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Custom Software Development Market Trends

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

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Custom Software Development Market Trends

The increasing investments in custom software development startups are augmenting the custom software development industry growth. Such investments are providing these startups with the necessary resources to innovate & develop cutting-edge solutions. Investors are recognizing the increasing demand for customized software solutions across various industries, leading to a surge in funding for these startups.

For instance, in May 2023, Builder.ai, a startup dedicated to the simplification of custom software development, secured USD 250 million in funding through its Series D round. The Qatar Investment Authority led the investment, in association with Iconiq Capital, Jungle Ventures, and Insight Partners. This financing initiative increased the company’s total funding to USD 450 million. Builder.ai estimates that this round will boost its valuation by as much as 80%.

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.