Compared with the original development platform, the low code platform has the characteristics of low cost and high stability, which can enable the sensitive business development needs of enterprises and frequent functional iteration needs, and create a unified digital platform belonging to the company.
(Dongxing Securities/Wang Jianhui)
Relay center, low code platform is becoming IT bottom performance accelerator. With the advancement of digitization, the scale of the IT industry and the increase of employees continue to expand. Due to the increase in downstream demand, the evolution speed of tools and platforms fails to keep up with the industry changes, low programming efficiency, project communication barriers and other reasons, the employees are burdened with heavy tasks. The low code platform is more close to the actual development process than the development platform. By providing developers with a visual development environment, the low code platform can reduce or eliminate the requirement of native code writing for application development, so as to achieve a convenient solution for building applications. Compared with the original development platform, the low code platform has the characteristics of low cost and high stability, which can enable the sensitive business development needs of enterprises and frequent functional iteration needs, and create a unified digital platform belonging to the company.
The industry compound growth rate of nearly 50%. The shortage of IT talents drives the low code demand, and the popularization of cloud computing technology provides the soil for the development of low code. At present, low code platform manufacturers accelerate the construction of low code platform ecology, continue to improve the company’s business capabilities, and will continue to expand coverage in the future. The global low code market will reach usd 47.1 billion in 2025, with a compound growth rate of 41%. Foreign low-code platforms develop earlier and have higher maturity, preferring to create highly compatible and normative low-code platforms.
Domestic low code platform started late, is in the industry exploration period. Most domestic low-code companies are in the initial stage, and the overall industry pattern is relatively scattered. In the future, they will enter the fast brand merger stage. In 2025, the size of China’s low code market will reach 13.1 billion, with a compound growth rate of 49.5%.
Project company business model upgrade sharp tools, who will become Appian? Appian and Outsystems are selected as foreign cases, while IT giants and Internet companies (Huawei, Ali Dingding, Yonyou), projection-to-product upgrade representative companies (Jinhyundai, Tianyang Technology, Puyuan Information) and startup company Shenzhou Yundong are selected as domestic cases. After reviewing the company, products and R&D, it is found that after nearly ten years of development, low-code platform is highly mature in foreign countries, and the head platform mainly serves the world’s top 500 and other large enterprises, with cross-industry coverage and multi-customer service. Domestic low code platform are also customers and the underlying technology breakthroughs, technical reserves rich company is actively developing its own platform, low code for self-use can accelerate the underlying performance IT, outside can help a company business model from the project to upgrade the transition type product platform company, domestic is expected to appear Appian similar company in the future.
Investment strategy: After sorting out the development history and status quo of low code, we believe that low code platform is becoming an accelerator for IT industry to improve the underlying performance, and also a sharp tool for the digital transformation of large industry customers. By this logic, a low-code platform will boost revenue growth, gross margin improvement, and output per capita growth. Therefore, yonyou network and Borland are recommended. It is worth tracking companies that vigorously develop domestic low-code platforms, such as Haoyun Technology, Kingdee International, Jinmodern, Tianyang Technology, Puyuan Information and so on.
Risk tip: The platform r&d technology is not as expected, the customer acceptance is not as expected, and the industry competition pattern is intensified.
Report download: “Low Code Platforms in the Technology Foresight Series (1) : Low Code Accelerates IT Performance, Appian Benchmarking Effect Shows Up.” PDF