Demand for Low-Code AI Apps to Boost Low-Code Development Platform Market Size to $148.5 billion by 2030s

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Market research and consulting company, Straits Research, has published a report on the low code development platform market. The market was worth $16.3 billion in 2021. During an 8-year forecast period, analysts estimate for the market to be worth $148.5 billion (2022–2030).

The report cites the demand for low-code artificial intelligence platforms and digital transformation as major factors driving market expansion. However, vendors in the market could face challenges because of poor software integration. Also, experts believe the lack of customization features could become a significant limitation of low-code solutions.

Key Market Drivers

Demand for Low-Code AI Platforms

As we learned from the report, the increasing demand for low-code artificial intelligence platforms will drive market growth. Experts project the AI market itself to surpass $450 billion in 2022 with AI-powered apps taking the largest market share. AI now helps businesses run numerous processes more efficiently and contributes to better data collection, reporting, and analysis.

However, not all organizations have the financial resources or time to hire software developers with AI expertise. Also, with the current skills shortage in the IT industry, it can take months to fill a position. Companies might have an urgent requirement for software that include features designed to address their specific or ever-evolving project needs. So how do low-code platforms solve this dilemma?

With low-code platforms, professional developers, as well as citizen developers, can develop apps for their organization’s specific requirements. Low code development refers to straightforward and smooth methods even non-software developers can use to create custom functionalities in their apps. Since low-code platforms require little to no experience in coding, it can result in rapid development, cost savings, and improved user experience. It’s no wonder why more and more organizations are using low-code solutions.

Tools for Digital Transformation

The focus on digital transformation is also pushing organizations to provide more digital tools to their employees. Low-code platforms come into the picture since employees don’t need in-depth technological know-how to use and customize low-code apps.

For example, a coordinator for a nonprofit organization could use a low-code platform to create an app for collecting personal information from participants in a new outreach project. Without formal coding training, the coordinator could customize the forms and create a registration system based on what their organization requires. In just a few days, they can have an online database ready for their project.

Low-code Solutions in the Healthcare Industry

When it comes to opportunities, vendors in the low-code market should consider offering their products to the healthcare industry. Based on the report, the global healthcare industry is thriving and looking for ways to improve and simplify data integration processes.

The healthcare industry handles large volumes of data—not only from patients but also from business partners and stakeholders. But the industry is also struggling with ways how to efficiently handle this data and remove siloed systems. With low-code platforms, hospital staff and healthcare providers can create customized apps based on their workflows without the need to pass the task to the IT team.

Market Limitations and Challenges

Interoperability is always an important aspect when adopting software products. The same is true for low-code platforms. Based on the report, users of low-code solutions might encounter situations when their app doesn’t interface seamlessly with other sophisticated business apps.

Another limitation is the lack of customization options. Not all low-code platforms can support business models and complex project requirements. Thus, industry experts believe that integration and limited app personalization can constrain market growth.

Vendors in the low-code platform market should consider offering more custom tools and native integration with popular SaaS apps. Also, offering training to end-users, technical support, and consultations on how to build apps on the low-code platform could provide a vendor with a competitive edge in the market.