US Software Engineering Market Research Report: By Application (Plant Design, Product Design, 3D Modelling, Automation Design), By Software Type (PLC, Computer-Aided Engineering, Engineering & Construction, Architecture, Electronic Design Automation, Computer Aided manufacturing, Computer-Aided Designing) and By End User (Healthcare, Banking, Aerospace, Oil & Gas, IT & Telecommunication, Automotive, Defense) - Forecast to 2035

US Software Engineering Market Overview

As per MRFR analysis, the US Software Engineering Market Size was estimated at 18.96 (USD Billion) in 2023. The US Software Engineering Market Industry is expected to grow from 21.5(USD Billion) in 2024 to 62.5 (USD Billion) by 2035. The US Software Engineering Market CAGR (growth rate) is expected to be around 10.187% during the forecast period (2025 - 2035).

Key US Software Engineering Market Trends Highlighted

The US Software Engineering Market is experiencing notable trends driven by the growing demand for digital transformation across various industries. Companies are increasingly leveraging advanced software solutions to enhance their operational efficiency, improve customer engagement, and gain competitive advantages. The rise of cloud computing is a key factor driving these changes, enabling organizations to adopt flexible and scalable solutions without substantial upfront investments in hardware. Additionally, the emphasis on cybersecurity is prompting software engineers to focus on integrating robust security measures into software applications from the design phase.Opportunities lie in the continuous evolution of artificial intelligence and machine learning, with businesses seeking software engineers skilled in these areas to develop intelligent applications that can analyze data and improve decision-making. The increasing adoption of DevOps practices has also created a need for software engineers who can work collaboratively across development and operations, fostering a streamline from conception to deployment. This presents an opportunity for education and training institutions to prepare a workforce equipped with modern development skills. Recent trends highlight the growing interest in remote work and agile methodologies within the software engineering field.The shift to remote work following the pandemic has led organizations in the US to seek software solutions that facilitate collaboration and project management across distributed teams. Enhanced focus on user experience is another trend observable in the market, as companies prioritize the importance of user-centric design in application development. This, together with a rising demand for software solutions tailored to specific business needs, positions the US as a dynamic locus for software engineering innovation.

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

US Software Engineering Market Drivers

Increased Demand for Cloud Computing Solutions

The US Software Engineering Market Industry is significantly impacted by the rising demand for cloud computing solutions. According to the National Institute of Standards and Technology, cloud services in the United States are projected to grow at a compounded annual growth rate of approximately 17% over the next five years. Major organizations such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform are continuously innovating and expanding their cloud offerings, driving demand for software engineering services.The US market’s shift towards digital transformation and the integration of cloud solutions are reinforcing investments in software engineering. A report by the US Bureau of Labor Statistics states that IT and software-related jobs are among the fastest-growing professions, with an expected growth of 22% from 2020 to 2030. This growing employment trend suggests a robust demand for cloud-based software systems, further fueling the US Software Engineering Market.

Growing Investment in Artificial Intelligence and Machine Learning

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in software engineering is a critical driver for the US Software Engineering Market Industry. Industry leaders such as IBM, Microsoft, and NVIDIA are heavily investing in AI and ML technologies, which have seen investments reaching $27 billion in 2020 alone, as per the US Department of Commerce. Furthermore, AI is projected to contribute about $15.7 trillion to the global economy by 2030.The implications of these technologies on software engineering processes are profound, as they enable automation and advanced data analytics, enhancing the capabilities and efficiency of software solutions. Consequently, this is expected to propel demand for software engineers trained in AI and ML, creating a valuable skilled labor market in the US that continuously drives the industry forward.

Rising Cybersecurity Concerns

The increasing frequency of cyberattacks and data breaches has heightened the importance of cybersecurity in software engineering within the US Software Engineering Market Industry. According to the Cybersecurity & Infrastructure Security Agency, there has been a 400% increase in cyberattacks since the COVID-19 pandemic began. High-profile breaches affecting companies like Target and Equifax emphasize the critical need for secure software solutions.As businesses recognize the value of secure software systems, investments in cybersecurity-related software engineering are surging. Reports indicate that the global cybersecurity market is expected to reach $300 billion by 2024, which undoubtedly translates to enhanced software engineering efforts focused on safeguarding data and systems. This focus on cybersecurity will continue to necessitate specialized skills in software development, thereby shaping the future landscape of software engineering jobs in the US.

US Software Engineering Market Segment Insights

Software Engineering Market Application Insights

The Application segment of the US Software Engineering Market encompasses essential areas driving technological advancements across various industries. This segment plays a crucial role in enhancing productivity and efficiency within organizations. Plant Design is vital for optimizing industrial operations, allowing companies to streamline processes and reduce operational inefficiencies. As industries evolve, the demand for innovative solutions that cater to real-time adjustments in plant layouts is significant. In contrast, Product Design significantly contributes to consumer satisfaction and market competitiveness, fostering creativity and innovation in product development.This aspect is particularly paramount in a fast-paced environment where customer preferences continuously evolve. 3D Modelling has emerged as a critical tool, facilitating visualization and representation of products before physical production, leading to enhanced accuracy in design and reduction of costly errors. This area has garnered substantial interest as organizations seek to enhance their design and development capabilities through predictive modeling and simulation exercises. 

Furthermore, Automation Design is increasingly recognized for its importance in minimizing manual intervention, thus expediting workflows and improving overall operation efficiency.With the growing emphasis on automation across sectors, this aspect has become a priority for firms aiming to scale their production capabilities. The US Software Engineering Market is likely to witness a robust expansion within this segment owing to ongoing technological advancements and increasing adoption of software solutions. The trends within this segment highlight an ongoing shift towards more integrated and sophisticated tools that cater to the diverse needs of businesses, thus reflecting the evolving landscape of software engineering in the United States.Organizations must acknowledge these trends to harness the full potential of Application software solutions for improved operational efficiency and strategic growth in a competitive market landscape. Overall, this segment's significance in driving growth and innovation cannot be understated, as it serves as the backbone for many operational strategies in the US economy.

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

Software Engineering Market Software Type Insights

The Software Type segment of the US Software Engineering Market presents a diverse and dynamic landscape, focusing on areas such as Programmable Logic Controllers, Computer-Aided Engineering, Engineering and Construction, Architecture, Electronic Design Automation, Computer Aided Manufacturing, and Computer-Aided Designing. These areas are critical as they support numerous industries by enhancing efficiency, precision, and innovation. For instance, Computer-Aided Engineering tools are instrumental in streamlining product development processes, significantly reducing time-to-market.Similarly, Engineering and Construction software plays a vital role in project management, ensuring projects are completed on schedule and within budget. The Architecture sector benefits from advanced design tools that allow for innovative architectural solutions, promoting sustainable and futuristic designs. Furthermore, Electronic Design Automation remains essential in the semiconductor and electronics industries, facilitating complex circuit designs. Computer Aided Manufacturing drives automation in production processes, leading to higher productivity and lower operational costs, while Computer-Aided Designing is indispensable in creating detailed designs across various sectors.Overall, the Software Type segment underscores the importance of technological advancements in driving the US Software Engineering Market toward sustained growth and development.

Software Engineering Market End User Insights

The End User segment of the US Software Engineering Market plays a crucial role in shaping various industries, each leveraging software solutions to enhance efficiency and innovation. The healthcare industry increasingly adopts advanced software applications for patient management and data analysis, improving healthcare delivery and patient outcomes. In the banking sector, software engineering is vital for securing transactions and optimizing user experience, with many institutions investing heavily in digital transformation. The aerospace segment relies on sophisticated software for design, simulation, and safety, pushing the boundaries of technology and engineering.In oil and gas, software tools facilitate complex operations and supply chain management, addressing challenges related to production and logistics. The IT and telecommunication sectors drive market growth through continuous advancements in software applications, catering to the growing demand for connectivity and data management. The automotive industry integrates software in vehicles for enhanced safety, performance, and autonomous functions, reflecting the shift towards smart mobility solutions. The defense sector uses advanced software for simulations, logistics, and operational planning, ensuring national security and readiness.Overall, these industries highlight the significant impact of the US Software Engineering Market, underscoring its importance in modern economic frameworks and technological advancements.

US Software Engineering Market Key Players and Competitive Insights

The US Software Engineering Market is characterized by rapid evolution and fierce competition among established players and emerging startups. Several factors influence the dynamics of this market, including technological advancements, changing consumer demands, and the increasing need for businesses to leverage data for decision-making. The competitive landscape is marked by a diverse range of software solutions, from enterprise resource planning and cloud computing to data analytics and cybersecurity. Companies continually innovate and enhance their offerings to gain a competitive edge, while strategic partnerships, acquisitions, and investments in new technologies play critical roles in shaping market trends. Understanding these competitive insights is essential for stakeholders seeking to navigate this complex environment.

In the US Software Engineering Market, SAP has solidified its presence by offering a comprehensive suite of enterprise solutions designed to streamline business operations across various industries. Its strengths lie in its robust infrastructure and deep industry expertise, which enable it to cater to large-scale enterprises seeking integrated solutions for resource planning, supply chain management, and customer relationship management. SAP focuses on converting data into actionable insights for businesses, enhancing efficiency, and driving growth. Additionally, SAP's commitment to cloud-based services allows for greater flexibility and scalability, ensuring that businesses can adapt to the ever-changing demands of the market. The company's reputation for reliability and innovation has further solidified its foothold in the competitive landscape of US software engineering.Splunk is another significant player in the US Software Engineering Market, specializing in data analytics and monitoring software that empowers organizations to harness the power of machine data. Its key products, including Splunk Enterprise and Splunk Cloud, provide organizations with real-time insights into their operations, enhancing decision-making and overall performance. 

Splunk's market presence is characterized by its strong focus on cybersecurity, operational intelligence, and IT infrastructure management, making it an attractive choice for businesses looking to enhance their data-centric decision-making. The company's strengths include its cutting-edge technology and versatility, enabling it to cater to a diverse clientele ranging from startups to Fortune 500 companies. Splunk has also engaged in strategic mergers and acquisitions to enhance its technical capabilities and expand its product offerings, further establishing its position as a leader in the US software engineering sector. These initiatives reflect Splunk's dedication to innovation and its drive to meet the evolving needs of the market, ensuring its continued growth and relevance within the competitive landscape.

Key Companies in the US Software Engineering Market Include

• SAP


• Splunk


• VMware


• Oracle


• Atlassian


• Red Hat


• Cisco


• IBM


• ServiceNow


• Microsoft


• Tableau


• Intel


• Google


• Salesforce


• Adobe

US Software Engineering Market Industry Developments

The US Software Engineering Market has recently seen notable developments, with companies like Microsoft and Salesforce achieving significant growth in market valuation due to increasing demand for cloud-based solutions. In September 2023, VMware announced its acquisition of Carbon Black to enhance its cybersecurity offerings, strengthening its position in the competitive landscape. Similarly, Adobe launched updates to its Creative Cloud and Document Cloud services in October 2023, reflecting the ongoing innovation within the sector. Google is also expanding its Google Cloud services, investing heavily in AI and machine learning capabilities to cater to the evolving needs of businesses. In June 2023, Oracle acquired Cerner Corporation, aiming to enhance its healthcare software solutions, thereby tapping into the growing healthcare IT market. Additionally, companies like IBM and Cisco are focusing on hybrid cloud solutions, which are increasingly critical as organizations transition to remote work environments. Over the past two years, the push for digital transformation has driven substantial investments in Software Engineering, reshaping the market and highlighting its importance in the broader US economy.

US Software Engineering Market Segmentation Insights

Software Engineering Market Application Outlook

• Plant Design


• Product Design


• 3D Modelling


• Automation Design

Software Engineering Market Software Type Outlook

• PLC


• Computer-Aided Engineering


• Engineering & Construction


• Architecture


• Electronic Design Automation


• Computer Aided manufacturing


• Computer-Aided Designing

Software Engineering Market End User Outlook

• Healthcare


• Banking


• Aerospace


• Oil & Gas


• IT & Telecommunication


• Automotive


• Defense

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	18.96(USD Billion)
MARKET SIZE 2024	21.5(USD Billion)
MARKET SIZE 2035	62.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.187% (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	SAP, Splunk, VMware, Oracle, Atlassian, Red Hat, Cisco, IBM, ServiceNow, Microsoft, Tableau, Intel, Google, Salesforce, Adobe
SEGMENTS COVERED	Application, Software Type, End User
KEY MARKET OPPORTUNITIES	Cloud computing solutions, AI-driven software tools, Cybersecurity software development, Agile project management platforms, Remote collaboration tools
KEY MARKET DYNAMICS	Talent shortage, Rapid technological advancements, Increasing demand for automation, Agile development adoption, Rising cybersecurity concerns
COUNTRIES COVERED	US