Custom Software Development Market Analysis

Custom Software Development Market Analysis

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The large enterprises segment held over 58% of the custom software development market share in 2022. The AI development assistant in software development is levitating the approach of large enterprises in the market. By leveraging AI technology, these assistants can streamline & automate various aspects of the development process such as code generation, bug detection, and performance optimization.
 

For instance, in June 2023, Harness Inc., a company specializing in modern software delivery platform solutions, introduced its AI Development Assistant (AIDA), a groundbreaking AI assistant that will revolutionize the entire Software Development Life Cycle (SDLC). Unlike the conventional AI applications in the field that mainly center on code generation and assistance, this approach represents significant advancements in AI for software delivery. The integration of AI systems into software development will enable the growth of large enterprises within the custom software development market.
 

The IT & telecom segment recorded around 23% of the custom software development market share in 2022. Technological advancements, such as 5G, IoT, AI, and edge computing, are propelling the IT & telecom segment growth within the market. These innovations are enabling the development of custom software solutions that optimize networks, enhance cybersecurity solutions, enable IoT integration, and provide real-time data processing at the edge. This technology-driven approach helps IT & telecom companies in improving services, reducing latency, and meeting the growing demands of end users.
 

North America custom software development market accounted for 36% of revenue share in 2022. The partnerships among software development companies in North America are driving the market growth. Collaborations allow firms to combine expertise & resources, thereby facilitating the development of more comprehensive & innovative solutions.
 

For instance, in March 2023, Replit entered a strategic collaboration with Google Cloud. As per the partnership, Replit developers can access Google Cloud services and foundational models through Ghostwriter, Replit's AI model for software development. Conversely, as part of this arrangement, the Google Cloud and Workspace developers can gain access to Replit's collaborative code editing tool. These partnerships enable the access to a wider range of technologies & expertise, thereby fostering the creation of custom software that meets the diverse industry needs. Such alliances will ultimately enhance competitiveness and drive the market value.