Global Low-Code Development Market Report By Component (Platform, Services), By Deployment Mode (Cloud-Based, On-Premise), By Application Type (Web-based Applications, Mobile-based Applications, Desktop-based Applications), By Organization Size (Small and Medium-Sized Enterprises, Large Enterprises), By Industry Vertical (IT and Telecommunications, BFSI, Healthcare, Retail and E-Commerce, Manufacturing, Government and Defense, Other Industry Verticals), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Low-Code Development Market size is expected to be worth around USD 274.0 Billion by 2033, from USD 25.1 Billion in 2023, growing at a CAGR of 27.0% during the forecast period from 2024 to 2033.

Low-code development refers to a software development approach that allows users to build applications using visual tools and drag-and-drop features, rather than writing extensive code. It simplifies the development process by offering pre-built templates and components, making it easier for both developers and non-technical users to create apps.

Several factors are driving the growth of the low-code development sector. The increasing demand for faster software development, especially in industries like finance, healthcare, and retail, is a key growth driver. Companies are under pressure to deliver digital solutions quickly, and low-code platforms provide an efficient way to do so.

Additionally, the rise of remote workplace services and distributed teams is boosting demand for collaborative development tools. This presents significant opportunities for platform providers to offer flexible, cloud-based low-code solutions. As businesses seek to reduce their IT spending, the cost-effectiveness of low-code development is another factor fueling demand.

Several key factors are driving the growth of the low-code development sector. A major factor is the increasing adoption of low-code tools by developers. According to data from Sparking, 41% of professional developers now use no-code or low-code tools to expedite application development. This shift reflects the growing demand for accessible technology solutions that can enhance productivity across IT departments.

Furthermore, 66% of IT leaders consider low-code platforms essential for addressing the ongoing shortage of skilled developers. By enabling employees with limited technical skills to build applications, these platforms help democratize software development and expand AI capabilities across organizations.

Projections indicate that low-code tools will account for over 65% of application development by 2024, reflecting the growing reliance on these platforms to meet enterprise needs. Additionally, nearly 60% of custom enterprise applications are now built by non-developers, with 30% of them created by employees with minimal or no technical development skills.

Government initiatives are increasingly supporting the adoption of low-code platforms as part of broader digital transformation strategies. In various regions, governments are encouraging the use of technology to improve public services and streamline operations, providing opportunities for low-code platforms to play a role in modernizing infrastructure.

Additionally, as regulations around data privacy and security become stricter, low-code platforms are being designed with built-in compliance features, ensuring that applications meet regulatory standards without requiring specialized coding expertise.

Key Takeaways

• The Low-Code Development Market was valued at USD 25.1 Billion in 2023, and is expected to reach USD 274.0 Billion by 2033, with a CAGR of 27.0%.
• In 2023, Platform led the component segment with 68.8%, driven by the increasing adoption of low-code platforms for application development.
• In 2023, Cloud-Based dominated the deployment mode segment with 65.1%, reflecting the growing preference for cloud solutions in application development.
• In 2023, Web-based Applications held 57.3% in the application type segment, driven by the demand for easy-to-deploy web applications.
• In 2023, North America accounted for 36.1% market share, driven by the region’s advanced IT infrastructure and demand for low-code solutions.

Component Analysis

Platform dominates with 68.8% due to its comprehensive integration and customization capabilities.

In the Low-Code Development market, the Component segment is strongly led by Platforms, which constitute 68.8% of this sector. This dominance is attributed to the platforms’ ability to provide comprehensive integration and customization capabilities that enable businesses to develop applications quickly and with minimal coding.

These platforms offer drag-and-drop interfaces, pre-built templates, and extensive APIs that facilitate rapid application development, significantly reducing the complexity and duration of the development process.

Platforms in the low-code market are particularly appealing because they allow enterprises to swiftly adapt to market changes and internal demands without the need for extensive technical expertise. This flexibility is crucial in today’s fast-paced business environment where digital transformation initiatives are at the forefront.

Services, the other sub-segment within this category, though smaller in proportion, play a critical role in supporting the deployment, operation, and maintenance of low-code platforms. These services include training, support, and consulting, which are essential for maximizing the effectiveness of low-code solutions in complex enterprise environments. They ensure that organizations leverage these platforms to their full potential, facilitating ongoing innovation and continuous improvement.

Deployment Mode Analysis

Cloud-Based dominates with 65.1% due to its scalability and cost-effectiveness.

The Deployment Mode segment within the Low-Code Development market is predominantly occupied by Cloud-Based solutions, accounting for 65.1% of the market. The cloud’s dominance is driven by its scalability, flexibility, and cost-effectiveness, which align perfectly with the core advantages of low-code development platforms.

Cloud deployment enhances collaboration by allowing developers and business users to access the platform from anywhere, facilitating remote development and real-time updates. This is particularly beneficial for organizations with distributed teams or those adopting hybrid work models.

On-Premise solutions, while less prominent, are favored by organizations that require strict data control, security, and customization. These solutions are crucial in industries where regulations dictate data residency and security, offering the necessary infrastructure to meet these stringent requirements while still benefiting from low-code development capabilities.

Application Type Analysis

Web-based Applications dominate with 57.3% due to their universal accessibility and cross-platform compatibility.

In the Application Type segment of the Low-Code Development market, Web-based Applications lead with a 57.3% share. This segment’s significant presence is largely due to the universal accessibility and cross-platform compatibility of web-based applications, making them the preferred choice for businesses aiming to reach a broad audience. Progressive web applications developed on low-code platforms can be rapidly deployed and easily maintained, offering responsive designs that work across various devices and operating systems.

This type of application allows businesses to streamline operations, enhance customer interactions, and integrate seamlessly with other web services and APIs. The agility provided by web-based applications is essential for businesses requiring quick adjustments to their applications in response to user feedback or changing market conditions.

Mobile-based and Desktop-based Applications, though constituting smaller portions of the market, address specific user requirements and contexts. Mobile-based applications are crucial for on-the-go accessibility, while desktop-based applications are important for performance-intensive tasks. Both segments complement web-based applications by providing tailored solutions that enhance the overall user experience and functional reach of business applications.

Organization Size Analysis

Large Enterprises dominate with 62.5% due to their extensive resources and broad operational scope.

In the Organization Size segment of the Low-Code Development market, Large Enterprises hold the majority, with a 62.5% market share. This dominance is because large organizations have the extensive resources and broad operational scope necessary to implement and benefit from low-code platforms effectively.

These enterprises face complex operational challenges that low-code development can address by enabling rapid, flexible, and scalable application development across multiple departments and functions.

The ability of large enterprises to invest in advanced technologies and drive extensive digital transformation initiatives makes them ideal candidates for adopting low-code platforms, which facilitate innovation and streamline operations.

Small and Medium-Sized Enterprises (SMEs), although smaller in market share, are increasingly adopting low-code platforms as a means to compete with larger counterparts by rapidly developing custom solutions that cater to niche markets or specific customer needs. Low-code platforms provide SMEs with the tools to create sophisticated applications that can scale as their business grows, making this technology an important factor in leveling the playing field in various industries.

Industry Vertical Analysis

IT and Telecommunications dominate with 25.2% due to the sector’s inherent need for rapid and continuous software development.

In the Industry Vertical segment of the Low-Code Development market, IT and Telecommunications lead with a 25.2% share. This dominance stems from the sector’s inherent need for rapid and continuous software development to keep pace with technological advancements and changing consumer expectations.

Low-code platforms enable IT and telecom companies to quickly develop and deploy applications that improve operational efficiency, enhance customer service, and introduce new services rapidly.

The flexibility and speed offered by low-code development are critical in an industry characterized by fast technology lifecycles and intense competition. These platforms allow IT and telecom firms to respond swiftly to market changes and regulatory requirements, maintaining a competitive edge.

Other industry verticals such as BFSI, Healthcare, Retail and E-Commerce, Manufacturing, and Government and Defense also significantly benefit from low-code development. These sectors utilize low-code platforms to streamline workflows, enhance customer engagement, and innovate faster, contributing to the overall growth and adoption of low-code technologies across the market spectrum.

Key Market Segments

By Component

• Platform
• Services

By Deployment Mode

• Cloud-Based
• On-Premise

By Application Type

• Web-based Applications
• Mobile-based Applications
• Desktop-based Applications

By Organization Size

• Small and Medium-Sized Enterprises
• Large Enterprises

By Industry Vertical

• IT and Telecommunications
• BFSI
• Healthcare
• Retail and E-Commerce
• Manufacturing
• Government and Defense
• Other Industry Verticals

Driver

Demand for Faster Application Development Drives Market Growth

The growing demand for faster application development is a significant driving factor in the low-code development market. Businesses increasingly need to deliver digital solutions quickly, and low-code platforms enable rapid development by allowing users to create applications with minimal coding knowledge.

This demand is further amplified by the shortage of skilled developers in the industry. Low-code platforms help bridge this gap by enabling non-technical users to build functional applications, reducing reliance on professional developers.

The rise of digital transformation across industries also fuels market growth. Companies are adopting low-code development platforms to modernize their operations, streamline workflows, and improve overall efficiency without investing heavily in complex IT infrastructure.

Additionally, the integration of No-code AI and automation into low-code platforms is enhancing their capabilities. These technologies allow users to automate repetitive tasks and build more intelligent applications, driving higher adoption rates.

Moreover, the increased use of mobile applications is pushing organizations to adopt low-code platforms to develop mobile apps faster. The ability to build cross-platform apps with minimal effort is attractive to businesses seeking to expand their digital presence.

Restraint

Security Concerns Restrain Market Growth

One of the primary restraints in the low-code development market is security concerns. Many organizations hesitate to adopt low-code platforms due to worries about data privacy and security vulnerabilities, especially when handling sensitive business information.

Another restraining factor is the limited customization offered by some low-code platforms. While low-code solutions provide faster development, they may not always allow the deep customization that businesses with complex requirements need.

Integration challenges with existing systems also pose a restraint. Many organizations face difficulties integrating low-code solutions with legacy systems, which can lead to operational disruptions and increased costs.

The learning curve associated with using some low-code platforms can be a restraint. Although low-code tools are designed to be user-friendly, non-technical users may still require training to fully utilize the platform’s capabilities, which adds time and expense to the implementation process.

Opportunity

Integration with AI Provides Opportunities

The integration of artificial intelligence (AI) into low-code development platforms presents significant opportunities for market players. AI-powered tools allow users to automate complex processes and enhance the functionality of their applications.

Moreover, the growing need for custom business applications creates opportunities for low-code platforms to cater to specific industry demands. Companies across sectors seek tailored solutions, and low-code platforms offer the flexibility to develop customized apps quickly.

The rise of automation in business operations also provides growth potential. Low-code platforms that incorporate automation tools enable users to streamline workflows and reduce manual intervention, increasing their appeal to enterprises.

Lastly, the shift toward cloud-based solutions opens opportunities for low-code platform providers. Cloud-based low-code solutions offer scalability, flexibility, and cost savings, making them an attractive option for businesses looking to reduce their IT overhead.

Challenge

Scalability and Complexity Challenges Market Growth

Scalability is a key challenge in the low-code development market. As businesses grow, the applications built on low-code platforms may not scale efficiently, limiting their long-term effectiveness for large enterprises.

Additionally, handling complex business requirements can be challenging with low-code platforms. While these tools excel at rapid development, they may not be suitable for applications that require deep customization or advanced functionality, restricting their use in certain industries.

The lack of flexibility in low-code platforms also presents a challenge. Some platforms may limit the ability to modify or extend applications beyond the platform’s native capabilities, hindering developers’ creativity and innovation.

Finally, vendor lock-in is another challenge. Many low-code platforms are proprietary, meaning businesses may find it difficult to transfer their applications to other platforms or providers, leading to dependency on a single vendor for ongoing support and updates.

Growth Factors

AI and Automation Are Growth Factors

The integration of artificial intelligence (AI) and automation into low-code development platforms is a significant growth factor. These technologies allow users to build smarter applications that can automate tasks and improve decision-making, making low-code platforms more appealing to businesses.

Another growth factor is the rising demand for digital transformation across industries. As companies look to modernize their operations, low-code platforms provide a fast, cost-effective way to develop and deploy applications, driving market growth.

The need for business agility is also fueling the adoption of low-code platforms. Organizations want to respond quickly to market changes, and low-code solutions enable rapid application development, allowing businesses to stay competitive.

Additionally, the increasing use of mobile applications is driving demand for low-code platforms. These platforms simplify the process of developing mobile apps, allowing businesses to create cross-platform solutions with minimal coding, which supports their digital expansion strategies.

Emerging Trends

Citizen Development Is the Latest Trending Factor

Citizen development is emerging as a major trend in the low-code development market. The concept refers to non-professional developers within organizations using low-code platforms to create applications, driving innovation and reducing the strain on IT departments.

The rise of democratized development is also trending, where low-code platforms empower employees from various departments to build applications that meet their specific needs, without waiting for IT support.

Another trending factor is the focus on hyper-automation, where low-code platforms are being integrated with automation tools to streamline and optimize business processes. This trend is helping organizations increase efficiency and reduce manual workloads.

The shift toward multi-experience development is gaining traction. Businesses are increasingly using low-code platforms to create applications that provide a seamless user experience across various devices and platforms, from mobile to desktop, supporting a more connected and engaging digital presence.

Regional Analysis

North America Dominates with 36.1% Market Share

North America leads the low-code development market with a 36.1% share, valued at USD 9.06 billion. This dominance is driven by high demand for rapid application development, a shortage of skilled developers, and strong adoption of digital transformation strategies. The region’s thriving tech ecosystem and investment in cloud computing further fuel the market’s growth.

North America benefits from a large number of enterprises adopting low-code platforms to streamline operations and reduce time-to-market for applications. The presence of major tech companies and a strong focus on innovation in software development contribute significantly to the region’s leadership.

North America’s influence in the low-code market is expected to expand as businesses increasingly rely on these platforms to accelerate digital transformation and enhance operational efficiency. The rise of AI and automation integration in low-code solutions will further boost market demand.

Regional Mentions:

• Europe: Europe is growing steadily in the low-code market, driven by a strong focus on digitalization and compliance with strict data privacy regulations like GDPR.
• Asia Pacific: The Asia Pacific region is rapidly expanding due to the growing need for digital solutions, especially in industries like banking and retail, where speed and scalability are essential.
• Middle East & Africa: The region is adopting low-code platforms to improve digital capabilities, with a focus on modernizing government services and enhancing business operations.
• Latin America: Latin America is gradually increasing its adoption of low-code platforms, driven by the need for cost-effective solutions to digitize operations in industries such as healthcare and manufacturing.

Key Regions and Countries covered іn thе rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The Low-Code Development market is dominated by a few key players who drive innovation, simplify app development, and offer robust solutions for businesses. Microsoft Corporation, Salesforce, Inc., and Oracle Corporation are the top three companies shaping the future of this market through their technological advancements and strategic market positioning.

Microsoft Corporation leads the market with its Power Apps platform, enabling businesses to build custom apps with minimal coding. Its strong integration with other Microsoft products like Azure and Office 365 gives it a competitive advantage. Microsoft’s vast customer base and global presence allow it to dominate the low-code market, particularly among enterprise users.

Salesforce, Inc. is another major player, offering a comprehensive low-code platform through Salesforce Lightning. The platform helps businesses automate workflows, develop custom applications, and improve customer relations. Salesforce’s strategic focus on customer-centric app development and strong position in the CRM market make it a key force in the low-code development industry.

Oracle Corporation holds a prominent position with its Oracle APEX platform, allowing users to rapidly build data-driven applications. Oracle’s deep expertise in cloud infrastructure and database management gives it an edge in offering scalable and secure low-code solutions. Its strong presence in both enterprise and mid-market sectors enhances its influence in the global market.

These top companies are shaping the Low-Code Development market by offering user-friendly platforms, leveraging their existing ecosystems, and focusing on innovation to meet the growing demand for rapid app development.

Top Key Players in the Market

• Microsoft Corporation
• Salesforce, Inc.
• Siemens AG
• Oracle Corporation
• Appian
• OutSystems
• Pegasystems Inc.
• ServiceNow, Inc.
• Kissflow Inc.
• Zoho Corporation
• Other Key Players

Recent Developments

• MB&A: In September 2024, Joshua Millsapps, CEO of MB&A, advocated for the adoption of low-code/no-code tools within government agencies to improve digital service development. His firm’s Extensible Assessment Manager (ExAM), built on Salesforce, streamlines data collection and process improvement, incorporating feedback loops for enhanced service delivery.
• Ability8: In September 2024, Mark Condon founded Ability8, utilizing the OutSystems low-code platform to build an application that significantly enhances disability care management. Integrated with the National Disability Insurance Scheme, the app provides features such as scheduling, payroll management, and regulatory compliance, making daily tasks easier for people with disabilities and their families.
• Tata Consultancy Services (TCS): In June 2024, TCS introduced TCS AI WisdomNext™, a platform that unifies Generative AI (GenAI) services to boost business efficiency. The platform allows businesses to experiment with GenAI models from multiple vendors, enabling cost optimization, ethical AI practices, and faster innovation.
• Comviva: In April 2024, Comviva launched a Low-Code/No-Code platform aimed at streamlining digital payments and banking for financial institutions, including banks and fintech firms. The platform promises to accelerate innovation and reduce deployment time by 30%-40%, allowing businesses to automate workflows and quickly adapt to market changes.

Report Scope