Low code emerging as the core technology for digital transformation

04 October 2022 Consultancy.eu 3 min. read
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Low code software has over the past years grown from an emerging into a core technology for any organisation embarking on digital transformation. This is according to new research by Mendix.

The study, which assessed the state of low code in five countries (France, Germany, the United Kingdom, the Netherlands and the United States), found that the technology’s rise has been so swift that low code is set to overtake traditional software coding in 2023.

Low code is software development centred around the visual development of applications. Its popularity is based on the fact that it makes it a lot easier to build applications, and ability to democratise technology development from IT teams to basically any professional with basic digital knowhow. This can provide a major boost to digital transformation and improve ownership of IT-solutions within the business. 

Companies using low-code

With its forecast, Mendix echoes recent research from Gartner, which found that by 2025, 70 percent of business applications will be built on the back of low-code or no-code technology. In 2020 this percentage was only 25 percent. 

While low code technology traces its roots back to the late 1990s (when visual programming first made its entry in process management), it was only in 2014 when the term low code was coined by research house Forrester. According to Gartner, the market for low code will boom in the coming years, from today’s $14 billion to $30 billion in 2025. 

“The growing technology complexity and the accelerating speed of business necessitate the use of low-code to ensure that delivering business value is technologically possible and can be achieved in a fast and agile way,” said Tim Srock, CEO of Mendix.

Top 5 benefits of low code

Backing Srock’s claim, Mendix’s research found that low code has during 2021 and 2022 evolved into a core technology at 69% of the organisations surveyed. Nearly all (94%) of these companies use low-code, up from 77% in 2021.

The use cases of low code

Asked why they apply low code, respondents noted a large variation of use cases – demonstrating the plethora of areas that lend themselves to business-driven software development. 

In 2021, low-code was mostly adopted for collaboration, cost reduction, and speed. In 2022, the focus is on the development of customer portals, productivity apps, and enterprise-grade software. Four in ten use low-code for mission-critical applications. 

Top 10: What did your organization use low-code to change?

“A majority of companies, regardless of industry, are using low code to provide higher quality digital experiences and improve back-end automation and increase overall business agility,” said Ron Wellman, Head Industry Clouds at Mendix. “They need a low code platform that supports rapid change, business - IT collaboration, legacy renewal, and evolving customer and employee expectations.” 

Mendix (a subsidiary of Siemens) is one of the larger suppliers of low code platforms. The company competes with counterparts such as Appian, Betty Blocks, OutSystems, Zoho Creator, Salesforce Lightning and Microsoft Power Apps.