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The platform-as-a-service (PaaS) market size is estimated to grow at a CAGR of 26.42% between 2022 and 2027. The market size is forecast to increase by USD 80.82 billion. The growth of the market depends on several factors, including the reduction in the cost of application development and time, streamlined application management, and simplification of disaster recovery with the cloud.
This platform-as-a-service (PaaS) market report extensively covers market segmentation by product (public cloud, private cloud, and hybrid cloud), type (application PaaS, integration PaaS, and database PaaS), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reduction in the cost of application development and time is notably driving market growth, although factors such as security concerns related to the public cloud may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The reduction in the cost of application development and time is notably driving market growth. Enterprises are focusing on minimizing their overall CAPEX with the adoption of new technologies. Earlier, each on-premises application requires hardware, OS, a database, middleware, servers, and software, and building and running on-premises applications is a complex, expensive, and time-consuming task.
Thus, there is increasing adoption of PaaS solutions across SMEs as they can help them adopt hardware, middleware, OS, software, and resources as and when needed. Thus, organizations need a high CAPEX in order to purchase and maintain the required hardware, software, OS, and servers and to establish their own data center. Some of the key advantages of PaaS include ease of integration with any data, allowing for the creation of data-centric apps, and providing a connected experience to app users, giving them relevant, contextual information in real time. Hence, such factors are expected to drive the platform-as-a-service (PaaS) market growth during the forecast period.
The shift toward cloud solutions is a key trend shaping market growth. There is increasing adoption of hybrid cloud solutions as they allow organizations to deploy applications on-premises or on their private cloud. Organizations can leverage additional resources from the public cloud portion of their infrastructure only when needed. Depending on their varying requirements, they can also shift their workloads between different clouds, making it easy to shift from one type of cloud to another.
One of the key advantages of PaaS cloud solutions is that it allows organizations to change their cloud service providers as per their requirements and eliminate vendor lock-in. Thus, not being locked into a cloud service provider's infrastructure is a very important benefit for organizations when they are negotiating the pricing for different services as being locked into a single cloud service provider or a dedicated data center infrastructure vendor does not help in reducing the overall cost of ownership. Thus, cloud solutions offer the portability of applications between different clouds and help leverage the flexibility and cost benefits of the cloud. Hence, it is expected to drive the platform-as-a-service (PaaS) market growth during the forecast period.
The security concerns related to the public cloud may impede market growth. There are numerous enterprises across the world that use cloud services due to their affordability, scalability, and ease of use. Although the functionalities provided by cloud services include reliability, enriched IT service, increased flexibility of data access, and other benefits, there are increasing security concerns associated with the public cloud.
Security and compliance concerns are one of the primary reasons for organizations hesitating to adopt a public cloud solution. PaaS providers maintain infrastructure, OS, middleware, and preinstalled software packages for developing and running applications. In a public cloud, applications from multiple customers are typically run on the same OS. Thus, customers face vulnerabilities such as lax default application configurations and holes in the Secure Sockets Layer (SSL) protocols as applications may be isolated from each other using containers or some language-specific sandbox mechanism. SSL-based attacks are considered the second greatest attack for PaaS users. Even though service providers implement certain initiatives, such as secure multitenancy, the nature of the public cloud services leaves them open to attacks from hackers. Hence, these concerns are expected to hinder the platform-as-a-service (PaaS) market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Platform-as-a-Service (PaaS) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc. - The company offers a platform-as-a-service through its subsidiary Google.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the public cloud segment will be significant during the forecast period. The public cloud can be defined as the delivery of PaaS solutions through a public cloud infrastructure. In this model, a PaaS provider facilitates a shared pool of computing resources such as virtual machines, storage, and networking, which are accessible to multiple customers over the Internet.
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The public cloud segment was valued at USD 9.78 billion in 2017 and continued to grow until 2021. One of the key advantages of public cloud PaaS offerings is that they are designed to provide a cost-effective and scalable way for developers to build, test, and deploy their applications without having to invest in and manage their own IT infrastructure. These solutions typically include pre-built application frameworks, development tools, and runtime environments as well as support for popular programming languages and development platforms. Some of the key benefits of using public cloud PaaS solutions include reduced IT infrastructure costs, scalability, and rapid application development and deployment. Hence, such factors are expected to drive the growth of the segment, which, in turn, will drive the platform-as-a-service (PaaS) market growth during the forecast period.
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North America is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the key reasons for the growing demand for PaaS increasing adoption of cloud services in North America as well as the presence of major established PaaS cloud service providers, such as AWS, Microsoft, Google, and Oracle. Factors such as the PaaS model help users scale resources as per the requirement, making it a viable option for startups and SMEs, enabling developers to create an application simply through their web browser, utilizing the one-click functionality and the flexibility of PaaS solutions are significantly driving the adoption of these solutions across the organizations. Other significant factors include the ease of virtualization, dynamic scaling, and the automation of administrative tasks. Hence, such factors are expected to drive the platform-as-a-service (PaaS) market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of global platform-as-a-service (PaaS) market witnessed significant growth due to the adoption of cloud-based solutions across various end-user industries in the region such as healthcare, and public companies and organizations, for the streamlining of organization information and finding solutions relevant to situations, such as decision-making operations. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the restoration of operations across organizations and the pandemic made them realize the importance of these cloud-based solutions. Such factors are expected to drive the market during the forecast period.
The platform-as-a-service (PaaS) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global platform-as-a-service (PaaS) market as a part of the global Internet services and infrastructure market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Platform-as-a-Service (PaaS) Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.42% |
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Market growth 2023-2027 |
USD 80.82 billion |
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Market structure |
Concentrated |
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YoY growth 2022-2023(%) |
22.98 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 49% |
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Key countries |
US, Japan, China, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Atos SE, Dell Technologies Inc., DevFactory FZ LLC, Furukawa Electric Co. Ltd., International Business Machines Corp., Microsoft Corp., Oracle Corp., Platform.sh SAS, Progress Software Corp., Salesforce Inc., SAP SE, Siemens AG, Software AG, Tata Sons Pvt. Ltd., Virtuozzo International GmbH, VMware Inc., Zerone Consulting Pvt. Ltd., and Zoho Corp. Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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