Today we share: 2025 Artificial Intelligence and Low-Code Empowering Enterprise Digital Transformation: EMA, US and Asia-Pacific Market Overview Report
Low-Code + AI has become the core driving force for enterprise digital transformation, with global markets exhibiting regional differentiation characteristics.
Digital transformation has long since shifted from being an “optional choice” for enterprises to a “must-answer question.” In a rapidly changing market environment, companies not only need to respond quickly to demands but also require efficient software solutions to maintain competitiveness. Recently, KPMG released the “2025 Artificial Intelligence and Low-Code Empowering Enterprise Digital Transformation: EMA, US and Asia-Pacific Market Overview Report” (hereinafter referred to as the “Report”), which reveals the core role of low-code (Low-Code) and AI in the digitalization process of enterprises, based on a survey of 2,170 IT and business executives worldwide, and highlights the development differences in various regional markets.
A low-code platform refers to tools that allow software development through visual drag-and-drop and pre-built components, without the need for extensive hand coding, even enabling non-professional programming background “citizen developers” to participate in application building. This model is breaking the traditional software development dilemma of being “time-consuming and labor-intensive,” becoming a key lever for enterprises to accelerate digitalization.
From a global adoption perspective, the development of low-code shows significant regional differentiation. The report indicates that currently, 37% of enterprises have incorporated low-code into their core software development strategy, with the Asia-Pacific region (43%) and the US (41%) leading, making them the most active markets for low-code applications globally; whereas Europe (29%) and the Middle East (30%) have relatively low adoption rates, indicating substantial growth potential. Although 41% of African enterprises have made low-code a core strategy, they face challenges due to IT skill gaps, with 37% stating that “lack of digital skills” is a primary obstacle.
This regional disparity is underpinned by differences in digital maturity and strategic priorities among markets. The report categorizes enterprises into different levels such as “digital leaders,” “digital advancers,” and “digital users,” with 64% of “digital leaders” (those highly invested in digital transformation, focusing on digital business models) having deeply integrated low-code, significantly higher than “digital advancers” (32%) and typical digital enterprises (14%). This suggests that the more deeply an enterprise engages in digitalization, the more it recognizes the value of low-code—it not only shortens development cycles but also allows technology resources to align more closely with core business.
In terms of application scenarios, low-code is transitioning from being a “simple tool” to a “core support” system. In the past, many believed low-code could only develop small, simple applications, but the report shows that by 2024, 28% of enterprises will use low-code to develop complex enterprise applications (such as ERP and CRM systems), steadily increasing from 18% in 2022 and 26% in 2023; conversely, the proportion of enterprises developing simple applications with low-code has decreased from 26% in 2022 to 20% in 2024. This change indicates that low-code is now capable of supporting critical business processes for enterprises, especially in the Asia-Pacific and US markets, where 30% of enterprises develop complex applications using it, while in Europe, due to a greater focus on the safety and reliability of traditional development, this ratio is only 22%.
The tangible value that low-code brings to enterprises is also significant. More than half (52%) of enterprises believe that low-code enhances process efficiency, with African enterprises (58%) relying most on this advantage—using low-code to alleviate the shortage of local developers and the high costs of legacy IT systems; US and Asia-Pacific enterprises (both at 55%) utilize it to optimize competitive pace and respond quickly to market demands. Additionally, 48% of enterprises report that low-code improves the quality of products and services, 46% believe it enhances employee productivity, and 43% mention the flexibility and scalability of applications. However, European enterprises perceive these dimensions relatively weakly, with only 33% acknowledging its impact on service quality, closely related to their stronger focus on compliance and data security.
Of course, the promotion of low-code is not without obstacles. The report shows that “security issues” and “complex integration with existing systems” are the two biggest challenges for enterprises, with 41% of enterprises listing them as medium to high difficulty issues. Among them, the Asia-Pacific region has the highest sensitivity to security (47% of enterprises concerned), while European enterprises are more worried about integration issues—after all, enterprises in this region have more mature traditional IT systems, requiring more adaptation for the integration of new platforms. Moreover, 40% of enterprises are concerned about “vendor lock-in” (i.e., becoming overly dependent on a specific low-code platform, leading to high switching costs in the future), and 39% believe that low-code platforms lack transparency, necessitating gradual improvement in governance during application processes.
Notably, the rise of “citizen developers” has become an important trend in the low-code ecosystem. Citizen developers refer to non-IT background employees who develop applications through low-code platforms, a model that can significantly unleash the innovative potential of enterprises. The report indicates that 52% of enterprises plan to have citizen developers lead most low-code application development, with the strongest push in the Asia-Pacific and US regions, while in Europe, due to stringent compliance requirements, this ratio is only 46%. However, citizen developers also bring new management challenges—non-professional developers may lack security awareness, leading to application vulnerabilities, or may trigger “shadow IT” (applications operating outside of IT department oversight) due to non-standard development processes. To address this, 50% of enterprises have included “data security control” and “application access management” in their low-code governance priorities, regularly conducting security audits and employee training to balance innovation and risk.
The integration of AI and low-code further unleashes the potential of these tools. Currently, 38% of enterprises have incorporated AI functionalities (such as intelligent analysis and automated processes) into low-code, and another 40% plan to follow suit in the next 12 months. US enterprises are leading in this area, with 47% having implemented AI + low-code solutions; Europe is relatively cautious, with only 25% having relevant layouts, but 22% of European enterprises plan to advance in 1-2 years, indicating a trend to catch up. In terms of value, 59% of enterprises believe that AI brings “speed and agility” to low-code, with Asia-Pacific enterprises feeling this the most (68%); similarly, 59% recognize its contribution to efficiency, and 53% believe AI can reduce development costs, all of which are significant motivators for enterprises to increase investment.
Looking ahead, the development of low-code will align more closely with regional needs and technological trends. For example, the Asia-Pacific market will place greater emphasis on the integration capabilities of low-code, US enterprises will focus on advanced features such as AI and machine learning, while Europe will continue to strengthen security and compliance aspects. Meanwhile, the combination of low-code with process mining and intelligent automation will become tighter—48% of enterprises have used process mining (optimizing business processes through data analysis) alongside low-code to achieve a closed loop of “discovering problems – quickly resolving them”; 64% of enterprises believe that intelligent automation can enhance the efficiency of low-code, and 62% view it as key to productivity enhancement.
For enterprises, low-code is no longer an “optional auxiliary tool” but a core infrastructure supporting digital transformation. With the deep integration of AI technology, especially the application of generative AI in low-code (such as automatically generating code and intelligent recommendation features), the future software development efficiency of enterprises will be further enhanced. Whether responding quickly to market demands, optimizing core business processes, or unleashing employee innovation potential, low-code will play an increasingly important role. The differentiated practices of various regional markets will also provide more reference experiences for global enterprises, pushing digital transformation towards a more efficient and inclusive new stage.
The following are excerpts from the report
The report consists of 40 pages
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