Platform As A Service (PaaS) Market

The Global Platform as A Service (PaaS) Market, in terms of revenue, was worth of USD 60.2 Billion in 2022 and is expected to reach USD 198.1 Billion in 2029, growing at a CAGR of 19.2% from 2023 to 2029. The global Platform as A Service (PaaS) market is expected to grow at significant growth rate due to number of driving factor.

Platform as A Service (PaaS) Market Scope 

Platform-as-a-service is a cloud computing model where a third-party provider delivers hardware and software tools to users via the Internet. As such, PaaS enables developers to develop or run new applications without installing in-house hardware and software.

PaaS began with a service called Zimki, launched in 2005 by Canon's Europe-based Fotango. It removed some of the repetitive tasks from the development of JavaScript web apps in a pay-as-you-go model. In 2007, Zimki stopped running because Photango didn't want to focus on it anymore. When Google Cloud Platform was introduced in 2008, it launched App Engine, a PaaS system that was originally limited to 10,000 developers. App Engine has always allowed customers to run their web apps on Google's infrastructure. 

Platform-as-a-service (PaaS) is a type of cloud computing offering in which a service provider delivers a platform to consumers, allowing them to develop, run, and manage business applications without the need to build and maintain the infrastructure such software development processes naturally require. One of the major benefits of platform as a service (PaaS) is its ability to improve a developer's productivity. PaaS provides direct support for business agility by enabling rapid development with faster and more frequent delivery of functionality. PaaS systems typically build in security and data-protection features including flexibility capabilities such as replication and backups. This can improve security and reduce the need for in-house security skills. As a result, PaaS frees developers from having to install in-house hardware and software to develop or run a new application. 

Global Platform as a service (PaaS) market report is segmented on the basis of type and application. Based upon type Platform as a service (PaaS) is classified into Public cloud, Private cloud and Hybrid cloud. Based upon application Platform as a service (PaaS) is classified into Banking, Financial Services, and Insurance (BFSI), Consumer goods and retail, Education, Government and public sector, Healthcare and life sciences, Manufacturing, Media and entertainment, Telecommunication and Information Technology Enabled Services (ITES) and others.

The regions covered in this global Platform as a service (PaaS) Market report are North America, Europe, Asia-Pacific and Rest of the World. On the basis of country level market of Platform as a service (PaaS) is sub divided into U.S., Mexico, Canada, UK, France, Germany, Italy, China, Japan, India, South East Asia, GCC, Africa, etc.

Covid-19 Impact on PaaS Market

The global Pandemic is an accelerating phenomenon, prompting organizations to accelerate and compress multi-year programmers into shorter timeframes to meet the demands of new flexible ways of working. PaaS has evolved a lot over the years and is mixing with IaaS. As traditional IaaS customers have matured and are more comfortable serving in the cloud, PaaS usage. COVID-19 has also impacted the growth of the PaaS market by accelerating the mix of PaaS and IaaS.

Global Platform as a Service (PaaS) Market Segmentation

By Product

• Public cloud
• Private cloud
• Hybrid cloud

By Application

• Banking
• Financial Services
• Insurance (BFSI)
• Consumer goods and retail
• Education
• Government and public sector
• Healthcare and life sciences
• Manufacturing
• Media and entertainment
• Telecommunication and Information Technology Enabled Services (ITES)
• Others

Platform as a Service Companies:

Global Platform as a service (PaaS) Market Report covers prominent players are like, 

• Dell Boomi
• Informatica
• Mulesoft
• Snaplogic
• Celigo
• IBM
• Oracle
• Jitterbit
• Scribe Software
• Dbsync
• Flowgear
• SAP
• Others.

Paas Solutions offerings 

PaaS offerings began finding wide scale use a little over a decade ago, shortly after the emergence of infrastructure as a service. Initial PaaS offerings focused on web application development, with a marketplace focus on startups or small firms. Over time, the market has evolved in two dimensions: the breadth of PaaS use cases and the providers. Today, PaaS offerings, or more aptly, managed offerings, extend beyond computing to include databases, machine learning (ML), security, operations, and network offerings. 

At its most general level, a PaaS is a set of development services aligned with a public cloud provider and/or a multi-cloud container development platform. This has evolved as cloud providers weave managed services throughout their IaaS and PaaS. Today, it is more appropriate to group PaaS as part of cloud development services that typically include database services, big data, AI/ML, and IoT. 

Application PaaS

PaaS bridges the gap between IaaS and SaaS, born out of the frustration of managing increasingly complex IT infrastructures. PaaS has ability to use pre-configured services to build more complex applications. This allows them to rapidly build and deploy applications that comprise the building blocks. It also helps the IT organization to eliminate delays in engaging the IT organization to bring that value to customers, either internally or externally. PaaS environments can also be more agile, enabling faster deployment and development of new applications. PaaS enables organizations to reduce overhead because the cloud provider does much of the management. 

Importance of PaaS

PaaS is a technology framework or environment that provides space for developers to build applications without worrying about the underlying infrastructure. Organizations that use PaaS vendors can concentrate on designing and building new capabilities and features into their products, allowing them to deliver those products to their customers more quickly. 

Companies that use PaaS services do not need to worry about the underlying management of updating servers, patching OSes, and other maintenance tasks required to maintain a digital environment. An example of a PaaS offering is AWS Elastic Beanstalk, which helps developers deploy apps to the AWS cloud. Other PaaS providers include Salesforce, Alibaba Cloud, Oracle, SAP, VMware, and Microsoft Azure. IBM Cloud Platform combines PaaS and IaaS to provide an integrated experience. 

Market Dynamics of PaaS Market 

Several factors have contributed to the acceleration of the PaaS market over the past few years, which are elaborated as follows: 

The expansion of the PaaS market is being driven by SMEs' rising use of IoT and cloud-based services. Enterprises employ cloud adoption as a method to reduce costs and risks while increasing the scalability of Internet-based database capabilities. For the success of SME businesses, IoT integration into operations is crucial, and data is a key component of that. SMEs may enhance customer engagement, increase efficiency, save operating costs, validate choices, and spot patterns by accessing and analyzing big data. Small and medium-sized businesses (SMEs) are crucial to most economies, particularly those in emerging nations. 

The majority of enterprises globally are SMEs, which also significantly contribute to job creation and global economic growth. They account for more than 50% of all jobs globally and roughly 90% of all enterprises. Certified SMEs account for up to 40% of GDP in emerging economies. When informal SMEs are included, this figure is substantially greater. According to Brandessence Research, 600 billion new jobs will be needed by 2030 to accommodate the world's expanding workforce, making SME growth a top priority for many governments around the world. 

Unbelievably, an estimated 305 billion startups are founded annually around the world. Every year, hundreds of Billions of businesses are founded, yet not all of them succeed. Additionally, it takes a while for these companies to start turning a profit. Entrepreneurs struggle in the early years to forge their own path, identify their specialty, and create a business plan. The United States currently has the most startups out of all of these new firms. Over 70,000 businesses, from those in the software and gaming industries to those in blockchain and artificial intelligence, are based in the nation. A Brandessence market study found that 89% of all businesses either now use or intend to use a digital-first company approach. This indicates that the demand for cloud-based services is increasing, due to which the PaaS market is growing significantly. 

Increasing Demand of PaaS Solutions  

Moreover, the growing demand for application development platforms in PaaS services among others is the major driving factor for the PaaS market. The demand for application developers, web development, testing, and many other cloud services has grown tremendously in the past few years and continues to grow. 

Cloud and PaaS 

According to a Brandessence market study, 48% of companies worldwide were prioritizing cloud migration by 2021. This represents an 8% increase from last year, when 40% of companies made cloud migration one of their top priorities, rather than cybersecurity, customer experience, cost savings, automation, analytics, and others. According to the Google Play Store in mid-2022, to be exact, 3,739 apps are added to the Play store every day. Also, some other startups as well as big companies are also developing their own platforms with high priority. Due to this, the demand for PaaS is huge in the market. 

Additionally, cloud washing restricts the expansion of the PaaS marketplace. When marketing departments rebrand their program to make it more attractive, the phrase "cloud washing" is used. PaaS options that are cloud-based as opposed to cloud-native are different. Platform-as-a- Service systems that have been cloud-washed provide comparable architectures and programming paradigms. These systems generate just incremental value and have few cloud features. While increasing application density and facilitating dispersed interactions, cloud-native solutions that incorporate behavior into the applications detach the application code from run-time infrastructure specifics. End users frequently can't tell if a PAAS is cloud-washed or cloud-native in these situations. Cloud-washed solutions use up a lot of CPU, memory, and administration time on the computer. Consequently, it is anticipated that the deployment of cloud-based solutions would impede market expansion. 

Platforms as service providers can help developers accelerate application development. 

Moreover, the ecosystem for mobile apps will expand quickly, opening the door for the industry. App development is increasingly being recognized as a key driver of the mobile ecosystem's explosive growth. The creation of corporate mobile applications is rising in importance for businesses as a result of the expansion of digital businesses. According to the Market Survey, during the next two years, a minimum of 10 mobile applications will be deployed by over 52% of IT organizations. The COVID-19 pandemic has caused a rapid increase in demand for mobile applications. The development of these mobile applications has grown because of technologies like 5G and cloud computing. PaaS providers provide a unique set of tools for tablet, mobile, and web applications, as well as server-based scalability. 

Suggestions to PaaS providers 

Users are also being impacted by other market difficulties, such as vendor lock-in. In the case of vendor lock-in, switching vendors is too expensive, leaving the customer unable to choose another. Customers are unable to transfer vendors due to budgetary constraints and a small staff. Another significant contributor to vendor lock-in in the platform-as-a-service business is a lack of standardization. In addition, while purchasing services from vendors, many clients are unaware of the standards that result in application portability and interoperability. In order to overcome this difficulty, PaaS providers work hard to keep their clients as loyal clients by building great professional relationships. 

IBM to expand client base for cloud services

News: - Sep 17, 2019, IBM will focus beyond its top 200 enterprise customers for its cloud business in India as more clients start hosting applications on the internet, a senior company executive told ET. Until now, the company had focused on the top 200 enterprises for its cloud offerings. On a smaller base, they are seeing triple-digit revenue growth in the commercial segment as we focus on acquiring more customers. Meanwhile, they are going deeper with existing enterprise customers,” said Vikas Arora, IBM cloud and cognitive software leader for India region.

Increasing adoption of cloud based services and IoT technology among SMEs, growing demand of application development platforms in PaaS services with among others are the major driving factor for PaaS market

Increasing adoption of cloud based services and IoT technology among SMEs, growing demand of application development platforms are the factors, which are expected to drive the growth of PaaS market. Cloud adoption is a strategy used by enterprises to improve the scalability of Internet-based database capabilities while reducing cost and risk. To accomplish this, businesses engage in the practice of cloud computing or using remote servers presented on the Internet to store, manage, and process critical data. According to International Data Corporation, Professional services account for 12.2% of the global cloud spending. Furthermore, experts say 60% of workloads are running on a hosted cloud service in 2019. For position, the cloud hosted 45% of workloads in 2018.  Cloud adoption is a strategy used by enterprises to improve the scalability of Internet-based database capabilities while reducing cost and risk. Incorporating IoT into processes is essential for SME business growth and data is a big part of that. Recovering and analyzing big data analytics allows SMEs to better interact with their customers and therefore improve efficiency, reduce operational costs, validate decisions and identify trends. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to work creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Recognized SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are involved.  According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. However, high risk of vendor lock-in due to loss of business continuity on switching is expected to hinder the growth of the PaaS market, during the forecast period. The increasing level of investments by business leaders and public/ private capital holders towards the development of advanced and sophisticated mobile, enterprise, and web applications, promises an opportunity for the growth of the a PaaS market in near future.

North America is dominating the Platform as a service (PaaS) Market

North America is expected to dominate the growth of Platform as a service (PaaS) Market, due the rising needs of IT solutions such as agility, scalability, Pay-per-use based pricing, and reduced cost & time. According to international trade administration, the United States has the most advanced software and information technology (IT) services industry in the world. More than 40 percent of the USD5 trillion global IT market is in North America, primarily the United States. The industry accounts for USD1.8 trillion of U.S. value-added GDP and 11.8 million Occupations. According to CompTIA, there are more than 525,000 software and IT services companies in the United States. Europe is second largest region for the growth of Platform as a service (PaaS) Market, due to growing popularity of cloud based services among enterprises, higher employer productivity by reducing application development efforts and resource sharing enhancements among various projects. Asia Pacific are expected to the fastest growing markets for PaaS owing to the rapid technological as well as infrastructural advancements coupled with high growth in sectors such as telecom, and IT in the regions in forecast period.

Key Findings of Global PaaS Market: -

• The Public PaaS segment dominates the global platform as a service market with an increase in CAGR of 17.1% over the forecast period 2021-2028.
• United States country dominates the global platform as a service market with the largest market share of 91.7% in North America region due to the growing adoption of the cloud-based database. UK country, on the other hand, has the second-largest share in the market and is expected to rise at a CAGR of 17.6%.
• India is the fastest-growing country with a CAGR of 26.6% due to the elevating technological advancement and growing need for cost reduction.

By Regional & Country Level:

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• Mexico

Middle East and Africa

• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2015 - 2021
Forecast Period	2022 - 2029
Market Size in 2022:	USD 60.2 Billion
Base year considered	2021
Forecast Period CAGR %:	19.2%
Market Size Expected in 2029:	USD 198.1 Billion
Tables, Charts & Figures:	175
Pages	300
Key Players/Companies	Dell Boomi, Informatica, Mulesoft, Snaplogic, Celigo, IBM, Oracle, Jitterbit, Scribe Software, Dbsync, Flowgear, SAP , Others
Segments Covered	By Application, By Product
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa