Platform as a Service Market Statistics, 2030
The global platform as a service market size was valued at $44 billion in 2020, and is projected to reach $319 billion by 2030, registering a CAGR of 22.0% from 2021 to 2030. Platform-as-a-Service (PaaS) is a form of cloud computing that provides a broad set of cloud-based application infrastructure and middleware (AIM) resources through cloud. A PaaS provider hosts hardware and software on its own infrastructure. As a result, PaaS frees developers from having to install in-house hardware and software to develop or run a new application.
In 2019, the global platform as a service market share was dominated by the application PaaS segment, and is expected to maintain its dominance in the upcoming years. The growing capital investment on application development for mobile, web and enterprise promises significant growth opportunity for the market for application segment. Technology advancements in PaaS services such as AI capabilities are estimated to expand the platform-as-a-service industry for application segment growth. Furthermore, rise in popularity of cloud-based services is further expected to propel the growth of the platform as a service market for application segment during the projected period.
Within the PaaS market, the others segment is estimated to emerge as a fastest growing segment, while the others segment primarily includes Business Analytics (baPaaS) and API management PaaS (APImPaaS). BaPaaS offers analytical capabilities and tools as a service for visualization data discovery and predictive modeling. BI and analytics are data management solutions that are implemented in organizations to gather historical and present data, while using statistics and software to research raw information and deliver insights for creating better future decisions.
Platform-as-a-service (PaaS) offers cost and operational efficiency for enterprises and developers by providing templates and app development tools on a utility basis, thus enabling easy and innovative application development and delivery. Increased enterprise engagement at the appliance level strongly backed by rising mobile adoption is predicted to encourage PaaS growth within the region. The past few years have seen many major cloud providers enter the PaaS space, signaling the growing momentum during this region.
The report focuses on the growth prospects, restraints, and platform as a service market analysis. The study provides Porter’s five forces analysis of the Platform-as-a-Service industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the platform as a service market trends.
Segment Review
The platform as a service market is segmented on the basis of type, deployment mode, organization size, industry vertical, and region. By type, the market is fragmented into application paas, integration paas, database paas and others. By deployment mode, the market is bifurcated into public and private mode.
By Component
Others segment is projected as one of the most lucrative segments.
By organization size, it is classified into large enterprise and small and medium enterprise. By industry vertical, it is divided into BFSI, consumer goods and retail, telecommunication, it and ites, manufacturing, healthcare and life sciences, energy and utility and others. By region, the PaaS market is studied across North America, Europe, Asia-Pacific and LAMEA
By Region
LAMEA is projected as one of the most significant region.
Top Impacting Factors
Increased cyber-attacks during COVID-19 pandemic, backed by increase in applications of cloud and virtualization technologies in modern businesses are some of the primary factors propelling the market growth during the forecast period. However, harder and costlier initial installation and limited customization and complex network management strategies mainly limit the platform as a service market growth. Furthermore, advancements in the field of cloud computing and faster networks and increase in awareness of Platform-as-a-Service and its benefits is estimated to create a lucrative growth opportunity.
Advancements in the field of cloud computing and its services:
Cloud computing offerings have refined the technology to be more productive, efficient, cheap, and rapidly scalable to match the needs of transforming the business world of the modern day. Today, PaaS services can be availed with minimum or even no-code experience, giving small and medium enterprises a lot of agility to plan and execute their operations accordingly and without the need for a highly skilled and expensive IT team in their organization (or a third-party service) to deploy and maintain their application on localized sever.
Cloud solutions have made it easier for businesses to cut down their time to market times for their applications and services, PaaS vendors allow rapid scaling, quick maintenance, and troubleshooting of their applications than traditional methods and teams. These offerings and advancements in the field of cloud and platform-as-a-service solution are transforming modern businesses and hence, have great opportunities in the coming future.
The increase in complexity of modern-day businesses
Modern day business models are becoming complex every day, owing to presence of variables to process, data to be handled, and tasks to be completed. Platform-as-a-Service eases the load on organizations by focusing on the development and business end of the organization rather than to dedicate crucial and expensive IT resources of the organizations. PaaS can help extend the capabilities of development teams while eliminating the need to hire additional trained staff for certain operations. A platform can enable organizations in reducing overheads in the most effective way feasible. For instance, Amazon’s AWS offers AWS lambda offers Serverless compute services, which enables organizations to run their applications without the need to worry about servers and other backend needs.
COVID Impact Analysis
The COVID pandemic has been highly beneficial to the platform-as-a-service (PaaS) industry, owing to a substantial shift toward the use of online and cloud platforms and increase in demand for online shopping model during the forecast period, which has resulted in many small and medium level enterprises to turn toward PaaS solutions to help scale-up their cloud presence. Many organizations are expecting that with growth in digitalization, payments would create a cloud native environment and organizations would need to hire a 3rd party provider, which can use domestic, cross border, and regional payment solutions via a single interface. In addition, providers plan to manage complexities and difficulties associated with moving funds. Thus, digitalization and online payment with new product launch is expected to create multiple opportunities for the platform as a service market.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the platform as a service market forecast growth along with current trends and future estimations to elucidate imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the PaaS market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of platform as a service market opportunity for the period 2020–20230 is provided to determine the market potential.
Platform-as-a-Service Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By DEPLOYMENT |
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 By ORGANIZATION SIZE |
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 By VERTICALS |
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 By Region |
|
 Key Market Players | ALIBABA CLOUD, ORACLE CORPORATION, AMAZON WEB SERVICES, INC., SAP SE, MICROSOFT CORPORATION, INTERNATIONAL BUSINESS MACHINES CORPORATION, MENDIX TECHNOLOGY BV, SALESFORCE.COM, INC., ZOHO CORPORATION PVT. LTD., .GOOGLE LLC |
Analyst Review
The platform-as-a-service (PaaS) market is experiencing a rapid growth owing to faster accessibility and higher scalability features offered by PaaS. Platform-as-a-service solutions help businesses to speed up the deployments by taking care of all the storage, hosting, and backend needs. This helps organizations to dedicate time to the development process and focus on the business and consumer aspect of the products. Moreover, the scalability of platform-as-a-service is also providing business enterprises lucrative methods for optimizing the supply chain and thereby increasing the profit ratio. Scalability is a fundamental part of cloud computing that enables businesses enterprises and organizations to dynamically adjust the assigned virtual resources at the application, platform, database, and infrastructure levels on demand. Thus, the platform-as-a-service market is anticipated to experience growth owing to the above factors.
Platform-as-a-service market size is predicted to experience rapid growth during the forecast period owing to rapid adoption of cloud-based services and IoT technology among SMEs. The surge in demand among enterprises for quicker and easier web, business, and application development across multiple platforms boosts the market growth.
The platform-as-a-service market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 45-50% of the share. The degree of concentration is expected to remain same during the forecast period. In addition, cloud solutions have made it easier for businesses to cut down their time to market times for their applications and services. PaaS vendors allow for rapid scaling, quick maintenance, and troubleshooting of their applications than traditional methods and teams.
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