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Market research company, Technavio, has published an industry report on the low-code development platform (LCDP). The report estimates the LCDP market to reach $35.73 billion from 2021 to 2026 at a CAGR of 27.96%.
According to the report, flexible pricing options are one of the key drivers of the LCDP market’s growth. Organizations that are experiencing tightening IT budgets benefit the most from low-code solutions. Vendors that are able to accommodate varying customer pricing preferences could see the most growth in this market.
Another market growth driver is digital transformation. Businesses across industries are aggressively investing in enterprise software. From banking and finance to healthcare, retail, and utilities, companies are turning to low-code platforms to build custom app solutions for their businesses.
North America will see the biggest LCDP market growth. The increased use of IoT devices, artificial intelligence (AI), and 5G technology will all contribute to the growth in this region. The United States will contribute the largest growth at 42% during the forecast period.
Meanwhile, the report cited challenges for the LCDP market in emerging economies. Organizations in developing nations might face issues such as a lack of awareness and skills in using low-code platforms. Though easier to implement than traditional enterprise solutions, companies still need to train employees on new software. Training could also be a resource-intensive endeavor, especially for employees who don’t have an IT background.
Low-Code Platforms Revolutionizing Software Development
Low-code/no-code SaaS solutions have increased in popularity due to the benefits they offer users. For one, they enable companies to be agile and adapt their apps to business needs as they unfold. Both professional developers and citizen developers can use low-code development platforms.
Productivity, Agility, and Cost Savings
Low-code/no-code software has intuitive dashboards and features. For smaller organizations, this empowers staff and managers to produce functional apps for their projects or workflow needs.
Based on a global survey, 33% of organizations are now using low code platforms for data modeling and visualization, while 36% are using them for productivity apps. Teams can automate business processes with simple commands, dependencies, and drag-and-drop tools. Other use cases include automating work processes, monitoring data security, and developing ecommerce apps.
Moreover, using low-code/no-code platforms alleviate problems associated with the skills shortage in the software development sector. According to one survey of HR professionals, 28% said it’s difficult to recruit for DevOps positions. With easy-to-use low-code apps, companies don’t need to hire a full IT team or additional developers, so this translates to savings in recruitment time and training costs.
Legacy System Upgrades, Microservices, and Mobile Apps
But it’s not only new or ad hoc business requirements that are being pushed to low-code/no-code platforms. As the report cited, digital transformation is boosting the LCDP market growth. Globally, 58% of businesses said low-code solutions are transforming their legacy systems.
On the other hand, professional developers can use low-code tools in mobile app development. The demand for mobile apps is continuously on the rise. Even companies with full DevOps teams must find ways to become more efficient in designing, updating, and maintaining their mobile apps. Low-code development makes this possible.
Microservices is another software development trend where companies can implement low-code solutions. Microservices are replacing monolithic applications with tech giants like Netflix, Amazon, and Google leading the transition. However, this transition doesn’t come easy. Low-code development platforms offer enterprise features and functionalities that can help companies rebuild their IT infrastructure more efficiently and with less burden on developers.
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