Cloud Application Development Platforms Market Size (2023 - 2030)

The Cloud Application Development Platform market was valued at $ 515.31 billion in 2022 and is estimated to reach $ 1073.03 billion by 2030, registering a CAGR of 15.8% during the forecast period of 2022 – 2030. The advancement in technologies that aids in scalability and flexibility of cloud-based application moreover the customization provided by numerous cloud service vendors are promoting the adoption of cloud-based application which in turn is driving the Cloud Application Development market. This has resulted in improving the overall operational efficiency as it has reduced the cost of hardware, reduced usage of IT infrastructure, and also cut down the staff size and is resulting as a key force driving the growth of the market.

Cloud technology has made its mark and penetrated in the world far and wide. It is assumed that by 2030, cloud technology will host over 100 zettabytes of data online. In 2022 over 94% of all workload was conducted through cloud data centers. Cloud computing has enabled businesses to store, manage and access data hosted on remote servers on the internet. This has improved operational efficiency as it has reduced the cost of hardware, and the usage of IT infrastructure is also reduced to many folds.

Many companies are inspired by the application and usefulness and are rapidly adopting cloud-based application development services. The prime factor behind the major adoption of cloud-based enterprise applications is the enormous scalability and reduced operational costs offered by cloud services. The scalability and extensive services offered by cloud-based applications support complete business availability for global customers, as it reduces development time and also eases the risk. The exponential growth in the generation of data in websites and mobile apps, aiming for customer satisfaction by providing customer-centric application and the growing demand to reduce the input cost and improve business performance is driving the growth of the market. Furthermore, the latest technologies like big data, Artificial Intelligence (AI), and machine learning are also being widely used by major market players to automate numerous activities are also contributing to the growth of the cloud application development market. However, factors such as cost sensitivity among local players, increasing cyberattacks and data breaches, rising data security and lack of uninterrupted & robust internet infrastructure may act as a decelerating factor to market growth around the world.

MARKET DRIVERS

Increased return on investment and reduced operational cost has boosted the cloud application development platforms market growth:

With the deployment of cloud services, the enterprises have witnessed an increased return on their investment and the infrastructure cost has also reduced these are the factors that are propelling the market growth. With larger digital transformation and exponential growth in data generation cloud computing services have made data access, storage and management very smooth and streamlined.  The fundamental feature of accessing the data and working on it remotely is the major driver of the market growth. Moreover, integrating cloud services with business operations has reduced the concerns like the expense of hardware, electricity costs, staff expenses, and downtime issues are reduced significantly. These factors are compelling enterprises to adopt the cloud application development platform market at a rapid pace.

MARKET RESTRAINTS

Security threats and privacy issues stifle the rise of cloud application development platforms market: 

The increase in usage of digital features poses security and privacy issues. The high risk of hackers accessing the system data and unauthorized access to data can be exploited for carrying out malicious or criminal activities and can act as a threat to business operations. Due to this, regulations are constantly evolving to cater the changing business needs. However, increasing data breaches and cyber-attacks, and rising data security concerns act as hindrances to the growth of the market. Significant investments in cyber security are set to offset this challenge and promote healthy growth during the forecast period 2023 - 2030.

Market Segmentation

Global Cloud Application Development Platforms Market - By Service Model:

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a service (SaaS)

Among these, Software as a Service (SaaS) dominated the market followed by Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). The SaaS segment holds over 50% of the market share and is anticipated to rise from $30.69 billion in 2022 to $ 131.84 billion in 2030 at a CAGR of 27.5% during the forecast period. Beside this, the Infrastructure as a Service (IaaS) segment is also projected to witness a healthy growth in coming decade. The infrastructure as a service market was valued at $59.10 billion in 2022, and is projected to reach $206.66 billion by 2030, growing at a CAGR of 23.2% from 2023 - 2030. The Telecom & IT industry contributed maximum to the infrastructure as a service market share. Factors like growth in customer base and high penetration of internet connections. Reduced investments for new hardware and software across various industry verticals is estimated to drive the market for IaaS in the future. Whereas, the Platform as a Service (PaaS) market is poised to increase by $37 billion and registering a CAGR of 19.48% during the forecast period.

Global Cloud Application Development Platforms Market - Based on the Deployment Model:

• Public cloud
• Private cloud
• Hybrid cloud

By deployment model, the cloud application development platform can be segmented as Public Cloud, Private Cloud and Hybrid Cloud. Among these, the hybrid cloud segment hold the major market share during the forecast period. Industries that are more aligned towards compliance, security and customer-centric solutions such as healthcare, BFSI and governments are looking forward to the adoption of a hybrid cloud.  Factors including growth in the volume data generation, increased user, shifting of applications over the cloud and resource mobility are propelling segmental growth.

Global Cloud Application Development Platforms Market - Based on Verticals:

• Banking, Financial Services, and Insurance (BFSI)
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Media and Entertainment
• Healthcare and Life Sciences
• Others

Cloud-based services are being widely used in sectors like Manufacturing, BFSI, Media and entertainment and healthcare among others. On the basis of vertical, The Banking, Financial Services, and Insurance (BFSI) vertical is a major driver of the market growth. As this sector is rapidly integrating digital services with its business activities in order to meet the rising customer expectations and withstand competition in the market. Cloud Application development vendors provide a collection of cloud services for financial organizations to help them in improving revenue generation, enhanced customer insights, efficient and quick delivery of market-relevant products, and aids in capitalizing the enterprise data assets. Due to the growth in internet usage, the data generated such as personal information, transaction details etc. needs to be processed securely and the loss of such data may result in a threat to business operations. The cloud applications provide businesses most effective manner to reduce the cost as well as guarantee enhanced and secure operations. The feature of real-time access to the data eases decision-making and boosts business processes. Cloud services diminish the geographical barriers, as many cloud vendors rely on common practices for managing, storing, and retrieval of cloud data. Thus, enterprises have the freedom of accessing data and getting updates related to business activities from anywhere at any device.

Cloud Application Development Platform Market – By Region:

• North America
• Europe
• Asia Pacific
• Rest of the World(Middle East, Africa, and South America)

North America is the dominant regional market for the adoption of cloud application development platforms market. North America is poised to grow with a healthy CAGR during the forecast period. The presence of big economies like the US and Canada, housing key market players like IBM Corporation, Microsoft Corporation, Salesforce, and others in the region, is to contribute prominently to the cloud applications market. The prime factor driving the growth in this region is because the companies are focusing on integrating cloud-based applications with business processes to attain operational efficiency which has facilitated them in reducing input costs and improving operational efficiency.

Besides this, the Asia Pacific region is estimated to have the highest CAGR during the forecast period owing to growth in internet users, advanced IT infrastructure systems, and the presence of the highest number of cloud service providers in regions like India, China, and Japan are boosting the market.

The European market is also projected to grow substantially. Factors felicitating the growth in the region are the increasing adoption of cloud tools such as project management, inventory management, office collaboration, and sales tracking. The U.K. and Germany are amongst the leading countries in the adoption of cloud application services.

Key Players

Prominent players operating in the market are:

1. Microsoft
2. Dell EMC
3. Hewlett Packard (HP) Enterprise Development
4. AWS
5. Salesforce
6. Oracle
7. SAP
8. Google
9. Workday
10. Adobe
11. IBM among others

The presence of many players makes the market consolidated. Players in the market are involved in mergers and partnerships with technology providers to strengthen their product offerings and widespread their client base. Big players have already been investing in cloud-based technologies and focusing on product launches, acquisitions, and R&D activities to capture the market space.

Notable Happenings.

• BMC Software Inc acquired Compuware in June 2022. The business plans to combine agile development and delivery with automation and intelligence operations to empower enterprise developers and operations teams to use a modern approach to designing, testing, and deploying mainframe applications.
• The general availability of Red Hat JBoss Enterprise Application Platform (EAP) 7.3 was announced by Red Hat Inc in May 2022. Organizations can use the platform to deploy and manage enterprise Java applications in a variety of hybrid IT settings, including private/public clouds and virtualized clouds.
• Feb. 2022 - Rocket Software, an enterprise modernization and optimization solutions company announced that it has the acquisition of Netherlands based Uniface, a pioneer in accelerating innovation through its low-code application platform.

Impact of Covid-19 on the Cloud Application Development Platforms market

The global Covid outbreak has served as catalyst accelerating the digital transformation and adoption of digital services among the people and enterprises. The lockdown necessitated the companies to adopt to work from home for safety of employees and also to maintain operational efficiency which resulted in creating a demand for cloud-based solution. The future prospect of the market tends to be positive as enterprises have understood the benefits of cloud services in reducing the input cost and enhancing the operational efficiency which is going to act as a major proponent of the market.