Low Code Development Platform Market Size, Share & COVID-19 Impact Analysis, By Component (Platform, Services), By Deployment (Cloud, On-premises), By Enterprise Size (SMEs, Large Enterprise), By Industry (BFSI, Healthcare, Education, IT and Telecommunication, Media & Entertainment, Manufacturing, Government, Retail, and Others), and Regional Forecast, 2021-2028

The global low code development platform market was valued at USD 10.82 billion in 2020 and is projected to grow from USD 13.89 billion in 2021 to USD 94.75 billion by 2028, exhibiting a CAGR of 31.6% during the forecast period. Based on our analysis, the global market exhibited lower growth of 27.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The global COVID-19 pandemic has been unprecedented and staggering, with a negative impact on demand across all regions amid the pandemic. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Low code development platform (LCDP) offers seamless and simplified techniques for professionals and citizen development of a business application. The ongoing technological transformation across industries is expected to fuel the platform demand. The solutions considered in the scope include Appian Multi-experience Development, Low-Code Pega Platform, Microsoft Power App, ServiceNow App Engine, Zoho Creator, Oracle APEX, Outsystems Low Code Platform, and more. Also, the challenges faced by small and medium business owing to limited resources and funds are likely to surge instant application development platform adoption. Similarly, various vendors offer advanced technology-based platforms to support automation processes across industries. For instance, in May 2021, Appian Corporation launched AI-tools capability in its low code tools for orchestrating work, bots, data, and artificial intelligence (AI) together for enhanced workflow. The AI-powered developer collaboration tool is one of the latest updates of the Appian Low-code Automation Platform.

COVID-19 IMPACT

Significant Push for Digitalization Amid Pandemic to Boost Market Growth

The volatility and instability in the low code development platform market owing to temporary and permanent closure of enterprises amid pandemic has created a huge demand for remote software development tools globally. Countries are preparing to battle the new wave of COVID-19 pandemic, which has various public and private enterprises implementing work from home policy across their business units. The rise in digital transformation initiatives is anticipated to fuel the demand for the platform as it helps streamline workflow and accelerate automation projects.

The platform has emerged as a game-changer, as it enables the development and delivery of complete applications in a lesser period. The pandemic has increased the business need to automate processes and prioritize transformation initiatives. It has created an urgent need for new online apps and services across private and public sectors. As per the Mendix Technology BV report 2021, 64% of IT professionals agreed that low-code is their go-to work-around development solution. In addition, low-code solutions are becoming central to business operations, owing to their ability to faster project development at a lower cost.

LATEST TRENDS

Increasing Demand for Low Code Artificial Intelligence to Accelerate Market Expansion

AI is gaining traction across industries globally. However, lack of qualified talent and the technology’s higher implementation cost hamper its deployment. According to Cisco’s Transforming Business with AI report, companies have prioritized AI strategically; however, lack of talent pool restricts its full adoption.

Low code artificial intelligence is looked up as a game-changer concept in AI technology for building applications and software. Considering its vast application and potential benefits, many enterprises invest in the platform. For instance, in September 2021, Akkio raised USD 3 million from Bain Capital Ventures for automated decision-making capabilities of the business using artificial intelligence and machine. The company offers a low code platform with advanced technologies to gain in-depth business insights rather than depend on data science. The enterprises can gain vast benefits such as better data analytics, better user experience, cost cuts, rapid development, and more. Thus, the growing trend of low code AI is expected to fuel the low code development platform market growth in future.

DRIVING FACTORS

Growing Digital Transformation to Drive Market Growth

The growing focus on enhancing business operation accelerates digital transformation across enterprises. All enterprises across industries are equipping staff and employees with digital tools. With digital transformation, businesses aim to offer better services and increase profitability with simplified work processes. As per Dell’s Digital Transformation Index, 8 out of 10 businesses accelerated the digital transformation in 2020.

However, to shift to digital platforms, enterprise and the staff require in-depth technical know-how. According to the study of Mendix Digital Disconnect, up to 61% of stakeholders stated that they implement only 50% of IT solutions than the proposed. Also, it is difficult to find and retain skilled personnel with accurate knowledge and experience. For instance, in 2018, owing to lack of IT specialization in applicants, Bitkom witnessed 55,000 vacant positions. The low-code development platform has emerged as an essential tool for digital transformation. It helps reduce resource costs by bringing more authority toward the development team. Thus, the growing need to meet the immediate business model required in digital transformation is expected to fuel the platform growth.

RESTRAINING FACTORS

Limited Software Integration and Customization Capabilities to Hamper Market Growth

Low code technology offers a vast number of benefits that help in driving the low code development platform market growth. However, the platform also lacks certain parameters that are expected to hinder the market growth. One of the challenges for the market is not all low code-based tools and platform integrates with every software. Thus, it is essential for the developer and designer to account for the limited integration feature during developing the software and avoid the related problem in future. Similarly, one of the important constraints of the platform is the lack of customization capabilities and freedom. Only limited players offer the option of tailored applications catering to the business models. Thus, restricted freedom for personalizing applications and integration with advanced software limit the market expansion. 

SEGMENTATION

By Component Analysis

Ease of Application Building Offered by Platform to Drive its Demand

Based on component the market is bifurcated into platform and services. The platform is likely to account for maximum market share and is expected to grow and gain rapid CAGR during the forecast period. The platforms considered in the scope are Microsoft Power App, Oracle APEX, ServiceNow App Engine, Zoho Creator, and others.

The platform demand is growing as it offers features such as a drag and drop interface, pre-built templates, automated software workflow, and more that offer instant app-building capabilities. For instance, in June 2021, Salesforce.com, Inc. introduced a Salesforce Platform that includes low code development tools to empower employees without technical skills. Through the development platform, the enterprises aim to shift to digital platforms with minimal cost. Similarly, the services are expected to showcase steady growth as the company provides post-sale services such as installation, maintenance, and more. 

By Deployment Analysis

Real-time Access to Development Tools To Fuel Cloud-based Deployment

By deployment, the market is categorized into on-premises and cloud. The cloud segment is expected to captivate maximum low code development platform market share as it enables organizations to closely observe their applications and services. Cloud-based platforms empower the user and developers in accessing and monitoring the application. Also, it enables automated workflow and helps in reducing maintenance costs.

Whereas, the on-premises model is highly preferred by companies managing large internal infrastructure, banks and financial institutions, and organizations with highly sensitive information and client data.

By Enterprise Size Analysis

Lack of Available Resource to Surge Platform Adoption in SMEs

By enterprise size, the market is categorized into large enterprises and small & medium enterprises (SMEs).

Large enterprises are likely to gain maximum low code development platform market share as the platform offers seamless scalability and agility for businesses. With the platform, businesses can easily and in lesser time offer custom apps to each customer. For instance, a key brand in the FMCG sector, Mondelēz International, implemented DronaHQ low-code tools to provide personalized information to its salespersons in real-time, resulting in higher turnover business.

Small & medium enterprises will witness rapid growth rate during the forecast period. SMEs can reduce the cost of development as the platform is free from complex hand-coding. Thus, the inexperienced and less skilled employees can also confidently model the user interface and initiate development. This is expected to fuel the low code development platform demand across small & medium industries.

By Industry Analysis

Growing Client-based Apps to Increase CAGR of IT & Telecommunication

By industry, the low code development platform market is categorized into BFSI, healthcare, education, IT and telecommunication, media & entertainment, manufacturing, government, retail, and others.

IT and telecommunication is expected to dominate the market share during the forecast period. As per the SAP insights estimation, business users and IT developers have collaborated for 60% of low code development platform projects. The platform helps in boosting efficiency by supporting the complex process.

Healthcare industry is expected to showcase rapid compound annual growth rate during the forecast period. The changing regulatory and compliance considering the higher risk of data security is expected to surge the adoption of low code development tools. The BFSI sector providers continuously collaborate with the users for net banking, mobile banking, insurance schemes, and solving queries. For instance, in February 2021, CEC Bank implemented a low code application platform by Aurachain to address the SME’s online banking services.

Governments are expected to witness significant growth owing to the growing digital government trend across the globe. In the education sector, the education providers can build and rebuild the application based on students' demands and learning outcomes. For instance, to lower the workload to reach maximum students, North Carolina State University implemented the Mendix platform to create apps.

REGIONAL INSIGHTS

The global low code development platform market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East, Africa, and South America.

North America is expected to dominate the revenue share during the forecast period as it is an early adopter of digital and intelligent technologies. The U.S. will gain maximum market share in the region. The increasing number of small and medium enterprises in the country and their digital investments will fuel the platform demand. According to the State of Low Code Report 2021, 77% of companies in the U.S. as compared globally are implementing low code platforms, and 3 out of 5 employees are using them for building apps.

Asia Pacific is expected to witness an enormous growth rate during the forecast period. As per the 2020 Software Survey of Asia Pacific, more than 50% of the region's top executives are confident in implementing the low code platform across their organizations. The IT developers in China are significantly encouraged in adopting low code platforms for efficient workflow process. As per the Mendix Survey, 9% of IT professionals accept the platform. India is expected to gain significant growth, owing to the ongoing Atmanirbhar Bharat initiative.

Europe is expected to showcase significant growth due to the growing focus of BFSI, retail, healthcare, and education for efficient application development. The U.K. and Germany are expected to showcase potential opportunities for the vendors to expand in the region. The impact of Brexit and pandemic in the U.K. are the key factors for market growth. As per Mendix insights, 58% of financial service providers support low code platforms post-Brexit.

South America and the Middle East & Africa are steadily moving toward automated platforms for application building with the increase in digitalization across industries. Brazil gains maximum share and growth due to lack of skilled professionals. The platform is expected to boost the country's business as it helps reduce the operational and maintenance cost. Similarly, internet expansion, advanced technology readiness, and digitalization fuel platform adoption in GCC, South Africa, and Turkey.

KEY INDUSTRY PLAYERS

Innovative Insurance Product to Boost Market Presence of Key Players

The key players are entering into strategic partnerships and collaborating with other significant market leaders to expand their portfolio and provide enhanced low code and no code tools to fulfill their customer's application requirements. Also, through collaboration, the companies are gaining expertise and expanding their business by reaching a mass customer base. The major companies provide innovative solutions for industries and users to handle the growing expectations for sustaining customers.

April 2021 –Zoho Corporation Pvt. Ltd. collaborated with two India-based tech companies, GoFloaters and Unmetrics, by providing a creator platform as a backhand system. The companies leverage the platform to support local authorities with a vaccination booking portal.

September 2021 – Appian Corporation announced a partnership with Minsait, an Indra company, to expand its cloud-based business solutions in Europe and Latin America with the Appian low-code automation platform. The company aims to provide applications enabled with agility and speed to its customers.

List of the Key Companies Profiled:

• Appian Corporation (Virginia, U.S.)


• Microsoft Corporation (Washington, U.S.)


• Salesforce.com, Inc. (California, U.S.)


• OutSystems Inc. (Massachusetts, U.S.)


• Mendix Technology BV (Rotterdam, Netherlands)


• Oracle Corporation (California, U.S.)


• Pegasystems Inc. (Massachusetts, U.S.)


• Betty Blocks (North Holland, Netherlands)


• ServiceNow Inc. (California, U.S.)


• Zoho Corporation Pvt. Ltd. (Tamil Nadu, India)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 –Salesforce.com, Inc. introduced a Salesforce Platform that includes low code development tools to empower employees without technical skills. The company is focused on the development platform owing to rapid shift toward digitalization.


• May 2021 –Appian Corporation launched a new version of the low-code automation platform and the addition of data and a code-free approach to enterprise data. The new version also provides AI-powered Intelligent Document Processing for developers.

REPORT COVERAGE

The low code development platform market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION