Low-code here to stay for Asia-Pacific firms
BENGALURU: Low-code adoption continues to accelerate across APAC (Asia-Pacific) as one-third (33%) of enterprises recognised it as a critical tool for driving automation and future-proofing their businesses. IDC predicts that by 2025, more than 60% of enterprises globally will adopt low-code technologies to enable faster application delivery and improve operational efficiency.
In its report, IDC points out that by region, Southeast Asia and Hong Kong lead APAC with 49% of enterprises prioritising low code for automation solutions, followed by India at 35% and Australia at 31%.
IDC says this shows a continued recognition of low code’s strategic value in driving competitive advantage within a disruptive landscape, especially as businesses face demands to deliver apps and innovate more efficiently amidst economic uncertainty and a shortage of skilled developers. “The integration of GenAI with low-code technologies is poised to meet the increasing demand for rapid application delivery and legacy modernisation,” said Dhiraj Pramod Badgujar, senior research manager, XOps Software Development and AI Developer Strategies Practice, IDC Asia/Pacific. “Our research reveals that organisations across the region are rapidly embracing this powerful combination to accelerate software release cycles and significantly enhance productivity,” he added.
The research shows that over 60% of applications in APAC are legacy systems, posing hurdles like rigid architectures and high maintenance costs. The skills shortage exacerbates these issues, and modernising these systems remains a priority for enterprises. However, outdated frameworks and low developer productivity often hinder progress. To overcome these obstacles, 68% of APAC enterprises are turning to modern development tools—including low code, integrated development environments, and DevOps. While low-code platforms can streamline software development by enabling faster application creation with minimal coding, AI-powered low-code solutions take this a step further by automating complex processes and delivering intelligent insights, which boost efficiency and spark innovation. About 25% of APAC enterprises are now prioritising the integration of GenAI into developer tools to drive more intelligent application development.
“We are witnessing unprecedented levels of productivity and innovation unlocked for businesses in APAC through the synergistic relationship between GenAI and low code,” said Mark Weaser, vice-president, APAC at OutSystems.
AI and low-code: Intelligent app development’s future
IDC forecasts that by 2026, 40% of net-new applications in APAC will be ‘intelligent apps’, which incorporate GenAI to elevate existing user experiences and unlock new use cases. Top impact areas of GenAI in software development and design include increased productivity (61%), high value dev tasks/creativity (50%), and accelerated developer velocity (40%).
Also, additional findings reveal that AI and automation initiatives, along with application development platforms, are among the most resilient to budget cuts, even in uncertain economic climates. About 30% of APAC enterprises are willing to pay a premium of 11-20% for GenAI features integrated into app development environments.
“Our research shows that many businesses in the region are actively considering opportunities to layer GenAI with low-code technologies,” said Daniel-Zoe Jimenez, vice-president, digital innovation, software, CX, SMB/DNB and channels research, IDC Asia/Pacific. “One of the main benefits of this integration is that it can help organizations accelerate their legacy modernisation journeys. This approach can shorten the software development life cycle, while maintaining high application performance,” he added.