Custom software development refers to the process of designing, creating, deploying and maintaining software tailored to meet the specific needs of a particular user or organization. Unlike off-the-shelf software, which is mass-produced to cater to a broad range of users and industries, custom software is built to address unique requirements, workflows and operational needs.
The custom software development market consists of revenues earned, by entities (organizations, sole traders and partnerships), by designing, creating, deploying and maintaining software specifically tailored to meet the unique requirements of an individual or organization.
The global custom software development market was valued at $13,716.8 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 21.0%.
Increased Cybersecurity Threats
Increased cybersecurity threats fueled the growth of the custom software development market during this historic period. Heightened cybersecurity threats drive the demand for customized software solutions, enabling businesses to strengthen digital defenses against evolving risks. Tailored software addresses unique vulnerabilities and facilitates ongoing updates, meeting specific security needs and mitigating cyber risks effectively. For instance, according to the comprehensive findings from the Cost of a Data Breach Report 2023 published by International Business Machines Corporation (IBM), a US-based multinational technology company, the average worldwide cost of a data breach was $4.45 million in 2023, a 15% rise in only three years. Affected by a breach, 51% of firms intend to boost security spending on incident response (IR) preparation and testing, personnel education and threat detection and response equipment. Also, according to Politico, a US-based news media company, the number of reported physical or cyber-attacks and threats for the first eight months of 2022 was nearly 70% higher than the number reported during the same period in 2021. Therefore, increased cybersecurity threats drove the growth of the custom software development market.
Integration Of AI To Enhance Functionalities
Major companies in the custom software development market are focusing on integrating artificial intelligence (AI) into custom software development to enhance functionalities like threat detection, predictive analytics and automation. These technologies are also being used to assist in code generation, code reviews and testing, significantly boosting developer productivity. For example, in September 2023, Salesforce, Inc., a US-based cloud-based software company, introduced Einstein Copilot, a cutting-edge generative artificial intelligence (AI)-powered conversational assistant seamlessly integrated into every Salesforce application. Designed to enhance productivity, Einstein Copilot assists users within their workflow, offering significant efficiency gains. Moreover, with Einstein Copilot, organizations can tailor the assistant to meet their unique business requirements. This customization capability ensures that Einstein Copilot aligns perfectly with specific organizational needs, optimizing its effectiveness in streamlining workflows and driving business success.
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.
Custom Software Development Global Market Opportunities And Strategies To 2033 from The Business Research Company 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.
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 from The Business Research Company 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 Software
- 2) 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
- 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 segmentations: 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.