Artificial Intelligence (AI) Code Tools Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence (AI) code tools market size has grown exponentially in recent years. It will grow from $6.21 billion in 2024 to $7.7 billion in 2025 at a compound annual growth rate (CAGR) of 24%. The growth in the historic period can be attributed to early adoption of AI technologies, increasing demand for automation in software development, growing complexity of software projects, rise of open-source AI frameworks, expansion of cloud computing services.

The artificial intelligence (AI) code tools market size is expected to see exponential growth in the next few years. It will grow to $18.16 billion in 2029 at a compound annual growth rate (CAGR) of 23.9%. The growth in the forecast period can be attributed to expansion of AI in code generation and auto-completion, adoption of AI for code security and vulnerability assessment, rising demand for AI-based code review and quality assurance, integration of AI into deVops practices, increasing focus on explainability and interpretability of AI-generated code. Major trends in the forecast period include AI-driven code generation, enhanced code review and optimization, AI-powered testing and debugging, AI-enabled collaboration platforms.

The growing digital transformation is expected to drive the growth of the artificial intelligence (AI) code tools market in the coming years. Digital transformation refers to the adoption of digital technologies that fundamentally change how businesses and organizations operate, interact with customers, and deliver value. AI code tools support digital transformation by streamlining software development processes, accelerating innovation, and enabling enterprises to quickly adapt to evolving technological landscapes. For example, in December 2023, the European Commission (EC), the executive body of the European Union, reported that cloud-based solutions saw a 4.2 percentage point increase in adoption across the European Union in 2023, with 45.2% of enterprises purchasing cloud computing services, marking a notable rise since 2021. Therefore, the increasing digital transformation is driving the growth of the AI code tools market.

Key players are dedicated to innovating and delivering cutting-edge products, including AI code assistants, to reinforce their market position. An AI coding assistant is a sophisticated software solution leveraging AI technologies, such as large-language models (LLMs), to support developers in various coding tasks. For instance, in October 2023, International Business Machines Corporation (IBM) introduced Watsonx Code Assistant. This advanced tool harnesses generative artificial intelligence to assist corporate developers and IT professionals in coding tasks. By utilizing natural language prompts, Watsonx Code Assistant accelerates coding processes, enhances precision, and boosts developer productivity. IBM's Watsonx Code Assistant exemplifies the transformative potential of AI-driven solutions in optimizing software development workflows and driving innovation in the industry.

In March 2022, CircleCI, a DevOps platform company headquartered in the United States, completed the acquisition of Ponicode for an undisclosed sum. This strategic move enables CircleCI to leverage Ponicode's capabilities to effectively navigate change, empowering software teams to accelerate innovation. Ponicode's commitment to streamlining developers' workflows and expediting the path to production seamlessly aligns with CircleCI's overarching goal. Originating from France, Ponicode specializes in AI-powered code analysis, enhancing the efficiency of software development processes.

Major companies operating in the artificial intelligence (AI) code tools market report are Google LLC, Microsoft Corporation, Meta Platforms Inc, Amazon Web Services Inc., The International Business Machines Corporation (IBM), Salesforce Inc., Datadog Inc., JetBrains s.r.o., Snyk, CircleCI, OpenAI, Replit, Moolya, AdaCore, Sourcegraph, Tabnine, Wing IDE (Wingware), Lightning AI, Kodezi, CodeWP, SinCode AB, Enzyme, CodiumAI, MutableAI, Sourcery.AI, Seek AI, SQLAI.ai, Assistiv.ai, Safurai.

North America was the largest region in the artificial intelligence (AI) code tools market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai) code tools market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) code tools market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) code tools market consists of the revenues earned by entities by providing services such as code generation, code autocompletion, code review and analysis, bug detection, code optimization tools, code refactoring, code quality assessment, and system integration and implementation. 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 artificial intelligence (AI) code tools market also includes sales of central processing units (CPUs), random access memory, storage systems, and graphics processing units (GPUs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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).

Artificial intelligence (AI) code tools are software solutions designed to augment and optimize the software development process through the utilization of AI and machine learning (ML) algorithms. These tools offer a range of functionalities including code generation, code review and analysis, bug detection, code optimization, and automated coding tasks. They contribute to enhancing code consistency, readability, and efficiency.

The artificial intelligence (AI) code tools market primarily consists of two main categories such as tools and services. Tools encompass software applications that leverage AI and ML algorithms to support various aspects of the software development lifecycle such as code generation, review, analysis, and optimization. These tools utilize technologies such as machine learning, natural language processing, and generative artificial intelligence. Applications of AI code tools span across multiple domains including data science, cloud services, web and mobile app development, gaming, embedded systems, and more. They cater to industries such as banking, financial services, insurance, information technology, healthcare, manufacturing, retail, telecommunications, government, media, and entertainment among others.

The artificial intelligence (AI) code tools research report is one of a series of new reports that provides artificial intelligence (AI) code tools market statistics, including the artificial intelligence (AI) code tools industry's global market size, regional shares, competitors with an Artificial intelligence (AI) code tools market share, detailed artificial intelligence (AI) code tools market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) code tools industry. This artificial intelligence (AI) code tools market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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.

This product will be delivered within 3-5 business days.