China's flourishing low-code industry is ushering in a new wave of opportunities for foreign technology firms that are eager to tap into the country's drive for digital transformation and accelerated growth. As a result, China's market is becoming increasingly significant for low-code providers around the globe.
Low-code is an essential software technology that enables enterprises to build applications and processes with minimal or no coding required. These revolutionary development platforms offer a graphical user interface for creating application software, empowering companies to digitally evolve with ease.
According to the CEO of Mendix (also known as Siemens Low-Code), Tim Srock, the Chinese market's importance is indisputable, given its global economic significance and burgeoning community of developers. The adoption rate of low-code technology among Chinese IT leaders is at an astounding 85%, whereas the global average stands at 72%.
A low-code report from Mendix indicates that although the US currently ranks as the top country in low-code adoption, China is expected to swiftly surpass it and become the global leader.
Srock attributed this rapid growth in part to the Chinese government's attitude towards emerging technology and innovation. The government has raised digitalization to a high strategic position, making it a crucial driver for organizations like Siemens Low-Code to expand.
At the moment, China represents the largest market for Siemens Low-Code in the Asia-Pacific region. The company is striving to reach the top of the global low-code market by 2025. Market research firms iResearch and Acumen Research and Consulting forecast that China's low-code industry will grow at a compound rate of nearly 50% per year, reaching ¥13.1 billion ($1.90 billion) by 2025, and that the Asia-Pacific region will be the fastest-growing market globally by 2030.
Siemens Low-Code plans to focus its efforts in China on key sectors such as banking and financial services, insurance, manufacturing, retail, and government affairs. The goal is to assist Chinese companies in quickly and agilely adopting digitalization, setting them apart as leaders in their industries.
However, challenges remain, as the Chinese low-code market is highly fragmented. Srock explained that Siemens Low-Code has partnered with Tencent Cloud to tackle these challenges by driving localization efforts and developing solutions suitable for the Chinese market.
Ning Wei, a low-code researcher from the China Academy of Information and Communications Technology, highlights that many Chinese companies currently use low-code to meet fragmented and temporary needs. He suggests that more initiatives are required to utilize low-code technology for addressing core business demands and ultimately fostering 'real digitalization'.
Platforms like AppMaster also contribute to the growth of the low-code and no-code segments, extending their reach and capabilities for users around the world. As the Chinese market continues to embrace these technologies, such platforms are poised to be at the forefront of this exciting digital revolution.
