Platform as a service (PaaS) Global Market Report 2024

The platform as a service (paas) market size has grown strongly in recent years. It will grow from $60.26 billion in 2023 to $63.37 billion in 2024 at a compound annual growth rate (CAGR) of 5.2%. The growth observed during the historical period can be ascribed to the adoption of cloud computing, enhanced developer productivity, cost-effectiveness, innovation, and increased agility.

The platform as a service (paas) market size is expected to see strong growth in the next few years. It will grow to $87.48 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The anticipated growth in the forecast period can be credited to factors such as digital transformation, the adoption of hybrid and multi-cloud strategies, the emergence of edge computing, and the increasing utilization of artificial intelligence (AI) and machine learning. Prominent trends in this forecast period encompass the prevalence of hybrid and multi-cloud Platform-as-a-Service (PaaS), the adoption of serverless computing, the widespread use of Kubernetes and container orchestration, as well as the integration of artificial intelligence (AI) and machine learning (ML) tools.

The growth of the platform as a service (PaaS) market is anticipated to be driven by the increasing internet penetration. As technology becomes more accessible, broadband internet is becoming available to a larger segment of the population. This rise in internet penetration leads to increased consumption and usage of various internet-based applications, creating a growing demand for PaaS providers. For instance, in October 2022, DataReportal reported that 5.07 billion people worldwide, equivalent to 63.5% of the global population, were using the internet. Moreover, the number of internet users continues to rise, with an increase of over 170 million in the past 12 months. In July 2022, Livemint reported that there were 692 million active internet users in India, with expectations of reaching 900 million internet users by 2025. Consequently, the expanding internet penetration is expected to be a driving force behind the growth of the platform as a service (PaaS) market.

The primary categories of Platform-as-a-Service (PaaS) encompass application infrastructure and middleware (AIM), database management systems (DBMS), business intelligence platforms (BIP), and cloud-based application development. A business intelligence platform (BIP) is software that aids enterprises in collecting, comprehending, and visually representing data. It forms the core of a company's strategy for harnessing data to make informed decisions. These platform services are implemented across public cloud, private cloud, and hybrid cloud environments and cater to diverse end users, including financial institutions and services (BFSI), technology companies, retailers, distributors, educational institutions, travel and transportation, healthcare, and life sciences, among others.

The Platform as a Service (PaaS) market research report is one of a series of new reports that provides platform as a service (PaaS) market statistics, including platform as a service (PaaS) industry global market size, regional shares, competitors with a platform as a service (PaaS) market share, detailed platform as a service (PaaS) market segments, market trends and opportunities, and any further data you may need to thrive in the platform as a service (PaaS) industry. This platform as a service (PaaS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The platform as a service (PaaS) market is expected to receive a significant boost from increased spending on public cloud services. Public cloud services refer to cloud computing resources, such as virtual machines, applications, and storage, provided to the general public over the internet by service providers. PaaS in the public cloud offers a platform that allows customers to develop, run, and manage applications without the complexity of building and maintaining the underlying infrastructure. For instance, the State of the Cloud Report by Flexera in February 2021 highlighted that 31% of global cloud decision-makers and users spend a minimum of $12 million annually (or $1 million monthly) on public cloud services, representing a notable increase from 16% in 2020. Therefore, the surge in public cloud spending is propelling the platform as a service (PaaS) market.

To reduce IT infrastructure costs, many companies are outsourcing application development and web hosting to third-party managed hosting service providers. The procurement of servers, storage equipment, software applications, and the hiring of professionals to develop and maintain websites and host applications can be significantly more expensive for businesses than outsourcing these functions to third-party managed service providers.

PaaS is an online platform that offers many advantages, it also faces risks and security threats that could act as a constraint on the platform as a service (PaaS) market. Companies in the PaaS industry must consider security aspects such as privacy, access control, and service continuity to protect both the service provider and the user. Cybersecurity statistics indicate that ransomware attacks are estimated to cost $6 trillion annually by 2021. PaaS services are often vulnerable to certain risks, including lax default application configurations and vulnerabilities in secure socket layer (SSL) protocols. For instance, common risk issues experienced in Microsoft Azure include misplaced or lost Linux updates, missing third-party patches, and unavailability of Microsoft updates.

Major companies operating in the platform as a service (PaaS) market are introducing GDPR-compliant Web PaaS services to support web development and increase their market revenue. Platform as a Service (PaaS) offerings, developed in collaboration with web hosting companies like Platform.sh, are tailored to assist web developers and support applications and websites with data. For example, in June 2021, OVHcloud, a French-based cloud provider, launched a platform as a service (PaaS) offering in partnership with web hoster Platform.sh. This product is designed to support applications and websites with data hosted exclusively in Europe, ensuring compliance with GDPR regulations. This collaboration allows developers to focus on coding, with infrastructure management handled by OVHcloud. The service, powered by Platform.sh technology, supports various web platforms, including Drupal and Magento, accommodating multiple programming languages.

In October 2021, Microsoft Corporation, an American technology company, acquired Clear Software for an undisclosed amount. This acquisition is part of Microsoft's efforts to enhance Power Platform connectivity with external systems. Clear Software is a US-based integration platform-as-a-service (iPaaS) provider.

Major companies operating in the platform as a service (paas) market include Amazon Web Services Inc., Salesforce Inc., International Business Machines Corporation, Microsoft Corporation, Google LLC, Red Hat Inc., Oracle Corporation, SAP SE, Engine Yard, ActiveState Software Inc., Software AG, VMware Inc., EMC Corporation, AT&T Inc., Cloud Foundry Inc., Heroku, Mendix Technology BV, Pivotal Cloud Foundry, DigitalOcean Holdings Inc., Jelastic, CloudBees Inc., Apprenda Inc., CenturyLink Cloud, Joyent Inc., Rackspace Technology, Cloudify, Docker Inc., OpenStack, OpenNebula Systems, OpenShift Origin

North America was the largest region in the Platform as a Service (PaaS) market in 2023. Western Europe was the second largest region in the Platform as a Service (PaaS) market. The regions covered in the platform as a service (paas) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the platform as a service (paas) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The platform as a service (PaaS) market includes revenues earned by entities by providing cloud-based platform services. PaaS is a cloud computing model that provides a platform for customers to develop, run, and manage applications over the Internet. Revenue in the market is generated by the companies by way of subscriptions and licenses from web/software developers or other business households. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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