Published: November 2021 | Report Code: IM11418 | Available Format: PDF | Pages: 252
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.
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.
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.
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.
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.
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.
|Base Year (2020) Market Size||$12,500.6 Million|
|Market Size Forecast in 2030||$190,792.6 Million|
|Forecast Period CAGR||31.3%|
|Report Coverage||Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Country Breakdown; Impact of COVID-19; Companies’ Strategic Developments; Company Profiling|
|Market Size by Segments||By Offering; By Deployment Type; By Enterprise; By Vertical; By Region|
|Market Size of Geographies||U.S.; Canada; Germany; France; U.K.; Italy; Spain; China; Japan; India; South Korea; Brazil; Mexico; U.A.E.; South Africa; Turkey; Saudi Arabia|
|Secondary Sources and References (Partial List)||Alliance for American Manufacturing; Association for Computing Machinery; Canadian Healthcare Licensing Association; Cellular Telecommunications Industry Association; Confederation of Indian IT Associations; European Commission; Healthcare Financial Management Association; Interactive Multimedia and Collaborative Communications Alliance; International Energy Agency; International Finance Corporation; International Monetary Fund; International Telecommunication Union; National Association of Software and Services Companies|
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:
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
Based on Deployment Type
Based on Enterprise
Based on Vertical
In 2030, the value of the low-code development platform market will be $190,792.6 million.
Solution is the larger category under the offering segment of the low-code development platform industry.
The major low-code development platform market drivers are the increase in demand for business digitization, less dependency on IT professionals, stringent government norms, automation of workflows, and usage of low-code development tools to minimize the problem of “shadow IT”.
North America is the largest and APAC is the fastest-growing low-code development platform market.
Most low-code development platform market players are adopting partnerships and product launches strategies to sustain their business growth.
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