Dublin, Nov. 28, 2024 (GLOBE NEWSWIRE) -- The "Custom Software Development Global Market Opportunities and Strategies to 2033" report has been added to ResearchAndMarkets.com's offering.
This report describes and explains the custom software development market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global custom software development market reached a value of nearly $36.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 21.7% since 2018. The market is expected to grow from $36.6 billion in 2023 to $99.09 billion in 2028 at a rate of 22%. The market is then expected to grow at a CAGR of 20.1% from 2028 and reach $247.7 billion in 2033.
Growth in the historic period resulted from the increased cybersecurity threats, globalization of businesses, rise in demand for remote work and growth of the gig economy. Factors that negatively affected growth in the historic period include long development cycles.
Going forward, the increasing adoption of robotics automation, expansion of the e-commerce industry, strong economic growth in emerging markets and increasing investments in digital transformation will drive the market. Factors that could hinder the growth of the custom software development market in the future include shortage of skilled developers and engineers.
The custom software development market is segmented by solution into web-based solutions, mobile app and enterprise software. The enterprise software market was the largest segment of the custom software development market segmented by solution, accounting for 60.1% or $21.98 billion of the total in 2023. Going forward, the mobile app segment is expected to be the fastest growing segment in the custom software development market segmented by solution, at a CAGR of 24.5% during 2023-2028.
The custom software development market is segmented by enterprise size into large enterprises and small and medium enterprises (SMEs). The large enterprises market was the largest segment of the custom software development market segmented by enterprise size, accounting for 60.5% or $21.94 billion of the total in 2023. Going forward, the small and medium enterprises (SMEs) segment is expected to be the fastest growing segment in the custom software development market segmented by enterprise size, at a CAGR of 23.6% during 2023-2028.
The custom software development market is segmented by deployment into cloud and on premises. The cloud market was the largest segment of the custom software development market segmented by deployment, accounting for 63.2% or $23.13 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the custom software development market segmented by deployment, at a CAGR of 23.5% during 2023-2028.
The custom software development market is segmented by end-user into banking, financial services and insurance, government, healthcare, information technology and telecom, manufacturing, retail and other end-users. The information technology and telecom market was the largest segment of the custom software development market segmented by end-user, accounting for 24.1% or $8.82 billion of the total in 2023. Going forward, the healthcare segment is expected to be the fastest growing segment in the custom software development market segmented by end-user, at a CAGR of 25.6% during 2023-2028.
North America was the largest region in the custom software development market, accounting for 33.1% or $12.12 billion of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the custom software development market will be Asia-Pacific and Africa, where growth will be at CAGRs of 25% and 24.3% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 23.7% and 22.3% respectively.
The global custom software development market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 18.3% of the total market in 2023. Accenture was the largest competitor with a 2.8% share of the market, followed by Cognizant with 2.6%, GlobalLogic with 2.5%, NTT DATA with 2.1%, DXC Technology with 1.9%, Virtusa with 1.5%, International Business Machines Corporation with 1.4%, Capgemini SE with 1.3%, HCL Technologies Limited with 1.1% and Softtek with 1%.
The top opportunities in the custom software development market segmented by solution will arise in the enterprise software segment, which will gain $34.97 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by enterprise size will arise in the large enterprises segment, which will gain $34.8 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by end-user will arise in the information technology and telecom segment, which will gain $16.85 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by deployment will arise in the cloud segment, which will gain $43.27 billion of global annual sales by 2028. The custom software development market size will gain the most in the USA at $15.85 billion.
Market-trend-based strategies for the custom software development market include introduction of low-code platforms to quickly deploy customized solutions, integration of AI to enhance functionalities, introducing application packaging tools for enhanced deployment and strategic partnerships and collaborations among major players.
Player-adopted strategies in the custom software development market include focus on leveraging strategic partnerships to offer cutting-edge digital services and data-driven solutions, enhancing client performance and innovation, leveraging AI technology to streamline and enhance the software development lifecycle, delivering a unified, industrial-grade AI architecture that ensures responsible, reliable and reusable AI models, continuous innovation in client companies through a structured framework that supports the entire lifecycle of idea development and enhance customer value and reduce costs by accelerating the deployment of scalable SAP solutions.
To take advantage of the opportunities, the analyst recommends the custom software development companies to focus on low-code platforms to drive business growth, focus on integrating AI to enhance software development, focus on application packaging tools to enhance deployment, focus on the web-based solutions market segment, focus on the small and medium enterprises (SMEs) market segment, focus on the cloud market segment, focus on expanding distribution channels through strategic partnerships, expand in emerging markets, continue to focus on developed markets, focus on competitive and value-based pricing strategies, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on digital marketing and content strategy, focus on information technology and telecom sector and tailor solutions for healthcare industry.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 337 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value (USD) in 2021 | $36.6 Billion |
| Forecasted Market Value (USD) by 2031 | $247.7 Billion |
| Compound Annual Growth Rate | 21.1% |
| Regions Covered | Global |
Companies Featured
- Accenture
- Cognizant
- GlobalLogic
- NTT DATA
- DXC Technology
- Virtusa
- International Business Machines Corporation
- Capgemini SE
- HCL Technologies Limited
- Softtek
- Huawei Technologies Co. Ltd.
- FPT Corporation
- EdgeCX Pvt. Ltd.
- Tata Consultancy Services Limited
- Infosys Limited
- Tech Mahindra Limited
- Wipro Limited
- Persistent Systems Limited
- Kalibroida Technology Solutions Inc.
- TRooTech Business Solutions Pvt. Ltd
- Autodesk, Inc.
- Luxoft
- Imobisoft
- Old.St Labs
- Chulakov Global.
- AscentCore
- CSHARK
- Fortech
- TechMagic
- Mautilus
- EPAM Systems
- 10Pearls
- Intellectsoft
- Perficient
- Unified Infotech
- Cubix
- Toptal
- Deloitte Touche Tohmatsu Limited
- Bitbean
- Globant S.A.
- Hexacta S.A.
- Schneider Electric
- CI&T Inc.
- Stefanini
- Acid Labs
- PSL Corp
- BairesDev
- Octobot
- Infopulse
- Belatrix Software
- Dropp Technologies Group
- Itpiran, Webnegah
- YelloStack
- Saabsoft Technologies
- MonkeyTech
- rgbcode, ltd.
- Dofinity
- EBTTIKAR Technology Co.
- Codeventure
- Developtica
- LimonAgaci
- Lenasoftware
- Solvia Digital Solutions
- defia Software Engineering
- Branex
- Silwatech
- RSI Concepts
- Pure Elements Technologies
- Commit
- Nisum Technologies, Inc.
- Reviei Technologies
- Talosmart
- TagDev Technologies Limited
- Enozom
- Uniparticle
- TrianglZ
- CubeZoo
- eSpace
- Mobirevo
- Aitechma
- Fortran House
- SovTech
- Entelect
- Bitcube
- Haefele Software
- Thought Inc.
- DVT
- Specno
- Modeso AG
For more information about this report visit https://www.researchandmarkets.com/r/x19qhj
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