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Application Development Software Market Size, Share [2032]

The Global Application Development Software Market size was valued at USD 89.89 billion in 2023 and is projected to grow from USD 111.21 billion in 2024 to USD 621.31 billion by 2032, exhibiting a CAGR of 24.0% during the forecast period. North America dominated the application development software market with a market share of 32.94% in 2023.

Application development involves the creation of software solutions, such as mobile and computer applications, to fulfill the specific operational needs of individuals or organizations. It encompasses various types of application software aimed at streamlining processes and enhancing productivity across different functions such as communication, expense management, scheduling, and reporting. This field entails diverse development approaches, including desktop, web, and mobile platforms. In addition, it includes enterprise systems such as data management solutions, marketing technology software, and cloud-based mobile applications leveraging Internet of Things (IoT) technology.

In our scope, we have considered application development software offered by companies such as Datadog, IBM Corporation, HCL Technologies Ltd, Microsoft Corporation, and SAP SE, among others. The market is driven by trends such as the integration of cloud technologies, the adoption of low code platforms, and the increasing demand for IoT and mobile applications. For instance, in February 2024, Cisco made advancements in Panoptica, a cloud-native application development software, by adding a generative AI Assistant and data security protection. The Cisco AI Assistant for Panoptica shall aid firms in streamlining, prioritizing, and remediating risks and misconfigurations in multi-cloud environments.

Furthermore, the COVID-19 pandemic significantly influenced the expansion of the market. The rising prevalence of smartphone usage, increasing adoption of connected devices, and the booming e-commerce industry are some of the factors that contributed to the market’s growth during the pandemic.

IMPACT OF GENERATIVE AI

Substantial Boost for Leveraging Generative AI in Application Development Software to Propel Market Expansion

Generative AI is transforming the software development landscape by minimizing time and investment and enhancing productivity. By automating routine tasks such as UI creation, testing, and documentation, developers can concentrate on higher-level challenges while generative AI manages the mundane. According to research industry experts, this innovation can slash the development time for intricate codebases by as much as 90%, facilitating quicker product launches and resource optimization for companies and ultimately delivering superior outcomes.

Companies are leveraging this technology to expand their offerings, increase their global footprint, and enhance customer experience. For instance, in November 2023, SAP launched SAP Build Code tools to make programmers and developers more productive when functioning with generative AI and large language models. The product works with Joule (generative AI copilot) to create code for application logic using natural language.

Similarly, in November 2023, Neptune Software (no-code/low-code enterprise app development provider) launched Neptune DXP 23 with AI assistant Naia. The AI-powered assistant simplifies the process for new and experienced developers by automating common development tasks.

Application Development Software Market Trends

Growing Demand for Low Code Application Development Platforms to Accelerate the Market Expansion

The increasing popularity of low-code application development stems from its capacity to empower enterprises to swiftly construct and deploy customized web and mobile applications, all without requiring extensive coding. Low-code platforms democratize access to AI technology, thus enhancing developers’ productivity. They significantly expedite development, diminish implementation durations, mitigate technical debt, and streamline the integration of generative AI into comprehensive process automation, thereby augmenting operational efficiency.

For instance, in October 2023, ESDS Software Solution launched a low code platform, the Low Code Magic. The platform transforms application development, aiding businesses in creating custom applications customized to their specific needs.

Similarly, in November 2023, Cambridge Technology Enterprises Limited partnered with OutSystems to strengthen Cambridge’s services teams by utilizing OutSystems application development platforms. The company aims to incorporate Data, AI, and OutSystems Low-Code application development platform into its services.

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Application Development Software Market Growth Factors

Integration of Cloud Technologies in AppDev Software to Drive the Market Growth

Cloud-based application development solutions streamline data collection processes for businesses, enhancing convenience. By leveraging cloud app development, modern businesses and enterprises can craft productivity-focused applications to elevate customer experiences and drive revenue growth. Cloud computing facilitates seamless and interactive experiences with mobile apps. Moreover, developing applications on cloud infrastructure is cost-effective and enables web and PWA development services to collaborate with remote teams and shorten project timelines when integrated effectively with software development methodologies such as Agile.

For instance, in March 2023, Replit (cloud software development platform) collaborated with Google Cloud, aiding Replit developers with access to Google Cloud services, infrastructure, and foundation models through Ghostwriter. Google Cloud developers got access to Replit’s code editing platform.

Similarly, in September 2023, Oracle launched advanced application development capabilities to help developers rapidly build and deploy apps on Oracle Cloud Infrastructure (OCI). The new features are designed for Java and cloud native developers to build cloud native applications with minimum cost.

RESTRAINING FACTORS

Costs Associated with Enterprise-level Platforms May Pose Hurdles, Hampering the Market Growth

While application development software presents numerous advantages, the substantial costs associated with advanced and enterprise-level platforms can pose a notable obstacle, particularly for small and medium-sized enterprises operating within constrained budgets. The substantial initial investment required for deploying and integrating app development software solutions, especially for large-scale projects, can significantly impede the application development software market growth. In addition, the intermittency and dependability issues of certain solutions, such as solar and wind energy, may pose challenges, particularly in areas characterized by unpredictable weather patterns. Moreover, the necessity for substantial infrastructure investments, including grid enhancements and storage facilities, to accommodate the integration of these solutions into existing energy systems can serve as a constraint.

Application Development Software Market Segmentation Analysis

By Platform Analysis

Rise in the Number of Citizen Developers to Drive the No Code Development Platform Segment Growth

Based on platform, the market is bifurcated into low code development platform and no code development platform.

The no code development platform segment holds the largest share in the market owing to the rise in the number of citizen developers who are non-professional developers within organizations. These individuals can easily create applications customized to their needs without relying on IT departments. Moreover, these platforms allow users with little to no coding experience to create applications using visual interface, drag-and-drop functionality, and pre-built templates. This accessibility lowers the barrier to entry for application development, appealing to a wider audience. Also, they result in faster prototyping and development of applications, making them attractive for businesses looking to speed up their development cycles.

The low code development platform segment is poised to grow with the highest CAGR during the forecast period. This platform enables developers to build applications quickly with minimal coding, allowing businesses to deploy solutions faster and stay ahead of the competition. This factor is bolstering the low code development platform segment growth.

By Deployment Analysis

Scalability Offered by Cloud-based Deployment to Foster the Segment Expansion

By deployment, the market for application development software is categorized into on-premises and cloud.

The cloud segment holds the largest share in the market and is expected to continue its dominance during the forecast period. Cloud deployment offers scalability, allowing businesses to easily scale their applications up or down based on demand without the need for significant infrastructure investments. This flexibility enables organizations to adapt quickly to market demands and accommodate growth. The development teams can quickly provision resources, reducing time-to-market for new applications and updates. This agility is crucial in the digital landscape providing a competitive advantage to the vendors.

However, the on-premises deployment model also offers several significant advantages. With such deployment, organizations can have complete control over their data, ensuring compliance with data privacy regulations and security policies.

By Enterprise Size Analysis

Collaboration among Large Enterprises for Developing Advanced Tools to Surge the Segment Growth

By enterprise size, the market is categorized into large enterprises and SMEs.

The large enterprises segment holds the largest share in the market owing to the availability of substantial financial resources to invest in high-quality app development software. In addition, such enterprises are collaborating with others to reach mass customers and develop advanced tools. For instance, in February 2024, Wipro Limited launched an Enterprise AI-Ready Platform, powered by IBM watsonx, to improve enterprise adoption of generative AI. The partnership shall develop and establish an integrated tech hub to aid clients of both companies in their AI cases.

On the other hand, the SMEs segment is poised to grow with the highest CAGR during the forecast period. With advancements in technology and the rise of low code/no code platforms, application development software has become more accessible to SMEs.

By Application Type Analysis

Increasing Dependency on Internet-based Solutions to Spur the Web & Cloud Application Development Segment Growth

By application type, the market for application development software is divided into web & cloud application development, mobile application development, and desktop application development.

The web & cloud application development segment accounts for the largest share in the market. The increasing reliance on internet-based solutions across industries drives the demand for web & cloud applications. Internet-based solutions provide users with anytime, anywhere access to applications, enabling seamless access across devices. This accessibility drives demand for web and cloud applications that can be accessed through web browsers or mobile devices, catering to the needs of modern users who expect connectivity on the go.

On the contrary, the mobile application development segment is poised to hold the highest CAGR during the forecast period owing to the growing shift of businesses toward mobile-first strategies to reach and engage with their target audience. For instance, in June 2023, Appdome (mobile app and Cyber Defense Automation platform) incorporated its platform with GitHub (developer platform) to develop, scale, and deliver software and automate the delivery of secure mobile apps.

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By Industry Analysis

Heavy Reliance on Mobile Devices for Accessing Content to Drive the Media and Entertainment Segmental Growth

By industry, the market is categorized into BFSI, healthcare & pharma, IT and telecom, media and entertainment, retail & e-commerce, travel and tourism, education, government, and others.

The media and entertainment segment holds the largest share in the global market. There is a high demand for mobile applications in the media and entertainment industry as consumers increasingly rely on mobile devices for accessing content such as streaming services, gaming apps, social media platforms, and news aggregators. With the increasing globalization of media consumption, companies in this sector require scalable and flexible application development platforms to reach global audiences. Moreover, the industry is constantly evolving with technologies such as virtual reality, augmented reality, and artificial intelligence, driving the need for developing innovative applications to enhance user experiences.

On the other hand, the healthcare & pharma segment is slated to grow with the highest CAGR during the forecast period owing to the rapid adoption of digital solutions to improve patient care, streamline operations, and enhance efficiency.

REGIONAL INSIGHTS

The global market is classified across five regions, North America, Europe, the Asia Pacific, the Middle East & Africa, and South America.

North America Application Development Software Market Size, 2023 (USD Billion)

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North America holds the largest application development software market share, attributed to its robust technological infrastructure, highly competitive business landscape, and strong emphasis on innovation and digital transformation. Furthermore, widespread adoption of advanced technologies such as cloud computing, AI, and IoT across industries fuels the demand for sophisticated application development tools and platforms in North America.

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The Asia Pacific is expected to grow with the highest CAGR during the forecast period. The region is witnessing rapid expansion in the market, fueled by accelerated digitalization, increasing technology adoption, and a burgeoning startup ecosystem. Countries such as China, Japan, India, and South Korea are heavily investing in IT infrastructure and digital initiatives, positioning the region as a hub for application software innovation and development. Moreover, the region’s growing SME sector and rising mobile and internet penetration are significant factors driving the market growth. For instance, in January 2024, Microsoft launched an initiative, AI Odyssey, to skill 100,000 developers in AI technologies in India. The program offered great learning experience to aid developers execute vital projects using AI.

Europe also holds a potential market share, distinguished by its stringent data protection regulations, which impact the development and adoption of software applications, particularly those handling sensitive data. Moreover, leading countries such as Germany, the U.K., and France are at the forefront of embracing new technologies and digital practices, fueling the demand for application development software capable of delivering secure, reliable, and compliant solutions.

In South America and the Middle East & Africa, while comparatively smaller, there is noticeable accelerated growth in the market. With initiatives aimed at economic diversification and the development of smart cities, notably in the Gulf Cooperation Council (GCC) countries, there is a growing emphasis on utilizing technology to foster innovation and economic progress. Africa, with its immense potential and ongoing digitalization efforts, presents abundant opportunities for the adoption and integration of application development tools. For instance, in November 2023, Kissflow showcased AI capabilities for its unified work platform at the Kissflow Connect summit in the Middle East & Africa (MEA). The company highlighted how AI with Low-code platforms aids businesses in solving potential business problems within less time. 

KEY INDUSTRY PLAYERS

Key Players Focus Join Forces and Deploy Various Market Strategies to Expand Their Portfolio

Major industry players are forming strategic alliances and partnering with other influential market leaders to broaden their product offerings and deliver improved low code and no code solutions to fulfill their customers’ application requirements. In addition, through collaboration, the companies are gaining expertise and expanding their businesses by reaching a mass customer base. The major companies provide innovative solutions for companies and individuals to cater consumer’s expectations.

  • January 2024: Neptune Software collaborated with KPS AG to provide customers with cross-industry development solutions for enterprise applications.

List of Top Application Development Software Companies:

KEY INDUSTRY DEVELOPMENTS:

  • February 2024: HCLTech joined hands with Intel Foundry to develop personalized silicon solutions for system OEMs, semiconductor manufacturers, and cloud service providers to boost foundry services. The partnership combined Intel Foundry’s advanced technology with HCLTech’s design expertise.
  • November 2023: Datadog, Inc. partnered with Google Cloud to aid Google Cloud customers in securing their hybrid and cloud-native applications within Datadog’s unified platform. The collaboration allowed developers and AI ops teams to analyze, monitor, and optimize the performance of their ML models.
  • November 2023: GitHub launched GitHub Copilot Chat, AI-powered security features, GitHub Copilot Enterprise offering, and GitHub Copilot Partner Program. The company made advancements in software development with the GitHub AI-powered developer platform.
  • October 2023: Google Cloud and Unilever collaborated to launch the My Unilever app for employees. The app is built on Google Cloud, unlocking the potential for more than 53,000 Unilever’s factory-based colleagues and aiding easy access to key Unilever systems.
  • October 2023: Joget Inc. launched the incorporation of GenAI capabilities into its open source no-code/low-code platform, the Joget DX. The launch aims to improve the app development process and promote customer engagement for enterprises across various industries.

REPORT COVERAGE

An Infographic Representation of Application Development Software Market


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The report provides a detailed analysis of the market overview and focuses on key aspects such as prominent companies, product/service types, and leading applications of the product. Besides this, it offers insights into the application development software market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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REPORT SCOPE & SEGMENTATION












ATTRIBUTE

DETAILS

Study Period

2019-2032

Base Year

2023

Estimated Year

2024

Forecast Period

2024-2032

Historical Period

2019-2022

Unit

Value (USD billion)

Growth Rate

CAGR of 24.0% from 2024 to 2032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segmentation

By Platform

  • Low Code Development Platform
  • No Code Development Platform

By Deployment



 By Enterprise Size



By Application Type

  • Web & Cloud Application Development
  • Mobile Application Development
  • Desktop Application Development

 By Industry

  • BFSI
  • Healthcare & Pharma
  • IT and Telecom
  • Media and Entertainment
  • Retail & E-commerce
  • Travel and Tourism
  • Education
  • Government
  • Others (Energy & Utilities, and others)

 By Region

  • North America (By Platform, By Deployment, By Enterprise Size, By Application Type, By Industry, and By Country)
    • U.S. (By Application Type)
    • Canada (By Application Type)
    • Mexico (By Application Type)

  • South America (By Platform, By Deployment, By Enterprise Size, By Application Type, By Industry, and By Country)
    • Brazil (By Application Type)
    • Argentina (By Application Type)
    • Rest of South America

  • Europe (By Platform, By Deployment, By Enterprise Size, By Application Type, By Industry, and By Country)
    • U.K. (By Application Type)
    • Germany (By Application Type)
    • France (By Application Type)
    • Italy (By Application Type)
    • Spain (By Application Type)
    • Russia (By Application Type)
    • Benelux (By Application Type)
    • Nordics (By Application Type)
    • Rest of Europe

  • Middle East & Africa (By Platform, By Deployment, By Enterprise Size, By Application Type, By Industry, and By Country)
    • Turkey (By Application Type)
    • Israel (By Application Type)
    • GCC (By Application Type)
    • North Africa (By Application Type)
    • South Africa (By Application Type)
    • Rest of the Middle East & Africa

  • Asia Pacific (By Platform, By Deployment, By Enterprise Size, By Application Type, By Industry, and By Country)
    • China (By Application Type)
    • Japan (By Application Type)
    • India (By Application Type)
    • South Korea (By Application Type)
    • ASEAN (By Application Type)
    • Oceania (By Application Type)
    • Rest of the Asia Pacific

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