Global Platform as a Service (PaaS) Market Report and Forecast 2024-2032

Global Platform as a Service (PaaS) Market Size

The global platform as a service (PaaS) market size will grow at a CAGR of 21% during the forecast period of 2024-2032.

Platform as a Service (PaaS) Market Outlook

• Reports indicate that many SMBs are currently using at least one cloud-based application, and this number is likely to increase further by 2025.

• The adoption of PaaS and IaaS is growing among SMBs for services like consumer cloud, file sharing, CRM, email, and internal communication.

• According to a survey done by CISCO, 92% of organizations use cloud-based Infrastructure as a Service (IaaS) to host their workloads.

• As per industry reports, 59% of tech leaders use hybrid cloud system for security.

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Platform as a Service (PaaS) Market Growth

Platform as a service or application platform as a service or platform-based service is a category in cloud computing services that provides a platform for customers to build, operate, and manage. Some of the leading examples of the platform as service (PaaS) providers are Windows Azure, Google App Engine, and AWS Elastic Beanstalk, among others.

Organizations are rapidly embracing PaaS solutions due to their several benefits, which during the forecast period, drives the platform as a service (PaaS) market development. The PaaS model offers software development tools, APIs, and code to help companies streamline their application development. The design also promotes the full lifecycle of software and reduces the pressure on organizations to manage and update servers. The PaaS design removes needless human setup tasks and simplifies software developers’ tasks.

Key Trends and Developments

Shift towards cloud deployment, integration of PaaS with IoT, and rising use by SMBs are key trends impacting the platform as a service (PaaS) market outlook

May 2024

FWD, a pan-Asian insurance group, signed a five-year agreement with AWS to host its core business applications on AWS's cloud infrastructure. This partnership aims to enhance FWD's agility, scalability, and resilience as the company transitions away from operating its own data centres.

May 2024

DigitalOcean has revamped its App Platform, a managed PaaS solution, to simplify application development and deployment. Key updates include enhanced pricing and packaging, hassle-free scaling through CPU-based autoscaling, and dedicated Egress IP for improved security.

May 2024

Fujitsu has developed a system using Fujitsu Data Intelligence PaaS to enhance Panasonic EW's supply chain management. The system integrates data from over 3,000 sites and uses AI for accurate demand forecasting and visualization during natural disasters.

January 2024

Amazon Web Services (AWS) plans to invest USD 15.2 billion in its existing cloud infrastructure in Tokyo and Osaka by 2027 to meet growing customer demand for cloud services in Japan. This investment will help Japanese organizations access emerging technologies like AI and machine learning.

Cloud adoption and integration

The platform as a service (PaaS) market expansion is driven by the increasing adoption of cloud-based services. PaaS solutions simplify the development process by providing tools, libraries, and middleware, allowing developers to focus on software creation rather than managing infrastructure.

Integration with Internet of Things (IoT)

PaaS solutions are being used to develop and manage IoT applications, which require real-time data processing and analytics. This integration enables businesses to leverage the benefits of IoT, such as improved efficiency and enhanced customer experiences.

DevOps and Agile development

The trend of DevOps and agile development is also driving the platform as a service (PaaS) market growth. PaaS solutions, such as AWS CodePipeline and Azure DevOps are being used to streamline the development process by providing tools for continuous integration and deployment.

Artificial intelligence (AI) and machine learning (ML) integration

PaaS solutions are being used to develop and deploy AI and ML models, which require large amounts of data and complex computations. This integration enables businesses to leverage the benefits of AI and ML, such as improved predictive analytics and enhanced decision-making.

Platform as a Service (PaaS) Market Trends

PaaS is gaining popularity in different sectors, such as finance, media, education, which is also providing a favourable market outlook in the forecast period. The emergence of video communication platform as a service (PaaS) is also driving the growth of the overall market. PaaS video contact is adopted for training employees, conferences, interviews, and other uses in end-user industries. This helps developers to add different attributes to cloud computing, such as real-time messaging functionality, to ensure users of communication without the need for back-end interfaces.

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Platform as a Service (PaaS) Industry Segmentation

The EMR’s report titled “Platform as a Service (PaaS) Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment

• Public Cloud

• Private Cloud

• Hybrid Cloud

Market Breakup by Solutions

• Business Application Platforms

• Raw Computing Platforms

• Social Application Platforms

• Web Application Platforms

Market Breakup by Application

• Application Development and Management PaaS (ADM PaaS)

• Business Process Management PaaS (BPM PaaS)

• Application PaaS (APaaS)

• Integration Paas (IPaaS)

• Other PaaS

Market Breakup by Industry

• Banking, Financial Services & Insurance (BFSI)

• Consumer Goods & Retail

• Education

• Gaming

• Healthcare

• Logistics and Transportation

• Public Sector and Government

• Telecommunications and IT

• Travel and Hospitality

• Others

Market Breakup by End Use

• Enterprises

• Small and Medium Businesses (SMB)

Market Breakup by Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Platform as a Service (PaaS) Market Share

Cloud deployments are suitable for all enterprises as public, private, and hybrid cloud PaaS manage their operations

Public cloud PaaS is a deployment model where the platform is hosted and managed by a third-party provider. The infrastructure and resources are shared among multiple customers, and the provider manages the maintenance, security, and scalability. This model is suitable for applications that require rapid deployment and scalability, such as social media platforms like Facebook and Twitter, which use public cloud PaaS to manage their massive user bases.

Private cloud PaaS, on the other hand, is a deployment model where the platform is hosted and managed within an organization's own data center or intranet. The infrastructure and resources are dedicated to the organization, and the organization is responsible for managing the maintenance, security, and scalability. As per platform as a service (PaaS) market analysis, this model is suitable for applications that require high security, compliance, and regulatory requirements, such as financial institutions and government agencies. For example, the US Department of Defense uses private cloud PaaS to manage its sensitive data and applications.

Hybrid cloud PaaS is a deployment model where the platform is hosted and managed across both public and private clouds. 90% of large enterprises have adopted a multi-cloud infrastructure as it allows for flexibility and scalability while maintaining control over sensitive data and applications. This model is suitable for applications that require a combination of public and private cloud capabilities, such as e-commerce platforms like Amazon and eBay, which use hybrid cloud PaaS to manage their customer data and transactions.

ADM PaaS application segment holds a significant market share due to its wide use in software development industries

ADM PaaS is a type of PaaS that provides tools and services for developing, testing, and deploying applications. It includes features such as source control, build automation, and continuous integration and deployment. This segment is expected to have the largest market share due to its widespread adoption in the software development industry.

APaaS is a type of PaaS that provides tools and services for developing applications. It includes features such as application hosting, database management, and development tools. APaaS offers tools for coding, testing, and debugging. This segment is expected to have a significant platform as a service (PaaS) market share due to its adoption in various industries such as e-commerce, social media, and gaming.

BPM PaaS is a type of PaaS that provides tools and services for managing business processes. It includes features such as workflow management, business rules management, and process analytics. This segment is growing due to its adoption in various industries such as finance, healthcare, and manufacturing.

Leading Companies in the Platform as a Service (PaaS) Market

Market players are expanding their cloud infrastructure and service offerings to cater to the growing demand for cloud-based application development and deployment

Amazon Web Services, Inc. (AWS) is the world's leading cloud computing platform, offering a comprehensive suite of cloud services including computing, storage, databases, networking, analytics, and machine learning. It was founded in 2002 and is headquartered in Washington, United States.

Microsoft Corp. (Microsoft Azure) is a growing cloud computing platform that provides a wide range of cloud services, including virtual machines, storage, databases, and enterprise-grade applications. Founded in 1975 and headquartered in Washington, United States, Azure is particularly well-suited for organizations already using Microsoft products.

Google LLC (Google Cloud) is a suite of cloud computing services that provides infrastructure as a service, platform as a service, and serverless computing environments. Founded in 1998 and headquartered in California, United States, Google Cloud is known for its advanced data analytics, machine learning, and artificial intelligence capabilities.

Oracle Corp. (Oracle Cloud) offers a range of services, including infrastructure, platform, and software services. Founded in 1977 and headquartered in California, United States, Oracle Cloud is particularly focused on providing robust security, compliance, and performance features tailored to the needs of large organizations.

Other key players in the global platform as a service (PaaS) market include Salesforce.com, Inc., among others.

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Platform as a Service (PaaS) Market Analysis by Region

North America dominates the market, owing to the presence of well-established PaaS providers and the high budget allocation for adopting cloud applications in enterprises

The North American region is expected to dominate the market due to its robust IT infrastructure, lively startup environment, and a culture deeply rooted in embracing innovation. The region is home to major cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which have significant influence over the market's direction through substantial investments in research, development, and comprehensive marketing initiatives.

Recent news and developments that has also helped expanding North American platform as a service (PaaS) market share include the expansion of PaaS offerings by AWS and Microsoft Azure. Both cloud providers have expanded their PaaS offerings in recent years, providing developers with a broader range of tools and services to build, deploy, and manage applications.

The Asia Pacific market is expected to witness significant growth, driven by the increasing adoption of cloud computing and digital transformation initiatives across various industries. In APAC, China has been aggressively adopting cloud computing, with major companies like Alibaba Group and Tencent Holdings investing heavily in cloud infrastructure. The healthcare industry in Asia Pacific is also increasingly adopting PaaS solutions. For example, Singapore's National Healthcare Group has implemented a PaaS-based solution to manage patient data and improve patient care.

Key Highlights of the Report

Platform as a Service (PaaS) Market Report Snapshots

Platform as a Service (PaaS) Market Size

Platform as a Service (PaaS) Market Growth

Platform as a Service (PaaS) Market Trends

Platform as a Service (PaaS) Market Share

Platform as a Service (PaaS) Companies

Platform as a Service (PaaS) Market Regional Analysis