PUBLISHER: The Business Research Company | PRODUCT CODE: 1685974
PUBLISHER: The Business Research Company | PRODUCT CODE: 1685974
Custom software development involves the strategic creation of specialized software solutions to address the unique challenges faced by individuals or organizations. This comprehensive process encompasses conceptualization, design, construction, deployment, and ongoing maintenance of software tailored to meet specific user requirements, surpassing the capabilities offered by standard off-the-shelf packages.
The primary categories of custom software development solutions include web-based solutions, mobile applications, and enterprise software. Web-based solutions entail crafting bespoke software applications intended for operation within web browsers, adeptly addressing distinct business demands and specifications. These solutions are deployable both in the cloud and on-premise, catering to the requirements of diverse entities, ranging from large enterprises to small and medium-sized enterprises (SMEs). They find utility across various sectors, including banking, financial services, and insurance (BFSI), government, healthcare, information technology and telecommunications, manufacturing, retail, and beyond.
The custom software development research report is one of a series of new reports from The Business Research Company that provides custom software development market statistics, including the custom software development industry's global market size, regional shares, competitors with a custom software development market share, detailed custom software development market segments, market trends and opportunities, and any further data you may need to thrive in the custom software development industry. This custom software development 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 custom software development market size has grown exponentially in recent years. It will grow from $44.52 billion in 2024 to $54.26 billion in 2025 at a compound annual growth rate (CAGR) of 21.9%. The growth in the historic period can be attributed to agile and DevOps practices, cybersecurity concerns, increasing customer expectations, regulatory compliance, evolving business models and globalization.
The custom software development market size is expected to see exponential growth in the next few years. It will grow to $120.22 billion in 2029 at a compound annual growth rate (CAGR) of 22.0%. The growth in the forecast period can be attributed to digital transformation acceleration, increased focus on cybersecurity, remote work and collaboration tools and data privacy and compliance. Major trends in the forecast period include hyper-automation, containerization and microservices, focus on user experience, augmented reality and virtual reality, quantum computing applications and ethical and responsible AI.
The rising utilization of robotic automation is anticipated to significantly contribute to the expansion of the custom software development industry. Robotic automation involves a software technology designed for the easy construction, deployment, and management of software robots that mimic human interactions with digital interfaces and software solutions. This surge in adoption is attributed to robotic automation's capacity to augment efficiency, productivity, and accuracy across various sectors, simultaneously decreasing operational expenditures. Custom software development plays a pivotal role in enhancing the functionality and integration of robotics within automation processes, addressing needs such as control mechanisms, sensor integration, route planning, and data analysis. For instance, as reported by the International Federation of Robotics (IFR), a United States-based non-profit organization, the year 2022 saw 553,052 industrial robots being installed worldwide, marking a 5% increase compared to the previous year. Additionally, from a regional perspective, Asia was responsible for 73% of these new installations, with Europe and the USA contributing 15% and 10%, respectively. Thus, the burgeoning adoption of robotic automation serves as a key driver for the custom software development sector's growth.
Leading enterprises in the custom software development sector are pivoting towards innovation, specifically by venturing into virtual reality (VR) applications, to enhance their market revenue. This shift is aimed at enabling content creators through the introduction of cutting-edge virtual production technologies. In a notable development, Flipside XR, a pioneering VR firm based in Canada, unveiled its latest offering in March 2023 - Flipside Studio Support, backed by Meta. This VR application is tailored for creators, facilitating the real-time creation of animated content with advanced virtual production tools. Upon completion, it allows for seamless uploading and dissemination across major social media channels, including YouTube, TikTok, Twitch, and others. The application provides a comprehensive suite of tools and features, enabling creators to produce engaging and high-quality videos by harnessing the immersive potential of VR technology.
In July 2024, Peach Payments, a South African-based company, acquired Operativa for $30 million. This acquisition allows Peach Payments to broaden its integration of additional payment methods across industries such as financial services, information security, e-commerce, and cloud hosting. Operativa is a South Africa-based company specializing in custom software development.
Major companies operating in the custom software development market are Accenture plc, Tata Consultancy Services Limited, Infosys Limited, Capgemini SE, HCL Technologies Limited, Tech Mahindra Limited, EPAM Systems Inc., Wipro Limited, Persistent Systems Limited, Kalibroida Technology Solutions Inc., N-iX LLC, Intetics Inc., ScienceSoft USA Corporation, Hexacta S.A., Chetu Inc., Fingent Corporation, Svitla Systems Inc., Iflexion Interactive Inc., MentorMate LLC, Icreon Tech Inc., TRooTech Business Solutions Pvt. Ltd., Brainvire Infotech Inc., Magora Systems Limited, Belitsoft LLC, Trigent Software Inc.
North America was the largest region in the custom software development market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the custom software development market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the custom software development market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The custom software development market includes revenues earned by entities providing services such as software consulting, requirements analysis, web application development, enterprise software development, quality assurance, and testing and integration services. 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 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.
Custom Software Development Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on custom 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.
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 historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.