Low-Code Development Platform Market: Global Overview and Forecast (2022-2029)

Low-Code Development Platform Market size was valued at USD 17.25 Bn. in 2021 and the total Low-Code Development Platform revenue is expected to grow at 27.8% from 2022 to 2029, reaching nearly USD 122.75 Bn.
Low-Code Development Platform Market Overview:
Low-code is a visual development method for application development that utilizes the abstraction principle. Low-code platforms include easy visual builders, ready-to-use code snippets, form and report templates, and built-in connections, allowing for faster application development and extending the potential to innovate to a larger range of individuals.

Through the use of technology and visual aids, complex activities have been gradually simplified. The most recent stage in this progression is the use of low-code and no-code technologies. Through graphical user interfaces and declarative programming, they enable anybody to design application software. LC development platforms offer tools for creating applications or systems, as well as the necessary inputs, outputs, and business logic. LC takes a more visual approach to designing business apps. This enables "citizen developers," such as designers and company owners, to easily construct and test apps without the need for developers.

In recent years, low-code application development platforms have grown in popularity in enterprises and government organizations. The adoption of low-code development platforms is expected to increase as the digitization of different business activities, such as human resources, sales, and operations, increases. Additionally, enterprises' increasing emphasis on digitizing business operations is a significant driver driving the growth of the low-code development platform market. The growing need for software automation and new applications, as well as the demand to simplify online and mobile application development, are important drivers driving the growth of the low-code development platform market.

In addition, the growing digitization of the industry, as well as the rising trend of BYOD (Bring-Your-Own-Device), are boosting demand for the low-code development platform market. The fourth industrial revolution's development, as well as a paradigm change toward digital offices that leverage new technologies, are offering significant growth possibilities for the low-code development platform industry.To know about the Research Methodology :- Request Free Sample Report
Low-Code Development Platform Market Dynamics:
Increased Digitalization across organizations around the world

The rising emphasis on improving company operations increases digitalization across organizations globally. All businesses, regardless of industry, are providing digital tools to their workers, employees, and staff. Businesses use technology innovation to provide better services and boost revenue through simpler labor procedures. According to Dell's Digital Transformation Index, in 2020, 8 out of 10 enterprises have advanced their digital transformation.

Nevertheless, to shift to online platforms, businesses and their employees must have extensive technological knowledge. According to the survey, up to 61% of stakeholders claimed that they only adopt 50% of the IT solutions presented. However, qualified individuals with proper knowledge and expertise are difficult to locate and keep. Bitkom, for example, had 55,000 open posts in 2021 due to a lack of IT specialty among candidates. Low-code development platforms have emerged as critical tools for digital transformation. It lowers resource expenses by delegating greater power to the development team. As a result, platform growth is projected to be fueled by the increased need to address the urgent business model requirements of digital transformation.

Enhancement of operational efficiency

Automation of manual and paper-based procedures to improve accuracy and quality while lowering expenses. Low Code (LC) platforms make it simple to develop information-capture applications and feature ready-made connections for linking applications into core systems. Workflow automation is included in the majority of LC systems. Workflow tools enable those who are closest to the company, such as business analysts, to create the procedures and basic touchpoints required for routine customer and employee actions. Thus organizations attract to it and the rising demand for LC organizations drives the market growth.

The tools provide simple graphical user interfaces for modeling processes, and some have APIs and pre-built connectors for a broader range of use cases, ensuring that workflows are completely connected with in-house and third-party systems. However, they can only give part of the answer and have limited power to change the user experience; hence, more work may be required for full automation and interaction with other systems.

Low Code offers smart stitching

The availability of open APIs and microservices, as well as innovations in function-as-a-service (FaaS) and serverless applications, demonstrate how next-generation systems are shifting toward collections of linked services. Organizations frequently wind up acquiring large suites of tools and systems (bespoke and off the shelf) from several suppliers over time. This is typically the case for global firms that have developed and diversified by acquiring other companies and establishing operations in new areas fast by creating applications without considering global IT growth strategy.

LC systems enable the quick development of precise, domain-specific applications that may be "stitched" together with existing programs via connectors or by creating intermediary layers to produce end-to-end products. Businesses rapidly utilize LC tools as tactical solutions to combine various components to "keep the lights on" while determining whether or not to replace possible burning platforms in the long run and driving market growth.

Inadequate Software Integration and Customization Capabilities

Low-code technology has several advantages that contribute to industry growth. However, the platform is missing several factors that are expected to restrict the market growth. One of the market's concerns is that not all low-code-based tools and platforms interface with every program. As a result, the developer and designer must account for the restricted integration capability when creating the product to avoid future problems.

Similarly, one of the platform's major limitations is its lack of flexibility and freedom. Only a few providers provide the possibility of bespoke applications geared to business models. As a result, limited options for customizing applications and interaction with modern software hamper Low-Code Development Platform Market growth.
Low-Code Development Platform Market Segment Analysis:
By Industry, the BFSI segment held the largest revenue share of over 30% in 2021 owing to the increasing need to digitize financial services such as origination, onboarding of the client, self-servicing, back office operations, etc. They are becoming more interested in low-code development platforms to improve user experiences, minimize operational costs, promote company agility, and shorten time to market.

The various generations of technological breakthroughs have profoundly altered the way financial service (FS) organizations create value for their customers, workers, and other stakeholders. The constant need to innovate, keep up with regulatory obligations, and solve issues faster than ever before is driving up demand for apps and software solutions. Minimal-code platforms are increasingly being used by financial services businesses for speedy application development at a low cost.

Rising client demand for innovative digital products and services in the banking, financial services, and insurance (BFSI) business necessitates a more rapid application development process to enable frequent upgrades and a short time-to-market for new offers. Banks require a modern, simple, and secure application development technique that makes use of widely accessible frameworks, reusable code, and components.

Low-code and no-code platforms fulfill this demand by enabling support for safer, reusable, and tested components while lowering service and application development costs. They can also assist banks and insurers in rapidly introducing new business functions. Due to this low-code platforms are gaining traction with developers, business, and leadership teams, and they are used to achieve effective digital transformation in BFSI organizations.

To satisfy shifting client needs, BFSI enterprises are under pressure to speed up the delivery of new goods and services and enhance existing offerings. Additionally, increasing company agility is crucial for responding rapidly to market movements while decreasing maintenance efforts is critical for business continuity. Meeting these expectations necessitates the use of a quick application development platform. Banks and insurance companies, on the other hand, use outdated platforms with high technical debt, making quick application development or upgrades difficult. Low-code platforms, which provide well-defined integration patterns and technological tools suited for legacy systems, can assist overcome these limits. Additionally, these platforms are suitable for rapidly building and delivering applications that undergo regular modifications, such as those seen in the BFSI business.

Over the years, the software development process has evolved and grown. While development methodologies have shifted from waterfall to agile, code development has embraced open source and reusable application programming interfaces (APIs), as well as improved DevOps tooling, resulting in cloud-ready code. However, as the usage of digital and mobile platforms grows, and customers want quicker digital services with better user interfaces, BFSI enterprises must adopt newer languages and implementation methodologies, as well as become acquainted with new hosting environments. Likewise, banks and insurers must adapt to numerous integrated development environments and technologies to implement time-consuming application development techniques. Low-code platforms assist to construct adaptable banking and insurance apps by simplifying the development process.

The software development process has changed numerous times and matured over the years. While development methodologies have shifted from waterfall to agile, code development has embraced open source and reusable application programming interfaces (APIs), as well as improved DevOps tooling, resulting in cloud-ready code. However, as the usage of digital and mobile platforms grows, and customers want quicker digital services with better user interfaces, BFSI enterprises must adopt newer languages and implementation methodologies, as well as become acquainted with new hosting environments. Likewise, banks and insurers must adapt to numerous integrated development environments and technologies to implement time-consuming application development techniques. Low-code platforms assist to construct adaptable banking and insurance apps by simplifying the development process.
Low-Code Development Platform Market Regional Insights:
North America dominated the Low-Code Development Platform market with the highest market share of about 35% in 2021 and is expected to maintain its dominance at the end of the forecast period. The substantial presence of several prominent regional organizations that are primarily focused on the creation of innovative products and services driving the market growth. The US and Canada both have strong economic conditions and are expected to be major contributors to the growth of the low-code development platform market. The geographical presence, significant Research and Development (R&D) activities, partnerships, acquisitions, and mergers are the major factors for the deployment of low-code development platforms and services.

Claris International Inc., a subsidiary of Apple Inc., for example, announced Claris Connect, a low-code automation platform meant to assist SMEs in addressing real-world difficulties, in March 2020. This new solution includes roughly 50 integrations for major workplace platforms such as Slack, Box, and Trello. It also has conditional logic, code blocks, approvals, and custom connections.

Likewise, ServiceNow launched its "Now" low-code development platform in Quebec, Canada, with new low-code app development tools and expanded native AI capabilities. Customers will be able to swiftly reinvent their goods and services, enhance productivity, and realize a speedy time to value using the new platform. Adobe, Nike, Deutsche Telekom, Logitech, St. Jude Children's Research Hospital, Medtronic, and other large corporations have selected the Now Platform to speed their digital transformationThe Asia Pacific low code market is expected to grow at a significant CAGR during the forecast period. According to the 2020 Asia Pacific Software Survey, more than half of the region's top executives are confident in deploying the low code platform among their enterprises. IT developers in China are being pushed to use low-code platforms for an effective workflow process. According to the MMR Survey, 9% of IT professionals approve of the platform. Because of the current Atmanirbhar Bharat program, India is expected to grow significantly.

Europe is expected to grow as a result of the increased emphasis on BFSI, retail, healthcare, and education for efficient application development. The United Kingdom and Germany are expected to show potential opportunities for companies to develop in the region. The impact of Brexit and the Covid outbreak in the United Kingdom are critical considerations for market growth.

South America and the Middle East & Africa are slowly shifting toward automated platforms for application building with the rise in digitalization across businesses. Brazil earns the most market share and growth due to a scarcity of skilled employees. The platform is expected to benefit the country's economy by lowering operational and maintenance costs. Similarly, in the GCC, South Africa, and Turkey, internet growth, advanced technological readiness, and digitalization drive platform adoption.
Low-Code Development Platform Market Scope: Inquire before buying



Low-Code Development Platform Market


Base Year
2021
Forecast Period
2022-2029


Historical Data
CAGR
Market Size in 2021
Market Size in 2029


2017 to 2021
27.8%
US$ 17.25 Bn
US$ 122.75 Bn


Segments Covered


by Component
• Solution
• Services
by Deployment Mode
• On-Premises
• Cloud
by Application Type
• Web-Based
• Mobile-Based
by Organization Size
• Small And Medium-Sized Enterprises (SMEs)
• Large Enterprises
by Industry
• Banking, Financial Services, And Insurance (BFSI)
• Telecom And IT
• Government
• Energy And Utilities
• Manufacturing
• Healthcare And Life Sciences
• Retail And Ecommerce
• Media And Entertainment
• Education
• Others (Travel And Tourism, And Transportation And Logistics)


Regions Covered


North America
• United States
• Canada
• Mexico
Europe
• UK
• France
• Germany
• Italy
• Spain
• Sweden
• Austria
• Rest of Europe
Asia Pacific
• China
• S Korea
• Japan
• India
• Australia
• Indonesia
• Malaysia
• Vietnam
• Taiwan
• Bangladesh
• Pakistan
• Rest of APAC
Middle East and Africa
• South Africa
• GCC
• Egypt
• Nigeria
• Rest of ME&A
South America
• Brazil
• Argentina
• Rest of South America



Low-Code Development Platform Market Key Players are:
• Caspio (US)
• OutSystems (US)
• Appian (US)
• Salesforce (US)
• Quickbase, Inc. (US)
• LANSA INC (US)
• ServiceNow (US)
• AgilePoint, Inc. (US)
• Bizagi (US)
• Microsoft Corporation (US)
• Oracle Corporation (US)
• Pegasystems Inc (US)
• KissFlow (US)
• Blazedpath (US)
• Mendix Technology BV (Netherlands)
• Appsemble BV. (Netherlands)
• Novulo (Netherlands)
• Smart Shaped SRL (Italy)
• Aurachain (Romania)
• ClickPaas (China)
• eNextCloud (India)
• Zoho Corporation (India)
• Magic Software Enterprises Ltd (Israel)

FAQs:

1. Which is the potential market for the Low-Code Development Platform in terms of the region?
Ans. North America is the potential market for the Low-Code Development Platform in terms of the region.

2. What are the restraints for new market entrants?
Ans. The key restrain in the market is Inadequate Software Integration and Customization Capabilities

3. What is expected to drive the growth of the Low-Code Development Platform market in the forecast period?
Ans. A major driver in the Low-Code Development Platform market is the Increased Digitalization across organizations around the world.

4. What is the projected market size & growth rate of the Low-Code Development Platform Market?
Ans. Low-Code Development Platform Market size was valued at USD 17.25 Bn. in 2021 and the total Low-Code Development Platform revenue is expected to grow at 27.8% from 2022 to 2029, reaching nearly USD 122.75 Bn.

5. What segments are covered in the Low-Code Development Platform Market report?
Ans. The segments covered are Component, Deployment Mode, Organization Size, Application Type, Industry, and Region.