Market Dynamics
Market Driving Factors
Increased Demand for Low Code Artificial Intelligence to Propel Growth
Artificial intelligence (AI) is gaining ground in various domains. However, the technology's deployment is hampered by a shortage of skilled talent and a greater installation cost. According to Cisco's Transforming Business with AI report, companies have strategically prioritized AI, but a talent shortage constrains its full implementation. Low code artificial intelligence is a paradigm-shifting idea in AI technology for developing software and applications. Many businesses invest in the platform because of its wide applications and potential advantages.
For instance, in September 2021, Akkio received USD 3 million from Bain Capital Ventures to support the company's automated decision-making skills. Instead of relying just on data science, the company provides a low code platform with cutting-edge technology. Large-scale advantages for the businesses include improved data analytics, a better user experience, cost savings, rapid development, and more. As a result, the market expansion for low code development platforms is anticipated to be fueled by the rising trend of standard code AI.
Digital Transformation to Foster Market Growth
Enterprise-wide digital transformation is accelerated by the increased emphasis on improving business operations. All businesses, regardless of industry, are giving employees digital tools. Companies hope to provide better services and boost revenue by streamlining work procedures through digital transformation. According to Dell's Digital Transformation Index, eight of ten firms accelerated their digital transformation in 2020. However, the business and the workforce need in-depth technological know-how to transition to digital platforms.
Up to 61% of stakeholders claimed in the Mendix Digital Disconnect research that they only deploy half as many IT solutions as were recommended. Additionally, it can be challenging to hire and keep qualified workers with the necessary skills and experience. For instance, Bitkom experienced 55,000 open posts in 2018 due to candidates' lack of IT specialization. A crucial instrument for the digital transition is the low code development platform. Giving the development team more authority aids in lowering resource expenses. Consequently, the demand for low code deployment platforms will increase due to the growing need to support the urgent business model required by digital transformation.
Market Restraining Factors
Limited Software Integration and Customization Capabilities to Hinder Market Growth
Low code technology's wide range of advantages contributes to the market expansion. However, the platform also lacks other elements that impede market expansion. Not all low code tools and platforms interface with every program presents a hurdle for the market. Therefore, the developer and designer must consider the limited integration feature when creating the software to prevent the related issue in the future. The lack of customization options and freedom is another significant limitation of the platform. Only a small number of players provide the opportunity for custom applications that support business models. Thus, limited application personalization options and integration with sophisticated software constrain market growth.
Global Low Code Development Platform Market Opportunities
Implementation of Low Code Application in the Healthcare Sector to Boost Market Opportunities
Due to government funding and the rapid development of technology, the healthcare sector is thriving globally. In the healthcare industry, a low code development platform is used to simplify the data integration process, increase workflow effectiveness, and improve the patient experience. Utilizing low code cloud technology can significantly aid in integrating patient information across several systems, enabling healthcare providers to examine the patient's medical history and offer better treatment, thereby promoting the sector's growth.
Additionally, low code platforms are cost-effective; they allow non-technical workers to manage the servers without the need to seek outside expertise and result in significant ownership cost savings. Low code application platforms are also essential for creating mobile-friendly apps that may support virtual consultations while saving on hospitalization costs and offering a secure network for encrypted communication. These apps can be developed to meet the dynamics of technology. As a result, the advantages of low code development technology in the healthcare industry are accelerating market growth.
Regional Analysis
By region, the global low code development platform market is categorized into North America, Europe, Asia-Pacific, and LAMEA.
North America accounted for the largest market share during the forecast period. Many well-known market firms provide low code development platforms and services to all local clients. The US and Canada have robust economies and are anticipated to play a significant role in the market expansion for low code development platforms. The main determinants of the deployment of low code development platforms and services include geographic presence, considerable Research and Development (R&D) activities, collaborations, acquisitions, and mergers. To meet client expectations, the key providers, including Salesforce, Microsoft, Appian, and Pegasystems, provide expanded low code development platforms and services. This is what drives the global market's expansion in North America.
Asia-Pacific is the fastest growing region during the forecast period. More than 50% of the top executives in the region are confident in deploying low code platforms across their firms, according to the 2020 Software Survey of Asia-Pacific. Adopting low code platforms by Chinese IT developers strongly promotes effective workflow. 9% of IT professionals accept the platform, according to the Mendix Survey. As a result of the ongoing Atmanirbhar Bharat effort, India is anticipated to experience substantial growth.
Segmental Analysis
The global low code development platform market is segmented by component, deployment, enterprise size, application, industry, and region.
On the Basis of Component
By component, the global low code development platform market is bifurcated into Platforms and Services.
The Platform segment is likely to account for maximum market share and is expected to grow and gain rapid CAGR during the forecast period. Microsoft Power App, Oracle APEX, ServiceNow App Engine, Zoho Creator, and other platforms are considered. The platform is in more demand due to its features, which include a drag-and-drop user interface, pre-built templates, automated software workflow, and more that instantly enable the creation of apps.
For instance, Salesforce.com, Inc. unveiled a Salesforce Platform in June 2021 that offers low code development tools to empower staff members that lack technical knowledge. The businesses hope to transition to digital platforms at the lowest possible cost through the development platform. Such factors fuel the market growth.
On the Basis of Deployment
By deployment, the global low code development platform market is divided into On-premises and Cloud.
The On-premise segment accounted for the largest market share during the forecast period. Many businesses still adhere to the notion that code should be written and platforms for low code application development should be used. The acceptance of the on-premise deployment approach is driven by a lack of understanding about cloud deployment and remote low code application development.
The Cloud deployment segment is the fastest growing segment. Cloud deployment is the most affordable method of storage compared to on-premise storage. The ability to access data stored in the cloud from various locations with little help and little upkeep is what encourages the use of cloud deployment. Additionally, the expanding digital transformation enables low code developers to use the cloud deployment mode's advantages fully.
On the Basis of Application
By application, the global low code development platform market is bifurcated into Web-based and Mobile-based.
The Web-based segment was responsible for the most significant revenue share during the forecasted period. The web application is considered the face of a corporation and the most well-known application development methodology. Businesses may swiftly deliver user-defined requirements and implement needed web-based apps using the low code development platform. With the introduction of low code application development platforms, there is less need to write technical codes. As a result, individuals with little to no technical skills can build a precise, practical online application. Additionally, professionals with the necessary experience may easily carry out their regular tasks at work, create original web applications, and enhance already-existing digital ecosystems.
On the Basis of Enterprise Size
By enterprise size, the global low code development platform market is segmented into SMEs and Large Enterprises.
The Large Enterprise segment accounted for the largest market share during the forecast period. Large businesses have fully embraced the low code application development platform, including those in the BFSI, IT and telecom, retail, manufacturing, government, and healthcare, among other industries. Tools for low code development aid the company in improving its agility. It also lessens the complexity of the procedure involved in developing applications. These elements support market expansion.
The Small & Medium Enterprise (SME) segment is the fastest growing. The expanding digital transformation has impacted small and medium-sized businesses because they have begun to appreciate the value of minimal code and how it reduces their reliance on difficult-to-find technical expertise. Additionally, it helps SMEs shield themselves against technological change, cut down on IT backlogs, and get out from under legacy debt. These advantages contribute to market expansion.
On the Basis of Industry
By industry, the global low code development platform market is bifurcated into BFSI, IT & Telecommunication, Education, Government, Manufacturing, Healthcare, Retail, Media & Entertainment, and Others.
IT & Telecommunications are anticipated to have the majority market share during the projection period. According to the SAP insights estimate, 60% of low code development platform initiatives involved collaboration between business users and IT developers. The platform supports the intricate procedure, which increases efficiency.
BFSI is the fastest-growing segment. Due to the enormous amount of information created by these firms, the BFSI business requires market services and platforms on a big scale. Since customer service is the primary element influencing client acquisition and retention in the BFSI sector, organizations have embraced low code development platforms and services to enhance automation in business processes. To better its company operations, this sector often introduces new and improved financial goods and services, which makes it appealing for low code platform providers to give cutting-edge solutions to the industry.
Top Key Players
Salesforce
Appian
Mendix
Microsoft
Pegasystems
Zoho
OutSystems
Oracle Corporation
ServiceNow
TrackVia
K2
Others
