PaaS Market Size, Share & Trends Analysis Report By Offering (Application Development, Debugging Processes, Testing, Deployment Tools), By Region, and Segment Forecasts, 2022 - 2028

Report Overview

The global PaaS market size was valued at USD 60.12 billion in 2021 and is anticipated to register a compound annual growth rate (CAGR) of 19.3% from 2022 to 2028. PaaS is a cloud service that provides a virtual environment to the developers for software development. The rising need to reduce the cost and time to market (TTM) of application development across the enterprises is one of the major factors that boost the market growth during the forecast period. Along with this, the rising adoption of cloud services among enterprises across the globe and the growing number of enterprises is fueling the growth of the market. However, the rising number of data breaches increases the privacy and security concerns that are projected to hinder market growth.

The speedy digitization across the globe results in increasing adoption of the Platform As a Service (PaaS) market, hence contributing to the market growth. Increasing usage of PaaS by enterprises as they are easily operational and cost-efficient and provide development tools and templates are fueling the market growth during the forecast period. The growing number of digital enterprises, combined with increased capital investment in the development of enterprise, web, and mobile applications, is expected to create lucrative opportunities for market growth. Moreover, the advancement of technology, such as AI capabilities and their integration, is further expected to present key opportunities for market expansion.

The significant increase in the adoption of cloud-based services for application development among enterprises is further projected to contribute to the growth of the market. It is effectively adopted by IT companies for faster development of applications and further deployment. Additionally, cloud services, such as PaaS, reduce the time and cost of developing software, thereby further encouraging their demand among large enterprises. Moreover, various advantages, such as ease of operation of PaaS, further raise the adoption among developers. For instance, in the PaaS system, the cloud service provider takes responsibility for the installation, configuration, and operation of the application infrastructure.

The COVID-19 pandemic positively impacted the PaaS market as many people opted to work from home during the lockdown. The lockdown imposed by the government has led to substantial growth in the adoption of virtual development platform services such as PaaS across various enterprises. The increased use of public cloud services during work from home has reinforced cloud adoption for the virtual development of software and applications. Therefore, the significant increase in the number of users of PaaS across the globe during the pandemic further augmented the market growth.  

Offering Insights

Based on the offering, the global PaaS market is further classified into application development, debugging processes, testing, and deployment tools. The application development segment contributed to a larger market share of over 50% in 2021. The significant adoption of PaaS among enterprises is one of the major factors that contributed to the highest market share in 2021. The PaaS platform enables enterprises and IT developers to deliver and collaborate on new mobile and web applications, innovate in business practices, and streamline operational workflows.

The testing segment is forecast to expand with a significant CAGR of 20.3% during the forecast period. The rising usage of software testing tools among IT developers across enterprises further contributes to the growth of the market. A PaaS provides software testing services to accelerate the deployment of software applications with reduced cost and complexity. Therefore, software developers significantly adopted PaaS for software testing, further boosting the market growth.     

Regional Insights

Asia Pacific is forecast to expand with the highest CAGR of 20.7% from 2022 to 2028. China and India are contributing to the growth of the market owing to the rising adoption of cloud services coupled with the rising number of small and medium enterprises across the region. The SMEs significantly adopting cloud-based services such as PaaS for reducing the cost and complexity of software development. Moreover, the significant growth in the IT industry is further projected to provide ample opportunity to the market. Additionally, the growing expenditure of SMEs on cloud infrastructure in China and India further contributed to the growth of the market during the forecast period.

North America is estimated to hold a major market share of more than 50% in 2021. The U.S. is completely contributing to the growth of market revenue. The existence of well-established PaaS providers, such as Amazon Web Services Inc, Microsoft Corp., Google LLC, and others, is one of the driving factors for market growth. Moreover, the well-established IT infrastructure encourages the easy deployment of cloud-based virtual services that further contribute to the major share global PaaS market. Additionally, the high budget allocation for adopting the cloud application for software development in the enterprises further contributed to the highest market share.    

Europe held the second-largest share of the global PaaS market of over 20% in 2021 and is expected to expand at a significant CAGR of 19.0% during the forecast period. The growth of the market is attributed to the increasing adoption of PaaS among enterprises and data centers due to its various benefits. Moreover, the growing use of mobile applications is anticipated to further drive market growth. In addition, increasing demand for the adoption of PaaS over on-premise infrastructure and legacy is further boosting the market growth in the region.

Key Companies & Market Share Insights

The PaaS industry is always changing and updating. To stay head-on in the market, key players tend to launch new strategies more frequently. Market players are focusing on increasing investments in the advancement of cloud services to increase the customer base. Moreover, major players are targeting new regions and demography to increase the revenue from the industry, by either entering the new market solely or by collaborating with local companies across the globe. Some of the prominent players in the global PaaS market include:

• Amazon Web Services Inc.

• Microsoft Corp.

• Alibaba Cloud

• IBM Corp.

• Google LLC

• Salesforce

• Oracle Corp.

• SAP SE

• Zoho Corp.

• Vmware Inc. 

PaaS 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 2017 to 2028. For this study, Grand View Research has segmented the global PaaS market report based on offering and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2028)

  • Application Development

  • Debugging Processes

  • Testing

  • Deployment Tools

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa