The surge in demand for business digitization, less dependency on information technology (IT) professionals, stringent government norms, automation of workflows, and usage of low-code development tools to minimize the problem of “shadow IT” are the major growth drivers for the global low-code development platform market. Due to the aforementioned factors, the industry is projected to generate $190,792.6 million revenue in 2030, advancing at a CAGR of 31.3% during 2020–2030.
With the trend of work from home (WFH) & work from anywhere (WFA) and the paradigm shift in buying patterns, wherein customers are using online platforms, the IT teams of companies have been on their toes in catching up with not only customers’ demands but also competing with their competitors in keeping up with application development, security, and other services. Amidst remote software development during the COVID-19 pandemic, there has been an increased demand for low-code programming tools. Thus, the increased demand for such tools boosts the market for low-code development platforms.
The low-code development platform market is categorized into solution and service, based on offering. Of these, the service category is expected to witness faster growth during the forecast period. This can be mainly due to the increasing demand for integration and implementation services, as these services help in improving business productivity and acceleration of coding activities. In addition, the services help in the automation of workflow, which further promotes the mechanization of complex tasks.
Moreover, the market for low-code development platform is categorized into BFSI, government, healthcare, education, media and entertainment, retail, energy and utilities, manufacturing, IT, and others, based on vertical. Among these, the IT category held the largest market share in 2020. The category is also expected to witness significant growth, during the forecast period, owing to the early adoption of new technologies in the IT vertical. Moreover, IT companies develop a large number of mobile and web applications and other third-party solutions. Thus, to enhance the productivity and optimal utilization of resources, these companies are adopting low-code development platforms to scale-up their application development capacity.
Geographically, North American region held the largest share of the low-code development platform market, in 2020, and is expected to maintain its position in the forecast period as well. This is mainly attributed to the developed IT infrastructure, high investment, penetration of 5G technology, and high fintech adaption rate in the region. Whereas, the Asia-Pacific region is expected to witness the fastest growth rate during the forecast period. This is mainly due to the increasing IT infrastructure investment and rising fintech adaption rate in the region.
Players in the global low-code development platform industry are frequently involved in partnerships and product launches to gain a significant position in the market. For instance, in May 2021, Appian Corporation released Appian low-code automation platform, which provides a revolutionary code-free method for integrating business data. The new version of Appian pushes the frontiers of the low-code sector. This platform is an improved AI-driven intelligent document processing (IDP), with developer collaboration tools and expanded DevSecOps capabilities.
Similarly, in January 2020, Celonis, a provider of AI-enhanced process mining and process excellence software, and Appian Corporation announced a technical collaboration and integration initiatives to combine Appian's low-code automation platform with Celonis Intelligent Business Cloud's strong process mining technology. For joint customers, the alliance would expedite digital business process transformation and ongoing process improvement.
Major players operating in the low-code development platform market include 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., and Temenos Headquarters SA.
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