Application Development Software Global Market Report 2024

The application development software market size has grown exponentially in recent years. It will grow from $325.21 billion in 2023 to $415.26 billion in 2024 at a compound annual growth rate (CAGR) of 27.7%. Historical growth can be attributed to several factors including the rising demand for mobile apps, the transition to agile development methodologies, the surge in digital transformation initiatives, and the growing complexity of software projects.

The application development software market size is expected to see exponential growth in the next few years. It will grow to $1132.52 billion in 2028 at a compound annual growth rate (CAGR) of 28.5%. The forecasted growth is driven by the low-code and no-code development trends, integration with DevOps practices, emphasis on user experience (UX), and cloud-native application development. Major trends in this period include serverless computing, progressive web applications (PWAs), heightened focus on UX design, integration of edge computing, and increased attention to application security and compliance.

The rising need for tailored applications is anticipated to drive substantial growth within the application development software market. Customized applications offer a range of advantages, including adaptability to hybrid environments, catering to specific and intricate requirements, seamless integration with platforms, and improved performance. Notably, as per a survey conducted by SmarterHQ, a US-based provider of a customer intelligence-driven marketing automation platform, data reveals that 72% of consumers exhibit engagement solely with personalized messaging. Moreover, an overwhelming 80% of frequent shoppers prefer brands that personalize their online experiences. This growing demand for personalized applications is projected to be a significant driving force behind the expansion of the application development software market.

The escalating adoption of smartphones is poised to significantly drive the growth trajectory of the application development software market in the foreseeable future. Smartphones, handheld electronic devices combining mobile phone functionalities with a plethora of features and applications, have become ubiquitous, offering capabilities such as internet browsing, email, multimedia playback, and access to a wide array of third-party applications. This widespread adoption has triggered an exponential surge in demand for mobile applications, fostering the development of diverse mobile app development tools and frameworks. For instance, as per a report by Uswitch Limited, a UK-based online and telephone comparison service, there were 71.8 million active mobile connections in 2022, reflecting a notable 3.8% increase from 2021. Projections indicate that by 2025, the UK's population will reach 68.3 million, with an estimated 95% of individuals equipped with smartphones. This proliferation of smartphone adoption stands as a driving force behind the remarkable expansion of the application development software market.

The surge in low code app development platforms represents a prominent trend gaining traction within the application development software market. This approach to software development aims to streamline the development process, expediting software delivery and assisting enterprises in automating various stages of the product lifecycle. For instance, in June 2021, Salesforce, a prominent US-based software company, introduced a robust suite of low-code development tools. These tools empower all members within an organization to craft and launch applications using a unified platform. The platform offers interactive app development and automation features, complemented by new capabilities such as elastic computing, identity management, AI-driven data protection, and DevOps functionalities. These comprehensive tools facilitate teams in achieving accelerated business outcomes and fostering faster development cycles.

Prominent companies within the application development software market are spearheading innovative product development, exemplified by the creation of cloud-native enterprise application development software. This specialized set of tools, frameworks, and platforms is tailored to streamline the creation, deployment, and management of applications optimized for operation in cloud environments. For instance, in June 2021, HCL Technologies, a leading India-based IT consulting company, unveiled the latest version of Domino, an ultra-secure enterprise application development platform. Noteworthy for its cloud-native architecture, innate web and mobile readiness, and embedded low-code capability, this iteration marks a significant advancement in enriching the application development landscape. The platform caters to a diverse user base, spanning business professionals to seasoned IT developers, delivering substantial business value with a notably reduced total cost of ownership. Notably, Domino's reach extends to supporting operations for over 15,000 companies globally, including significant players in the automotive, financial, and retail sectors, powering an impressive 10 million applications.

In January 2021, Cognizant, a prominent US-based information technology services and consulting company, successfully acquired Magenic Technologies for an undisclosed sum. This strategic acquisition is poised to bolster Cognizant's proficiency in software development and cloud modernization, complementing its existing software product engineering endeavors. Magenic Technologies, a US-based entity specializing in custom software development services, joins forces with Cognizant, augmenting the company's suite of capabilities in these critical domains.

Major companies operating in the application development software market report are Alphabet Inc., Microsoft Corporation, Hewlett-Packard Inc., International Business Machines Corporation, Oracle Corporation, Broadcom Inc., SAP SE, Fujitsu Limited, Salesforce.com Inc., Wipro Limited, ServiceNow Inc., Twilio Inc., GitHub Inc., Datadog Inc., Pegasystems Inc., OutSystems Inc., Compuware Corporation, Appian Corporation, JetBrains s.r.o., Mendix Inc., Kony Inc., HCL Technologies Limited, Alice Technologies Inc., Snappii Custom Mobile Apps LLC, Joget Inc., AppSheet Inc., Axure RP LLC, Zoho Corporation Pvt. Ltd.

North America was the largest region in the application development software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application development software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the application development software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Application development software comes in various types, prominently including low code and no code solutions. Low code development represents an approach aimed at streamlining software development processes to expedite software delivery, assisting enterprises in automating every phase of the product lifecycle. These solutions cater to diverse deployment types, including on-cloud and on-premise setups. Primarily utilized by organizations ranging from small and medium enterprises to large enterprises, application development software finds application across multiple sectors such as media and entertainment, telecommunications, information technology, banking, financial services and insurance (BFSI), and healthcare.

The application development software market research report is one of a series of new reports that provides application development software market statistics, including application development software industry global market size, regional shares, competitors with an application development software market share, detailed application development software market segments, market trends and opportunities, and any further data you may need to thrive in the application development software industry. This application development software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The application development software market includes revenues earned by entities by providing software tools for more efficient app-building and user interface (UI) design process by offering low-coding approaches and user-friendly app-building systems for front and back-end development including security, data storage, and monitoring layers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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