The low code development platform market is expected to witness a growth at a CAGR of 27.9% over the forecast period (2020-2025). The use of the low code development platform has increased across the world due to the rapid increase in the need for digitization and a strong ecosystem developed for Agile and DevOps practices.

  • Global businesses are increasingly demanding for modern multichannel applications to gain a competitive advantage, creating add-on pressure on the development team. Hence, the organizations are in constant search of developers. The low-code developer platform enables the organization with high productivity for accelerating its delivery of business applications and offering better customer experiences.
  • In recent years, the adoption of a low-code development platform increased by the Accidental Death and Dismemberment (AD&D)services in the insurance sector, as they need governance strategies immediately and need more flexibility with analysis. Hence, these organizations are looking forward to raising AD&D responsiveness by pushing low-code platforms into the business unit and enlisting businesspeople to assist with the ongoing projects.
  • The SATA Group Airlines has mentioned partnering with Outsystems for acquiring its low-code development platform. With this deployment, the company has enabled customer’s needs as the center of the development process and create greater value for the business.
  • Moreover, the ongoing outbreak of COVID-19 has forced the organizations to rethink their application development, and the adoption of low-code development platforms is offering a new perspective on logistics and standard operations. According to LANSA, low-code development enables close to a 90% reduction in development time. In this pandemic situation, all the majority of the companies are looking for cost-effective strategies for their operations. Hence, it is expected to give additional fuel to the studied market growth.



Key Market Trends

Information Technology Segment to Witness Significant Growth

  • In recent past years, IT professionals have been showing greater interest in the low-code development platforms because of significant payoffs it offers for their own developers, and for their customers relying on their software applications. According to the recent survey conducted by Salesforce.com has concluded that over seventy-six percent of IT professions are extremely interested in low-code development in 2019. The figure grew from 48% two years before.
  • The organizations that have been actively focused on technology advancement with low-code development in the IT sector are expected to gain the biggest impact across the business departments, and their ability to staff more people towards for complex tasks.
  • However, as the market is still emerging in the market, it needs for the governance and training for staff. The IT sector lacks confidence in non-developer staff for creating application development. Appian Corporation has mentioned that less than 24% of IT organizations have appropriate IT governance processes for non-developers to create applications. Additionally, only close to one-third of the IT organizations have proper training programs to empower non-developers to use low-code development techniques. This is expected to create hinder the studied market growth.



North America is Expected to hold the Largest Market Share

  • The North America region is expected to hold the largest market share as it has the presence of prominent as well as dominant players in the market, offering low-code development platforms. Some of these players are Salesforce, Mendix, Nintex, OutSystems, Quick Base, and Microsoft, among others. Out of these, Microsoft and Salesforce have close competition.
  • Additionally, the region has a greater opportunity for the studied market. According to the US Bureau of Labor, the IT sector in the country has limited bandwidth and has an ever-growing backlog of requests. There are over 200 thousand software development job openings in the country and only 30,000 computer science majors graduating annually. This is estimated to create more demand for low-code development platforms, as it enables the creation of applications by non-developers.
  • The BFSI companies in the region are also actively adopting low-code development platforms. US-based Newgen Software has mentioned of helping several leading financial institutions in the United States to quickly process and disburse loans to their customers with its low-code development platform, under the SBA Paycheck Protection Program (PPP).



Competitive Landscape

The low-code development platform market is fragmented with the presence of many players and big governance challenges globally, along with smaller vendors cumulatively holding major market share. The vendors with deep pockets in the market are actively involved in making strategic M&A activities, while small companies are involved in product innovation strategies to gain more market share.

  • May 2020 - Claris International Inc, has announced the launch of its latest FileMaker 19, the low-code development platform for businesses. This is enabling the rapid production of custom apps using JavaScript integrations, drag-and-drop add-ons, machine learning via Apple’s Core ML.
  • May 2020 - Microsoft announced the acquisition of Softomotive, a provider of robotic process automation (RPA). With this acquisition, the company has planned to deliver a comprehensive low-code desktop automation solution with a WinAutomation form Softomotive.



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