Low-Code Application Development Platform Market Size, Share & Trends Analysis Report By Component, By Application, By Deployment, By Organization, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global low-code application development platform market size was valued at USD 11.45 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 22.7% from 2020 to 2027. Increasing digital transformation in the IT and telecom industry, increased responsiveness to the business, and rising need for customization and scalability are the major factors driving the market growth. The low-code development application platform permits the IT and business professionals to develop the business application software, and codes with the graphical user interfaces approach rather than traditional computer programming. In this, the codes are replaced with the UI components for building applications. Hence, these UI components later generate the front-end and back-end code and other configuration files.

Low code development is an application development method in which the developers develop visual codes for various applications such as web/ desktop-based and mobile-based systems. This code uses a graphic interface and drag and drops components in the coding method. It reduces the developer’s task from writing non-technical codes through this interface and supports them in creating and working on a tedious task of application development. These low code developers lower the time consumption significantly compared to the IT professional developers on the traditional coding methods. This allows them to develop a varied range of applications for different use cases, i.e., from upgradation of legacy applications to IoT enable smart apps.

Currently, developers are high in demand, but there is a shortage of skilled developers; thus, businesses are left without the technically sound and experienced developers to develop the applications, further automating the business processes. Thus, the digital transformation is making these businesses hire and adopt the low code developers and its application development platform. However, these businesses save the amount of time, develop apps, and potentially fill the gaps, and IT backlogs, which helps them switching from traditional interface to modern interface.

CIOs or CXOs are set back to decide on adopting a low code application development platform in any organization. For them, adoption of low code development approach refers to less work with speedier projects, sooner fulfillment in low budgets, and ultimately leads to high-profit margins. But the developers get stuck between the commitments and sales pitch, which is time-consuming, slower, and annoying than writing the complete technical codes. Besides, a lack of knowledge about the low code development restrains the overall market growth.

Organization Insights

The Large Enterprises (LE) segment accounted for the largest revenue share of around 70% in 2019. Large enterprises such as BFSI, IT and telecom, retail, manufacturing, government, healthcare, among others, have full adoption of low code application development platform. Low code development tools help the organization in enhancing its agility. Furthermore, it lowers the complexity associated with the application development process.

The Small and Medium Enterprise (SME) segment accounted for significant share and thus expected to expand at a CAGR of 23.3% from 2020 to 2027. The growing digital transformation has affected the small and medium enterprises, as they have started understanding the importance of low code and lowers the dependency on hard to hire technical skills. Besides, it helps the SMEs protect themselves from the technology churn, reduces IT backlogs, and escapes the legacy debt. 

Deployment Insights

The on-premise segment accounted for the largest revenue share of around 62% of the overall market in 2019. Currently, many organizations still believe in developing code and utilizing the platforms available for low code application development. Lack of knowledge of cloud deployment and low code application development remotely drives the adoption of on-premise deployment mode.

The cloud deployment segment is expected to expand at a significant CAGR of 26.5% from 2020 to 2027. Cloud deployment is the cheapest form of storage as compared to on-premise storage. This data stored on the cloud can be accessed from multiple locations, with minimum support and low maintenance, thus driving the adoption of cloud deployment. In addition, growing digital transformation allows the low code developers to fundamentally exploit the benefits of cloud deployment mode.

Application Insights

The web-based segment accounted for the largest revenue share of around 64% in 2019. The web application is the most recognized application development approach and is deliberated as the face of an organization. Organizations can quickly deliver user-defined requirements using the low-code development platform and roll out requested web-based applications rapidly. The need for writing technical codes has decreased with the advent of low code application development platform. Thus, employees with low or no technical knowledge can create a well-defined, functional web-based application. Also, developers with the relevant experience can smoothly perform their daily work chores and develop custom web-based applications and existing digital ecosystems.

The mobile-based segment accounted for significant share and is expected to register a CAGR of 24.7% from 2020 to 2027. The growing digital transformation, Bring Your Own Device (BYOD) trends, and the increasing popularity of mobile application development are expected to flourish the market growth in the forthcoming years.

Regional Insights

The North America region accounted for the largest revenue share of around 29% in 2019. The region has the highest penetration of small, medium, and large IT companies and is also the base for prominent low code development platform providers. Companies such as Appian, Microsoft, Pegasystems, OutSystems, LANSA, and Oracle Corporation, are based in the region.

The low-code application development platform market in the Asia Pacific region is anticipated to expand at the highest CAGR of 24.1% from 2020 to 2027. This is due to the increasing industry verticals and rapid digitalization in the region. The growing industrialization and rising demand for robust solutions are anticipated to drive the region's overall market. In addition, the ever-increasing digital transformation, acceptance of BYOD, and enterprise mobility enable users to develop a business application using the low-code development platform.

Key Companies & Market Share Insights

The key players that dominated the global market in 2019 include Salesforce, Appian, Mendix, Microsoft, Pega Systems, Zoho, OutSystems, and Oracle Corporation. These companies offer a wide range of low code application development platforms and services. The barriers to the new entrants in the market are moderate as the freelancer low code developers influence the overall market. New product launches and up-gradation of the existing platform have remained the key strategy of these players. In June 2020, Appian launched an upgraded version of the Appian Low-code Automation Platform.  In May 2019, Salesforce announced the launch of the first low-code Blockchain Platform for CRM. Some of the prominent players in the low-code application development platform market include:

• Salesforce

• Appian

• Mendix

• Microsoft

• Pegasystems

• Zoho

• OutSystems

• Oracle Corporation

• ServiceNow

• TrackVia

• K2

Low-Code Development Application Platform Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global low code application development platform market report by component, application, deployment, organization, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2027)

  • Platform

  • Services

• Deployment Outlook (Revenue, USD Billion, 2016 - 2027)

  • Cloud

  • On-Premise

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Web-based

  • Mobile-based

• Organization Outlook (Revenue, USD Billion, 2016 - 2027)

  • SME

  • LE

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Rest of the World (RoW)