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The platform-as-a-service (PaaS) market size is estimated to increase by USD 80.82 billion, at a CAGR of 26.42% between 2022 and 2027. Market expansion relies on various factors, such as decreased costs and time associated with application development, streamlined application management processes, and simplified disaster recovery facilitated by cloud technology. These elements collectively shape the trajectory of market growth, reflecting a blend of technological advancements and operational efficiencies. The reduction in application development costs and time underscores the importance of agile and cost-effective solutions in meeting evolving business needs. Simultaneously, streamlined application management processes signify the need for efficient resource utilization and enhanced productivity in application lifecycle management. Additionally, the simplification of disaster recovery with cloud technology highlights the resilience and scalability offered by cloud-based solutions in mitigating business risks. Thus, the interplay of these factors delineates the landscape for the anticipated expansion of the market catering to application development and cloud services.
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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This 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).
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. 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.
The market is experiencing rapid expansion fueled by the proliferation of cloud computing and AI (Artificial Intelligence) technologies. With a focus on operational efficiency and business analytics (baPaaS), PaaS offerings streamline IT and ITES operations, providing API Management PaaS solutions and templates for efficient app development. As IoT (Internet of Things) adoption grows, PaaS facilitates enterprise engagement and mobile penetration through customizable cloud computing services. This market witnesses robust PaaS growth driven by large enterprises seeking scalable solutions from various providers. Comprehensive training programs cater to diverse needs, whether on-premise or on the cloud, ensuring seamless integration and innovation in modern IT ecosystems. 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 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 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. Hence, it is expected to drive the growth during the forecast period.
The security concerns related to the public cloud may impede market growth. Numerous enterprises across the world 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 themarket 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 Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is at the forefront of driving digitalization and cloud computing technologies adoption, offering public cloud solutions and on-premise options for app development tools and data recovery services. With a focus on big data analytics and digital transformation, PaaS providers enable revenue streams through efficient public cloud deployment and robust infrastructure support. As mobility trends reshape customer engagement and work agility, PaaS solutions facilitate seamless interconnection of bandwidths and mobile applications development. With incremental improvements in cloud capabilities and system resources, enterprises optimize TTM and development costs while enhancing client experiences and industry growth. PaaS drives digital enterprises forward, leveraging 5G and tablet integration for streamlined operations across healthcare, IT, and Telecom sectors, while simplifying licensing formalities and maintenance for server-based scaling.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.42% |
Market growth 2023-2027 |
USD 80.82 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
22.98 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 49% |
Key countries |
US, Japan, China, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 market forecast period. |
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
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