Platform-as-a-Service Market by Type (Application PaaS, Integration PaaS, Database PaaS, Other PaaS), Deployment Mode (Private PaaS, Public PaaS, Hybrid PaaS), Organization Size (SMEs and Large Enterprises), Sector (IT & Telecom, Retail & E-commerce, Healthcare, BFSI, Manufacturing, Government & Defense, Energy & Utility) - Global Forecast to 2030

The Platform-as-a-Service Market is projected to reach $227.5 billion by 2030, at a CAGR of 16.8% during the forecast period 2023–2030. The growth of this market is driven by the increasing adoption of cloud computing technology, the growing implementation of IoT technology, and the rising need to reduce time to market and application development costs. However, data security & privacy concerns restrain the growth of this market. The increasing penetration of Artificial Intelligence (AI) and Machine Learning (ML) technologies and the growing demand for video PaaS are expected to create growth opportunities for the stakeholders in this market. However, cloud migration and vendor lock-in are major challenges for market growth.

Growth in IoT Adoption is Expected to Drive the Platform-as-a-Service Market

IoT technology is being increasingly implemented across industries. Most IoT-centric solutions are implemented on PaaS platforms such as application PaaS (aPaaS) and integration PaaS (iPaaS), which is expected to boost the demand for PaaS cloud. Additionally, PaaS is used for IoT device management, orchestration, and business process management Platform-as-a-Service (bpmPaaS), database Platform-as-a-Service (dbPaaS) and analytics services. PaaS reduces coding requirements and time to market; hence, developers can customize apps without having to worry about maintaining software and easily and cost-effectively develop and deploy apps.

Key Findings in the Platform-as-a-Service Market Study:

In 2023, the Database PaaS Segment is Expected to Account for the Largest Market Share

The Platform-as-a-Service market is segmented into application PaaS (aPaaS), integration PaaS (iPaaS), database PaaS (dbPaaS) and other PaaS such as Communication PaaS, Mobile PaaS, Open PaaS, and AIPaaS. In 2023, the database PaaS segment is expected to account for the largest share of the global Platform-as-a-Service market. In addition, this segment is projected to register the highest CAGR during the forecast period. dbPaaS offers benefits such as automatic tuning, an autonomous artificial intelligence-based performance tuning option for fixing any performance-related problems without user involvement; business continuity with remarkable backup and data restoring capabilities; long-term backup retention, allowing to keep data backup for up to ten years; and geo-replication, where user can virtually create readable secondary databases in different data center locations.

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In 2023, Hybrid PaaS Segment is Expected to Account for the Largest Market Share

Based on deployment mode, the market is segmented into private PaaS, public PaaS, and hybrid PaaS. In 2023, the hybrid PaaS segment is expected to account for the largest share of the global PaaS market. This segment's large market share is attributed to its benefits, such as increased flexibility, improved security, and better resource utilization. Further, this segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by its benefits, such as orchestration, management, and application portability across all three clouds, offering a unified and flexible distributed computing environment where an organization runs and scales its traditional (legacy) or cloud-native workloads on the most appropriate computing model.

The SMEs Segment is Projected to Register the Highest CAGR

Based on organization size, the market is segmented into small & medium enterprises and large enterprises. In 2023, the large enterprises segment is expected to account for the largest share of the global PaaS market. However, the SMEs segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by factors such as the flexibility and scalability offered by the PaaS providers to help SMEs quickly change their cloud storage and application requirements as per their business demands.

The IT & Telecom Segment is Projected to Register the Highest CAGR

Based on sector, the market is segmented into BFSI, retail & e-commerce, IT & telecom, manufacturing, healthcare, energy & utility, government & defense, and other sectors. In 2023, the IT & telecom sector is expected to account for the largest share of the global PaaS market. Further, this segment is expected to register the highest growth rate during the forecast period. PaaS solutions offer direct support for business agility to software development teams in IT companies, enabling rapid development with faster and more frequent delivery of functionality.

Asia-Pacific to Register the Highest CAGR

Based on geography, the global PaaS market is segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa (MEA), with a further analysis of major countries in these regions. In 2023, North America is expected to account for the largest share of the global PaaS market. However, Asia-Pacific is projected to register the highest CAGR during the forecast period. Asia-Pacific’s industrial sectors, such as IT & telecom, healthcare, manufacturing, BFSI, energy & utility, are rapidly adopting cloud technologies. Countries such as China and India are investing in building a strong infrastructure. These countries are amidst the construction of smart cities integrated with advanced technologies, such as 5G, IoT, and big data, to improve the lives of their citizens. Such projects have influenced the demand for cloud technologies that support and analyze the data generated from smart cities.

Key Players

The key players operating in the global PaaS market are Microsoft Corporation (U.S.), Oracle Corporation (U.S.), Salesforce, Inc. (U.S.), SAP SE (Germany), Amazon Web Services, Inc. (U.S.), Google LLC (U.S.), Mendix Technology BV (Netherlands), Zoho Corporation Pvt. Ltd. (India), VMware, Inc. (U.S.), ServiceNow, Inc. (U.S.), Alibaba Group Holding Limited (China), Software AG (Germany), Cisco Systems, Inc. (U.S.), Atos SE (France), and IBM Corporation (U.S.).

Scope of the Report:

Platform-as-a-Service Market, by Type                          

• Application PaaS
• Integration PaaS
• Database PaaS
• Other PaaS            

Platform-as-a-Service Market, by Deployment Mode

• Private PaaS
• Public PaaS
• Hybrid PaaS

Platform-as-a-Service Market, by Organization Size

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Platform-as-a-Service Market, by Sector

• IT & Telecom
• Retail & E-commerce
• BFSI
• Healthcare
• Manufacturing
• Energy & Utility
• Government & Defense        
• Other Sectors                                      

Platform-as-a-Service Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East
  • Israel
  • UAE
  • Rest of Middle East

Key questions answered in the report: