How Has the Custom Software Development Market Size Evolved in Recent Years?
The custom software development market has seen considerable growth due to a variety of factors.
• The market size for custom software development has expanded drastically in the past few years. This market is set to rise from $44.52 billion in 2024 to $54.26 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 21.9%.
The historical period's growth is due to factors such as the rise of agile and DevOps practices, concerns about cybersecurity, heightened customer expectations, regulatory compliance, the advancement of business models, and globalization.
What are the Market Size and Expected Growth Rates for the Custom Software Development Market?
The custom software development market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for custom software development is predicted to experience substantial expansion in the coming years, reaching $120.22 billion in 2029 with a compound annual growth rate (CAGR) of 22.0%.
The growth anticipated in the forecast period is due to factors such as the hastening of digital transformation, a heightened emphasis on cybersecurity, the rise of remote work and collaboration tools, and concerns around data privacy and compliance. Future trends projected within this period include hyper-automation, containerization and microservices, an increased focus on user experience, the use of augmented and virtual reality, the application of quantum computing, and an emphasis on ethical and accountable AI.
Which Key Drivers Are Propelling The Custom Software Development Market's Growth?
The uptake of robotic automation, which continues to rise, is forecasted to fuel the expansion of custom software development in the future. This type of automation pertains to a software technology that simplifies the construction, deployment, and management of software robots that mirror human behavior when dealing with digital systems and software. This increasing approval of robotic automation is motivated by its capacity to improve efficiency, productivity, and accuracy across multiple industries while simultaneously decreasing operational costs. Custom software development plays a crucial role in enhancing the effectiveness and integration of robots in automated processes, hence making control, sensor integration, path planning, and data analysis easier. For example, the International Federation of Robotics (IFR), a non-profit organization based in the US, reported in September 2023 that there were 553,052 industrial robot installations in factories worldwide in 2022, indicating a 5% year-on-year growth rate. Furthermore, in terms of regional dispersion, Asia was responsible for 73% of the recently deployed robots, with Europe accounting for 15% and the USA 10%. Therefore, the rising use of robotic automation is catalyzing the expansion of the custom software development market.
What Are The Key Segments Within The Global Custom Software Development Market?
The custom software development market covered in this report is segmented –
1) By Solution: Web-Based Solutions, Mobile App, Enterprise Software
2) By Deployment: Cloud, On-Premise
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
4) By End User: Banking, Financial Services, And Insurance, Government, Healthcare, Information Technology And Telecom, Manufacturing, Retail, Other End-Users
Subsegments:
1) By Web-Based Solutions: Custom Web Applications, E-Commerce Solutions, Content Management Systems (Cms), Customer Relationship Management (Crm) Solutions, Web Portals, Cloud-Based Solutions, Business Intelligence (Bi) Tools, Data Analytics Platforms
2) By Mobile App: Custom Mobile Applications (Ios, Android), Cross-Platform Mobile Apps, Enterprise Mobile Applications, Mobile E-Commerce Solutions, Mobile Crm Solutions, Mobile Healthcare Apps, Mobile Finance And Banking Apps, Mobile Games And Entertainment Apps
3) By Enterprise Software: Enterprise Resource Planning (Erp) Systems, Human Resource Management Systems (Hrms), Supply Chain Management (Scm) Software, Customer Relationship Management (Crm) Systems, Project Management Software, Business Process Management (Bpm) Solutions, Accounting And Financial Software, Inventory Management Systems
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How Are New Trends Impacting The Size Of The Custom Software Development Market?
Leading entities in the custom software development sector are concentrating on introducing novel solutions like virtual reality applications to enhance their market revenue. These apps are developed to enable creators to construct animated content using high-end virtual production tools instantaneously. For instance, the Canada-based virtual reality enterprise, Flipside XR, in March 2023, introduced a new application titled Flipside Studio Support from Meta, specifically designed for creators. This VR application allows users to create animated content in real-time using advanced virtual production tools. Upon completion, users can easily upload and disseminate their work on widely used social media platforms such as YouTube, TikTok, Twitch, among others. Armed with a variety of tools and functionalities, creators can manufacture appealing, high-quality videos exploiting the immersive potential of VR technology.
Who Are the Key Players In The Custom Software Development Market?
Major companies operating in the custom software development market are:
• Accenture plc
• Tata Consultancy Services Limited
• Infosys Limited
• Capgemini SE
• HCL Technologies Limited
• Tech Mahindra Limited
• EPAM Systems Inc.
• Wipro Limited
• Persistent Systems Limited
• Kalibroida Technology Solutions Inc.
• N-iX LLC
• Intetics Inc.
• ScienceSoft USA Corporation
• Hexacta S.A.
• Chetu Inc.
• Fingent Corporation
• Svitla Systems Inc.
• Iflexion Interactive Inc.
• MentorMate LLC
• Icreon Tech Inc.
• TRooTech Business Solutions Pvt. Ltd.
• Brainvire Infotech Inc.
• Magora Systems Limited
• Belitsoft LLC
• Trigent Software Inc.
What Are The Regional Insights Into The Custom Software Development Market?
North America was the largest region in the custom software development market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the custom software development market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
