Published: December 2022 | Report Code: 11418 | Available Format: PDF
The global low-code development platform market is estimated to generate $19,301.5 million in 2022, and it is expected to advance at a compound annual growth rate of 33.2% during 2022–2030, to reach $190,898.4 million by 2030.
The market is majorly propelled by the rising rate of digitalization and need to build applications quickly. Other factors contributing in this regard are the cost-effectiveness, time-saving, and higher productivity offered by these platforms.
Low-code development platforms also benefit artificial intelligence development, by cutting the costs of development and allowing the AI software to be created in less time, from pre-defined components. This platform is based on visual programming and a graphical user interface, to allow programmers to design applications more quickly compared to hard-coded programming methods. It focuses on the innovation of new applications and accelerates digital transformation.
In 2022, based on offering, the solution category is estimated to hold larger share, over 60%, due to the surging adoption of these platforms in different verticals to reduce the long-term expenses on operations. This it does by reducing and, in some cases, completely eliminating the need to hire skilled developers. Through these solutions, the digital transformation of organizations became easy and cost-effective. Various features, such as pre-built templates and drop-and-drag options, provide the ability to build apps instantly.
Cloud is how most low-code development platforms are deployed, as it offers real-time access to observe and monitor apps and services. Cloud-based deployment provides various other advantages, such as high speed, 24/7 service, administrative capabilities, and higher scalability. Enterprises are mostly using the cloud to ease monitoring and management. Some of the popular cloud-based low-code development platforms are App Maker on Google Cloud and Mendix on IBM Cloud.
Small and medium-sized enterprises are set to show the faster growth in the coming years due to their rising focus on having a digital presence with mobile and computer applications. This platform enables even non-skilled professionals to develop applications on their own, at a low cost and in quick time. Moreover, solutions available via the cloud are usually subscription-based, so users only need to pay for what they use.
The IT category is estimated to hold the largest share, around 65%, in 2022, due to the rapid adoption of new technologies. Software companies develop a large number of web, desktop, and mobile apps and third-party solutions. Thus, to enhance the productivity and ensure the optimal utilization of resources, these companies are adopting low-code development platforms to scale up their application development capacity.
The BFSI sector is expected to register the fastest growth over the forecast period. It is attributed to the process simplicity and the growing requirement to digitize various processes, including back-office operations, origination, self-service, and client onboarding. Hence, Citi Bank, Bank of America, and BNY Mellon invested $20 million in a low-code platform, named Genesis, in July 2022.
North America has the leading position in the low-code development platform market, and it will hold the same position till 2030, with a value of around $70 billion.
This is attributed to the fast adoption of digital technologies and existence of various key players in the region. Furthermore, the increasing focus on strengthening the IT infrastructure is driving the requirement for mobile and computer apps and other kinds of software.
In North America, the U.S. generates the higher revenue, which will grow with a CAGR of around 30%, due to the high disposable income and rising smartphone penetration in the region. With the increasing smartphone penetration, people in the continent are heavily adopting mobile applications for various purposes, such as online purchasing, social media interactions, banking, messaging, and online gaming. This digital inclination is directly fueling the growth of the mobile application market, which is further increasing the demand for low-code platforms.
Thus, in March 2022, Appian introduced the latest version of its low-code platform, which enables customers to design, discover, and automate various business processes.
The Asia-Pacific region is expected to show significant development because of the increasing internet usage and need of firms for lower operating costs. In addition, the rising disposable income in emerging economies is considerably propelling the sale of mobile devices, which, in turn, fuels the growth of the industry.
The need for a lower dependence on IT professionals for the development of applications is another major factor driving the market. Application development backlog is the biggest obstacle faced by IT departments across industries. Various business departments, such as human resources (HR), operations, and accounting & finance, require different applications to improve business process efficiency; however, delays in application delivery affect the overall productivity. To alleviate the backlogs, organizations are hiring IT professionals to work on development languages, such as Java, .NET, and C#, and leveraging platform-as-a-service (PaaS) stacks, which require a high degree of experience to customize, based on needs. Moreover, hiring skilled IT professionals is often a difficult process and one that increases the operational cost, which is why application backlog remains a major hindrance for organizations.
To reduce the workload on the IT department, organizations have started to adopt low-code solutions. These platforms enable citizen developers (non-professional developers) to create business applications, thereby reducing the overall cost and workload on IT professionals. As businesses are changing from traditional to digital workflows, the burden on IT departments to develop applications is increasing. Therefore, organizations are embracing low-code development platforms to accelerate the process of developing web and mobile applications and save on operational costs.
Market Size in 2022
Revenue Forecast in 2030
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Offering; By Deployment Type; By Enterprise; By Vertical; By Region
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With digital transformation, companies operating in the BFSI, manufacturing, automotive, oil & gas, and several other verticals are rapidly adopting digital technologies in order to stay ahead. According to the World Economic Forum, industries, led by BFSI, manufacturing, and retail, are expected to contribute approximately $100 trillion in additional value to the world economy by 2025.
Low-code development platforms play a critical role in the digital transformation of an organization, helping reduce the time and resources consumed by the traditional software development process. With the increase in the demand for business applications across industries, the platform is playing a pivotal role in enabling the quick digitization of business processes, such as sales, accounting & finance, and operations. Digital transformation has become centered on computer and mobile applications that are useful for users. This inclination is directly fueling the growth of the mobile application market, which is further increasing the demand for low-code development platforms.
The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017–2030.
Based on Offering
Based on Deployment Type
Based on Enterprise
Based on Vertical
The value of the market for low-code development platforms in 2030 will be $190,898.4 million.
Solutions witness the higher demand in the low-code development platform industry.
The market for low-code development platforms is driven by the need to reduce software development costs in an increasingly digitized world.
North America dominates the low-code development platform industry, led by the U.S., while APAC will be among the fastest-growing region.
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