April 17, 2024

Low Code Development Platform market Empowers Digital Transformation is in Trends by Focus on Application Modernization

The low code development platform provides an intuitive drag-and-drop interface that allows both developers and non-technical users to visually design and create application software through a graphical user interface and configuration instead of traditional hand-coding. It helps in rapid application development, reduces development costs, improves productivity and facilitates better collaboration between domain experts and developers.

The global low code development platform market is estimated to be valued at US$ 19.68 Bn in 2024 and is expected to exhibit a CAGR of 26% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the low code development platform are Salesforce.com Inc., Appian Corporation, Microsoft Corporation, Magic Software Enterprises Ltd, Pegasystems Inc., Oracle Corporation, ZOHO Corporation, Mendix Inc. (Siemens AG), AgilePoint Inc., QuickBase Inc., Clear Software LLC (Microsoft Corporation), ServiceNow Inc., Skuid Inc., Outsystems Inc., Temenos AG. The growing usage of low code platforms for building digital applications to meet consumer demand has fueled market growth. Major companies are expanding globally by entering new regional markets to tap the growth opportunities.

Market key trends
Focus on application modernization is driving the adoption of low code development platforms. Organizations are increasingly embracing these platforms to modernize legacy applications and build new applications with low code tools to be more agile and keep pace with digital transformation. The low code approach helps companies innovate faster, enhance customer experience and gain competitive advantages.

Porter’s Analysis
Threat of new entrants: Low threshold for new entrants with changing technologies and increased customization preferences. However, existing players hold dominant market share and high switching costs deter new entrants.
Bargaining power of buyers: Buyers hold strong bargaining power due increasing choice of vendors and price-based competition. However, switching costs and need for customized solutions slightly reduces their influence.
Bargaining power of suppliers: Relatively low as key suppliers include software developers and technology consultants. However, differentiated offerings and domain expertise by certain suppliers increases their bargaining power.
Threat of new substitutes: Threat of substitutes is moderate as traditional development methods and open-source tools provide alternatives. However, low code platforms offer speed, scalability and faster ROI that restricts impact of substitutes.
Competitive rivalry: Highly competitive with presence of several global players. Competition is based on pricing, features, customization and tech support. M&As and partnerships between vendors also influences competitive dynamics.

Geographical Regions
North America region accounts for largest share in the low code development platform market. This is attributed to early adoption of technologies, high digitalization trends across industries, presence of major vendors and willingness to invest in customizable solutions.
Asia Pacific is expected to grow at the fastest pace during the forecast period. This is due to growing start-up culture, increasing internet penetration, rising mobile usage and focus of global players to tap opportunities in emerging countries of the region.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it