What Has Been The Evolution of the Generative AI In Software Development Market in Recent Years?
The generative ai in software development market has seen considerable growth due to a variety of factors.
• The market size for generative AI in software development has seen a tremendous increase in its growth recently. It's projected to soar from $53.4 billion in 2024 to $66.77 billion in 2025, reflecting a compound annual growth rate (CAGR) of 25.0%.
Factors contributing to this remarkable growth during the historical period include enhanced computational capacity, advancements in deep learning algorithms, access to large-scale datasets, a growing need for coding optimization, and the rise of cloud computing platforms.
What Are the Future Growth Projections for the Generative AI In Software Development Market?
The generative ai in software development market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of generative AI in software development is projected to experience remarkable growth in the coming years, with an expected increase to $161.34 billion in 2029 at a compound annual growth rate (CAGR) of 24.7%.
This anticipated expansion during the forecast period can be contributed to the implementation of generative AI in software development tools, the broadening of uses within the creative sectors, the utilization of generative AI for customized content creation, the improvement of natural language understanding abilities, and the hastening of research concerning self-enhancing AI systems. Significant developments expected within the forecast period encompass an amplified emphasis on ethical and accountable AI development, the widespread application of generative AI in low-code and no-code platforms, the ascendance of AI-enhanced software development workflows, the emergence of cybersecurity solutions powered by generative AI, and the incorporation of generative AI into DevOps practices.
What Are The Core Factors Supporting Growth In The Generative AI In Software Development Market?
The increasing need for automation is projected to drive the expansion of generative AI in the software development sector in the future. Automation involves utilizing technology and machinery to accomplish tasks with the least possible human intervention, thereby enhancing efficiency and productivity. The growing need for automation is fueled by the desire to simplify processes, improve cost-efficiency, and enhance precision across various industrial sectors. Generative AI makes the automation of design tasks a reality, such as the creation of UI layouts, graphics, and architectural designs, freeing up human designers to focus more on creative pursuits. For example, a report by France-based IT service provider, Capgemini SE, from July 2024 reveals that about 3 in 5 organizations prefer to use generative AI in software engineering, and around 46% of software engineers prefer generative AI tools. Predictions indicate that by 2026, approximately 85% of the software workforce will have adopted generative AI in software. Thus, the growing demand for automation is fueling the expansion of generative AI in the software development sector.
What Are The Major Segments Within The Global Generative AI In Software Development Market?
The generative AI in software development market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Deployment Mode: On-Premise, Cloud-Based
3) By Application: Code Generation, Code Optimization, Bug Detection, Testing And Quality Assurance
Subsegments:
1) By Solutions: AI-Powered Code Generation, Automated Software Testing And Debugging, Intelligent Code Optimization And Refactoring, AI-Based Application Security And Vulnerability Detection
2) By Services: AI Consulting For Software Development, Custom AI Solution Development For Software, AI Integration And Implementation Services, AI-Driven Software Development Training And Support
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Which Emerging Market Trends Are Altering The Generative AI In Software Development Industry?
Prominent companies in the generative AI software development sector are pivotal in introducing state-of-the-art generative AI capabilities that amplify productivity and fuel market profits. These services span a broad spectrum of applications that utilize artificial intelligence to generate unique content and conceptualizations such as chat, narratives, imagery, video content, and music. For example, in July 2023, French IT firm Capgemini SE unveiled a generative AI suite of services including generative AI strategy, generative AI for client experience, generative AI for software engineering, and distinctive generative AI for corporations. The introduction of generative AI in the sphere of software engineering provides a one-of-a-kind collection of services that enrich efficiency and standard throughout the software life cycle, covering aspects such as design, coding, documentation, testing, deployment, and operations. Such technology accelerates the timeline for new software to reach the marketplace and minimizes technical liabilities for companies by facilitating comprehensive modernization initiatives for outmoded software. Furthermore, it enhances security protocols by mitigating potential threats through the automatic detection of glitches or susceptibilities and proposing improvements to software development teams.
Who Are the Key Players In The Generative AI In Software Development Market?
Major companies operating in the generative AI in software development market report are:
• Amazon Inc.
• Google LLC
• Microsoft Corporation
• Tencent Holdings Ltd.
• International Business Machines Corporation
• Deloitte Touche Tohmatsu Limited
• Oracle Corporation
• Red Hat Inc.
• Atlassian Corporation Plc
• Alteryx Inc.
• Itransition Inc.
• Visionet Systems Inc.
• BairesDev LLC
• Nordcloud Ltd.
• CloudBees Inc.
• 15Five Inc
• ScienceLogic Inc.
• Waverley Software Inc.
• Alibaba Cloud
• 10Clouds SP. Z O.O.
• Radiansys Inc.
• Tooploox
• Blue Label Labs
• ASG Technologies Ltd.
• HatchWorks Inc
What Is The Most Dominant Region In The Generative AI In Software Development Market?
North America was the largest region in the generative AI in software development market in 2024. The regions covered in the generative AI in software development market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
