Global Platform Engineering Services Market Size, Share & Trends Analysis Report By Deployment (Cloud. And On-Premises), By Organization Size (Large Enterprises and SMEs), By Vertical, By Type, By Regional Outlook and Forecast, 2024 - 2031
The Global Platform Engineering Services Market size is expected to reach $27 billion by 2031, rising at a market growth of 23.2% CAGR during the forecast period.
The rising demand for these services in the region is a result of the European Union's emphasis on data privacy and security, as well as its strong emphasis on digital transformation, as evidenced by government initiatives like the European Digital Strategy. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, in May, 2024, IBM Corporation announced the acquisition of SKYARCH NETWORKS, a Japanese firm specializing in Amazon Web Services (AWS). This move will enhance IBM Consulting's capacity to support clients in cloud transformation and underscores IBM's dedication to strategic partners like AWS, crucial for leveraging data and scaling generative AI. Moreover, in July, 2024, ServiceNow, Inc. announced the acquisition of Raytion, an internationally operating IT business consultancy to boost GenAI-powered search and knowledge management on the Now Platform. Raytion's advanced information retrieval technology will provide unified, real-time access to critical business data from various sources, enhancing AI search capabilities for a more efficient and personalized experience on a single platform.
Market Growth Factors
The adoption of DevOps and Continuous Integration/Continuous Deployment (CI/CD) practices has transformed software development. These services are critical in effectively implementing DevOps and CI/CD practices. They provide the necessary infrastructure to automate testing, integration, and deployment, enhancing the speed and quality of software delivery. Hence, as more organizations aim to accelerate their software development pipelines, the demand for these services continues to grow.
Unlike traditional monolithic architectures, where all components of an application are tightly integrated, microservices architecture breaks down complex applications into smaller, independent services. As more businesses adopt microservices, particularly in sectors such as e-commerce, financial services, and cloud-based applications, the demand for these services continues to grow. Thus, as the microservices trend expands, the role of platform engineering in facilitating smooth, reliable, and scalable service-based applications will become increasingly vital, further driving the market for these services.
Market Restraining Factors
Platform engineering is a highly specialized field that requires in-depth knowledge across various domains, such as cloud architecture, software development, automation, DevOps practices, and cybersecurity. This talent shortage directly impacts organizations' ability to implement platform engineering solutions effectively. Hence, the shortage of skilled workforce may hamper the market's growth.
Deployment Outlook
Based on deployment, the market is bifurcated into cloud and on-premises. The on-premises segment procured 34% revenue share in the market in 2023. On-premises solutions are the preferred choice for numerous organizations, particularly those with more regulations such as finance and healthcare, as they offer better control over infrastructure, data security, and compliance.
Organization Size Outlook
On the basis of organization size, the market is classified into large enterprises and SMEs. The SMEs segment recorded 38% revenue share in the market in 2023. As SMEs increasingly prioritize digitalization to improve operational efficiency and compete in a fast-evolving business landscape, their adoption of these services has grown.
Vertical Outlook
By vertical, the market is divided into IT & telecommunications, BFSI, retail & e-commerce, manufacturing, healthcare, government, and others. The BFSI segment garnered 19% revenue share in the market in 2023. Banks and financial institutions increasingly use these services to build resilient and secure infrastructures that support real-time transactions, mobile banking, and AI-powered financial services.
Type Outlook
Based on type, the market is segmented into design & architecture, development & implementation, support & maintenance, optimization & performance tunings, integration & migration, and others. The support & maintenance segment recorded 19% revenue share in the market in 2023. As organizations rely on these services for critical operations, ongoing support, troubleshooting, and system maintenance have become essential.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 38% revenue share in the market in 2023. In addition to the early adoption of emerging technologies, the rise can be ascribed to the presence of major technological companies such as Amazon Web Services (AWS), Microsoft, Google, and IBM.
Recent Strategies Deployed in the Market
Aug-2024: Hewlett Packard Enterprise Company announced the acquisition of Morpheus Data, a leader in hybrid cloud management software. This move underscores HPE's dedication to reducing IT complexity by enhancing hybrid operations through its HPE GreenLake cloud platform, addressing the challenges of managing diverse and complex IT environments.
Jun-2024: Hewlett Packard Enterprise Company unveiled its hybrid cloud solutions with HPE Private Cloud's virtualization capability. This combines open-source KVM with HPE's cluster orchestration software to meet high-performance needs. Managed via a cloud-based control plane, it optimizes resource use and remains available even offline.
Apr-2024: Microsoft Corporation teamed up with Cloud Software Group Inc., a company provides enterprise software to enhance collaboration on Citrix's virtual application and desktop platform and developing new cloud and AI solutions. Cloud Software Group will invest $1.65 billion in Microsoft's cloud and AI, with Citrix becoming the preferred Azure partner for Enterprise Desktop as a Service.
Mar-2024: Oracle Corporation announced the partnership with NVIDIA, an American multinational corporation and technology company are deepening their partnership to offer sovereign AI solutions globally. Their combined strengths in distributed cloud, AI infrastructure, and generative AI services allow governments and enterprises to deploy AI factories locally or on-premises, enhancing economic growth and meeting sovereignty objectives with robust operational controls.
Feb-2024: Salesforce, Inc. announced the acquisition of Spiff, a company offering advanced incentive compensation management (ICM) software with a user-friendly interface, spreadsheet familiarity, and robust processing capabilities. This acquisition will help Chief Revenue Officers better coordinate with financial and sales teams, streamline compensation plans, and boost revenue performance.
List of Key Companies Profiled
Amazon Web Services, Inc. (Amazon.com, Inc.)
Cisco Systems, Inc.
Google LLC (Alphabet Inc.)
Hewlett Packard Enterprise Company
IBM Corporation
Microsoft Corporation
Oracle Corporation
Salesforce, Inc.
SAP SE
ServiceNow, Inc.
Global Platform Engineering Services Market Report Segmentation
By Deployment
Cloud
On-Premises
By Organization Size
Large Enterprises
SMEs
By Vertical
IT & Telecommunications
BFSI
Retail & E-commerce
Manufacturing
Healthcare
Government
Other Vertical
By Type
Design & Architecture
Development & Implementation
Support & Maintenance
Optimization & Performance Tunings
Integration & Migration
Other Type
By Geography
North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Global Platform Engineering Services Market, by Deployment
1.4.2 Global Platform Engineering Services Market, by Organization Size
1.4.3 Global Platform Engineering Services Market, by Vertical
1.4.4 Global Platform Engineering Services Market, by Type
1.4.5 Global Platform Engineering Services Market, by Geography
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Competition Analysis - Global
4.1 KBV Cardinal Matrix
4.2 Recent Industry Wide Strategic Developments
4.2.1 Partnerships, Collaborations and Agreements
4.2.2 Product Launches and Product Expansions
4.2.3 Acquisition and Mergers
4.3 Market Share Analysis, 2023
4.4 Top Winning Strategies
4.4.1 Key Leading Strategies: Percentage Distribution (2020-2024)
4.4.2 Key Strategic Move: (Mergers & Acquisition : 2021, Aug - 2024, May) Leading Players
4.5 Porter Five Forces Analysis
Chapter 5. Global Platform Engineering Services Market by Deployment
5.1 Global Cloud Market by Region
5.2 Global On-Premises Market by Region
Chapter 6. Global Platform Engineering Services Market by Organization Size
6.1 Global Large Enterprises Market by Region
6.2 Global SMEs Market by Region
Chapter 7. Global Platform Engineering Services Market by Vertical
7.1 Global IT & Telecommunications Market by Region
7.2 Global BFSI Market by Region
7.3 Global Retail & E-commerce Market by Region
7.4 Global Manufacturing Market by Region
7.5 Global Healthcare Market by Region
7.6 Global Government Market by Region
7.7 Global Other Vertical Market by Region
Chapter 8. Global Platform Engineering Services Market by Type
8.1 Global Design & Architecture Market by Region
8.2 Global Development & Implementation Market by Region
8.3 Global Support & Maintenance Market by Region
8.4 Global Optimization & Performance Tunings Market by Region
8.5 Global Integration & Migration Market by Region
8.6 Global Other Type Market by Region
Chapter 9. Global Platform Engineering Services Market by Region
9.1 North America Platform Engineering Services Market
9.1.1 North America Platform Engineering Services Market by Deployment
9.1.1.1 North America Cloud Market by Region
9.1.1.2 North America On-Premises Market by Region
9.1.2 North America Platform Engineering Services Market by Organization Size
9.1.2.1 North America Large Enterprises Market by Country
9.1.2.2 North America SMEs Market by Country
9.1.3 North America Platform Engineering Services Market by Vertical
9.1.3.1 North America IT & Telecommunications Market by Country
9.1.3.2 North America BFSI Market by Country
9.1.3.3 North America Retail & E-commerce Market by Country
9.1.3.4 North America Manufacturing Market by Country
9.1.3.5 North America Healthcare Market by Country
9.1.3.6 North America Government Market by Country
9.1.3.7 North America Other Vertical Market by Country
9.1.4 North America Platform Engineering Services Market by Type
9.1.4.1 North America Design & Architecture Market by Country
9.1.4.2 North America Development & Implementation Market by Country
9.1.4.3 North America Support & Maintenance Market by Country
9.1.4.4 North America Optimization & Performance Tunings Market by Country
9.1.4.5 North America Integration & Migration Market by Country
9.1.4.6 North America Other Type Market by Country
9.1.5 North America Platform Engineering Services Market by Country
9.1.5.1 US Platform Engineering Services Market
9.1.5.1.1 US Platform Engineering Services Market by Deployment
9.1.5.1.2 US Platform Engineering Services Market by Organization Size
9.1.5.1.3 US Platform Engineering Services Market by Vertical
9.1.5.1.4 US Platform Engineering Services Market by Type