Custom Software Development Market Share

Custom Software Development Market Overview

Custom Software Development Market Size was valued at USD 26.9 Billion in 2022. The Custom Software Development market End Use is projected to grow from USD 33.3 Billion in 2023 to USD 185.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.90% during the forecast period (2023 - 2032).

Industry applications for real-time data analysis are becoming more and more necessary, flexible workspaces are becoming more and more necessary to boost productivity, and low code development platforms (LCDP) are becoming more and more popular to make software development easier, are the key market drivers enhancing the market growth.

Figure 1: Custom Software Development Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Custom Software Development Market Trends

The growing requirement for industry applications for real-time data analysis is driving the market growth

Custom software development is the process of creating software applications especially for an individual or company. The market is expected to grow as a result of the increased need for commercial applications for real-time data analysis, flexible workspaces to increase productivity, and the low code development platform (LCDP) for easier software development. The adoption of analytics as well as the introduction of many technologies like AI-driven chatbots and robotics automation are also contributing to the industry's growth.

The use of analytical tools in the creation of custom software, such as business intelligence (BI), machine learning, and artificial intelligence, enables cross-departmental collaboration, the detection of market trends, and the automation of processes. Additionally, by incorporating analytics into a firm's custom software, the company can gain a better understanding of its customers and use that understanding to inform its strategic decisions. For instance, AEC Advisors, a New York-based investment banking and corporate finance advisory firm, was able to alter its operations by integrating the survey management system and analytics software from Fingent Corporation.

One of the most essential elements in the creation of custom software is cloud technology, which improves the speed and agility of the process. Additionally, cloud-based software development expedites and enhances the production of fresh, high-quality software. For instance, in January 2021, Cognizant acquired Magenic Technologies, a company that develops custom software for the cloud computing platforms provided by Google, Microsoft Azure, and Amazon Web Services. According to the agreement, Cognizant now has competence in agile software and cloud development, DevOps, experience design, and consulting services. Magenic Technologies' teams for software development and cloud modernization help Cognizant grow its global talent network and market expertise. Thanks to cloud computing, custom software developers can have an infinite number of testing and staging servers. Businesses can save costs and improve cost effectiveness by utilising pay-as-you-go software features. Thus, driving the Custom Software Development market revenue.

Custom Software Development Market Segment Insights

Custom Software Development Solution Insights

The Custom Software Development Market segmentation, based on solution, includes web-based solutions, mobile app, enterprise software. Enterprise software segment dominated the global market in 2022. The segment is expanding as a result of elements like a centralised system for numerous departments, enhanced scalability and integration, and stronger security across many different software platforms. Enterprise software also streamlines company workflow, increases daily process efficiency, reduces data entry errors, lowers costs, ensures growth, and unifies the business strategies of major organisations.

Custom Software Development Deployment Insights

The Custom Software Development Market segmentation, based on deployment, cloud and on-premise. Cloud segment dominated the Custom Software Development Market in 2022. Accessibility, adaptability, and cost-effectiveness for small and medium-sized firms are the main drivers of this market category. For businesses, a cloud custom software solution offers a highly flexible environment for operating their business applications at no upfront investment.

Custom Software Development Enterprise Size Insights

The Custom Software Development Market segmentation, based on enterprise size, includes large enterprises and small & medium enterprises (SMEs). Large enterprises segment dominated the Custom Software Development Market in 2022. Custom software is a common source of competitive advantage for big businesses. Custom software development makes sure that solutions are made specifically to match the needs of businesses. In many large businesses, the demand for custom software is rising since it enables the fulfilment of specific requirements at a lesser cost than purchasing.

Figure 2: Custom Software Development Market, by End Use, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Custom Software Development End Use Insights

The Custom Software Development Market segmentation, based on end use, includes BFSI, government, healthcare, IT & telecom, manufacturing, retail, and others. BFSI segment dominated the global market in 2022. Organisations in the BFSI sector utilise specialised banking and financial software solutions to provide a genuine user experience. To truly add value for their consumers, it is also crucial to take use of new technological possibilities.

Custom Software Development Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Custom Software Development Market dominated this market in 2022 (45.80%). The extensive use of specialised knowledge, the explosion in IT services, and the development of SMEs are only a few of the elements that contribute to the regional boom. Further, the U.S. Custom Software Development market held the largest market share, and the Canada Custom Software Development market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CUSTOM SOFTWARE DEVELOPMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Custom Software Development market accounted for the healthy market share in 2022. In order to gain a competitive edge, many local organisations have started to adopt new methods and procedures, which has led to a growth in the use of cutting-edge technologies like AI, IoT, machine learning (ML), blockchain, robots, and data science. Further, the German Custom Software Development market held the largest market share, and the U.K Custom Software Development market was the fastest growing market in the European region

The Asia Pacific Custom Software Development market is expected to register significant growth from 2023 to 2032. This is a result of businesses implementing technology more advancedly. The market is also being driven by the expansion of SMEs, the expanding market for custom software, and the requirement to update old software development platforms. Large IT companies and an expanding number of providers of custom software in developed Asian nations like South Korea and Japan are fueling industry expansion. Moreover, China’s Custom Software Development market held the largest market share, and the Indian Custom Software Development market was the fastest growing market in the Asia-Pacific region.

Custom Software Development Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Custom Software Development market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Custom Software Development Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Custom Software Development Industry to benefit clients and increase the market sector. In recent years, the Custom Software Development Industry has offered some of the most significant advantages to medicine. Major players in the Custom Software Development market, including Brainvire Infotech Inc., Capgemini, Iflexion, Infopulse, Infosys Ltd., Magora, MentorMate Inc., Tata Consultancy Services Limited, Trigent Software, Inc., and TRooTech Business Solutions, are attempting to increase market demand by investing in research and development operations.

Information technology solutions from Brainvire are offered to organisations in a range of vertical market categories in order to meet their technology needs. Clients may concentrate more on their core businesses thanks to the company's competence in end-to-end software development, mobile application development, enterprise portal development, web application development, and more. A mobile health application was created in May 2022 thanks to a collaboration between the Asia Pacific medical device manufacturer and Brainvire Infotech Inc., one of the biggest custom software providers. Using high-performance and tailored technology, the medical centre offered a one-stop shop for all medical requirements.

With around 250,000 people worldwide, Infosys is a top provider of IT services. The Indian IT services company, based in Bangalore, uses its offshore outsourcing model to generate 60% of its revenue in North America. Business process outsourcing as a service (BPaaS), managed services, cloud infrastructure services, and consultancy are among the company's typical IT service offerings. To expand its direct-to-consumer e-commerce solutions, Infosys Equinox partnered with Packable, a top e-commerce business, in December 2021. The strategic alliance improved Packable's capacity to provide businesses with an agile, innovative, and direct-to-consumer platform. Through this collaboration, they engaged customers in a distinctive, individualised, and innovative way that helped them attract e-commerce customers.

Key Companies in the Custom Software Development market include

• Brainvire Infotech Inc.


• Capgemini


• Iflexion


• Infopulse


• Infosys Ltd.


• Magora


• MentorMate Inc.


• Tata Consultancy Services Limited


• Trigent Software, Inc.


• TRooTech Business Solutions

Custom Software Development Industry Developments

November 2022 The collaboration between Tata Consultancy Services and Randstad, a leader in the field of HR services, was expanded in order to modernise the latter's application estate on the cloud, enhance its growth and transformation journey, and improve its security posture. The TCS security portfolio's capabilities would be boosted by this agreement. With the implementation of global security services, TCS will improve Randstad's security posture.

Custom Software Development Market Segmentation

Custom Software Development Solution Outlook

• Web-based Solutions


• Mobile App


• Enterprise Software

Custom Software Development Deployment Outlook

• Cloud


• On-premise

Custom Software Development Enterprise Size Outlook

• Large Enterprises


• Small & Medium Enterprises (SMEs)

Custom Software Development End Use Outlook

• BFSI


• Government


• Healthcare


• IT & Telecom


• Manufacturing


• Retail


• Others

Custom Software Development Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America