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The rapid application development (RAD) market is estimated to grow by USD 129.02 billion at a CAGR of 39.7% between 2022 and 2027. The increasing adoption of cloud-based services, driven by the need for flexible and scalable IT solutions, is driving market growth by increasing the demand for cloud services across various industries. Enterprise mobility, which involves the use of smartphones and other mobile devices for business purposes, is also boosting market expansion by enabling employees to work remotely and access business applications on the go. Additionally, the elimination of gaps in required IT skills, through training and upskilling initiatives, is driving the adoption of new technologies and driving market growth. Overall, these factors are driving the growth of the cloud-based services and enterprise mobility markets and driving innovations in mobile and cloud computing technologies.
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This report extensively covers market segmentation by capacity (large enterprises and small and medium enterprises), deployment (on-premise and cloud-based), 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 historical market data from 2017 to 2021.
The market share growth of the large enterprises segment will be significant during the forecast period. Large enterprises have huge IT infrastructure installed on their premises, and the switching costs for these enterprises would be high. Even if these businesses opt for the hybrid model, it is strewn with integration issues in both development and production environments. Large enterprises that deal with critical business information prefer an on-premises application platform as it provides an optimum level of data security with physical access controls and security protocols.
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The large enterprises segment was valued at USD 3.18 billion in 2017. One of the main reasons for the adoption of RAD is the rising demand for cost-effective packaged solutions for resolving organizational internal and external issues, which is encouraging large enterprises to adopt RAD software. As more large enterprise employees use mobile devices both inside and outside the office, mobile remote support is becoming increasingly important. The RAD software is compatible with both iOS and Android devices. The growing availability of such products is expected to propel the growth of this market segment during the forecast period.
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North America is estimated to contribute 35% 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. North America, including the US, is at the forefront of technology adoption. The adoption of IoT technology is witnessing an increase in industrial applications in North America, especially in developed economies such as the US and Canada. The increasing adoption of technologies such as video streaming and online payments is driving the growth of the regional RAD market. With an increase in the use of mobile phones and smartphones, as well as the expansion of device connectivity, the demand for IoT solutions is increasing in the region. The growing adoption of smartphones has increased growth opportunities for all subsectors within the telecom industry, including network infrastructure and 5G services companies, wireless/broadband carriers, and device manufacturers. Considering these factors, the regional market is expected to grow during the forecast period.
The market is witnessing significant growth, driven by the adoption of advanced technologies to streamline business processes. Companies like Innominds are leveraging low-code platforms to accelerate software development for digital applications across various industries. These tools and platforms enable organizations to quickly prototype and deploy applications, reducing time-consuming tasks. Small and Medium-sized Enterprises (SMEs) are benefiting from cloud-based RAD platforms, such as OutSystems, Mendix, and Salesforce, which offer low-code application development capabilities. Collaboration between experienced professionals and users is key to implementing a successful RAD strategy, helping organizations stay competitive in the digital economy. 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 increasing adoption of cloud-based services is notably driving market growth. Cloud-based services are popular among small- and medium-sized enterprises (SMEs) due to their cost-effectiveness, easy access, flexibility, and security. This popularity extends to cloud-based rapid application development (RAD) platforms and the Low-code/No-Code industry, which offer SMEs efficient and affordable solutions for their business needs. This leads to significant reductions in operating costs and improved efficiency in the development cycle. The emergence of new, highly flexible application delivery paradigms has addressed many issues with traditional application delivery, providing companies with a flexible workspace for the collaborative management of business applications. These advantages are expected to drive the growth of the market in the forecast period.
Technological advances in application development are the key trends in the market. Emerging technologies such as AI, cloud computing, blockchain, predictive analytics, big data, IoT, virtual assistants, and machine learning, as well as augmented and virtual reality, are effectively transforming the way businesses function and end-business goals are met across industries. They are expected to pave the way for breakthrough developments in the application development vertical.
With high-tech advances, application development in the mobile vertical is gaining more traction in modern times and, in turn, is dominating the global application development vertical. Another trend in this space is rapid mobile app development (RMAD), which is a code-free application development methodology for enterprises to quickly create and deploy mobile apps. Application development is leaping forward in the government space as well. With the advent of the information age and the evolution in consumer demand, there is an increasing demand from taxpayers to have greater transparency in government processes. These trends are expected to drive the growth of the market during the forecast period.
The complexity involved in application development, planning, and estimation is the major challenge impeding market growth. Rapid application development service planning and estimations cover the scope, objective, approach, and functionality as well as describe the time that it will take to complete a task. Application development teams must put more effort into the planning and estimation phase, as this will form the foundation for the success and accuracy of application objectives.
Over-expectations from the management and pressure to complete the project within a short time without providing proper support could lead to incorrect application development and estimation. Inadequate application development expertise will have a negative impact on the final product or the service of an enterprise. Ignorance of the changing requirements, incremental development, and upstream delays can further add to the complexity of the application development plan and estimation. Thus, complexities in the development plan and estimation can negatively impact the growth of the market during the forecast period.
The 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.
ServiceNow Inc. - The company offers rapid application development solutions such as Now Platform as its key offerings. The company operates as a single operating and reportable segment that includes sales and revenues generated through various products and services of the company. Major products include the Now Platform, and pre-packaged applications specifically designed for automating IT, Employee, and Customer workflows.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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 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.
The market is experiencing significant growth driven by the increasing demand for streamlined processes and speed in software development. RAD focuses on rapid prototyping and iterative development, enabling developers to quickly create high-quality applications that meet robust application requirements.
Organizations like Soliant Consulting and Siemens Enterprise are leveraging RAD to develop customer-centric applications and integrate applications for Retail and Financial enterprises. RAD's user-centric approach and iterative development allow for faster deployment and adaptability to changing market requirements. With the rise of microservices and agile development practices, the market is expected to continue growing as businesses seek faster software development cycles and functional software solutions that address evolving needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.7% |
Market growth 2023-2027 |
USD 129.02 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
39.58 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., AmpleLogic, Appian Corp., International Business Machines Corp., Idera Inc., Kissflow Inc., Mendix Technology BV, Microsoft Corp., Ninox Software GmbH, Oracle Corp., Oro Inc., OutSystems Software em Rede SA, Pegasystems Inc., Quickbase Inc., Radzen Ltd., Salesforce.com Inc., ServiceNow Inc., Temenos Headquarters SA, WPP Plc, 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 forecast period. |
Customization purview |
If our market 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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Capacity
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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