code development platform market growth, despite ongoing cost optimization efforts. Low-code as a general social and technological movement is expected to continue growing significantly. For example, low-code application platforms (LCAP) are expected to remain the largest component of the low-code development technology market through 2022, increasing nearly 30% from 2020 to reach $5.8 billion in 2021. Thus, companies are leveraging the platform to optimally strategize TTM for new product/service launches.

Demand for Business Digitization and Automation of Workflows Are Driving the Market Growth

According to the World Economic Forum, industries, primarily led by BFSI, manufacturing, and retail, across the globe, allocated around $1.7 trillion for digital transformation in 2020, with a Y-o-Y increase of 23%, which is further projected to reach $2.4 trillion by 2022. With the increase in demand for business applications across industries, the platform is playing a pivotal role in enabling quick digitization of business processes, such as sales, accounting and finance, and operations. Thus, the low-code development platform is expected to accelerate the digital transformation of the industries in the coming years, which, in turn, will drive the low-code development platform market growth.

The concept of automation of workflows with the help of low-code automation systems is gaining traction in every industry. Companies with the lowest tolerance for downtime and data loss, as well as the greatest need for regular audits and independent security certification, are more likely to run top apps based on low code. Also, these platforms make things simpler than before to construct customizable apps that achieve specific objectives, whether for business users to design their apps or for programmers to expedite the development cycle by automating manual tasks.

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Market Players Involved in Partnerships and Product Launches to Gain Significant Position

The low-code development platform industry is highly consolidated in nature, due to the rapid development in digital technologies, such as artificial intelligence (AI), machine learning, and predictive analytics, and digital transformation of industries, which have increased market competition. In recent years, players in the market have been involved in partnerships and product launches in order to attain a significant position. For instance:

• In March 2020, Deloitte Consulting LLP and Appian Corporation established a strategic collaboration to help clients in commercial, federal civilian, defense, state, and local government agencies to modernize mission systems, using low-code development and intelligent automation solutions, which include AI, robotic workforce management (RWM), RPA, and other technologies.
• In October 2019, Genesis Global Technology Limited launched the genesis platform, a low-code development platform designed and built 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.

Key Players in Global Low-Code Development Platform Market Are:

• Appian Corporation
• Salesforce.com Inc.
• Alphabet Inc.
• Oracle Corporation
• ServiceNow Inc.
• MatsSoft Limited
• AgilePoint Inc.
• Outsystems Inc.
• Caspio Inc.
• Microsoft Corporation
• Mendix Technology B.V.
• Lansa Inc.
• QuickBase Inc.
• Pegasystems Inc.
• Magic Software Enterprises Ltd.
• Temenos Headquarters SA

Market Size Breakdown by Segments

The global low-code development platform market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Offering

• Solution
  • General purpose
  • Process app
  • Database app
  • Mobile-first app
  • Request handling software
• 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