The global platform as a service market size is projected to reach USD 287.81 billion by 2030, expanding at a CAGR of 21.8% from 2025 to 2030, according to a new report by Grand View Research, Inc. The major growth factors of the market include the growing cloud-based software development services coupled with the rising number of small and medium enterprises (SMEs) across the globe. Moreover, the growing popularity of PaaS for reducing the development cost and time for software further provides significant growth to the market. However, the rising data privacy and security in enterprises coupled with cloud washing is further projected to hamper the market growth during the forecast period.
Despite the COVID-19 pandemic, the PaaS market witnessed an increase in the overall revenue of the service providers. This was due to the growing trend of working from home in the IT industry. In addition, under the lockdown circumstances imposed in some countries attributed to the pandemic, numerous developers prefer virtual software development platforms, such as PaaS. Therefore, the significant increase in the virtual software development services during work from home scenarios is further projected to contribute to market growth.
The growing adoption of PaaS due to quick-paced radiation across the globe is driving the market growth over the forecast period. Providence of templates and development tools by PaaS at an efficient cause along with providing easy operation is increasing its adoption among the enterprises, thereby fueling the market growth. Moreover, increasing investment in PaaS coupled with the rising number of enterprises is contributing to the market expansion. Furthermore, technological advancements and their incorporation is estimated to present key opportunities for the market.
The deployment segment of the offering is forecast to register a significant growth rate of 18.3% from 2025 to 2030. The growth of the market is attributed to the rising trend toward the deployment of software through PaaS. Public cloud-based services, such as PaaS, permit the users to control the software deployment and the provider of cloud services to manage other IT components, such as databases, operating systems, storage system networks, and the server, that are essential for hosting the application. Therefore, the deployment tools play an essential part in PaaS during the software development that contributes to the segmental growth.
The PaaS industry in the Europe region is expected to witness significant growth over the forecast period. Well-developed countries, such as the U.K., Germany, and France, are contributing to the market growth. The high market share can be attributed to the strong presence of the enterprises and cloud service providers, such as SAP SE, Microsoft Corp, and others in the region, and the long-existing demand for cloud-based virtual software development tools. Along with that, the growing number of IT startups and small and medium enterprises, and others are creating the demand for PaaS in the region, further projected to offer a significant opportunity for market growth.
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PaaS Market Report
The Database PaaS (DPaaS) segment led the market in 2024, accounting for over 40% share of the global revenue and the others segment such as Business Analytics PaaS, and API Management PaaS are anticipated to grow significantly in the coming years
The public cloud segment accounted for the largest market revenue share in 2024 and the hybrid cloud segment is anticipated to witness significant growth in the coming years
North America is estimated to contribute more than 34% in 2024 to the global PaaS market revenue. This is attributed to the presence of well-recognized PaaS providers in the region
Grand View Research has segmented the global platform as a service market report based on type, deployment, enterprise size, end use and region
Platform As A Service (PaaS) Type Outlook (Revenue, USD Million, 2017–2030)
Application PaaS (aPaaS)
Integration PaaS (iPaaS)
Database PaaS (dbPaaS)
Others
Platform As A Service (PaaS) Deployment Outlook (Revenue, USD Million, 2017–2030)
Public
Private
Hybrid
Platform As A Service (PaaS) Enterprise Size Outlook (Revenue, USD Million, 2017–2030)
Large Enterprises
SMEs
Platform As A Service (PaaS) End Use Outlook (Revenue, USD Million, 2017–2030)
BFSI
Healthcare & Life Sciences
Retail & E-commerce
IT & Telecommunications
Manufacturing
Education
Government
Others
Platform As A Service (PaaS) Regional Outlook (Revenue, USD Million, 2017–2030)
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Asia Pacific
China
India
Japan
Australia
South Korea
Latin America
Brazil
MEA
UAE
South Africa
KSA
List of Key Players of Platform As A Service Market
Alibaba Cloud
Amazon Web Services, Inc.
Broadcom Inc.
IBM Corporation
Microsoft
Salesforce, inc.
SAP SE
ServiceNow
Tencent