Platform as a Service Market 2024 In-Depth Analysis Of Industry Share, Size, Growth Outlook Up To 2027

Platform as a Service’ (PaaS) in combination with IaaS and SaaS is a cloud computing service model. The global Platform as a Service (PaaS) market was valued at USD 1.60 billion in 2013 and is forecast to grow at a CAGR of 25.7% from 2014 to 2024. PaaS, due to its service model, allows for low capital investment. It enables the deployment of applications without the need for provisioning hosting capabilities. It, thus, helps save on the cost incurred for buying and managing the underlying hardware and software. The PaaS model minimizes the incremental cost required for scaling the system with growth in the service usage, while allowing for resource sharing, reuse, life-cycle management, and automated deployment. For these benefits, PaaS is preferred over other solutions for application and service development.
The flexibility, agility, scalability and efficiency offered by PaaS solutions are key factors which attract the small, medium as well as large enterprises to switch to PaaS solutions. In addition, the rising focus of enterprises in reducing capital expenditure (CAPEX) and diverting the spending to operational expenditure (OPEX) can also be served by PaaS solutions. The global PaaS market is expected to reach a market size of USD 7.98 billion by 2024. Furthermore, the pay-per-use features offered by PaaS coupled with high efficiency of PaaS solutions is another major factor fueling the global PaaS market. However, high fragmentation of market at regional levels hinders the market growth. In addition, the global PaaS market is still characterized by low adoption across the small and medium enterprises (SMEs), predominantly due to low awareness about benefits of PaaS. The key vendors of PaaS profiled in this report include, Inc.,, Inc., Google Inc., Microsoft Corp., and IBM Corp., among others. The significant opportunity for the key vendors lies in providing BPaaS and Open PaaS solutions to their clientele, thereby bolstering PaaS adoption rate.
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What is PaaS (Platform as a Service)? A Beginner's Guide | Cleo
The high efficiency, scalability, agility, and pay-per-use features offered by the public PaaS model led to the segments’ dominance in 2013. The expected monetizing of public PaaS functionalities owing to the rapid advances taking place in the mobile, social, and real-time applications sector is a factor which will sustain the segments dominance during the forecast period 2014 to 2024. Furthermore, private PaaS model is analyzed to be the most attractive segment growing at rates faster than both the public and hybrid PaaS models. This is a result of the growing adoption of private PaaS by enterprises in order to minimize business and technical risks, efficiently govern their platforms, and reduce infrastructure complexity.
Application Infrastructure and Middleware (AIM) segment is vital technology for business applications, which are either deployed on-premise or off-premise. In 2013, the AIM segment led the global PaaS market. Thus, the PaaS vendors are looking forward to provide AIM solutions to their clientele, to strengthen their footprints in the PaaS market. Furthermore, the large scale adoption of SaaS is further expected to fuel the adoption of PaaS for customization, extension, and integration and deployment of the cloud-based applications.
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North America led the PaaS market in 2013, accounting for over half of the global market revenue share. This is owing to the significant adoption of cloud based services (SaaS, IaaS, PaaS) by SMEs as well as large enterprises in the region. Rest of the World and Asia Pacific are expected to the fastest growing markets for PaaS owing to the rapid technological as well as infrastructural advancements coupled with high growth in sectors such as telecom, and IT in the regions. The enterprises in the region are looking to leverage PaaS offerings to provide differentiation, as most of the software available from the cloud is standardized.v