LOW CODE DEVELOPMENT PLATFORM MARKET ANALYSIS

Low Code Development Platform Market Size and Trends

The Low Code Development Platform Market is estimated to be valued at US$ 15.63 billion in 2024 and is expected to reach US$ 94.81 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 29.4% from 2024 to 2031.

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The adoption of low code development platforms is growing exponentially owing to increasing demand for complex application development and limited expertise in traditional programming languages. Enterprises are increasingly relying on low code platforms to build applications faster and enable citizen development. The rising need for digital transformation across industries is further propelling the demand for low code solutions. Additionally, low code platforms offer benefits such as low development cost, shorter time to market, and easy maintenance which has boosted their adoption in recent years. The market is expected to continue its rapid growth in the coming years as both large enterprises and SMEs increasingly turn to low code tools to meet today’s dynamic business needs.

The need for agility and faster development cycles

With the pace of digital transformation and technological changes increasing exponentially, organizations need to have the agility to quickly respond to market needs and develop applications at a much faster pace. The traditional, manual coding approach makes it very challenging for businesses to develop and deploy applications in short iterative cycles. Using low code platforms, organizations can significantly reduce the time taken to develop applications while empowering more individuals beyond developers to contribute to the development process. Citizens developers with domain expertise but no coding experience can now build applications by just configuring and connecting existing modules and components. This allows even small and mid-sized businesses to develop powerful applications that can help automate processes, improve customer experience, and adapt to changing business conditions without major delays.

For instance, in December 2022, Salesforce, Inc. unveiled a novel service within its infrastructure: the low-code DevOps Center. This center provides developers with a curated platform for crafting customized applications. It enables development teams to manage and implement changes to bespoke elements within Salesforce, Inc.'s platform as task items, seamlessly integrating with other tools in Salesforce Flows, the firm's suite of process management solutions.

Market Concentration and Competitive Landscape

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With a low code platform, enterprises can leverage existing APIs or build application programming interfaces (APIs) to seamlessly integrate these heterogeneous systems and break down data and process silos across departments and business units.

For instance, in May 2021, Appian Corporation introduced AI-tools capability in its low-code tools, facilitating the orchestration of work, bots, data, and artificial intelligence (AI) for enhanced workflow. This AI-powered developer collaboration tool represents a significant update to the Appian Low-code Automation Platform.

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Established vendors in traditional development areas could view these platforms as threats and compete aggressively. Additionally, many organizations may prefer to rely on in-house custom developed solutions over newer low code options due to concerns about long term costs, lock-in, and support. Adoption may also be slowed by developers wanting to stick with familiar tools instead of learning new approaches.

Market Opportunities: Rapid Application Development

There is growing demand for rapid application development without extensive coding. Low code answers this need by allowing business users and citizen developers to build apps easily. As platforms advance with improved features, utilities, and interfaces, their ease of use will help drive greater adoption across more domains and use cases. Partnerships can further increase outreach and implementation.

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In terms of By Deployment Mode, Cloud is expected to contribute the highest share of 63.9% in 2024, owing to its significant scalability and flexibility benefits. Operating in a cloud environment allows organizations to easily scale up or down their operations based on changing business needs without incurring substantial infrastructure costs. This empowers organizations, especially small and medium businesses with limited capital expenditure budgets, to deploy low code platforms on an as-needed basis. The cloud model also offers robust disaster recovery features and universal access, enabling remote and distributed workforces to collaborate effectively on application development from anywhere using an internet connection. Additionally, cloud services are generally offered on a pay-as-you-go subscription model which eliminates large upfront costs and provides more predictable operational expenses. This subscription pricing has made low code platforms highly affordable for customers of all sizes. The absence of infrastructure management responsibilities associated with on-premise solutions further boosts the appeal of cloud deployment for most organizations. Together, these advantages have made cloud the predominant operating model for low code platforms.

Insights, By Enterprise Size - Large enterprises lead adoption driven by scaling development needs

In terms of By Enterprise Size, Large Enterprises is expected to contribute the highest share of 58.73% in 2024, driven by substantial need to scale internal application development capabilities. Large enterprises handle massive volumes of data and face continuously evolving business and technological challenges. This necessitates bolstering in-house development teams with low code/no code solutions to rapidly deliver new software and digitize processes. Low code platforms empower both trained developers and non-technical professionals in large enterprises to contribute towards custom application building. This allows enterprises to scale software delivery according to the pace of their dynamic operations. Additionally, large IT budgets of these organizations facilitate investments in advanced low code platforms from major vendors. Given their sizeable development requirements and resources, large enterprises are at the forefront of adoption to reap benefits like streamlined workflows, centralized access to data/systems, and accelerated deployment of custom solutions.

Insights, By Application Type- Web-based applications dominate owing to convenience and mobility

In terms of By Application Type, Web-based Application is expected to contribute the highest share of 62.91% in 2024, driven by convenience and mobility. Web technologies have transformed the way organizations deliver applications and services to clients. Building applications that can be accessed remotely through web browsers has become highly critical across sectors. As web interfaces offer universal accessibility to solutions from any device with an internet connection, web-based applications developed using low code platforms are growing in prominence. These applications can be used seamlessly on both desktop computers and mobile devices. This provides employees as well as customers with round-the-clock convenience and flexibility in interacting with organizational software from anywhere. The widespread use of smartphones and tablets in daily life has further amplified demand for lightweight, responsive web apps. Since low code development allows rapid creation of such applications with browser-based user experiences, web-based solutions dominate among custom software built on these platforms.

Insights, By Industry Vertical- Technological Advancements and Digital Transformation Drive IT and Telecom Dominance

In terms of By Industry Vertical, the IT and Telecom segment is expected to contribute the highest share of 28.32% in 2024, owing to rapid technological advancements and ongoing digital transformation within the industry. As telecom companies continue investing heavily in upgrading infrastructure for 5G rollouts and deploying new edge and cloud technologies, low code platforms have become mission critical for quickly building applications that leverage these innovations.

Furthermore, the IT sector has witnessed immense growth in demand for custom enterprise apps that improve collaboration, streamline processes, and boost productivity for remote and hybrid work models. Low code allows IT departments and software teams to rapidly prototype and deploy such solutions without extensive coding knowledge. This has notably accelerated application development cycles and given these organizations a competitive edge over others stuck with traditional, lengthy development methods.

Overall, the digital disruptions and new service requirements sweeping through IT and telecom have cemented low code as a must-have technology for remaining agile and responsive in today's climate of constant change. Its strategic role in enabling faster innovation appears set to cement this segment's dominance of the market for the foreseeable future.

Regional Insights

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North America has established itself as the dominant regional market with market share of 41.8% in 2024, for low code development platforms market. This can largely be attributed to early adoption and maturation of digital transformation initiatives across industries in the region. Organizations recognized the potential of low code tools to increase development team productivity and quickly deliver applications without extensive coding knowledge. As a result, companies like Salesforce, Microsoft, and Out Systems have established a strong customer base in North America over the years. In addition, the presence of innovative startups and scaleups working on low code continues to expand the appeal of these platforms. Vendors also focus on customizing their offerings as per the requirements of American businesses to ensure optimal user experience.

Asia Pacific, on the other hand, has emerged as the fastest growing regional market with CAGR of 34.28% in 2024, for low code platforms market. Digital technologies have seen widespread acceptance in the region in the last few years, primarily driven by growing internet and smartphone penetration. Additionally, enterprises are under increasing pressure to innovate quickly and build applications that enhance customer experience. This has prompted many organizations in Asia Pacific to look at low code capabilities that can help fuel their digital ambitions. Countries like India, China, and Australia are recognizing the potential of low code to overcome technical challenges of limited in-house development skills. Several technology startups and independent software vendors are also leveraging low code to build applications for both domestic as well as international markets. With digitalization efforts accelerating across industries, the Asia Pacific low code development platform market is expected to see continued momentum in the foreseeable future.

Market Report Scope

Low Code Development Platform Industry News

• In March 2023, Microsoft Corporation unveiled the next-generation AI Copilot in Microsoft Power Apps, revolutionizing low-code development by introducing AI technology to the initial stages of application development. Developers can now build their business applications through intuitive natural language conversations with Copilot in Power Apps.
• On November 14, 2023, OutSystems Japan Co., Ltd. introduced their low-code solution, OutSystems Developer Cloud, for cloud-native application development in the Japanese market. OutSystems offers a high-performance, low-code application platform suitable for developers and enterprise developers alike, enabling secure deployment in large-scale applications and facilitating full-stack development from front-end to back-end.
• In July 2022, Kissflow, an India-based SaaS firm, launched its unified low-code/no-code work platform, accelerating business digital transformation by integrating task management for enterprise-wide users, including end users, teams, team managers, process specialists, citizen developers, and IT developers.
• In January 2022, San Francisco-based low-code platform Retool announced its plans to expand its presence in India with tailored offerings, driven by significant interest from IT service providers and startups.
• In September 2021, Akkio secured a USD 3 million investment from Bain Capital Ventures to bolster its automated decision-making capabilities using artificial intelligence and machine learning. Akkio offers a low-code platform equipped with advanced technologies, providing enterprises with comprehensive business insights and enabling benefits such as improved data analytics, enhanced user experience, cost reductions, and rapid development.
• In June 2021, Salesforce.com, Inc. introduced the Salesforce Platform, incorporating low-code development tools to empower employees without technical skills, facilitating a swift shift toward digitalization.
• In May 2021, Appian Corporation launched a new version of its low-code automation platform, featuring the addition of data capabilities and a code-free approach to enterprise data. The updated version also introduced AI-powered Intelligent Document Processing for developers.
• In April 2021, Zoho Corporation Pvt. Ltd. partnered with two India-based tech companies, GoFloaters and Unmetrics, to provide a creator platform for supporting local authorities with a vaccination booking portal.
• In February 2021, CEC Bank implemented a low-code application platform by Aurachain to enhance its SME online banking services.

*Definition: "The Low Code Development Platform Market provides a visual development environment for application development, debugging and deployment with little to no code involvement. It allows technical and non-technical users to develop applications for various platforms like web and mobile by using drag-and-drop features, visual configuration and model-driven logic through a graphical user interface rather than traditional programming. This accelerates the development process and enables more customized application delivery."

Market Segmentation

• Deployment Mode Insights (Revenue, USD Bn, 2019 - 2031)
  • Cloud
  • On-premise
•  Enterprise Size Insights (Revenue, USD Bn, 2019 - 2031)
  • Large Enterprises
  • Small and Medium-sized Enterprises
•  Application Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Web-based Application
  • Mobile-based Application
  • Desktop and Server-based Application
•  Industry Vertical Insights (Revenue, USD Bn, 2019 - 2031)
  • BFSI
  • IT and Telecom
  • Manufacturing
  • Healthcare
  • Retail and E-commerce
  • Government
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • South Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Appian Corporation 
  • Betty Blocks 
  • Creatio
  • LANSA
  • Mendix Technology BV
  • Microsoft Corporation 
  • Oracle Corporation
  • OutSystems Inc.
  • Pegasystems Inc.
  • Quickbase
  • Salesforce, Inc.
  • ServiceNow Inc.
  • Zoho Corporation Pvt. Ltd.
  • AgilePoint Inc.