DUBLIN, April 6, 2023 /PRNewswire/ — The “Application Platform Market, By Component, By Operating System, By Application, By Organization Size, By Deployment Type, By End-Use, and By Region Forecast to 2030” report has been added to ResearchAndMarkets.com’s offering.
The market size for global application platforms was valued at USD 10.23 Billion in 2021 and is anticipated to experience a revenue compound annual growth rate (CAGR) of 7.6% throughout the forecast period.
The increasing demand for collaborative application development, the significance of DevOps, and the rising popularity of cloud-based services are some of the primary drivers of revenue growth in this market.
Cloud-based application platforms are gaining popularity in the software industry, with providers such as Salesforce, Workday, and ServiceNow experiencing significant growth. By leveraging technological advancements such as artificial intelligence, automation, and analytics, these platforms enable rapid application deployment.
The application platform facilitates the rapid and iterative creation of applications using graphical, model-driven programming, which can be easily deployed on-premises or in the cloud with a single click. Other benefits include straightforward operations and a pre-made back-end interface, allowing users to collaborate in real-time from any location. Moreover, the service requires minimal initial investment and reduces additional operating costs because new databases do not need to be installed or maintained. In the current context of new technologies, every modern application requires a portfolio of business software, including hardware and software, database administration, and cloud solutions, to function effectively.
In 2020, Capgemini reported that the use of cloud-native applications, which are applications and services created specifically for the cloud and use Platform-as-a-Service (PaaS), has significantly increased, indicating a substantial shift in business cloud adoption. Cloud-native apps accounted for 15% of all new corporate applications and have seen a 32% growth in use in recent years, enabling IT to better support business agility and innovation.
Growing popularity of cloud-based services
The increasing adoption of cloud-based services is a major driving force behind the growth of the global application platform market share. Small and medium-sized enterprises (SMEs) are using Platform-as-a-Service (PaaS) solutions to access resources on demand, such as hardware, middleware, operating systems, software, and other resources. Organizations need significant CAPEX and OPEX expenses to buy, operate, and set up their data centers, and they are turning to cloud platforms to transfer costs from CAPEX to OPEX, reduce setup and personnel expenses, and minimize growth costs. Cloud-based systems can easily integrate any data, facilitating the development of data-centric applications. This feature offers users of the application a higher degree of connectivity and timely access to relevant contextual information. Organizations using cloud-based solutions benefit from using a single, multipurpose framework as needed and only paying for what they use, avoiding reliance on a specific web application development framework. This enables businesses to launch applications or products faster and reduce additional costs associated with building multiple platforms. For example, in November 2022, VMware announced VMware Cloud on Equinix Metal at VMware Explore 2022 Europe in Barcelona. This new distributed cloud service will provide a more effective, secure, and affordable cloud solution to serve corporate applications.
Possibility of vendor lock-in and lack of scalability
The growth of the global application platform market may be hindered by several issues, including the potential for vendor lock-in and limitations in scalability. Vendor lock-in refers to measures taken by service providers to make it difficult for clients to switch away from their platform. This can result in a situation where a client’s business becomes reliant on a single vendor’s products and services. Application platforms are particularly susceptible to vendor lock-in because companies often utilize services from multiple cloud providers, including IaaS, PaaS, SaaS, and FaaS.
Dependence on a single vendor’s products and services can also limit scalability, which can hinder an organization’s ability to expand as needed.
The global application platform market is categorized into two segments based on its components: software and services. In 2021, the software segment held the largest revenue share. This segment can be further divided into two sub-segments: application platform software and transaction processing monitor software. The increasing number of internet users worldwide is driving the growth of the application platform software industry. By 2022, the number of internet users globally is expected to reach 4.95 billion, with 62.5% of the world’s population already using the internet. As more people use social media, there is a growing need for IT players to create or upgrade software. For example, as of January 2022, there are 4.62 billion social media users globally, accounting for 58.4% of the world’s population.
In 2021, the service segment had a moderate revenue share. The service segment can be further segmented into deployment & integration and support & maintenance. Application Platform as a Service (aPaaS) is a type of cloud computing that provides customers with operating systems, hardware, network resources, and storage needed to develop or operate new applications in the cloud. It creates an environment for application services development and deployment. By eliminating the need for users to install hardware and software on their computers, aPaaS offers several benefits, such as reducing development costs, decreasing project duration and time-to-market, enabling improved resource sharing across multiple projects, and enhancing staff productivity.