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Custom Software Development Market Size

Report ID: GMI6772
Published Date: Sep 2023
Report Format: PDF

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Custom Software Development Market Size

Custom Software Development Market size was valued at USD 28.2 billion in 2022 and is estimated to register a CAGR of over 21.5% between 2023 and 2032. Enterprise Resource Planning (ERP) systems are propelling the market growth by creating a demand for tailored solutions. ERPs often require customization to align with the unique business processes and industry-specific needs. Custom software developers are designing, integrating, and maintaining these solutions, which is augmenting market size. Additionally, ERP systems generate data that necessitates the use of specialized software for analysis, reporting, and business intelligence, further expanding the opportunities for custom software development.

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The rising need for business process automation is driving the custom software development market demand. Businesses are increasingly recognizing the efficiency and productivity gains achieved through automation. Custom software developers are essential in the design, implementation, and maintenance of tailored automation solutions that align with the specific workflows & requirements. As companies across industries seek to streamline operations and reduce manual tasks, the demand for custom software to automate processes will continue to grow, thereby fueling the market expansion.

Custom Software Development Market Report Attributes
Report Attribute	Details
Base Year:	2022
Custom Software Development Market Size in 2022:	USD 28.2 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	21.5%
2032 Value Projection:	USD 198.6 Billion
Historical Data for:	2018 to 2022
No. of Pages:	300
Tables, Charts & Figures:	343
Segments covered:	Solution, Deployment Model, Enterprise Size, and End Use
Growth Drivers:	Rising demand for tailored solutions in ERP The growing need for business process automation Digital transformation across various industries Integration of advanced analytics, Machine Learning (ML), and Artificial Intelligence (AI) The proliferation of IoT and cloud computing
Pitfalls & Challenges:	Limited budgets for IT investments Security breaches and privacy concerns

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The limited budgets for IT investments can hinder the custom software development market revenue by restricting the funds available for companies to invest in developing customized software solutions. This challenge can lead to the reduced demand for custom software development services as businesses may opt for more cost-effective off-the-shelf software solutions. Additionally, limited budgets can also hinder the resources & capabilities of custom software development companies, making it difficult for them to compete with larger firms or invest in research & development to innovate their offerings.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of custom software development reached USD 28.2 billion in 2022 and is set to grow at over 21.5% CAGR from 2023 to 2032, due to the rising need for business process automation.

The large enterprises segment garnered over 58% of the market share in 2022, owing to the growing need to streamline & automate various aspects of the development process such as code generation, bug detection, and performance optimization.

The IT & telecom end use segment recorded 23% of the market share in 2022, propelled by technological advancements, such as 5G, IoT, AI, and edge computing.

North America held over 36% of the market share in 2022, driven by rising collaborations to allow firms to combine expertise & resources.