Custom Software Development Market Growth and Forecast 2031

Coverage: Custom Software Development Market covers analysis By Type (Enterprise Software Development, Web Application Development, and Mobile Application Development), Deployment (Cloud and On-Premises), End Use (BFSI, Government, Healthcare, IT and Telecom, and Others), and Geography

  • Report Code : TIPRE00035754
  • Category : Technology, Media and Telecommunications
  • No. of Pages : 150
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Custom Software Development Market Strategies, Trends, and Forecast by 2031

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The custom software development market size is projected to reach US$ 181.81 billion by 2031 from US$ 35.16 billion in 2023. The market is expected to register a CAGR of 22.80% in 2023–2031. The integration of progressive web apps (PWAs) is likely to remain a key custom software development market trend.

Custom Software Development Market Analysis

The growing digital transformation across various industry verticals, such as BFSI, government, retail, healthcare, and others, is 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, fuelling 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 behaviour 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 fuelling the growth of the custom software development market.

Custom Software Development 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.

Strategic Insights

Custom Software Development Market Drivers and Opportunities

Business Process Automation to Favor Market

Business process automation (BPA) is becoming increasingly important for businesses as they recognize the efficiency and productivity gains that can be achieved through automation. By automating routine tasks, organizations can enhance operational efficiency, minimize errors, standardize processes, and free up employees to focus on more strategic activities. BPA helps organizations reduce costs by streamlining processes and minimizing the need for manual intervention. Automated processes are less prone to errors, reducing the need for rework and correction, which further improves efficiency and reduces costs.

Increasing Adoption of AI – An Opportunity in 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 solve complex problems and the ability to generate information.

Custom Software Development Market Report Segmentation Analysis

Key segments that contributed to the derivation of the custom software development market analysis are type, deployment, and end use.

  • Based on type, the market is divided into enterprise software development, web application development, and mobile application development. The web application development segment held a significant market share in 2023.
  • Based on deployment, the market is bifurcated into on-premises and cloud. The on-premises segment held a larger market share in 2023.
  • Based on end use, the market is bifurcated into BFSI, government, healthcare, it and telecom, and others. The BFSI segment held a significant market share in 2023.

 Custom Software Development Market Share Analysis by Geography

The geographic scope of the Custom Software Development market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

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 2023 and will register the highest CAGR during 2023-2031. The demand for business process automation to improve efficiency and reduce costs is fuelling the growth of the custom software development market in the region. Also, the growing digital transformation in various industries is another factor fuelling 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. 

Custom Software Development Market Report Scope

Custom Software Development Market News and Recent Developments

The custom software development market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:

  • 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. (Source: Butterfly Network, Inc., Press Release)
  • 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. (Source: Tietoevry, Press Release)

Custom Software Development Market Report Coverage and Deliverables

The “Custom Software Development Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering the following areas:

  • Custom Software Development Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Market dynamics such as drivers, restraints, and key opportunities
  • Custom Software Development Market trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Custom Software Development market analysis covering key market trends, Global and regional framework, major players, regulations, and recent market developments
  • Custom Software Development Industry, landscape, and competition analysis, covering market concentration, heat map analysis, prominent players, and recent developments
  • Detailed company profiles
REGIONAL FRAMEWORK

Custom Software Development Market Report Analysis

Custom Software Development Market

  • CAGR (2023 - 2031)
    22.80%
  • Market Size 2023
    US$ 35.16 billion
  • Market Size 2031
    US$ 181.81 billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Buffalo Americas, Inc.
  • Dell EMC
  • Hewlett Packard Enterprise Development LP
  • Hitachi Vantara Corporation
  • NetApp
  • NETGEAR
  • QNAP Systems, Inc.
  • Seagate Technology LLC
  • Synology, Inc.
  • Western Digital Corporation

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Type
  • Enterprise Software Development
  • Web Application Development
  • Mobile Application Development
By Deployment
  • Cloud and On-Premises
By 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 PLAYERS

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
  • Enterprise Software Development
  • Web Application Development
  • Mobile Application Development
By Deployment
  • Cloud and On-Premises
By End Use
  • BFSI
  • Government
  • Healthcare
  • IT and Telecom
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Buffalo Americas, Inc.
  • Dell EMC
  • Hewlett Packard Enterprise Development LP
  • Hitachi Vantara Corporation
  • NetApp
  • NETGEAR
  • QNAP Systems, Inc.
  • Seagate Technology LLC
  • Synology, Inc.
  • Western Digital Corporation
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Type, End Use

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

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