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Platform As A Service (Paas) Market size is projected to cross USD 105 Billion by the end of 2035, growing at a CAGR of 30% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of platform as a service (PaaS) was USD 10 Billion. The growth of the market can be attributed to the growing adoption of cloud and rising need to decrease time to market (TTM) cost. It is calculated that more than 93% of the total enterprises in the world already use cloud services. About 30% of all IT budgets are allocated for cloud computing.
In addition to these, factors that are believed to fuel the market growth of platform as a service (PaaS) include the rising use of PaaS to simplify utility improvement management, deployment, and scaling, thereby facilitating better developer productiveness and innovation, which in turn is projected to drive market growth in the coming years. Moreover, PaaS offers a self-serviceable, bendy and agile application version, which allows easy import of compiled code in J2EE and .NET framework and immediate deployment of constructed programs. Furthermore, PaaS is able to provide less cost of application development and lower TTM that help in adjusting the approach to software product development, avoid development wastes, and ensure good cooperation. This factor is evaluated to offer lucrative opportunities to the market in the near future.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~30% |
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Base Year Market Size (2022) |
~ USD 10 Billion |
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Forecast Year Market Size (2035) |
~ USD 105 Billion |
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Regional Scope |
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Growth Drivers
Growing Adoption of Cloud Services – PaaS offers a foundation on which developers may construct or modify cloud-based applications. Almost 44% of all applications are still installed locally, and roughly 95% of businesses plan to expand their cloud investment over the next 12 months.
Rising Penetration of Digitization – PaaS may have the biggest influence on how successfully businesses' digital changes turn out. A digital-first firm strategy has been embraced by 55% of startups, but 90% of all businesses have already implemented digitization in their organizations
Rise in the Number of New Enterprises – Higher new enterprises are expected to drive the demand for the platform as a service. Almost 300 million people worldwide are attempting to launch nearly 150 million enterprises. It is anticipated that around 50 million new firms are to be started annually since approximately one-third will be started. or roughly 137,000 each day.
Need to Reduce Time to Market – PaaS has the potential to reduce the product deployment time by reducing the time on coding, by increasing the scalability, and offering cost-effective and faster deployment of products and services. Around 71% of the sampled goods underwent the concept-to-launch process in around two years. Moreover, in energy products and services, the lowest TTM is around 7 years, however, for some products or services it can reach up to 20 years.
Rise of Internet of Things (IoT) Connected Devices – IoT PaaS platforms give users greater autonomy over their systems connected to the Internet of Things (IoT) and freedom from being tied to a single software platform. In 2021, there were around 12 billion, connected devices an approximately 8% increase in the total number of IoT connections. Also, it is anticipated that nearly 27 billion gadgets would link to the Internet of Things.
Challenges
End-user (Healthcare, Manufacturing, BFSI, IT & Telecommunication, Consumer Goods & Retail)
The global platform as a service (PaaS) market is segmented and analyzed for demand and supply by vertical into healthcare, manufacturing, BFSI, IT & telecommunication, consumer goods & retail, and others. Out of the six types of verticals, the manufacturing segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing demand for faster product delivery and heightened production in the manufacturing industry. Owing to the rising e-commerce the demand of the products is constantly increasing, along with this need of the manufacturing industry to reduce time to market duration. According to projections in a UNCTAD report, the share of online retail sales in total retail sales rose from 16% to 19% in 2020 as a result of the sharp increase in e-commerce combined with the movement restrictions brought on by COVID-19. Moreover, with the rise in the global retail sales, out of all the nations, the greatest share was reported by the Republic of Korea in 2020, at 25.9%, up from 20.8% the previous year.
Type (Application PaaS, Integration PaaS, Database PaaS)
The global platform as a service (PaaS) market is also segmented and analyzed for demand and supply by type into application PaaS, integration PaaS, database PaaS, and others. Amongst these four segments, the application PaaS (APaaS) segment is expected to garner a significant share. The growth of the segment can be expected on the back of increasing adoption of APaaS applications among various government organizations across the world. Moreover, the benefits of APaaS such as reduced coding time, added development capabilities without involving more staff, accessibility to support tools, support for geographically circulated teams, and efficient administration of application development lifecycle are also assessed to boost the growth of this market segment in the future.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Vertical |
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North American Market Forecast
The North American platform as a service (PaaS) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing budget allocation for cloud services among enterprises among different industries including, telecommunication, BFSI, IT, and government and public sectors. In 2019, more than 85% of the cloud experts in the United States stated that cloud is anticipated to revolutionize the banking sector in the country by the end of 2021 by lowering the overall bank costs. Moreover, around 94% of American businesses use at least one cloud, such as public cloud, private cloud, and hybrid, with hybrid being the most common option.
APAC Market Statistics
The Asia Pacific platform as a service (PaaS) market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The market growth in the region is expected on the account of rise in the number of enterprises in the region and increasing use of cloud services. Over 15,000 new business of business service industry was registered in 2022. The sector surpassed all the sector, moreover, manufacturing sector came in second over the examined time period, with over 3000 businesses. Furthermore, growing digital transformation is also expected to boost the market growth. According to the International Trade Administration, the use of cloud services by both central and local government offices is encouraged by the Government of Japan's Digital Agency. For instance, Digital Agency declared in October 2022 that agencies under the Government of Japan will use "Government Cloud" services throughout the fiscal year.
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January, 2021: Microsoft announced the introduction of Wisely, which is the newest addition in the company’s blockchain-enabled CPaaS offerings for enterprises, OTT players, mobile carriers, marketers, and industry regulators to advance their quality of service.
September, 2020: Oracle announced the expansion of its security portfolio with new cloud services designed to automatically help data from the risks posed by cyber threats and protect cloud workloads. The three new cloud services, including Oracle cloud guard, Oracle data safe, and Oracle maximum security zones, offer centralized security configuration and automated enforcement of security practices.
Author Credits: Abhishek Verma, Hetal Singh
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