The generative AI in software development market size has grown exponentially in recent years. It will grow from $42.95 billion in 2023 to $53.4 billion in 2024 at a compound annual growth rate (CAGR) of 24.3%. The growth during the historical period can be credited to heightened computational capabilities, advancements in deep learning algorithms, accessibility of vast datasets, growing demand for coding optimization, and the rise of cloud computing platforms.
The generative AI in software development market size is expected to see exponential growth in the next few years. It will grow to $129.43 billion in 2028 at a compound annual growth rate (CAGR) of 24.8%. The anticipated growth in the forecast period stems from several factors such as the incorporation of generative AI into software development tools, broader applications across creative industries, the adoption of generative AI for personalized content creation, improved natural language understanding capabilities, and accelerated research into self-improving AI systems. Key trends expected in the forecast period include a heightened emphasis on ethical and responsible AI development, the widespread use of generative AI in low-code and no-code platforms, the integration of AI into software development workflows, the emergence of generative AI-driven cybersecurity solutions, and the inclusion of generative AI in DevOps practices.
The increasing demand for automation is expected to drive the growth of generative AI within the software development market. Automation involves using technology and machinery to perform tasks with minimal human intervention, leading to increased efficiency and productivity. This demand for automation is primarily motivated by the desire to streamline processes, improve efficiency, reduce costs, and enhance accuracy across various industries. Generative AI enables the automation of design tasks such as generating UI layouts, graphics, and architectural designs, allowing human designers to focus more on creative endeavors. For example, data from October 2022, provided by the International Federation of Robotics, indicates a 31% year-over-year growth rate in the installation of 517,385 new industrial robots globally in 2021. Thus, the rising demand for automation is driving the growth of generative AI in the software development market.
Major companies in the generative AI software development market are introducing advanced generative AI offerings to enhance efficiency and drive revenue growth. Generative AI services encompass various applications leveraging artificial intelligence to create new content and ideas, including conversations, stories, images, videos, and music. For instance, in July 2023, Capgemini SE, a France-based IT company, launched a generative AI service portfolio comprising generative AI strategy, generative AI for customer experience, generative AI for software engineering, and custom generative AI for enterprises. The inclusion of generative AI for software engineering provides a unique set of services that enhance efficiency and quality across the software life cycle, from design and coding to documentation, testing, deployment, and operations. This expedites the time to market for new software and reduces technical debt for enterprises by supporting large-scale modernization programs for legacy software. Additionally, it strengthens security measures by automatically identifying bugs or vulnerabilities and suggesting adjustments to software development teams.
In February 2024, Deloitte Touche Tohmatsu Limited, a UK-based professional services company, acquired OpTeamizer for an undisclosed amount. This acquisition strengthens Deloitte's high-performance computing engineering capabilities, enabling clients to leverage generative AI, supercomputers, and edge AI for increased automation, optimized business processes, and greater business value realization. OpTeamizer, an Israel-based provider of generative AI for software development, enhances Deloitte's ability to deliver innovative solutions in this field.
Major companies operating in the generative AI in software development market 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.
North America was the largest region in the generative AI in software development market in 2023. 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. The countries covered in the generative AI in software development market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Generative AI in software development encompasses a range of AI models and tools designed to generate new content, including code snippets, functions, and design concepts, in response to natural language prompts and existing code. This technology enables developers to automate repetitive tasks, explore creative solutions, and accelerate the software development process by providing code suggestions and prototypes.
The main components of generative AI in software development are categorized into solutions and services. Solutions represent a comprehensive approach or a set of tools specifically tailored to address particular challenges or requirements within a technological context. These solutions can be deployed either on-premise or on the cloud, offering flexibility and scalability. They find applications across various domains, including code generation, code optimization, bug detection, testing quality assurance, and more. Generative AI solutions in software development play a crucial role in enhancing developer productivity, improving code quality, and expediting the development lifecycle. They leverage advanced algorithms and machine learning techniques to analyze patterns, understand context, and generate code that aligns with the developer's intent and project requirements. This technology has the potential to revolutionize software development by augmenting human capabilities, fostering innovation, and driving efficiency across the development ecosystem.
The generative AI in software development market research report is one of a series of new reports that provides generative AI in software development market statistics, including generative AI in software development industry global market size, regional shares, competitors with a generative AI in software development market share, detailed generative AI in software development market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in software development industry. This generative AI in software development 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 generative AI in the software development market consists of revenues earned by providing services such as documentation, test case generation, idea generation, and synthetic data creation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in the software development market also includes sales of products such as AI-powered code review tools, UI/UX design tools, and story generation tools. 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).
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.
The generative AI in software development market size is expected to see exponential growth in the next few years. It will grow to $129.43 billion in 2028 at a compound annual growth rate (CAGR) of 24.8%. The anticipated growth in the forecast period stems from several factors such as the incorporation of generative AI into software development tools, broader applications across creative industries, the adoption of generative AI for personalized content creation, improved natural language understanding capabilities, and accelerated research into self-improving AI systems. Key trends expected in the forecast period include a heightened emphasis on ethical and responsible AI development, the widespread use of generative AI in low-code and no-code platforms, the integration of AI into software development workflows, the emergence of generative AI-driven cybersecurity solutions, and the inclusion of generative AI in DevOps practices.
The increasing demand for automation is expected to drive the growth of generative AI within the software development market. Automation involves using technology and machinery to perform tasks with minimal human intervention, leading to increased efficiency and productivity. This demand for automation is primarily motivated by the desire to streamline processes, improve efficiency, reduce costs, and enhance accuracy across various industries. Generative AI enables the automation of design tasks such as generating UI layouts, graphics, and architectural designs, allowing human designers to focus more on creative endeavors. For example, data from October 2022, provided by the International Federation of Robotics, indicates a 31% year-over-year growth rate in the installation of 517,385 new industrial robots globally in 2021. Thus, the rising demand for automation is driving the growth of generative AI in the software development market.
Major companies in the generative AI software development market are introducing advanced generative AI offerings to enhance efficiency and drive revenue growth. Generative AI services encompass various applications leveraging artificial intelligence to create new content and ideas, including conversations, stories, images, videos, and music. For instance, in July 2023, Capgemini SE, a France-based IT company, launched a generative AI service portfolio comprising generative AI strategy, generative AI for customer experience, generative AI for software engineering, and custom generative AI for enterprises. The inclusion of generative AI for software engineering provides a unique set of services that enhance efficiency and quality across the software life cycle, from design and coding to documentation, testing, deployment, and operations. This expedites the time to market for new software and reduces technical debt for enterprises by supporting large-scale modernization programs for legacy software. Additionally, it strengthens security measures by automatically identifying bugs or vulnerabilities and suggesting adjustments to software development teams.
In February 2024, Deloitte Touche Tohmatsu Limited, a UK-based professional services company, acquired OpTeamizer for an undisclosed amount. This acquisition strengthens Deloitte's high-performance computing engineering capabilities, enabling clients to leverage generative AI, supercomputers, and edge AI for increased automation, optimized business processes, and greater business value realization. OpTeamizer, an Israel-based provider of generative AI for software development, enhances Deloitte's ability to deliver innovative solutions in this field.
Major companies operating in the generative AI in software development market 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.
North America was the largest region in the generative AI in software development market in 2023. 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. The countries covered in the generative AI in software development market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Generative AI in software development encompasses a range of AI models and tools designed to generate new content, including code snippets, functions, and design concepts, in response to natural language prompts and existing code. This technology enables developers to automate repetitive tasks, explore creative solutions, and accelerate the software development process by providing code suggestions and prototypes.
The main components of generative AI in software development are categorized into solutions and services. Solutions represent a comprehensive approach or a set of tools specifically tailored to address particular challenges or requirements within a technological context. These solutions can be deployed either on-premise or on the cloud, offering flexibility and scalability. They find applications across various domains, including code generation, code optimization, bug detection, testing quality assurance, and more. Generative AI solutions in software development play a crucial role in enhancing developer productivity, improving code quality, and expediting the development lifecycle. They leverage advanced algorithms and machine learning techniques to analyze patterns, understand context, and generate code that aligns with the developer's intent and project requirements. This technology has the potential to revolutionize software development by augmenting human capabilities, fostering innovation, and driving efficiency across the development ecosystem.
The generative AI in software development market research report is one of a series of new reports that provides generative AI in software development market statistics, including generative AI in software development industry global market size, regional shares, competitors with a generative AI in software development market share, detailed generative AI in software development market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in software development industry. This generative AI in software development 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 generative AI in the software development market consists of revenues earned by providing services such as documentation, test case generation, idea generation, and synthetic data creation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in the software development market also includes sales of products such as AI-powered code review tools, UI/UX design tools, and story generation tools. 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).
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.
Table of Contents
1. Executive Summary2. Generative AI in Software Development Market Characteristics3. Generative AI in Software Development Market Trends and Strategies32. Global Generative AI in Software Development Market Competitive Benchmarking33. Global Generative AI in Software Development Market Competitive Dashboard34. Key Mergers and Acquisitions in the Generative AI in Software Development Market
4. Generative AI in Software Development Market - Macro Economic Scenario
5. Global Generative AI in Software Development Market Size and Growth
6. Generative AI in Software Development Market Segmentation
7. Generative AI in Software Development Market Regional and Country Analysis
8. Asia-Pacific Generative AI in Software Development Market
9. China Generative AI in Software Development Market
10. India Generative AI in Software Development Market
11. Japan Generative AI in Software Development Market
12. Australia Generative AI in Software Development Market
13. Indonesia Generative AI in Software Development Market
14. South Korea Generative AI in Software Development Market
15. Western Europe Generative AI in Software Development Market
16. UK Generative AI in Software Development Market
17. Germany Generative AI in Software Development Market
18. France Generative AI in Software Development Market
19. Italy Generative AI in Software Development Market
20. Spain Generative AI in Software Development Market
21. Eastern Europe Generative AI in Software Development Market
22. Russia Generative AI in Software Development Market
23. North America Generative AI in Software Development Market
24. USA Generative AI in Software Development Market
25. Canada Generative AI in Software Development Market
26. South America Generative AI in Software Development Market
27. Brazil Generative AI in Software Development Market
28. Middle East Generative AI in Software Development Market
29. Africa Generative AI in Software Development Market
30. Generative AI in Software Development Market Competitive Landscape and Company Profiles
31. Generative AI in Software Development Market Other Major and Innovative Companies
35. Generative AI in Software Development Market Future Outlook and Potential Analysis
36. Appendix
Executive Summary
Generative AI in Software Development Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on generative AI in software development market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase:
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- Measure the impact of high global inflation on market growth.
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- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for generative AI in software development? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The generative AI in software development market global report answers all these questions and many more.The 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 market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Component: Solutions; Services2) by Deployment Mode: on-Premise; Cloud-Based
3) by Application: Code Generation; Code Optimization; Bug Detection; Testing and Quality Assurance
Key Companies Mentioned: Amazon Inc.; Google LLC; Microsoft Corporation; Tencent Holdings Ltd.; International Business Machines Corporation
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 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
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 175 |
Published | June 2024 |
Forecast Period | 2024 - 2028 |
Estimated Market Value ( USD | $ 53.4 Billion |
Forecasted Market Value ( USD | $ 129.43 Billion |
Compound Annual Growth Rate | 24.8% |
Regions Covered | Global |