Low-Code Development Platform Market - Forecast(2024 - 2030)

Low-Code Development Platform Market Overview

The Low-Code Development Platform Market size is estimated to reach $34.5 billion by 2027, growing at a CAGR of 20.4% during the forecast period 2022-2027 owing to the factors such as growing demands to reduce application development costs, increased use of database applications, growth of unemployed developers outside IT and so on. The democratization of the application development market and the growth of shadow IT are some of the significant consequences of using Low-Code Development Platforms. These platforms abstract and automate the application development lifecycle, enabling independent developers to create a diverse set of solutions for processing applications like application software and so on, without incurring significant costs, driving rapid application building. Additionally, increasing application of SaaS and hyper-automated technologies, rising demand for personalized applications, the emergence of young independent programmers and many others are analyzed to influence the growth of the Low-Code Development Platform industry in the coming years.

Low-Code Development Platform Market Report Coverage

The “Low-Code Development Platform Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Low-Code Development Platform Market.

By Type: Solution, Services (Professional Services, Managed Services).
By Deployment Model: On-premise and Cloud.
By Organization Size: Small and Medium-Sized Enterprises (SMEs) and Large Enterprises.
By Application: Web-based, Mobile-based and Server-based.
By End-User: Healthcare, IT & Telecommunication, BFSI (Banking, financial services and insurance), Retail & E-commerce, Government & Defense, Energy & Utilities, Manufacturing, Media & Entertainment, Transportation & Logistics and Others.
By Geography: North America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Others), APAC (China, Japan India, South Korea, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa).

Key Takeaways

• Based on deployment mode, the on-premise segment dominated the Low-Code Development Platform Market size in 2021, attributed to the increasing trend for rapid application building, along with limited adoption of cloud platforms.
• Low-Code Development Platform for IT& Telecommunication industry is expected to grow at the highest rate during the forecast period 2022-2027, attributed to soaring demand for business digitization, increasing demand for rapid application development for mobile & web services and so on.
• APAC region is analyzed to grow at the highest rate in the Low-Code Development Platform Market during the forecast period 2022-2027, owing to the factors such as increasing adoption of mobile applications leading to the demand for rapid application development, the rapid growth of the service sector in the region and so on.
• Rising demands to improve the application development process & increased efficiency alongside increasing adoption of SaaS & hyper-automation technologies are analyzed to significantly drive the market growth of Low-Code Development Platform during the forecast period 2022-2027.

Low-Code Development Platform Market Value Share, by Region, 2021 (%)

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Low-Code Development Platform Market Segment Analysis - by Deployment Model

Low-Code development platform with on-premise deployment held the largest share of 54% in 2021 and is analyzed to witness significant growth during the forecast period 2022-2027. Factors such as lack of knowledge about cloud deployment and the increasing trend toward rapid application development have been driving the growth of the Low-Code Development Platform industry. Since on-premise deployment allows for rapid development & deployment of back-end applications such as APIs, with access to a familiar implementation style, they have faced wider adaptability. Moreover, cloud deployment includes security concerns, with high implementation costs with respect to data size, which in turn drives the popularity of on-premise models. In May 2021, Appian Corporation introduced an innovative low-code automation platform to provide data & a code-free approach to information systems. The new version includes AI-powered intelligent document processing capability for developers, which is set to elevate the Low-Code Development Platform Market size over time.

Low-Code Development Platform Market Segment Analysis - by End-user

Low-Code Development Platform for the IT & Telecommunication industry is expected to grow at the fastest rate with a CAGR of 21.5% between 2022 and 2027. This is attributed to factors like soaring demand for business digitization, increasing demand for rapid application development for mobile & web services and so on. Since low-code business support systems can simplify integration & customization, and enable faster delivery of application software, while boosting innovation, they have been facing wider acceptance in the low-code development industry. By deploying Low-Code Development Platforms, telecom operators can create unique products and services while accelerating new product launches. It enables the industry to adapt itself to market requirements as well as maintain a competitive advantage. According to a report published by International Data Corporation in March 2021, 40% of low-code developers work full-time, while 33% work part-time. Hence, developers are no longer being defined by their coding skills, but rather by their ability to create digital solutions. In March 2020, Claris International Inc., launched Claris Connect, a low-code automation platform designed to assist SMEs in addressing real-world challenges. It includes nearly 50 connectors for popular enterprise applications like Slack, Box and Trello. It provides features such as conditional logic, code blocks, approvals and custom connectors. Such factors can further contribute to accelerating the market growth of Low-Code Development Platform within the IT& Telecommunication industry in the coming time.

Low-Code Development Platform Market Segment Analysis - by Geography

Low-Code Development Platform Market in the Asia-Pacific region is analyzed to grow at the fastest rate, with a CAGR of 24% during the forecast period 2022-2027, owing to the increasing adoption of mobile applications leading to the demand for rapid application building, In addition, the rapid growth of the service sector within the region, increasing utilization of smart devices and so on have further been catering to its market demands. Moreover, the presence of many small and medium-sized enterprises with limited resources coupled with a mobile-first initiative by the government and the rising utilization of database applications across enterprises is boosting the demand for Low-Code Development Platforms in the region. In November 2021, Esri India launched ArcGIS Platform-as-a-Service (PaaS) enabling low-code development features. This development was meant to provide start-ups with easy access to the most comprehensive, high-quality set of location services, data and mapping tools to boost innovation. Such factors are set to transform the Low-Code Development Platform industry outlook within the Asia-Pacific region.

Low-Code Development Platform Market Drivers

Rising Demands for the Improvement in the Application Development Process is Driving the Growth of Low-Code Development Platforms:

Increasing demand for fast application development processes and higher efficiency is driving the growth of Low-Code Development Platforms. Low code development platforms enable rapid assembly of new applications, eliminate the need to write long codes, inbuilt libraries with 1000 readily available codes to assist developers in building applications without extensive research, and so on. The use of a Low-Code Development Platform reduces the need for developers, speeds up prototype development, increases the possibility of testing and improving solutions irrespective of developer involvement; and allows businesses to be more agile and adaptable to changing market needs. According to the Mendix report published in 2021, about 64% of IT professionals have agreed on low-code turning into their go-to work-around development solution. With faster project development under low costs, low-code solutions have eventually emerged as a major factor in handling business operations. In June 2022, Kissflow launched a unified low-code/no-code platform to assist enterprises in accelerating their digital transformation. The platform will unify the entire spectrum of work management for users ranging from end-users to teams, team managers, process experts, citizen developers and IT developers. Such factors are set to propel the market growth of Low-Code Development Platforms in the long run.

Increasing Adoption of SaaS & Hyper-automation Technologies is Propelling the Demand for Low-Code Development Platforms:

The growing use of SaaS and hyper-automation technologies is driving the market for Low-Code Development Platforms. Enterprise innovators have been developing and implementing solutions to automate software products and self-processed application-building tools. Since these platforms provide them access to platforms-based services with the ability to scale up the development process whenever required, its facing wider adoption. To develop a SaaS application, it is important to have a prior experience with software or web development and hiring a software engineer can incur high expenses. In such cases, Low-Code Development Platforms become an ideal alternative for serving related use cases. Low-code development platforms eliminate the need for traditional hand-coding, enabling faster delivery of application software. It allows a broader range of people within an organization to contribute to the development of the application. According to the CardConnect report, approximately 15,529 companies were operating in the global SaaS market in 2020. In June 2021, Salesforce Inc. and Amazon Web Services collaborated to launch the implementation of an advanced business application that will accelerate digital transformation and growth in SaaS cloud services. Such factors are set to transform the Low-Code Development Platform industry outlook in the coming time.

Low-Code Development Platform Market Challenges

Limited Software Integration & Customization provided by Low-Code Development Platforms is Impeding the Market Growth:

Limited software integration and customization capabilities provided by Low-Code Development Platforms are restraining the market growth. The user interface & flow of some low-code solutions might not be compatible with process application domains with diverse customization options varying from one platform to another. Some Low-Code Development Platforms allow limited customization while others may allow access to the entire code. Additionally, vendor lock-in situations & security concerns associated with platform use are impeding the adoption of Low-Code Development Platforms. According to a report published by Laminar Consulting Services in June 2022, custom app development is on the rise as they are more secure and reduce the risk of financial fraud. In reference to the above report, businesses that use custom app development can expect to improve the quality of their services while also adding innovative technological solutions. Due to limited software integration and customization capabilities, these platforms are incapable of building custom-based database applications, which in turn is slowing down their market adoption.

Low-Code Development Platform Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Low-Code Development Platform Market. The top 10 companies in the Low-Code Development Platform Market are:

1. Appian Corporation
2. Oracle Corporation
3. AgilePoint Inc.
4. Microsoft Corporation
5. Zoho Corporation
6. Salesforce Inc.
7. Google LLC
8. Mendix Inc.
9. Outsystems Inc.
10. Caspio Inc.

Recent Developments

• In September 2021, Appian Corporation launched the new version of the Appian Low-Code Automation Platform. The platform provided speed & efficiency in building enterprise applications by enhancing low-code data, complete automation functionality, user interface creation as well as application deployment.
• In April 2021, Zoho Corporation Pvt. Ltd., had partnered with two India-based tech companies namely GoFloaters and Unmetrics, in order to provide a Low-Code Development Platform as a backhand system. The companies used the platform to provide a vaccination booking portal to local governments.
• In January 2021, Oracle launched the APEX Low-Code Development Platform to manage cloud service. With tight integration of the APEX architecture with the database, this development helped in reducing the number of round trips between the application and database, thus resulting in faster response times for users of the respective information apps.

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