Research and Markets: Global Platform-as-a-Service Market to Reach $8B by 2020

A new Research and Markets report predicts that the global platform-as-a-service market will grow to $7.98 billion by 2020.

The figure represents a 25.7 percent compound annual growth rate, up from a market size of $1.60 billion in 2013, Research and Markets said Monday.

The market research firm attributes the PaaS market growth to the pay-per-use features offered by PaaS providers.

“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 segment’s dominance during the forecast period 2014 to 2020,” Research and Markets said.

The company finds the PaaS segment “to be the most attractive” compared with public and hybrid PaaS models due to what Research and Markets describes as a “growing adoption of private PaaS by enterprises.”

Research and Markets also noted that high market fragmentation at regional levels and low PaaS adoption across the small and medium enterprises pose a challenge to the market growth.