Application Platform as a Service Market To Generate Revenue Worth $22,687.3 Million by 2030
- Published: March 2021
The increase in the application of aPaaS (application platform as a service) owing to the rising demand to manage powerful enterprise-level applications is the major driving factor for the growth of the aPaaS market. Due to the aforementioned factors, the market is projected to grow at a CAGR of 14.2% during the forecast period (2021–2030), to reach $22,687.3 million by 2030.
COVID-19 has brought an economic downturn in most of the industries; however, the technology sector has witnessed fast recovery, favored by the increased usage of digital platforms leading to the growing demand for application software. On account of the increasing digitalization rate during the pandemic and the shift from system-based interfaces to application-based interaction in the corporate sector, a surge in the demand for aPaaS solution is expected during the forecast years.
Hybrid Cloud Category Dominated the Market in 2020
Based on deployment mode, the market is categorized into public, hybrid, and private. Amongst these, the hybrid category accounted for the major market share in 2020, and it is expected to dominate the industry throughout the forecast period. This would be due to the high adoption of hybrid cloud and multiple cloud services by enterprises to attain improved productivity and efficiency.
Based on enterprise size, the industry is bifurcated into small and medium enterprises (SMEs) and large enterprises. Of these, the SMEs bifurcation is expected to witness faster growth in the global aPaaS market during the forecast period. This would majorly be due to the high adoption of cloud platforms by SMEs to broaden their internet-based database capabilities at a reduced cost.
Geographically, the North American region held the largest share in the market in 2020. Asia Pacific is catching up pace and is expected to evolve as the fastest growing regional market during the forecast period. This is attributed to the increasing spending on cloud services by enterprise, growing IT spending by SMEs in the region and government assistance in wider adoption of digital technologies.
Industry Players Are Involved in Mergers, Acquisitions and Product Launches
The global aPaaS industry is mature, and the players are actively involved in mergers and acquisitions as a means to grow their business. For instance, Mastek Limited announced the acquisition of Evolutionary Systems Private Limited (Evosys or ESPL) in February 2020. The acquisition was intended at the technological advancement and gaining the expertise to further improve its offerings in the areas of application development, business intelligence, and analytics.
In September 2018, Alibaba Group Holding Limited partnered with SAP SE to offer the SAP S/4HANA Cloud and SAP Cloud Platform on Alibaba Cloud's infrastructure as a service (IaaS) in China. This is helping customers change to the cloud and build intelligent enterprises.
Some of the key players operating in the market are 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.