Low-Code Development Platform Market

Market Overview:

The global low-code development platform market size reached US$ 15.7 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 76.4 Billion by 2028, exhibiting a growth rate (CAGR) of 29.7% during 2023-2028. The increasing cost-effectiveness, growing speed of deployment, rapid technological advancements, rising compatibility with cloud services, growing demand for faster application development  and enhanced focus on research and development (R&D) activities, are some of the major factors propelling the market.

A low-code development platform (LCDP) is a software framework that enables the rapid creation of applications through graphical user interfaces instead of traditional hand-coded programming methods. These platforms typically offer drag-and-drop tools, allowing users to design application components with minimal manual coding. There are primarily two types of low-code platforms: general-purpose platforms suitable for a broad range of applications and domain-specific platforms designed for specific business needs such as customer relationship management. LCDP offers a visual development environment, reusable widgets or modules, and data modeling tools. These platforms are particularly beneficial for companies that develop applications quickly to meet changing business requirements. 

The increasing adoption of low-code development platforms (LCDP) that allow for quicker development and deployment of applications, meeting the immediate needs of various businesses, is one of the major factors driving the market growth. Additionally, the widespread utilization of low-code platforms as it reduces the overall cost by minimizing the need for skilled developers and cutting down the development time is providing a considerable boost to the market growth. Besides this, the growing adoption of digital technologies, such as apps and software solutions, leading to the increasing demand for low-code platforms to make application development more accessible, is also providing a thrust to the market growth. In addition to this, the rising platform popularity, as it can quickly modify existing applications or develop new ones to adapt to changing business conditions, is positively impacting the market growth. Furthermore, the rising compatibility of low-code platforms with cloud services, ensuring seamless integration and deployment, is further driving the market growth. Apart from this, the growing utilization of low-code platforms as they facilitate better collaboration between business and information technology (IT) departments, offering easy communication and leading to solutions more aligned with organizational goals, is supporting the market growth.

Low-Code Development Platform Market Trends/Drivers:

Increasing speed of deployment

The increasing need for agile solutions in organizations that deal with an influx of data, a more demanding customer base, and an ever-changing regulatory landscape is one of the major factors propelling the market growth. Low-code platforms reduce the time required for the initial development and streamline the subsequent stages of the development lifecycle, such as testing, debugging, and even deployment, by offering integrated tools and environments designed for these tasks. Besides this, the increasing adoption of low-code platforms, as it enables businesses to respond promptly to market opportunities, capitalize on new revenue streams, or address operational inefficiencies without delay, is providing a thrust to the market growth. Moreover, the consistent ability of low-code development platforms to sustain over multiple iterations, allowing businesses to keep pace with emerging technologies and consumer preferences and offer a long-term strategy for competitive advantage, is offering lucrative growth opportunities for the market.

Growing cost efficiency

The increasing utilization of low-code development platforms, as it reduces the cost of hiring a team of skilled software developers, database administrators, front-end designers, and other specialists by minimizing the amount of hand-coding required, is creating a positive outlook for the market growth. Moreover, the visual, drag-and-drop nature of low-code platforms, allowing those with limited coding expertise to contribute to the development process, is strengthening the market growth. Additionally, the widespread popularity of these platforms, as they can often expedite the development timeline, reducing other indirect costs like opportunity costs, is providing a thrust to the market growth. In line with this, the growing adoption of low-code development platforms by smaller businesses with limited budgets or for larger enterprises aiming to control operational expenditures is providing an impetus to the market growth.

Rising digital transformation

The increasing digitalization of businesses and organizations, compelled to modernize their operations and customer engagement channels, is providing a thrust to the market growth. In line with this, the widespread adoption of low-code development platforms as they allow businesses to quickly develop applications that can automate manual processes, enhance customer experiences, or provide new functionalities with minimal investment and complexity is favoring the market growth. Besides this, the increasing utilization of low-code platforms in sectors like healthcare, retail, and banking, offering a streamlined, efficient route to modernization, is creating a positive outlook for the market growth. Moreover, the inclusion of advanced features in many low-code platforms, such as artificial intelligence (AI) and machine learning (ML) capabilities, the Internet of Things (IoT) integration, and advanced analytics tools, allows organizations to leapfrog into a more advanced state of digital maturity is propelling the market growth.

Low-Code Development Platform Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global low-code development platform market report, along with forecasts at the global, regional, and country levels for 2023-2028. Our report has categorized the market based on deployment mode, organization size, application and industry vertical.

Breakup by Deployment Mode:

• Cloud-based
• On-premises
   

Cloud-based dominate the market

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes cloud-based and on-premises. According to the report, cloud-based represented the largest segment.

Cloud-based deployment offers a multitude of advantages that make it an attractive option for organizations of all sizes. In line with this, the increasing utilization of cloud-based low-code platforms, as they offer unparalleled scalability, allowing companies to easily adjust their usage based on demand without the need for upfront capital expenditure on infrastructure, is creating a positive outlook for the market growth. Moreover, cloud-based platforms enhance collaboration as the development environment is accessible from anywhere with an internet connection, and teams distributed across different geographical locations can collaborate seamlessly. Besides this, the increasing adoption of cloud-based services owing to their robust security and compliance features is propelling the market growth. In addition to this, the growing investment in security protocols that are better equipped to protect against data breaches and attacks is providing a thrust to the market growth. Additionally, many cloud providers offer built-in compliance frameworks to help businesses meet industry-specific regulations, reducing the administrative burden on organizations. Furthermore, cloud-based platforms often come with integrated tools and services that accelerate the development process, such as automated backups, performance monitoring, and advanced analytics, making the application development life cycle more efficient.

Breakup by Organization Size:

• Small and Medium-sized Enterprises
• Large Enterprises
   

Large enterprises dominate the market

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes small and medium-sized enterprises and large enterprises. According to the report, large enterprises represented the largest segment.

The increasing utilization of LCDP by large enterprises as they have more intricate and multifaceted business processes necessitating the management of various applications, which is propelling the market growth. Additionally, large enterprises usually have the financial resources to invest in new technologies to optimize operations, reduce costs, and enhance competitiveness. Moreover, the widespread adoption of low-code development platforms as large enterprises often operate in multiple geographic locations, sometimes globally requiring standardized applications that can be deployed across different regions, is supporting the market growth. Besides this, the rapid application development capability offered by low-code platforms enabling large enterprises to be agile and adapt swiftly to market dynamics and customer preferences is favoring the market growth. Furthermore, the ability of low-code platforms to integrate seamlessly with existing systems, providing a pathway to modernization without the need to replace the complex legacy systems, is providing remunerative growth opportunities for the market. 

Breakup by Application:

• Web-based
• Mobile-based
• Desktop and Server-based
   

Web-based hold the largest share in the market

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes web-based, mobile-based and desktop and server-based. According to the report, web-based accounted for the largest market share.

Web-based applications stand out as the dominant segment in the low-code development market. Web-based applications are platform-agnostic, meaning they can be accessed on any device with a web browser, broadening their reach for businesses, which in turn, is supporting the market growth. Additionally, the increasing adoption of web-based applications, which are often cheaper and quicker, especially when using a low-code platform coupled with its low maintenance costs, is supporting the market growth. Besides this, web-based applications are easier to change and update as users can access the updated application via their web browser, favoring the market growth. In addition to this, web-based applications can be easily integrated with other web services and APIs, making them more functional and versatile. Apart from this, the growing scalability of web-based applications, especially when built on low-code platforms that allow for quick adjustments, is creating a positive outlook for the market growth.  

Breakup by Industry Vertical:

• BFSI
• Retail and E-commerce
• Government and Defense
• Healthcare
• Information Technology
• Energy and Utilities
• Manufacturing
• Others
   

Information technology hold the largest share in the market

A detailed breakup and analysis of the market based on the industry vertical has also been provided in the report. This includes BFSI, retail and e-commerce, government and defense, healthcare, information technology, energy and utilities, manufacturing, and others. According to the report, , information technology accounted for the largest market share.

The increasing utilization of low-code development platforms in the IT sector as it is inherently technology-driven and often at the forefront of adopting new technological solutions to enhance efficiency, reduce costs, and spur innovation, which in turn is supporting the market growth. In line with this, low-code development platforms offer a streamlined approach to software development, aligning closely with the objectives of many IT firms. Moreover, the IT industry frequently faces a high demand for custom software solutions, either for internal use or clients, prompting the adoption of low-code platforms to facilitate quick development cycles, enabling IT companies to meet client expectations for swift delivery without compromising quality. Besides this, low-code platforms are inherently designed to be scalable, meeting the demands of IT firms that often have to ramp up projects quickly due to market needs or client requirements. In addition to this, the IT industry usually deals with a broad range of projects that can vary substantially in complexity, allowing low-code platforms to develop simple and complex applications providing a one-stop solution for diverse development needs.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest low-code development platform market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is dominating the low-code development platform market since the region is home to many technology companies, including giants in the software industry, thereby creating a robust ecosystem that naturally leans toward early adoption of innovative solutions like low-code platforms. In line with this, the growing emphasis on agility and innovation in the region leading to an increasing need to optimize operational efficiencies is providing a thrust to the market growth. Besides this, North America has a highly skilled workforce with a strong emphasis on continuous learning and adaptation to new technologies, creating an environment where low-code platforms can be quickly adopted and maximized for their potential benefits. Furthermore, the region has well-established infrastructure and high-speed internet connectivity, essential for effectively deploying and using low-code solutions. 

Competitive Landscape:

The leading firms in the low-code development platform (LCDP) market are working on constantly improving their platforms through regular updates and new features. These enhancements are often driven by emerging technologies such as AI, ML, and IoT, which are integrated to make the platforms more robust and versatile. Besides this, many companies are forming alliances with other technology providers, consultancy firms, and system integrators, enabling them to offer more comprehensive solutions to address broader business needs. Moreover, the major companies are investing heavily in user training, tutorials, and customer support to ensure that clients can make the most out of their products. Additionally, various companies are tailoring their low-code platforms for specific industry verticals such as healthcare, finance, or retail to provide solutions more aligned with each sector's unique requirements and regulatory constraints. Furthermore, the key companies are also looking at global markets to expand their customer base, which involves adapting their products to meet regional needs and compliance standards. In addition to this, some companies are resorting to acquisitions and mergers to offer a more rounded product that can better serve the needs of their customers. Along with this, many companies are investing in educational content and thought leadership to build awareness about the benefits and capabilities of low-code platforms. 

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AgilePoint Inc.
• Appian Corporation
• Magic Software Enterprises Ltd.
• Mendix Technology BV (Siemens Aktiengesellschaft)
• Microsoft Corporation
• Netcall PLC
• Oracle Corporation
• Outsystems Inc.
• Pegasystems Inc.
• Salesforce Inc.
• ServiceNow Inc.
• Zoho Corporation

Low-Code Development Platform Market Report Scope:

Key Questions Answered in This Report:

• How has the global low-code development platform market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global low-code development platform market?
• What is the impact of each driver, restraint, and opportunity on the global low-code development platform market?
• What are the key regional markets?
• Which countries represent the most attractive low-code development platform market?
• What is the breakup of the market based on the deployment mode?
• Which is the most attractive deployment mode in the low-code development platform market?
• What is the breakup of the market based on the organization size?
• Which is the most attractive organization size in the low-code development platform market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the low-code development platform market?
• What is the breakup of the market based on the industry vertical?
• Which is the most attractive industry vertical in the low-code development platform market?
• What is the competitive structure of the global low-code development platform market?
• Who are the key players/companies in the global low-code development platform market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the low-code development platform market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global low-code development platform market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the low-code development platform industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.