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    India Custom Software Development Market

    ID: MRFR/ICT/44594-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    India Custom Software Development Market Research Report By Solution (Web-based Solutions, Mobile App, Enterprise Software), By Deployment (Cloud, On-premise), By Enterprise Size (Large Enterprises, Small Medium Enterprises (SMEs)) and By End-User (BFSI, Government, Healthcare, IT and Telecom, Manufacturing, Retail, Others)- Forecast to 2035

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    India Custom Software Development Market Research Report- Forecast to 2035 Infographic
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    Table of Contents

    India Custom Software Development Market Summary

    The India Custom Software Development market is poised for substantial growth, expanding from 2.06 USD Billion in 2024 to 15 USD Billion by 2035.

    Key Market Trends & Highlights

    India Custom Software Development Key Trends and Highlights

    • The market is projected to grow from 2.06 USD Billion in 2024 to 15 USD Billion by 2035.
    • A robust compound annual growth rate (CAGR) of 19.78 percent is anticipated from 2025 to 2035.
    • The increasing demand for tailored software solutions is driving market expansion.
    • Growing adoption of cloud computing due to the need for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 2.06 (USD Billion)
    2035 Market Size 15 (USD Billion)
    CAGR (2025-2035) 19.78%

    Major Players

    IBM India, Wipro, Infosys, L and T Technology Services, Capgemini, Fujitsu India, Accenture, Zensar Technologies, Mindtree, Birlasoft, Tata Consultancy Services, Persistent Systems, Cognizant Technology Solutions, HCL Technologies, Tech Mahindra

    India Custom Software Development Market Trends

    The India Custom Software Development Market is undergoing significant trends as a result of the growing demand for specialized software solutions in a variety of sectors. This demand is being fueled by the digital transformation initiatives of both enterprises and government entities, with a particular emphasis on industries such as finance, healthcare, and e-commerce. The adoption of custom software solutions by organizations to improve service delivery and operational efficiency has been encouraged by the drive for digital governance under initiatives such as Digital India. 

    Additionally, the custom software development industry in India is increasingly reliant on the pervasive adoption of emerging technologies, including artificial intelligence and machine learning. Companies are incorporating these technologies into their solutions to deliver more intelligent, data-driven results, thereby enhancing operational outcomes and client satisfaction. 

    The landscape has been significantly altered by the emergence of cloud-based solutions and remote work, which has resulted in a rise in investment in scalable and flexible software applications. The India Custom Software Development Market offers a plethora of opportunities, particularly for entrepreneurs and small to medium enterprises. The market for innovative service providers is expanding as businesses seek customized solutions to address their unique requirements. This demand establishes a route for development firms to provide niche services, such as industry-specific software solutions, thereby capturing a distinctive market segment.

    India Custom Software Development Market Drivers

    Market Segment Insights

    India Custom Software Development Market Segment Insights

    India Custom Software Development Market Segment Insights

    Custom Software Development Market Solution Insights

    Custom Software Development Market Solution Insights

    The India Custom Software Development Market, particularly within the Solution segment, is experiencing significant growth driven by the increasing demand for tailored solutions by various sectors. In today's competitive landscape, businesses are actively seeking efficient Web-based Solutions to enhance their digital presence and streamline operations, thus improving customer engagement and satisfaction. The importance of Web-based Solutions cannot be understated, as they provide accessibility and flexibility for users across platforms. Mobile Apps are also becoming indispensable, as the rise in smartphone adoption enhances user connectivity and drives businesses to reach consumers directly through personalized mobile experiences.

    Moreover, Enterprise Software plays a vital role in streamlining complex business processes and improving internal efficiencies through automation and data integration. Given India’s growing emphasis on digital transformation, there are abundant growth opportunities within these areas as organizations increasingly invest in custom solutions to remain agile and responsive to market demands. However, challenges related to integrating advanced technologies and managing the evolving landscape of customer needs remain prevalent. 

    The role of government initiatives promoting 'Digital India' is also significant, facilitating infrastructure development and fostering innovation, which further supports the expansion of the India Custom Software Development Market.As a result, various businesses are aligning their strategies to harness the advantages offered by these solutions, making them a priority for future development efforts. Overall, the Solution segment's potential is immense, with companies striving to leverage technology for effective service delivery and operational excellence in the highly competitive Indian market.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Custom Software Development Market Deployment Insights

    Custom Software Development Market Deployment Insights

    The Deployment segment of the India Custom Software Development Market plays a pivotal role in accelerating business transformation and enhancing operational efficiency. With a total market revenue projection that anticipates substantial growth by 2035, the focus on Deployment strategies has gained immense traction among businesses to adapt to dynamic market conditions. Cloud deployment, in particular, has surged in popularity due to its flexibility, scalability, and cost-effectiveness, allowing organizations to leverage resources easily and promote remote work.On-premise solutions, while less dominant, continue to serve sectors such as finance and healthcare, where data security and compliance remain critical. 

    As enterprises in India increasingly embrace digital transformation, the significance of these deployment methods is underscored by the rapid adoption of advanced technologies and increased demand for customized solutions. The market is buoyed by trends in automation and cloud migration, driven by the necessity for operational agility. Furthermore, challenges such as data security and integration complexities remain; however, they also present opportunities for providers to innovate and address specific industry needs.Overall, the Deployment segment is positioned as a key enabler for companies striving to harness digital advancements effectively in India.

    Custom Software Development Market Enterprise Size Insights

    Custom Software Development Market Enterprise Size Insights

    The India Custom Software Development Market is significantly influenced by the Enterprise Size segmentation, which includes Large Enterprises and Small and Medium Enterprises (SMEs). Large Enterprises often lead in adopting advanced technologies and custom software solutions to enhance their operational efficiency, which drives the demand for tailored software that can scale to meet their extensive needs. Conversely, SMEs, which make up a considerable part of the Indian economy, emphasize agility and cost-effectiveness, leading them to seek customized solutions that provide flexibility without heavy investment.

    The growing trend of digital transformation in India has spurred both segments to invest in custom software development, seeking to stay competitive in a fast-evolving market landscape. Additionally, government initiatives aimed at fostering innovation and technological advancement have created a favorable environment for both Large Enterprises and SMEs to innovate through custom software solutions. The cultural shift towards remote work has further accelerated the need for customizable software tools that cater to diverse operational requirements, contributing to the growth dynamics witnessed across the Enterprise Size segmentation in the India Custom Software Development Market.

    Overall, the interplay between different enterprise sizes offers a vibrant landscape for software development tailored to specific business needs.

    Custom Software Development Market End-User Insights

    Custom Software Development Market End-User Insights

    The End-User segment of the India Custom Software Development Market represents a diverse and dynamic landscape, underscoring its significance in driving technological adoption across various industries. The Banking, Financial Services, and Insurance (BFSI) sector has seen a notable reliance on custom software solutions to enhance customer experiences and improve operational efficiencies, thus making it one of the key contributors to the market growth. Similarly, the Government sector has embraced custom software to streamline operations, enhance service delivery to citizens, and promote transparency.

    In Healthcare, the need for tailored solutions has surged, driven by the focus on improving patient care, data management, and compliance with regulations. The IT and Telecom industry leverages custom software to foster innovation, enhance network management, and improve customer interactions. Manufacturing firms are increasingly utilizing bespoke software applications to optimize production processes and maintain competitiveness in a rapidly evolving market.

    The Retail sector is seeing substantial growth in custom solutions to provide personalized shopping experiences and enhance supply chain management.Other sectors, including education and logistics, are also witnessing the adoption of custom software, indicating a trend of increasing digital transformation across various domains. This robust engagement across diverse sectors showcases the potential for innovation and growth within the India Custom Software Development Market.

    Get more detailed insights about India Custom Software Development Market Research Report- Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The India Custom Software Development Market is a rapidly evolving sector characterized by intense competition among numerous players that offer tailored solutions to meet diverse business needs. This market has seen significant growth due to the increasing demand for bespoke software solutions across various industries, including finance, healthcare, education, and e-commerce. Companies are focusing on leveraging advanced technologies such as artificial intelligence, machine learning, and cloud computing to create innovative applications that enhance operational efficiency and drive digital transformation. 

    Both established firms and emerging startups shape the competitive landscape, each striving to capture larger market shares by offering unique value propositions, high-quality services, and competitive pricing strategies. As businesses continue to advance in their digital journey, the competition is expected to intensify, driving further innovation and development in the custom software ecosystem in India.

    IBM India has established a substantial presence in the custom software development market by leveraging its deep expertise in technology solutions and strong brand reputation. The company's strength lies in its ability to deliver comprehensive, enterprise-level solutions that integrate seamlessly with clients' existing infrastructures. IBM India's proficiency in artificial intelligence, data analytics, and cloud computing enhances its offering, positioning the company as a leader in providing cutting-edge software tailored to meet complex business requirements. Additionally, the organization's commitment to innovation and continuous improvement contributes to its competitive edge, allowing it to adapt quickly to changing customer demands.

    Its extensive experience across varied industry sectors empowers IBM India to create customized solutions that cater effectively to the unique challenges faced by organizations operating in the Indian market.

    Wipro has solidified its position in the India Custom Software Development Market through a robust portfolio of services that span consulting, application development, and management. The company's focus on digital transformation has led to the creation of key services such as cloud solutions, cybersecurity, and automation tools, catering to diverse sectors, including banking, healthcare, and manufacturing. Wipro’s strong market presence is further enhanced by strategic mergers and acquisitions that have broadened its technological capabilities and client base.

    The company’s strengths lie in its skilled workforce and commitment to nurturing customer relationships, enabling it to deliver personalized software solutions that drive business value. 

    By leveraging emerging technologies and industry insights, Wipro continues to strengthen its market position and is poised to play a pivotal role in evolving the custom software landscape in India.

    Key Companies in the India Custom Software Development Market market include

    Industry Developments

    The India Custom Software Development Market has seen dynamic changes recently, particularly with key players like Tata Consultancy Services, Infosys, Wipro, and HCL Technologies expanding their service offerings to remain competitive. In July 2023, Capgemini announced its acquisition of a local firm to strengthen its digital transformation capabilities, which has heightened market interest and acquisition activity. 

    Persistent Systems and Cognizant Technology Solutions have reported growth in client demands for tailored software solutions, significantly impacting their market valuations. In terms of technological advancements, companies like IBM India and Accenture are investing heavily in cloud computing and artificial intelligence, responding to the growing need for agile and scalable software solutions. 

    Over the last few years, the Indian custom software market has been driven by an increase in startups seeking bespoke solutions, with market growth rates estimated at over 20% yearly. The Indian government has also been promoting digital initiatives, enhancing the demand for modern software development practices. Changes in market dynamics reflect a strong emphasis on innovation and adaptation to emerging technologies to drive growth in the sector.

    Market Segmentation

    Custom Software Development Market End-User Outlook

    • BFSI
    • Government
    • Healthcare
    • IT and Telecom
    • Manufacturing
    • Retail
    • Others

    Custom Software Development Market Solution Outlook

    • Web-based Solutions
    • Mobile App
    • Enterprise Software

    Custom Software Development Market Deployment Outlook

    • Cloud
    • On-premise

    Custom Software Development Market Enterprise Size Outlook

    • Large Enterprises
    • SmallMedium Enterprises (SMEs)

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 1.67(USD Billion)
    MARKET SIZE 2024 2.06(USD Billion)
    MARKET SIZE 2035 15.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 19.756% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED IBM India, Wipro, Infosys, L and T Technology Services, Capgemini, Fujitsu India, Accenture, Zensar Technologies, Mindtree, Birlasoft, Tata Consultancy Services, Persistent Systems, Cognizant Technology Solutions, HCL Technologies, Tech Mahindra
    SEGMENTS COVERED Solution, Deployment, Enterprise Size, End-User
    KEY MARKET OPPORTUNITIES Growing demand for AI integration, Increased focus on cybersecurity solutions, Expansion of SMEs adopting software, Digital transformation in traditional industries, Custom solutions for e-commerce growth
    KEY MARKET DYNAMICS Rapid digital transformation, Increasing demand for automation, Growth in startups and SMEs, Customization for diverse industries, Strong competition among service providers
    COUNTRIES COVERED India

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the expected market size of the India Custom Software Development Market by 2024?

    The India Custom Software Development Market is expected to be valued at 2.06 billion USD in 2024.

    What is the projected market size of the India Custom Software Development Market by 2035?

    By 2035, the market is projected to reach a value of 15.0 billion USD.

    What is the expected CAGR for the India Custom Software Development Market from 2025 to 2035?

    The expected CAGR for the market from 2025 to 2035 is 19.756%.

    Which are the key players in the India Custom Software Development Market?

    Major players in the market include IBM India, Wipro, Infosys, and Tata Consultancy Services.

    What is the market value for Web-based Solutions in the India Custom Software Development Market in 2024?

    The market value for Web-based Solutions is expected to be 0.8 billion USD in 2024.

    What is the anticipated market size for Mobile App solutions by 2035?

    The anticipated market size for Mobile App solutions is projected to reach 3.5 billion USD by 2035.

    How much will the Enterprise Software market segment be worth in 2024?

    The Enterprise Software market segment is expected to be valued at 0.56 billion USD in 2024.

    What are the growth drivers for the India Custom Software Development Market?

    Growth drivers include increasing demand for custom solutions and the expansion of digital transformation initiatives.

    What is the expected market growth rate for Mobile App solutions from 2025 to 2035?

    The Mobile App solutions segment is expected to grow significantly, contributing to the overall market expansion.

    What challenges does the India Custom Software Development Market face currently?

    The market faces challenges such as a shortage of skilled professionals and rapid technological changes.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. India Custom Software Development Market, BY Solution (USD Billion)
    45. Web-based Solutions
    46. Mobile App
    47. Enterprise Software
    48. India Custom Software Development Market, BY Deployment (USD Billion)
    49. Cloud
    50. On-premise
    51. India Custom Software Development Market, BY Enterprise Size (USD Billion)
    52. Large Enterprises
    53. Small Medium Enterprises (SMEs)
    54. India Custom Software Development Market, BY End-User (USD Billion)
    55. BFSI
    56. Government
    57. Healthcare
    58. IT Telecom
    59. Manufacturing
    60. Retail
    61. Others
    62. Competitive Landscape
    63. Overview
    64. Competitive Analysis
    65. Market share Analysis
    66. Major Growth Strategy in the Custom Software Development Market
    67. Competitive Benchmarking
    68. Leading Players in Terms of Number of Developments in the Custom Software Development Market
    69. Key developments and growth strategies
    70. New Product Launch/Service Deployment
    71. Merger Acquisitions
    72. Joint Ventures
    73. Major Players Financial Matrix
    74. Sales and Operating Income
    75. Major Players RD Expenditure. 2023
    76. Company Profiles
    77. IBM India
    78. Financial Overview
    79. Products Offered
    80. Key Developments
    81. SWOT Analysis
    82. Key Strategies
    83. Wipro
    84. Financial Overview
    85. Products Offered
    86. Key Developments
    87. SWOT Analysis
    88. Key Strategies
    89. Infosys
    90. Financial Overview
    91. Products Offered
    92. Key Developments
    93. SWOT Analysis
    94. Key Strategies
    95. L and T Technology Services
    96. Financial Overview
    97. Products Offered
    98. Key Developments
    99. SWOT Analysis
    100. Key Strategies
    101. Capgemini
    102. Financial Overview
    103. Products Offered
    104. Key Developments
    105. SWOT Analysis
    106. Key Strategies
    107. Fujitsu India
    108. Financial Overview
    109. Products Offered
    110. Key Developments
    111. SWOT Analysis
    112. Key Strategies
    113. Accenture
    114. Financial Overview
    115. Products Offered
    116. Key Developments
    117. SWOT Analysis
    118. Key Strategies
    119. Zensar Technologies
    120. Financial Overview
    121. Products Offered
    122. Key Developments
    123. SWOT Analysis
    124. Key Strategies
    125. Mindtree
    126. Financial Overview
    127. Products Offered
    128. Key Developments
    129. SWOT Analysis
    130. Key Strategies
    131. Birlasoft
    132. Financial Overview
    133. Products Offered
    134. Key Developments
    135. SWOT Analysis
    136. Key Strategies
    137. Tata Consultancy Services
    138. Financial Overview
    139. Products Offered
    140. Key Developments
    141. SWOT Analysis
    142. Key Strategies
    143. Persistent Systems
    144. Financial Overview
    145. Products Offered
    146. Key Developments
    147. SWOT Analysis
    148. Key Strategies
    149. Cognizant Technology Solutions
    150. Financial Overview
    151. Products Offered
    152. Key Developments
    153. SWOT Analysis
    154. Key Strategies
    155. HCL Technologies
    156. Financial Overview
    157. Products Offered
    158. Key Developments
    159. SWOT Analysis
    160. Key Strategies
    161. Tech Mahindra
    162. Financial Overview
    163. Products Offered
    164. Key Developments
    165. SWOT Analysis
    166. Key Strategies
    167. References
    168. Related Reports
    169. India Custom Software Development Market SIZE ESTIMATES & FORECAST, BY SOLUTION, 2019-2035 (USD Billions)
    170. India Custom Software Development Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT, 2019-2035 (USD Billions)
    171. India Custom Software Development Market SIZE ESTIMATES & FORECAST, BY ENTERPRISE SIZE, 2019-2035 (USD Billions)
    172. India Custom Software Development Market SIZE ESTIMATES & FORECAST, BY END-USER, 2019-2035 (USD Billions)
    173. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    174. ACQUISITION/PARTNERSHIP
    175. MARKET SYNOPSIS
    176. INDIA CUSTOM SOFTWARE DEVELOPMENT MARKET ANALYSIS BY SOLUTION
    177. INDIA CUSTOM SOFTWARE DEVELOPMENT MARKET ANALYSIS BY DEPLOYMENT
    178. INDIA CUSTOM SOFTWARE DEVELOPMENT MARKET ANALYSIS BY ENTERPRISE SIZE
    179. INDIA CUSTOM SOFTWARE DEVELOPMENT MARKET ANALYSIS BY END-USER
    180. KEY BUYING CRITERIA OF CUSTOM SOFTWARE DEVELOPMENT MARKET
    181. RESEARCH PROCESS OF MRFR
    182. DRO ANALYSIS OF CUSTOM SOFTWARE DEVELOPMENT MARKET
    183. DRIVERS IMPACT ANALYSIS: CUSTOM SOFTWARE DEVELOPMENT MARKET
    184. RESTRAINTS IMPACT ANALYSIS: CUSTOM SOFTWARE DEVELOPMENT MARKET
    185. SUPPLY / VALUE CHAIN: CUSTOM SOFTWARE DEVELOPMENT MARKET
    186. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY SOLUTION, 2025 (% SHARE)
    187. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY SOLUTION, 2019 TO 2035 (USD Billions)
    188. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY DEPLOYMENT, 2025 (% SHARE)
    189. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY DEPLOYMENT, 2019 TO 2035 (USD Billions)
    190. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY ENTERPRISE SIZE, 2025 (% SHARE)
    191. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY ENTERPRISE SIZE, 2019 TO 2035 (USD Billions)
    192. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY END-USER, 2025 (% SHARE)
    193. CUSTOM SOFTWARE DEVELOPMENT MARKET, BY END-USER, 2019 TO 2035 (USD Billions)
    194. BENCHMARKING OF MAJOR COMPETITORS

    India Custom Software Development Market Segmentation

    • Custom Software Development Market By Solution (USD Billion, 2019-2035)

      • Web-based Solutions
      • Mobile App
      • Enterprise Software

     

    • Custom Software Development Market By Deployment (USD Billion, 2019-2035)

      • Cloud
      • On-premise

     

    • Custom Software Development Market By Enterprise Size (USD Billion, 2019-2035)

      • Large Enterprises
      • Small Medium Enterprises (SMEs)

     

    • Custom Software Development Market By End-User (USD Billion, 2019-2035)

      • BFSI
      • Government
      • Healthcare
      • IT Telecom
      • Manufacturing
      • Retail
      • Others
    Report Infographic
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