Findings from a report released earlier this year by the Center for Global Enterprise have illustrated the remarkable size and growth of the platform economy. The Rise of the Platform Enterprise: A Global Survey surveyed 176 platform companies around the world in order to ascertain the geographical spread and size of platform economies across all sectors, including software, e-commerce and financial services.
The report’s authors, Peter C. Evans and Annabelle Gawer, say in the report’s introduction that platform businesses are adding to productivity and innovation while disrupting industries:
Enterprises that leverage the power of platform business models have grown dramatically in size and scale over the past decade. No longer the sole domain of social media, travel, books or music, platform business models have made inroads into transportation, banking and even healthcare and energy.
The survey set a threshold of $1 billion market cap or valuation for companies to be included in the dataset.
Consequently, many enterprise platforms companies, such as Marketplacer, Freelancer, Upwork, TaskRabbit, and Fiverr have not been included in the report, which means the value figures from the report do not take into account the potential total value for the platform economy once these companies are included.
However, the report’s findings are still remarkable as an indicator of the growth and potential of the platform economy. As the authors write in their conclusion:
There is clearly a rising platform economy shaping our global business landscape and affecting the lives of citizens worldwide. This new form of organization seems to be a robust – some would even say dominant – form of business enterprise in the digital economy.
Here are 15 platform economy facts you should know:
- As of 2024, the total market cap for the world’s largest platform companies is now approaching $5 trillion due to continued growth in sectors like cloud computing, AI, and e-commerce.
- Uber has expanded to 67 countries in seven years; it took IBM 50 years to do that.
- The number of platform companies in Asia has continued to rise, with China still leading. However, Southeast Asia and India are also experiencing substantial growth in this sector.
- North America’s share is closer to 70% in 2024, as Asian platform companies have gained ground, especially in e-commerce and fintech.
- Publicly traded platforms directly employ at least 1.3 million people.
In 2024, that number has climbed to over 1.5 million, largely due to expansions in tech giants like Amazon and new workforce additions in cloud and AI sectors. - San Francisco Bay Area remains a significant hub for platform and technology companies, including major tech firms like Apple, Google, Meta, and Oracle, along with numerous innovative startups in fields like AI, biotech, and cybersecurity. The area hosts a dense concentration of tech giants, maintaining its role as the top global region for platform companies.
- Beijing also continues to grow as a major tech and platform company center, hosting well-known firms like Baidu, ByteDance, and Xiaomi. With support from government initiatives, Beijing fosters a strong environment for technology innovation, positioning it as the leading hub for platform companies in China.
- Shanghai remains a leading center in China for tech innovation and investment, housing major players and venture capital activity. New York and London are known global centers with significant platform company presence
- San Francisco Bay Area platform companies have a collective market cap of $2.5 trillion dollars – 52% of the value of the 176 companies surveyed.
- Of the companies surveyed, 69 are public companies and 107 are private.
Update: The balance between public and private companies is still in the private’s favor, though IPO activity is increasing in tech-heavy regions. - The estimated value of private platform companies has grown to around $350 billion with increased investment in AI and automation technologies.
- Public platform companies are now valued closer to $4.5 trillion in 2024, with big tech leaders in North America and Asia contributing the most.
- The survey identified four basic types of platform companies: transaction; innovation; investment; and integrated.
- In 2024, the number of patents granted to platform companies has more than doubled to more than 20,000 reflecting the growth in tech R&D, especially in AI and quantum computing.
- Apple is the most valuable publicly traded platform company, worth an estimated $3 trillion in 2024.
2025 Forecast on the Platform Economy
- Worldwide platform companies could reach a market value exceeding $5.5 trillion.
Sustained investment in AI, cloud computing, and e-commerce should push the overall value up, with major gains expected in North America and Asia. - Uber and similar companies will expand further, possibly targeting over 75 countries.
Growth in global ride-sharing and delivery demand could drive Uber and competitors to enter new markets, especially in emerging economies. - Asia’s platform economy will continue to lead in numbers, likely exceeding 90 major companies.
China and India will contribute the most, but Southeast Asia could also see growth as governments push for digital transformation. - North American platforms’ global value share might drop slightly to around 68%, with Asia nearing 25%.
Asian companies are set to narrow the gap, especially in e-commerce, financial tech, and AI. - Publicly traded platforms may employ over 1.7 million people.
Hiring in AI, automation, and renewable energy-related technologies is expected to increase, fueling job growth at leading platforms. - San Francisco Bay Area’s platform concentration will remain high but may see competition from emerging hubs.
Austin, Texas, and Seattle could see increases, while Beijing and Shenzhen will solidify their positions as tech capitals in Asia. - Beijing and Shanghai will see a rise in platform companies, potentially reaching over 40 and 20, respectively.
China’s investment in tech infrastructure and AI leadership could further boost Beijing, while Shanghai expands into blockchain and fintech. - New York and London may each reach 10 platform companies by 2025.
Fintech and digital services growth in these cities will likely drive this increase. - The San Francisco Bay Area’s platform market cap could reach $2.7 trillion.
The Bay Area will continue to dominate, though increased valuations from Asian competitors will impact its overall share. - The number of public platform companies might rise to 80, as more companies pursue IPOs.
IPO markets in tech-heavy regions like North America and China could remain strong, leading to more public listings. - Private platform companies may reach a combined valuation exceeding $400 billion.
Funding in emerging technology areas like metaverse applications and AI hardware could boost private valuations. - Public platform companies could approach a total valuation of $5 trillion.
Larger platforms in AI and cloud computing are expected to grow considerably, pushing total valuations higher. - The four types of platform companies will evolve, with “integrated” and “innovation” platforms growing fastest.
Integrated platforms combining transaction and innovation features are expected to grow as the market demands multifunctional services. - Patent awards to US platform companies will likely exceed 25,000.
Increased R&D investment, especially in AI and 5G, should drive patent filings, keeping the US as a leader in tech innovation. - Apple will likely remain the most valuable platform company, potentially reaching over $3.5 trillion in market cap.
New product lines, AI advancements, and growth in services should further enhance Apple’s lead as a high-value platform.
These forecasts reflect a dynamic, growing platform economy, with competition between North America and Asia intensifying and an increase in new platform categories. The focus on AI and cloud technologies will be particularly pivotal in 2025, shaping both market value and job growth.
