Global Platform as a Service (PaaS) Market is Estimated to Witness High Growth Owing to Increased Software Development Activities and Growing Need for Scalability
The global Platform as a Service (PaaS) market is estimated to be valued at US$ 69.83 Bn in 2024, exhibiting a CAGR of 13.7% over the forecast period (2024-2031). Growing need for scalability and agility among organizations to develop and deploy applications rapidly is driving the growth of the Platform as a Service (PaaS) market. Furthermore, rise in software development activities and growing adoption of cloud-based services have fueled the demand for PaaS.
Market Dynamics:
The growth of the global Platform as a Service (PaaS) market is driven by the growing need for scalability and increased software development activities. PaaS offers seamless scalability which allows applications to be scaled up or down automatically based on computing needs without much lead time. This helps businesses to develop and deploy applications quickly by optimizing their infrastructure resources. Additionally, PaaS lowers the maintenance and administrative costs associated with hardware infrastructure and operating systems. Organizations are increasing software development activities to build robust and innovative applications for engaging customers and gaining competitive edge. PaaS provides developer-friendly environment and tools that accelerates development life cycle and time-to-market of new applications. The ability of PaaS to eliminate the burden of infrastructure management and reduce development costs has made it a preferred solution among businesses.
Market Driver: Growing Demand for Flexible and Scalable Cloud Infrastructure
PaaS allows organizations to quickly deploy and manage applications without the complexity of building and maintaining the infrastructure. It eliminates the need to provision and manage server hardware and related infrastructure. Organizations are increasingly adopting cloud-based platforms as they provide flexible, scalable infrastructure that can dynamically adjust as per business needs. PaaS removes the constraints of physical hardware and provides unlimited infrastructure resources on-demand via the cloud. This has become an attractive option for businesses as they can focus more on their core operations rather than managing IT infrastructure. The flexibility, agility and scalability offered by PaaS is expected to drive higher adoption across industries going forward.
Market Driver: Reduced Cost of Application Development and Management
PaaS allows organizations to develop, test and deploy applications in a much quicker, simpler and cost-effective manner. It handles the complex and expensive tasks of procuring, configuring and managing servers, storage, databases and networking components. All of these infrastructure pieces are abstracted through PaaS, significantly lowering the upfront investment required and reducing ongoing maintenance costs. Businesses can focus on core activities like coding, testing and release management while infrastructure costs are transferred to an operational expenditure model. This results in lower total cost of ownership of applications. The cost savings offered by PaaS is a major factor attracting more organizations to these cloud-based platforms.
Market Restraint: Security and Compliance Concerns
While cloud platforms provide improved security features and controls, some organizations are still hesitant to move mission-critical workloads and sensitive data to the cloud due to security concerns. There are perceived risks around visibility, control and data sovereignty when using public cloud infrastructure. Strict compliance and regulatory requirements for certain industries like healthcare, financial services and government make it difficult for organizations to embrace public cloud platforms freely. Managing robust application security practices requires considerable expertise as well. Unaddressed security issues could hold back wider PaaS adoption across industries with stringent security and compliance needs.
Market Restraint: Vendor Lock-in Risks
In the Platform as a Service (PaaS) market, customers often get tightly coupled with provider-specific APIs, tools, libraries and development frameworks. Switching to another vendor platform requires substantial re-development efforts, opportunity and migration costs. The proprietary nature of services available on commercial PaaS clouds creates lock-in dependencies. While multi-cloud strategies provide more flexibility, high switching costs and lack of portability continue to pose lock-in concerns. This risk of becoming overly reliant on a single vendor restrain organizations from fully embracing PaaS offerings in mission-critical projects involving long-term contracts. Interoperability will need to improve to address such lock-in issues in the future.
Market Opportunity: Adoption in New Application Development
Majority of new cloud-native applications will be developed directly on PaaS platforms rather than on-premises data centers, going forward. PaaS enables rapid creation of scalable web, mobile and IoT applications through integrated development tools, middleware services and on-demand infrastructure. This makes PaaS particularly suitable for experimentation, prototyping and developing new digital products. Emerging technologies like microservices, serverless computing, and containers are also easier to adopt using PaaS frameworks. New application development represents a massive growth opportunity for PaaS vendors as digital transformation becomes mainstream across sectors.
Market Opportunity: Migration of Existing Apps to the Cloud
While new development is a large opportunity, established organizations also have opportunity to modernize their legacy applications and migrate them to PaaS platforms. This brings application portfolios up to current architecture styles, improves maintenance and reduces costs. PaaS vendors are investing in migration tools and professional services to help customers assess, refactor and move their mature applications to the cloud over time. The growing need among businesses to upgrade their infrastructure and applications will drive significant migration cycles to PaaS. Vendors facilitating smoother migrations will be well positioned to tap into this lucrative opportunity area over the long run.
Link: https://www.coherentmarketinsights.com/market-insight/platform-as-a-service-market-4181
Key Developments:
- In February 2023, Route Mobile Ltd., a leading global provider of Communication Platforms as a Service (CPaaS), launched a new range of services known as TruSense, aimed at enhancing digital identity protection and security. This suite ensures secure digital transactions and enables organizations to authenticate end users with precision.
- In February 2023, Microsoft Corporation, a prominent global technology firm, introduced "Azure Operator Nexus," its latest hybrid cloud platform tailored for communication service providers. Microsoft anticipates that this advanced network infrastructure will empower telecommunications partners to improve and capitalize on their current infrastructure, thereby reducing overall ownership costs.
- In January 2021, Tanla Platforms Limited, a prominent communication solutions provider, partnered with Microsoft to launch Wisely, a Blockchain-enabled Communications Platform as a Service (cPaaS). Wisely is tailored for enterprises, mobile carriers, OTT players, marketers, and industry regulators aiming to elevate their service quality.
- In September 2020, Oracle Corporation, a prominent cloud computing service provider, expanded its security portfolio by introducing new cloud services aimed at automatically safeguarding cloud workloads and data against cyber threats. The three new offerings—Oracle Data Safe, Oracle Cloud Guard, and Oracle Maximum Security Zones—deliver centralized security configuration and automate the enforcement of security practices.
- In June 2020, Wipro Limited, a prominent global company specializing in information technology, consulting, and business process services, joined forces with IBM to accelerate the shift to cloud computing. Through this partnership, Wipro Limited will create hybrid cloud solutions designed to help enterprises migrate, oversee, and innovate their operations.
Key Players:
Amazon Web Services (AWS) Elastic Beanstalk, Engine Yard, Google App Engine, Heroku, IBM Cloud, Microsoft Azure, OpenShift by Red Hat, Oracle Cloud Platform, Pivotal Cloud Foundry, Salesforce Platform, SAP Cloud Platform, Tanzu by Broadcom (formerly VMware Tanzu), Vercel, Wasabi Cloud Storage, and Zoho Creator
