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Global Platform-as-a-Service Market: Demand for PaaS Solutions to Increase as Leading Vendors Expand their BPaaS and IaaS offerings, Reports TMR

Posted on Oct 25, 2016

The global platform as a service (PaaS) market is recognized for brand value hence established companies are known to mark their presence. The market is currently exhibiting a consolidated vendor landscape, with companies such as Google, Inc., Salesforce.com, Inc., Microsoft Corp., and Amazon.com, Inc., holding over 67% of the global PaaS market in 2013, states Transparency Market Research (TMR) in a new study. The key vendors in the market are aiming at increasing the adoption of PaaS across the globe by reducing the subscription prices. 

Such strategies adopted by the established market players are likely to have a profound impact on the market, in terms of boosting it at a CAGR of 25.7% between 2014 and 2020. According to TMR, the global PaaS market stood at US$1.6 bn in 2013 and is expected to reach US$7.9 bn by the end of 2020. Regionally, North America dominated the global market with a share of about 60% in 2013. By end user, the BFSI segment exhibited the highest adoption rate of 15.7% in 2013. 

Flexibility and Scalability offered by PaaS Solutions over On-premise Application to Boost Demand for Former 

The prime driver of the global PaaS market is the flexibility, scalability, agility, and the ease of deployment of PaaS solutions. Building and deploying on-premise applications is an expensive, slow, and complex process. In contrast, PaaS provide the complete infrastructure over the internet. The users can take help of custom applications built in cloud, while IT departments can focus on innovating products than having to deal with complex infrastructure. This is a key factor, fuelling demand for PaaS around the world. 

“As enterprises focus on reducing capital expenditure (CAPEX) and divert their spending towards operational expenditure (OPEX), the deployment of PaaS solutions will increase in response,” said a lead TMR analyst. Furthermore, PaaS solutions offer high efficiency. This, coupled with the pay-per-use feature offered by PaaS will significantly aid fuel its demand in the forthcoming years. 

High Fragmentation at Regional Level to Inhibit Market 

“Despite exhibiting a consolidated landscape at the global level, high fragmentation of the PaaS market at regional levels will hinder the market’s growth to an extent,” observes the TMR report’s author. The presence of a large number of local vendors at regional level, providing individual PaaS functionalities such as BPM technology, messaging, application servers, data integration, DBMSs, and B2B integration will negatively influence the market’s overall trajectory. 

Furthermore, lack of awareness is leading to low adoption of PaaS solutions across SMEs, which is creating bottleneck for PaaS service providers. 

Demand for PaaS Solutions to Increase as Leading Vendors Expand their IaaS Offerings 

With leading giants such as Google and Microsoft moving down the value chain to create and provide IaaS offerings, the future of the global PaaS market seems quite promising. Considering the need to bolster acceptance and create a broader footprint for the PaaS market, the deployment of IaaS is deemed necessary. 

Besides the traditional cloud computing segments, lesser known segments such as BPaaS is also projected to establish footprint in the global PaaS market. Leading BPO outsourcing service providers in India, China, and Latin America are expected to leave no stone unturned for capitalizing on the sector. This is expected to fuel growth opportunities for the global PaaS market. 

This review is based on findings published by TMR in a report, titled “Platform as a Service (PaaS)  Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020.” 

The report segments the global platform as a service (PaaS) market as: 

Global Platform as a Service (PaaS) Market, By Implementation Type

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

 Global Platform as a Service (PaaS) Market, By Type

  • Application Development
  • Application Infrastructure and Middleware (AIM)
  • Business Intelligence Platform (BIP)
  • Database Management Systems (DBMS)

 Global Platform as a Service (PaaS) Market, By End-users

  • BFSI
  • Technology
  • Retail, Distribution & CPG
  • Online Business
  • Media & Entertainment
  • Healthcare & Life Sciences
  • Electronics
  • Telecom
  • Education Services
  • Professional Services
  • Public Sector
  • Manufacturing
  • Energy & Utility
  • Travel and Transport

 Global Platform as a Service (PaaS) Market, By Geography

  • North America
  • Europe
  • Asia Pacific
  • Rest of the world (RoW)

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