This report describes and explains the custom software development market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global custom software development market reached a value of nearly $36.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 21.7% since 2018. The market is expected to grow from $36.6 billion in 2023 to $99.09 billion in 2028 at a rate of 22%. The market is then expected to grow at a CAGR of 20.1% from 2028 and reach $247.7 billion in 2033.
Growth in the historic period resulted from the increased cybersecurity threats, globalization of businesses, rise in demand for remote work and growth of the gig economy. Factors that negatively affected growth in the historic period include long development cycles.
Going forward, the increasing adoption of robotics automation, expansion of the e-commerce industry, strong economic growth in emerging markets and increasing investments in digital transformation will drive the market. Factors that could hinder the growth of the custom software development market in the future include shortage of skilled developers and engineers.
The custom software development market is segmented by solution into web-based solutions, mobile app and enterprise software. The enterprise software market was the largest segment of the custom software development market segmented by solution, accounting for 60.1% or $21.98 billion of the total in 2023. Going forward, the mobile app segment is expected to be the fastest growing segment in the custom software development market segmented by solution, at a CAGR of 24.5% during 2023-2028.
The custom software development market is segmented by enterprise size into large enterprises and small and medium enterprises (SMEs). The large enterprises market was the largest segment of the custom software development market segmented by enterprise size, accounting for 60.5% or $21.94 billion of the total in 2023. Going forward, the small and medium enterprises (SMEs) segment is expected to be the fastest growing segment in the custom software development market segmented by enterprise size, at a CAGR of 23.6% during 2023-2028.
The custom software development market is segmented by deployment into cloud and on premises. The cloud market was the largest segment of the custom software development market segmented by deployment, accounting for 63.2% or $23.13 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the custom software development market segmented by deployment, at a CAGR of 23.5% during 2023-2028.
The custom software development market is segmented by end-user into banking, financial services and insurance, government, healthcare, information technology and telecom, manufacturing, retail and other end-users. The information technology and telecom market was the largest segment of the custom software development market segmented by end-user, accounting for 24.1% or $8.82 billion of the total in 2023. Going forward, the healthcare segment is expected to be the fastest growing segment in the custom software development market segmented by end-user, at a CAGR of 25.6% during 2023-2028.
North America was the largest region in the custom software development market, accounting for 33.1% or $12.12 billion of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the custom software development market will be Asia-Pacific and Africa, where growth will be at CAGRs of 25% and 24.3% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 23.7% and 22.3% respectively.
The global custom software development market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 18.3% of the total market in 2023. Accenture was the largest competitor with a 2.8% share of the market, followed by Cognizant with 2.6%, GlobalLogic with 2.5%, NTT DATA with 2.1%, DXC Technology with 1.9%, Virtusa with 1.5%, International Business Machines Corporation with 1.4%, Capgemini SE with 1.3%, HCL Technologies Limited with 1.1% and Softtek with 1%.
The top opportunities in the custom software development market segmented by solution will arise in the enterprise software segment, which will gain $34.97 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by enterprise size will arise in the large enterprises segment, which will gain $34.8 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by end-user will arise in the information technology and telecom segment, which will gain $16.85 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by deployment will arise in the cloud segment, which will gain $43.27 billion of global annual sales by 2028. The custom software development market size will gain the most in the USA at $15.85 billion.
Market-trend-based strategies for the custom software development market include introduction of low-code platforms to quickly deploy customized solutions, integration of AI to enhance functionalities, introducing application packaging tools for enhanced deployment and strategic partnerships and collaborations among major players.
Player-adopted strategies in the custom software development market include focus on leveraging strategic partnerships to offer cutting-edge digital services and data-driven solutions, enhancing client performance and innovation, leveraging AI technology to streamline and enhance the software development lifecycle, delivering a unified, industrial-grade AI architecture that ensures responsible, reliable and reusable AI models, continuous innovation in client companies through a structured framework that supports the entire lifecycle of idea development and enhance customer value and reduce costs by accelerating the deployment of scalable SAP solutions.
To take advantage of the opportunities, the analyst recommends the custom software development companies to focus on low-code platforms to drive business growth, focus on integrating AI to enhance software development, focus on application packaging tools to enhance deployment, focus on the web-based solutions market segment, focus on the small and medium enterprises (SMEs) market segment, focus on the cloud market segment, focus on expanding distribution channels through strategic partnerships, expand in emerging markets, continue to focus on developed markets, focus on competitive and value-based pricing strategies, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on digital marketing and content strategy, focus on information technology and telecom sector and tailor solutions for healthcare industry.
The global custom software development market reached a value of nearly $36.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 21.7% since 2018. The market is expected to grow from $36.6 billion in 2023 to $99.09 billion in 2028 at a rate of 22%. The market is then expected to grow at a CAGR of 20.1% from 2028 and reach $247.7 billion in 2033.
Growth in the historic period resulted from the increased cybersecurity threats, globalization of businesses, rise in demand for remote work and growth of the gig economy. Factors that negatively affected growth in the historic period include long development cycles.
Going forward, the increasing adoption of robotics automation, expansion of the e-commerce industry, strong economic growth in emerging markets and increasing investments in digital transformation will drive the market. Factors that could hinder the growth of the custom software development market in the future include shortage of skilled developers and engineers.
The custom software development market is segmented by solution into web-based solutions, mobile app and enterprise software. The enterprise software market was the largest segment of the custom software development market segmented by solution, accounting for 60.1% or $21.98 billion of the total in 2023. Going forward, the mobile app segment is expected to be the fastest growing segment in the custom software development market segmented by solution, at a CAGR of 24.5% during 2023-2028.
The custom software development market is segmented by enterprise size into large enterprises and small and medium enterprises (SMEs). The large enterprises market was the largest segment of the custom software development market segmented by enterprise size, accounting for 60.5% or $21.94 billion of the total in 2023. Going forward, the small and medium enterprises (SMEs) segment is expected to be the fastest growing segment in the custom software development market segmented by enterprise size, at a CAGR of 23.6% during 2023-2028.
The custom software development market is segmented by deployment into cloud and on premises. The cloud market was the largest segment of the custom software development market segmented by deployment, accounting for 63.2% or $23.13 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the custom software development market segmented by deployment, at a CAGR of 23.5% during 2023-2028.
The custom software development market is segmented by end-user into banking, financial services and insurance, government, healthcare, information technology and telecom, manufacturing, retail and other end-users. The information technology and telecom market was the largest segment of the custom software development market segmented by end-user, accounting for 24.1% or $8.82 billion of the total in 2023. Going forward, the healthcare segment is expected to be the fastest growing segment in the custom software development market segmented by end-user, at a CAGR of 25.6% during 2023-2028.
North America was the largest region in the custom software development market, accounting for 33.1% or $12.12 billion of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the custom software development market will be Asia-Pacific and Africa, where growth will be at CAGRs of 25% and 24.3% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 23.7% and 22.3% respectively.
The global custom software development market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 18.3% of the total market in 2023. Accenture was the largest competitor with a 2.8% share of the market, followed by Cognizant with 2.6%, GlobalLogic with 2.5%, NTT DATA with 2.1%, DXC Technology with 1.9%, Virtusa with 1.5%, International Business Machines Corporation with 1.4%, Capgemini SE with 1.3%, HCL Technologies Limited with 1.1% and Softtek with 1%.
The top opportunities in the custom software development market segmented by solution will arise in the enterprise software segment, which will gain $34.97 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by enterprise size will arise in the large enterprises segment, which will gain $34.8 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by end-user will arise in the information technology and telecom segment, which will gain $16.85 billion of global annual sales by 2028. The top opportunities in the custom software development market segmented by deployment will arise in the cloud segment, which will gain $43.27 billion of global annual sales by 2028. The custom software development market size will gain the most in the USA at $15.85 billion.
Market-trend-based strategies for the custom software development market include introduction of low-code platforms to quickly deploy customized solutions, integration of AI to enhance functionalities, introducing application packaging tools for enhanced deployment and strategic partnerships and collaborations among major players.
Player-adopted strategies in the custom software development market include focus on leveraging strategic partnerships to offer cutting-edge digital services and data-driven solutions, enhancing client performance and innovation, leveraging AI technology to streamline and enhance the software development lifecycle, delivering a unified, industrial-grade AI architecture that ensures responsible, reliable and reusable AI models, continuous innovation in client companies through a structured framework that supports the entire lifecycle of idea development and enhance customer value and reduce costs by accelerating the deployment of scalable SAP solutions.
To take advantage of the opportunities, the analyst recommends the custom software development companies to focus on low-code platforms to drive business growth, focus on integrating AI to enhance software development, focus on application packaging tools to enhance deployment, focus on the web-based solutions market segment, focus on the small and medium enterprises (SMEs) market segment, focus on the cloud market segment, focus on expanding distribution channels through strategic partnerships, expand in emerging markets, continue to focus on developed markets, focus on competitive and value-based pricing strategies, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on digital marketing and content strategy, focus on information technology and telecom sector and tailor solutions for healthcare industry.
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Custom Software Development Market - Macro Economic Scenario
9 Global Market Size and Growth
10 Global Custom Software Development Market Segmentation
11 Custom Software Development Market, Regional and Country Analysis
12 Asia-Pacific Market
13 Western Europe Market
14 Eastern Europe Market
15 North America Market
16 South America Market
17 Middle East Market
18 Africa Market
19 Competitive Landscape and Company Profiles
20 Other Major and Innovative Companies
23 Key Mergers and Acquisitions
24 Opportunities and Strategies
25 Custom Software Development Market, Conclusions and Recommendations
26 Appendix
Executive Summary
Custom Software Development Global Market Opportunities and Strategies to 2033 provides the strategists; marketers and senior management with the critical information they need to assess the global custom software development market as it emerges from the COVID-19 shut down.Reasons to Purchase::
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for custom 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 custom 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 history and forecasts market growth by geography. It places the market within the context of the wider custom software development market; and compares it with other markets.
The report covers the following chapters:
- Introduction and Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by solution, by deployment, by enterprise size and by end-user.
- Key Trends - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario - The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the custom software development market.
- Global Market Size and Growth - Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional and Country Analysis - Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation - Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by solution, by deployment, by enterprise size and by end-user in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth - Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking - Briefs on the financials comparison between major players in the market.
- Competitive Dashboard - Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions - Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities and Strategies - Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations - This section includes recommendations for custom software development providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix - This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
1) by Solution: Web-Based Solutions; Mobile App; Enterprise Software2) by Deployment: Cloud; on-Premises
3) by Enterprise Size: Large Enterprises; Small and Medium Enterprises (SMES)
4) by End-User: Banking; Financial Services and Insurance; Government; Healthcare; Information Technology and Telecom; Manufacturing; Retail; Other End-Users
Key Companies Mentioned: Accenture; Cognizant; GlobalLogic; NTT DATA; DXC Technology
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
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; custom software development indicators comparison.
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.
Companies Mentioned
- Accenture
- Cognizant
- GlobalLogic
- NTT DATA
- DXC Technology
- Virtusa
- International Business Machines Corporation
- Capgemini SE
- HCL Technologies Limited
- Softtek
- Huawei Technologies Co. Ltd.
- FPT Corporation
- EdgeCX Pvt. Ltd.
- Tata Consultancy Services Limited
- Infosys Limited
- Tech Mahindra Limited
- Wipro Limited
- Persistent Systems Limited
- Kalibroida Technology Solutions Inc.
- TRooTech Business Solutions Pvt. Ltd
- Autodesk, Inc.
- Luxoft
- Imobisoft
- Old.St Labs
- Chulakov Global.
- AscentCore
- CSHARK
- Fortech
- TechMagic
- Mautilus
- EPAM Systems
- 10Pearls
- Intellectsoft
- Perficient
- Unified Infotech
- Cubix
- Toptal
- Deloitte Touche Tohmatsu Limited
- Bitbean
- Globant S.A.
- Hexacta S.A.
- Schneider Electric
- CI&T Inc.
- Stefanini
- Acid Labs
- PSL Corp
- BairesDev
- Octobot
- Infopulse
- Belatrix Software
- Dropp Technologies Group
- Itpiran, Webnegah
- YelloStack
- Saabsoft Technologies
- MonkeyTech
- rgbcode, ltd.
- Dofinity
- EBTTIKAR Technology Co.
- Codeventure
- Developtica
- LimonAgaci
- Lenasoftware
- Solvia Digital Solutions
- defia Software Engineering
- Branex
- Silwatech
- RSI Concepts
- Pure Elements Technologies
- Commit
- Nisum Technologies, Inc.
- Reviei Technologies
- Talosmart
- TagDev Technologies Limited
- Enozom
- Uniparticle
- TrianglZ
- CubeZoo
- eSpace
- Mobirevo
- Aitechma
- Fortran House
- SovTech
- Entelect
- Bitcube
- Haefele Software
- Thought Inc.
- DVT
- Specno
- Modeso AG
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 337 |
| Published | July 2024 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 36.6 Billion |
| Forecasted Market Value ( USD | $ 247.7 Billion |
| Compound Annual Growth Rate | 21.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 89 |
