Software Development Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 483.41 Billion |
| Market Size (2029) | USD 782.67 Billion |
| CAGR (2024 - 2029) | 10.12 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Software Development Market Analysis
The Software Development Market size is estimated at USD 483.41 billion in 2024, and is expected to reach USD 782.67 billion by 2029, at a CAGR of 10.12% during the forecast period (2024-2029).
Software development involves a series of computer science tasks focused on creating, designing, implementing, and maintaining software. Along with the growing focus on digital transformation to enhance efficiency and productivity is increasing the need for software development services.
- Across various sectors, companies are increasingly adopting software to automate their operations, aiming for enhanced efficiency and a competitive advantage in a perpetually active market. By utilizing custom solutions designed for their specific challenges, organizations navigate economic fluctuations, leveraging technology as a catalyst for strategic growth.
- Cloud technology has completely transformed the software development industry. Customized cloud platforms cater to specific requirements in different sectors, allowing quick adaptations for companies. In this situation, cloud-based development platforms serve as more than just tools, they also enable global collaboration, accelerating innovation at a speed previously inconceivable.
- The rise of no-code and low-codesignifies a critical point in making software development more accessible to all , by allowing users to create software applications without interfernce of writing code. These platforms are making software development more accessible to acorss wider range of users and lead to the development of new programming languages which are designed explicitly for low-code or no-code development.
- In August 2024, IBM and Papyrus Software habe announced an innovative collaboration inorder to revolutionize business application development using AI technology. By combining IBM’s WatsonX generative AI and Process Mining with Papyrus Converse’s no-code platform, companies can greatly speed up development timelines, streamline processes, and achieve a significant competitive advantage.
- Moreover, the advancement of software development is ongoing with the arrival of new programming languages such as Python, Rust and GO are created to be more efficient and address peculiar problems
- In the current technological age, cybersecurity provides strong very protection against cyber threats to maintain data integrity. Software companies are facing challenges dealing with ransomware attacks, targeted campaigns, and vulnerabilities in open-source repositories.The severity of the problem increases due to the shortage of cybersecurity experts.
Software Development Market Trends
Cloud to Witness Significant Growth
- The evolution of software development technologies across the regions brings quality-of-life improvements and which modifies the routines of developers. Cloud computing is one of the most impressive and significant outcomes of this evolution. In numerous ways, it transformed modern life, much like how Wi-fi technologies revolutionized the world of wired Internet. Cloud technology represented a significant advancement over traditional technologies in terms of convenience, performance, accessibility, security, and various other factors.
- Cloud services in Cloud computing offer software developers instant access to a shared, customizable pool of computing resources via the internet. This indicates that developers can utilize cloud services to create, launch, and expand applications without being limited by physical infrastructure everywhere. Essentially, as long as a location is equipped with Internet connection, customers are able to utilize cloud technologies at that site. This implies that the development team can be located across the globe.
- Cloud-based collaboration tools enable teams spread across different locations acorss the globe to work together effortlessly, boosting productivity and creativity. Developers can work together in real time, regardless of their location, by using shared repositories, version control systems, and integrated development environments (IDEs).
- Moreover, usage of Private clouds are becoming essential as companys needs inorder to build an closed digital environment along with high levels of control and security. As its most often, this is required to prevent leaks of confidential information, for example, inFintech, Healthcare, and along with research and development (R&D), and other areas. According to a survey by Flexera Software in 2024, the most of businesses globally, around 76 percent, choose to utilize private cloud services.
- August of 2024 ,IBM and Intel have revealed a worldwide partnership to implement Intel® Gaudi® 3 AI accelerators through the IBM Cloud platform. The aim of this upcoming release, set to debut in early 2025, is to assist in scaling enterprise AI more efficiently while promoting innovation with a strong foundation in security and resilience. This partnership will also facilitate assistance for Gaudi 3 on IBM's watsonx AI and data platform.
Aisa Pacific is Expected to Witness the Growth
- The software development sector in Asia Pacific is seeing rapid expansion. Foreign companies are becoming aware of the importance of accessing local technology experts acorss the countrys and collaborating with software development firms in the region to benefit from their skills and knowledge of the market.
- For Instance, July 2024, Google, the large technology company, recently introduced a variety of resources, initiatives, and collaborations aimed at supporting Indian developers and startups in leading the artificial intelligence (AI) movement. New language tools from Google DeepMind India are being introduced, and software development is being improved with AI-powered features, all while emphasizing responsible AI.
- Moreover, With the constant growth of the Aisa's software industry, the number of software developers across countries such as japan, india and china continues to rise. This abundance of talented professionals allows companies to access top-tier software engineers and developers while enjoying the cost advantages of working with companies.
- The regions supportive government initiatives and a thriving startup ecosystem, has contributed to its rise as an ideal destination for software development. AWS India has been authorized by MeitY to provide cloud services using AWS Asia Pacific (Hyderabad) as part of their INR 1,36,500 crores ((US 16.4 billion)) investment in cloud infrastructure by 2030.
Software Development Industry Overview
The software development market is fragmented due to the presence of several players. Several key players acorss market are constantly making efforts to bring advancements that are set to boost the demand for applications and others. A few companies enter collaborations and expand their footprints to strengthen their positions.
Major players are utilizing mergers and acquisitions as well as product innovations to maintain a competitive edge and grow their global presence.
Market leadership is sustained by innovation and strategic partnerships. Companies like Microsoft and Oracle are leading their way inorder developing creative software solutions and services.
The Software Development market comprises several global and regional players vying for attention in a fairly contested market space. Although the market poses high barriers to entry for the new players, several new entrants have been able to gain traction.
Software Development Market Leaders
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Apple Inc
-
Google LLC
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Microsoft Corporation
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IBM
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NVIDIA Corporation
*Disclaimer: Major Players sorted in no particular order
Software Development Market News
- October 2024: IBM works to address the developer skills gap with AI, by launching its watsonx Code Assistant uses the newly announced Granite 3.0 models to provide general-purpose coding assistance across multiple programming languages, where Granite-3.0-8B-Instruct and Granite-3.0-2B-Instruct language models
- March 2024: Cognizant and Google Cloud have revealed a plan to boost software development and developer efficiency by furthering their partnership. Cognizant will utilize Gemini for Google Cloud in two ways: training its associates on how to use Gemini for software development support, and incorporating Gemini's advanced features into its internal operations and platforms. Through the utilization of Gemini on Google Cloud, developers of Cognizant's can deploy code faster and more efficiently with the help of AI-driven tools, ultimately improving the reliability and cost-efficiency of creating and managing client applications.
Software Development Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The introduction of new programming languages tailored for efficiency and designed to solve specific challenges.
5.1.2 The rise of low-code and no-code platforms signifies more accessible of software
5.2 Market Restraints
5.2.1 Cyber security issues acoss the enterprises
5.3 Analysis on basis of language
5.3.1 Java
5.3.2 Python
5.3.3 JavaScript
5.3.4 PHP
5.3.5 SQL
5.3.6 Android
5.3.7 Others
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 Sloution
6.1.1.1 Mobile Based
6.1.1.2 Web Based
6.1.2 Services
6.2 By Deployment Type
6.2.1 On-Premise
6.2.2 Cloud
6.3 By Organization Size
6.3.1 SMEs
6.3.2 Large Enterprise
6.4 By End-user
6.4.1 BFSI
6.4.2 Media and Entertainment
6.4.3 Government and Defense
6.4.4 IT and Telecommunication
6.4.5 Healthcare
6.4.6 Manufacturing
6.4.7 Others
6.5 By Geography***
6.5.1 North America
6.5.2 Europe
6.5.3 Asia
6.5.4 Australia and New Zealand
6.5.5 Latin America
6.5.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Apple Inc
7.1.2 Google LLC
7.1.3 Microsoft Corporation
7.1.4 IBM
7.1.5 NVIDIA Corporation
7.1.6 Adobe Inc
7.1.7 Salesforce.com Inc
7.1.8 Amazon.com, Inc
7.1.9 Oracle Corporation
7.1.10 NetSuite Inc.
7.1.11 CEPTES Software Pvt Ltd
- *List Not Exhaustive
8. INVESTMENT ANAYSIS
9. FURTURE OF THE MARKET
Software Development Industry Segmentation
Software development is the method utilized for producing software. Writing and managing the source code is crucial in this process. It involves planning the project, assessing its viability, understanding business needs, creating software designs, testing, and finally launching the project.
The software development market is segmented by product type (solution (mobile based, web based), service), deployment type (on-premise, cloud), organization size (SMEs, large enterprise), end-user (BFSI, media and entertainment, government and defense, it and telecommunication, healthcare, manufacturing, others), geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.
| By Product | ||||
| ||||
| Services |
| By Deployment Type | |
| On-Premise | |
| Cloud |
| By Organization Size | |
| SMEs | |
| Large Enterprise |
| By End-user | |
| BFSI | |
| Media and Entertainment | |
| Government and Defense | |
| IT and Telecommunication | |
| Healthcare | |
| Manufacturing | |
| Others |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Software Development Market Research FAQs
How big is the Software Development Market?
The Software Development Market size is expected to reach USD 483.41 billion in 2024 and grow at a CAGR of 10.12% to reach USD 782.67 billion by 2029.
What is the current Software Development Market size?
In 2024, the Software Development Market size is expected to reach USD 483.41 billion.
Who are the key players in Software Development Market?
Apple Inc, Google LLC, Microsoft Corporation, IBM and NVIDIA Corporation are the major companies operating in the Software Development Market.
Which is the fastest growing region in Software Development Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Software Development Market?
In 2024, the North America accounts for the largest market share in Software Development Market.
What years does this Software Development Market cover, and what was the market size in 2023?
In 2023, the Software Development Market size was estimated at USD 434.49 billion. The report covers the Software Development Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Software Development Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Software Development Industry Report
Statistics for the 2024 Software Development market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Software Development analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
