The custom software development market size is expected to grow from US$ 28.63 billion in 2022 to US$ 147.84 billion by 2030; it is estimated to grow at a CAGR of 22.8% from 2022 to 2030.
Analyst Perspective:
Growing digital transformation across various industry verticals such as BFSI, government, retail, healthcare, and others are raising the demand for the development of custom software. The growing demand for digital banking is increasing as it helps customers conduct their financial operations with more ease, fueling the growth of the market. Also, the growing need for business process automation is boosting the growth of the custom software development market. Furthermore, the integration of artificial intelligence, machine learning, and advanced analytics to gather data regarding customer behavior and provide personalized solutions is further creating an opportunity for the growth of the custom software development market. Moreover, the rising demand for cloud computing is further fueling the growth of the custom software development market.
Market Overview:
Custom software development is the process of designing software applications to meet the specific needs of an individual or a company. Various companies invest in custom software development specifically to address the exact needs of the customers. Furthermore, as the business grows with time, the need for various features in the software will also grow. Purchasing an off-the-shelf software solution can become a problem when it is not able to support the business or becomes too expensive to license, raising the demand for custom software, which can help to grow and scale the business processes. Furthermore, with custom software development, a user can integrate new software with the already existing software to refine business processes.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Custom Software Development Market: Strategic Insights
Custom Software Development Market
-
CAGR (2023 - 2031)
22.80%
-
Market Size 2023
US$ 35.16 Billion
-
Market Size 2031
US$ 181.81 Billion
Market Dynamics
GROWTH DRIVERS
- XXXXXXX
- XXXXXXX
- XXXXXXX
FUTURE TRENDS
- XXXXXXX
- XXXXXXX
- XXXXXXX
OPPORTUNITIES
- XXXXXXX
- XXXXXXX
- XXXXXXX
Key Players
- Brainvire Infotech Inc.
- Iflexion
- Infopulse
- Infosys Ltd
- Magora
- MentorMate Inc.
- Trigent Software Inc.
- TRooTech Business Solutions
- Fingent
- Chetu Inc.
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Type
- Enterprise Software Development
- Web Application Development
- Mobile Application Development
Deployment
- Cloud and On-Premises
End Use
- BFSI
- Government
- Healthcare
- IT and Telecom
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Custom Software Development Market: Strategic Insights
-
CAGR (2023 - 2031)22.80% -
Market Size 2023
US$ 35.16 Billion -
Market Size 2031
US$ 181.81 Billion
Market Dynamics
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
- XXXXXXX
Key Players
- Brainvire Infotech Inc.
- Iflexion
- Infopulse
- Infosys Ltd
- Magora
- MentorMate Inc.
- Trigent Software Inc.
- TRooTech Business Solutions
- Fingent
- Chetu Inc.
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Type - Enterprise Software Development
- Web Application Development
- Mobile Application Development
Deployment - Cloud and On-Premises
End Use - BFSI
- Government
- Healthcare
- IT and Telecom
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Driver:
Increasing Adoption of AI is Providing an Opportunity for the Growth of the Custom Software Development Market
In this digital era, software plays a very important role in enabling companies to create automation tools, enhance customer experience, and reduce costs. This growing digitization is leading the growth of the software development sector, particularly due to the rapid advancement of technologies like Artificial Intelligence (AI), Machine Learning (ML), IoT, and others. This technological advancement is significantly impacting many industries, as the integration of the above technologies can help to solve complex problems and the ability to generate information.
Furthermore, as AI-powered software development helps to enhance the performance of the software, automate the processes, improve decisions with effective decision-making abilities, and enhance customer experiences, the integration of AI is rising in the market. Moreover, the integration of AI is prominently used in the field of cybersecurity as AI can quickly help spot malicious activities and software, thus identifying potential threats. Also, AI can help to detect suspicious IP addresses as well as data breaches. Thus, because of all the above factors, the demand for the integration of AI in software is increasing, creating an opportunity for the growth of the custom software development market.
Segmental Analysis:
Based on type, the custom software development market is segmented into enterprise software development, web application development, and mobile application development. The enterprise software development segment held the largest custom software development market share in 2022 and is anticipated to register the highest CAGR during 2022-2030. The rising demand for centralized systems for multiple departments is raising the demand for enterprise software development. Also, as it helps to improve scalability and integration and provides higher security for different software platforms, the demand to develop custom enterprise software is increasing in the market. Furthermore, enterprise software helps to automate the business workflow, enhances business efficiency, controls data entry errors, reduces costs, ensures growth, and also helps to make strategic decisions in the organizations. Moreover, enterprise software comprises of plenty of features, and organizations can customize it according to their requirement. The software also helps to track and improve supply chains, manage resources, and communicate with customers. Thus, all the above factors are fueling the custom software development market growth.
Regional Analysis:
North America is expected to witness significant growth in the custom software development market in the forecasted period. In the region, the US will hold the largest custom software development market share in 2022 and will register the highest CAGR during 2022-2030. The demand for business process automation to improve efficiency and reduce costs is fueling the growth of the custom software development market in the region. Also, the growing digital transformation in various industries is another factor fueling the growth of the market. The region witnessed a digital transformation in its healthcare sector in recent years. The governments of various countries, as well as other organizations, are continuously working on the digitization of the healthcare sector. The US Food & Drug Administration's Digital Health Center of Excellence (DHCoE) affirms that digital health is important and that it marks the beginning of a comprehensive approach to digital health technology, setting the stage for advancing and realizing the potential of digital health. As digital health helps to efficiently serve patients, healthcare providers, researchers, other government agencies, international regulatory bodies, and other centers within the FDA, the demand for high-quality digital health innovation is increasing in the region. Thus, such a rise in the demand for digital health is fueling the custom software development market growth in North America.
Key Player Analysis:
Brainvire Infotech Inc., Iflexion, Infopulse, Infosys Ltd, Magora, MentorMate Inc., Trigent Software Inc., TRooTech Business Solutions, Fingent, and Chetu Inc. are among the key custom software development market players. These custom software development market players are focused on continuous product development and innovation.
Recent Developments:
Inorganic and organic strategies such as product launches, partnerships, collaboration, and mergers and acquisitions are highly adopted by companies in the custom software development market. A few recent key market developments by these companies are listed below:
- In August 2023, Butterfly Network, Inc., a digital health company, announced the release of its software development kit (SDK) for use by third parties. The SDK can be leveraged by artificial intelligence (AI) software developers, medical device companies building ultrasound into their platforms, and telemedicine companies adding ultrasound into their virtual care workflows. The kit will allow developers to utilize Butterfly’s platform to build custom applications that can be commercialized to Butterfly’s customer base – the largest user network in handheld point-of-care ultrasound.
- In July 2023, Tietoevry announced that it had acquired MentorMate, a digital engineering company, from Taylor Corporation. MentorMate plays a key role in driving customers’ digital agenda with its strategy, design, and engineering capabilities. The acquisition accelerates Tietoevry’s strategy with a focus on software and digital engineering services. MentorMate will be part of the Tietoevry Create business, supporting its ambition to be a leading digital engineering player globally.
- In May 2023, Accenture announced that they would acquire UK-based digital engineering company Objectivity, which focuses on cloud and platform development services to support clients expediting their transformation journey for quick innovation. Through this acquisition, Accenture is expected to benefit from Objectivity’s extensive expertise in platform engineering, cloud-native computing, and application modernization.
- In May 2023, Tata Consultancy Services announced its partnership with Google Cloud and the launch of its new offering, TCS Generative AI, which leverages Google Cloud’s generative AI services to design and deploy custom-tailored business solutions that help clients harness the power of this exciting new technology to accelerate their growth and transformation. Tata Consultancy Services’ Generative AI offering on Google Cloud will help clients harness the power of generative AI and promote rapid innovation to drive growth and transformation.
- In April 2023, eGrove Systems released the next version of Elite mCommerce, which will make it easier to create cross-platform apps and enhance the user experience. Through Elite mCommerce, the company provides an innovative range of ready-made mobile app solutions for a wide range of industries, from grocery stores to retail stores, restaurant food delivery services, grocery delivery services, and so much more.
- In March 2023, Replit and Google Cloud announced their partnership to Advance Generative AI for software development. Under the new partnership, Replit developers will get access to Google Cloud infrastructure, services, and foundation models via Ghostwriter, Replit's software development AI. Also, Google Cloud and Workspace developers will get access to Replit’s collaborative code editing platform. The collaboration will accelerate the creation of generative AI applications and underscore Google Cloud's commitment to nurturing the most open ecosystem for generative AI.
- In December 2021, Accenture announced that they had acquired the consulting division of Headspring, a cloud-native custom software development company. The firm’s consulting offerings include product strategy and roadmaps, app development and security, experience design, DevOps, business intelligence, cloud transformation, IT change management, and process optimization.
Custom Software Development Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 35.16 Billion |
| Market Size by 2031 | US$ 181.81 Billion |
| Global CAGR (2023 - 2031) | 22.80% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered |
North America
|
| Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, End Use
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
- Brainvire Infotech Inc.
- Iflexion
- Infopulse
- Infosys Ltd
- Magora
- MentorMate Inc.
- Trigent Software Inc.
- TRooTech Business Solutions
- Fingent
- Chetu Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to Custom Software Development Market
Apr 2024
Engineering Professional Services Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Consulting, Non-Consulting), Service Type (Designing and Construction, ESG, Program Management, Others), Sector (Private, Public), Vertical (Advanced Manufacturing, Infrastructure, Energy and Utilities, Environmental, Transportation, Others), Advanced Manufacturing (Data Center, Life Sciences, Electronics, and Semiconductor, EV and EV Battery, Others), Infrastructure (Buildings and Cities, Health Infrastructure, Telecommunication Infrastructure, Others), Energy And Utilities (Renewables, Energy Storage, Transmission and Distribution), Transportation (Aviation, Highways and Bridges, Ports and Maritime, Rail and Transit), Water (Water, Wastewater), and Geography (Americas, Europe, Asia Pacific and Middle East and Africa)
Apr 2024
Virtual Reality Puzzle Games Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Age (18 to 34 Years, Above 35 Years, 13 to 17 Years, and Upto 12 Years), Player Type (Single Player and Multi Player), and End Users (Individuals and Professionals)
Apr 2024
AI Data Management Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Offering (Solution and Service), Deployment (On-premise and Cloud), Technology [Machine Learning, Natural Language Processing (NLP), Computer Vision, and Context Awareness Computing], and Industry Vertical (BFSI, Retail & E-commerce, IT & Telecom, Healthcare, Government & Utilities, and Others), and Geography
Apr 2024
Inspection Software for Government Services Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Services (Implementation and Deployment, Support and Maintenance, Training, and Consulting), Deployment (Cloud and On-premises), Application (Permitting and Licensing Management, Inspection and Scheduling Management, Contract Management, and Others), and End User (Local Government, State Government, and Federal Government)
Apr 2024
Mobile Threat Defense Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Operating System (Android and iOS), Enterprise Size (Large Enterprises and SMEs), and End-User (IT and Telecomm, BFSI, Manufacturing, Retail and E-commerce, Government, and Others)
Apr 2024
Spend Analytics for Electronics and Semiconductor Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis By Component (Software and Service), Type (Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics), Deployment (On-premise and Cloud), and Application (Financial Management, Risk Management, Governance and Compliance Management, Supplier Sourcing and Performance Management, Demand and Supply Forecasting, and Others)
Apr 2024
Photonic Design Automation Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Service), Deployment (On-Premise and Cloud), Organization Size (SMEs and Large Enterprises), and Application (Academic Research and Industrial Research & Manufacturing)
Apr 2024
Voice-based Payments Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Hardware and Software), By Enterprise Size (Large Enterprises and Small and Medium-Sized Enterprises), By Industry (BFSI, Automotive, Healthcare, Retail, Government, and Others), and by Geography