Low Code Development Platform Market Size, Share & Industry Analysis, By Component (Platform and Services), By Deployment (Cloud and On-premises), By Enterprise Size (Large Enterprises and SMEs), By Application Type (Web & Cloud Based, Mobile Based, and Desktop Based), By Industry (BFSI, Healthcare, Education, IT and Telecommunication, Media & Entertainment, Manufacturing, Government, Retail, and Others), and Regional Forecast, 2024-2032

The global low code development platform market size was valued at USD 22.25 billion in 2023 and is projected to grow from USD 28.75 billion in 2024 to USD 264.40 billion by 2032, exhibiting a CAGR of 32.0% during the forecast period (2024-2032). Low Code Development Platforms (LCDPs) help streamline and simplify the creation of business applications for both professionals and citizen development. The ongoing technological advancements across various industries are driving the growing demand for such platforms.

Furthermore, low-code solutions are becoming central to business operations due to their ability to expedite project development at a lower cost. Moreover, small and medium-sized enterprises facing challenges due to limited resources and funds are likely to increasingly adopt instant application development platforms.

For instance, in August 2023, Workato collaborated with IMDA and tech ecosystem partners SGTech, HReasily, and Stone Forest to support 1,500 SMEs in Singapore in integrating and automating workflows. Using Workato's no-code, low-code integration and automation platform, the company would support SMEs in unlocking the full potential of digital.

Some of the solutions in the market include Low-Code Pega Platform, Appian Multi-experience Development, Outsystems Low Code Platform, Microsoft Power App, Zoho Creator, ServiceNow App Engine, and Oracle APEX, among others.

During the COVID-19 pandemic, the global market's volatility and instability due to related closures led to a significant demand for remote software development tools worldwide. The rise in digital transformation initiatives helped drive the demand for the platform as it streamlines workflow and accelerates automation projects. The pandemic increased the need to automate processes and prioritize transformation initiatives, creating an urgent demand for new online apps and services across both private and public sectors.

IMPACT OF GENERATIVE AI

Significant Push for Leveraging Generative AI in Low Code Development Platforms to Boost Market Growth

Generative AI (GenAI) is transforming the operational landscape of companies by fundamentally reshaping various business processes. One notable area experiencing significant impact is application development. With the utilization of large language models (LLMs) trained on vast coding parameters, GenAI aids developers in swiftly addressing repetitive tasks such as boilerplate codes, database operations, and standard UI elements. This helps enhance the speed and quality of the application development process. Additionally, low-code app builders are exploring ways to harness AI capabilities to introduce innovative functionalities within their organizations. According to leading research firms, the adoption of conversational AI within enterprise applications is projected to rise substantially, with an estimated 40% of such applications incorporating embedded conversational AI by 2024, compared to less than 5% in 2020.

In March 2023, Pegasystems Inc. extended its use of AI in its low code platform with a set of new generative AI features across Pega Infinity. The company is using generative AI with enterprise governance to handle and complete tasks using simple natural language prompts. Similarly, in September 2023, Salesforce launched the Einstein 1 Platform, that is built on Salesforce’s metadata framework. It is an AI platform for end-user companies that safely connects data to construct AI-powered apps with low-code.

Low Code Development Platform Market Trends

Growing Demand for Low Code Artificial Intelligence to Accelerate Market Expansion

Artificial Intelligence (AI) is gaining widespread adoption across various industries worldwide. However, challenges such as a shortage of qualified talent and the higher implementation costs associated with the technology hinder its widespread deployment. In response, low-code artificial intelligence is emerging as a transformative concept within AI technology for application and software development. Recognizing its broad applications and potential benefits, numerous enterprises are investing in this platform. By leveraging low-code AI, enterprises could gain significant advantages such as enhanced data analytics, improved user experience, cost reductions, accelerated development processes, and others. Consequently, the increasing adoption of low-code AI is anticipated to drive market expansion.

For instance, in October 2023, Rasa launched a Generative AI-native conversational platform. With this launch, Rasa reduced the difficulty of building AI assistants and ensured ease of use through an intuitive User Interface throughout the organization. Similarly, in August 2023, Betty Blocks launched a Low-Code AI Toolkit in its low code platform. With this toolkit, enterprises can easily incorporate AI into their solutions without having to set up large IT projects.

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Low Code Development Platform Market Growth Factors

Growing Digital Transformation across Financial Institutions to Drive Market Growth

The increasing emphasis on improving business operations drives digital transformation initiatives across financial institutions. Through digital transformation, businesses seek to enhance service quality and profitability by streamlining workflows. Utilizing low/no-code development, insurance companies can substantially reduce their IT investment costs, swiftly adapt to changing environments, and enhance operational efficiency by mitigating skill gaps among employees. The low code development platform has become indispensable for digital transformation, empowering development teams with greater autonomy and reducing resource expenditures. Consequently, the rising demand to align with immediate business model requirements in digital transformation is projected to drive the market’s growth.

For instance, in October 2023, InsureMO and Mendix partnered to aid insurance companies in developing and improving their digital transformation initiatives. The collaboration brought together Mendix’s low-code application development, InsureMO’s middleware platform, and insurance domain expertise to drive better decision-making. Similarly, in December 2023, Newgen Software collaborated with Evalueserve to aid financial organizations in accepting loans faster by powering financial spreading. The collaboration enabled integrating Newgen's corporate lending solution with Evalueserve's AI-based OCR engine to offer automated financial spreading.

RESTRAINING FACTORS

Limited Customization and Software Integration Capabilities to Hamper Market Growth

Low code technology presents numerous advantages that drive market expansion. However, the platform faces certain limitations that are anticipated to impede the low code development platform market growth. One challenge is the lack of universal integration among all low code-based tools and platforms with various software systems. Therefore, developers and designers must consider this limited integration capability during software development to prevent potential issues in the future.

Similarly, a significant constraint of the platform is its limited customization capabilities and flexibility. Only select players offer tailored application options that align with specific business models. As a result, the restricted ability to personalize applications and integrate with advanced software solutions constrains market expansion.

Low Code Development Platform Market Segmentation Analysis

By Component Analysis

Ease of Application Building Offered by Platforms to Drive their Demand

Based on component, the market is bifurcated into platform and services.

The platform segment is likely to account for the maximum low code development platform market share and is expected to exhibit a rapid CAGR during the forecast period. The platform demand is growing as it offers features such as a drag and drop interface, pre-built templates, automated software workflow, and others that offer instant app-building capabilities. Some of the examples of platforms are Microsoft Power App, Oracle APEX, ServiceNow App Engine, Zoho Creator, and others.

However, the services segment is also expected to grow potentially in the forecast period owing to the wide range of offerings that complement the core low code platform such as consulting, training, and implementation, among others.

By Deployment Analysis

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

By deployment, the market is categorized into on-premises and cloud.

The cloud segment captures the maximum low code development platform market share as it enables organizations to observe their applications and services closely. The segment is expected to continue its dominance over the forecast period. Cloud-based platforms empower the user and developers to access and monitor the application. Furthermore, they enable automated workflow and help in reducing maintenance costs.

However, the on-premises segment is also expected to grow gradually in the forecast period owing to their applications among regulated industries such as finance and healthcare for greater control over security and compliance with data privacy regulations.

By Enterprise Size Analysis

Seamless Scalability and Faster Application Development to Surge Platform Adoption in Large Enterprises

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

The large enterprises segment records the maximum 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.

The small & medium enterprises is poised to witness a 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 Application Type Analysis

Accessibility of Web & Cloud Based Applications from any Location to Surge its Adoption

By application type, the market has been studied across web & cloud based, mobile based, and desktop based.

The web & cloud based segment accounts for the highest share in the market owing to the accessibility provided by these applications. They can be accessed from any location with an internet connection, providing flexibility for users to access the platform from various devices.

Furthermore, the mobile based application type segment is expected to grow with the highest CAGR over the study period. With the rapid penetration of smartphones and tablets, there is a growing demand for mobile applications across various industries.

By Industry Analysis

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Benefit of Rapid Reduction in Repetitive and Time-Consuming Code-Writing Tasks to Drive IT and Telecommunication Segmental Growth

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

The IT and telecommunication segment holds the highest share of the market. Low code development platform aids IT departments to increase efficiency and streamline complex processes. With more citizen developers, businesses and organizations can reduce IT bottlenecks and overwork by reducing repetitive tasks.

The healthcare segment is expected to exhibit a rapid CAGR 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.

REGIONAL INSIGHTS

Based on region, the global low code development platform market is categorized across five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

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North America holds the highest share of the market owing to its early adoption of digital and intelligent technologies. Within the region, the U.S. is expected to capture the largest market share, driven by the growing number of small and medium enterprises investing in digital initiatives, thereby boosting the platform demand.

Asia Pacific is anticipated to grow with the highest CAGR, with more than 50% of top executives in the region expressing confidence in implementing low code platforms, according to the 2023 Software Survey of Asia Pacific. Notably, IT developers in China are enthusiastic about adopting low code platforms to enhance workflow efficiency.

Europe's market for low code development platforms is also anticipated to demonstrate potential growth, driven by the increased focus of industries such as BFSI, retail, healthcare, and education on efficient application development. The U.K. and Germany present promising opportunities for vendors to expand, with factors such as Brexit and the pandemic influencing market dynamics in the U.K.

In South America and the Middle East & Africa, there is a gradual shift toward automated platforms for application development, fueled by the increasing digitalization across industries. Brazil is expected to lead in both share and growth, driven by the shortage of skilled professionals. The platform is poised to benefit Brazil's businesses by reducing operational and maintenance costs.

Similarly, in the GCC, South Africa, and Turkey, internet expansion, readiness for advanced technology, and digitalization efforts are driving platform adoption.

List of Key Companies in Low Code Development Platform Market

Strategic Partnerships and Collaborations to Boost Market Presence of Key Players

The key players are entering 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. Furthermore, companies gain expertise through collaboration and expand their business by reaching a large customer base. The major companies provide innovative low code development platforms for industries and users to handle the growing expectations for sustaining customers.

• January 2024: mgm technology partners (mgm) and q.beyond collaborated to implement software development projects in the future. The partnership enabled the launch of A12 partner programme wherein q.beyond can develop software for its medium sized clients using the mgm A12 Enterprise Low Code Platform.

List of Key Companies Profiled:

• Appian Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Salesforce.com, Inc. (U.S.)


• OutSystems Inc. (U.S.)


• Mendix Technology BV (Netherlands)


• Oracle Corporation (U.S.)


• Pegasystems Inc. (U.S.)


• Betty Blocks (Netherlands)


• ServiceNow Inc. (U.S.)


• Zoho Corporation Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: ServiceNow partnered with Visa to reform payment services. The partnership launched ServiceNow Disputes Management, Built with Visa, a reliable low code platform that acts as a disputes resolution solution for issuers.


• December 2023: EY collaborated with Appian to aid businesses in digital transformation. The partnership enabled companies to modernize and simplify their businesses processes using leading technologies such as low-code, AI, data fabric, and process automation. It combined Appian Platform’s low-code solution with EY’s industry expertise.


• November 2023: Oracle Corporation made Oracle APEX 23.2 generally available for download. The new launch enabled developers to develop scalable enterprise mobile, cloud, and SaaS apps with low-code. The application builders can access enterprise features, including collaborative development, process automation, and new User Interface (UI) components.


• October 2023: Mendix launched Mendix 10.4, a low code platform focusing on speeding up end-to-end development, leveraging AI and ML, increasing collaboration touch-points, and others. The new version includes features such as improved logic editors with keyboard support and Logic Bot 2.0 – Beta, Data grid 2, and others.


• August 2023: OutSystems launched a series of low-code development schools as part of its Developer School program to meet the growing demand for global developers. OutSystems enables developers to increase their skill sets in AI and high-performance low-code development.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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