Composable Applications Market

[187 Pages Report] MarketsandMarkets forecasts the composable applications market size to grow from an estimated USD 5.2 billion in 2023 to USD 11.8 billion by 2028 at a CAGR of 17.5%. Factors driving the market growth include the increasing need for rapid customization and scalability. However, the lack of skilled professionals or trainers among developers is expected to hinder the market growth.

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Composable Applications Market Dynamics

Driver:  Increased demand for app development

Between 2019 and 2020, the number of applications rose by more than 20%. This rate of increase was more than twice that of any previous year. As per findings, around 35% of new applications will be composable and built using Packaged Business Capabilities (PBCs). To outperform their rivals, more than 75% of small-to-medium-sized SaaS companies are expected to employ bundled business capability architecture. Contemporary firms are expected to abandon monoliths and embrace the transformable composition.

Enterprises are increasingly challenged to create digital user experiences beyond web and mobile app digital experiences. Developers can use composable applications to create new apps from existing code or apps. The need to install and manage several workload-specific configurations is eliminated while using composable applications; this can be seen in the retail & eCommerce industry. Composable commerce enables eCommerce teams to choose, construct, and compose best-of-breed solutions to meet their company demands. Composable commerce uses cutting-edge technologies and methodologies such as MACH (Microservices, API, Cloud, and Headless) to adapt to the ever-changing market dynamics rather than adopting a one-size-fits-all eCommerce capability. All these advantages denote that composable applications will be in demand for app development.

Restraint: Dependency on vendor-supplied customized solutions

In today’s digital world, application delivery is the priority, as the speed in developing and delivering applications has become essential for business success. A vendor-supplied software is a fully integrated solution that helps meet specific business requirements. The customer-vendor side solution increases cost and takes more time to deliver custom software. Customized solutions are not, at times, a perfect match to the business requirements. Enterprises are not entirely aware of the advantages of in-house software development, which is a major factor for organizational dependency over vendor-supplied software solutions, restraining the growth of the composable application development platform market.

Opportunity: Growing digital transformation in IT industry

The focus of organizations on increasing their productivity is one of the major driving factors for the adoption of digital transformation. The use of advanced technologies, such as the cloud, Internet of Things (IoT), big data and analytics, mobility, and social media, has led to innovation and transformation, thereby eliciting positive growth in the business ecosystem. Digital technologies have transformed the legacy approach to businesses into a modern approach. For example, online services are now firmly established in the banking and financial sector, resulting in the proliferation of online activities and websites. Organizations are trying to improve their business outcomes by moving toward digital transformation. This has led to an increase in demand for digital transformation solutions in various industries and is expected to drive the adoption of composable application platforms and services.

Challenge: Lack of skilled professional trainers among developers

COVID-19 compelled many businesses to enter the digital age, which required specialized software and someone in charge of developing it. As a result, IT teams grew in size and specialized. Because of the rapid increase in demand, supply was unable to keep up. There are fewer people with development skills than there are jobs, and this disparity will only grow. The rapid evolution of composable applications has piqued the interest of businesses in hiring developers who are experts in these fields. Many companies must invest in the training of their developers to learn these technologies, which few want to do because the field has a high turnover rate. The funds they put into forming a developer may generate revenue for the competition.

Composable Applications Market Ecosystem

By offering, services to grow at the highest CAGR during the forecast period

It includes various services in the composable applications market. Services play crucial in the implementation and deployment of composable applications in an enterprise. Professional services are considered a core component of services as they support day-to-day business operations. The services include integration & implementation, consulting & training, and support & maintenance. Companies offering these services have skilled consultants and solution architects who are specialized professionals that support the proper designing and delivery of composable applications architecture.

By vertical, retail & eCommerce to grow at the highest CAGR during the forecast period

Automating and digitizing business operations is one of the top priorities of retail organizations in today’s competitive retail ecosystem. Due to the COVID-19 pandemic, many retailers have had to adapt their sales models to meet changing customer demands and safety requirements. One of the new sales models is Buy Online, Pick-Up in Store (BOPIS). To meet this growing demand, retailers focus on automating end-to-end supply chain processes. Investing in a unified application integration can certainly bring numerous benefits for retailers.

Moreover, according to a Shopify survey, 42% of companies want to provide their consumers with tailored product suggestions using tools like quizzes, unique mobile applications, and first- or third-party behavioral data. For example, to make buying cereal enjoyable, the plant-based cereal company Off-Limits designed a vending machine-like buying process that brought customers to a gamified checkout. Similarly, customers may virtually try on shoes with the Allbird smartphone app utilizing augmented reality. In such cases, composable commerce benefits the industry.

By region, Asia Pacific is expected to grow at the highest CAGR during the forecast period.

>Asia Pacific has witnessed the advanced and dynamic adoption of new technologies. It has always been a lucrative region for the market’s growth. Asia Pacific includes major economies such as Japan, China, Australia, New Zealand, India, and Singapore. Increasing the operational efficiency of organizations and lowering their costs is expected to boost the overall growth of the composable applications market in Asia Pacific.

Asia is renowned for its entrepreneurial spirit, ongoing technical innovation, and quick expansion. Notwithstanding the effects of the global health pandemic, the expansion of digitalization in all industries, including healthcare, finance, and construction, has continued over the past ten years. This growth in digitalization in Asia Pacific makes it a favorable market for composable applications. Because of its adaptability, scalability, and agility, composable applications are becoming more and more common in the IT sector in Asia Pacific. Composable apps will probably be essential in helping firms innovate and maintain their competitiveness in a market that is always changing as they continue to implement digital transformation initiatives.

Composable Applications Companies

Key players in the composable applications market include Salesforce (US), Dell Boomi (US), MuleSoft (US), Informatica (US), Software AG (Germany), TIBCO Software (US), Mendix (US), OutSystems (US).

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Scope of the Report

Market Segmentation

The study categorizes the composable application market based on component, software, deployment mode, end user, and region.

By Offering

• Platform
• Services

By Vertical

• BFSI
• Retail & eCommerce
• Government
• Healthcare and life sciences
• Manufacturing
• IT and ITeS
• Energy and Utilities
• Other Verticals

By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Recent Developments

• In August 2022, the company launched Composable Storefront, a customizable headless storefront that allows users to make changes to eCommerce websites with increased speed and flexibility.
• In April 2021, Informatica announced a cloud platform that employs microservices and an AI engine to combine data management capabilities and enable data and application programming interface (API) integration. The Informatica Intelligent Data Management Cloud (IDMC) is a revamped implementation of an Informatica platform that extensively uses an existing AI engine dubbed CLAIRE.
• In April 2021, Software AG launched innovations of its webMethods platform for APIs, integration, and microservices. With this release, companies can simplify and accelerate their digital transformation initiatives while speeding up their cloud adoption.

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