Custom Software Development Market Growth & Trends

The global custom software development market size is expected to reach USD 146.18 billion by 2030, expanding at a CAGR of 22.3% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. Today’s organizations leverage customized solutions to transform their businesses by enhancing existing applications and developing new ones. Several industries and individuals are adopting custom software platforms due to the growing need for industry-specific applications, increasing popularity of flexible workplaces, and the emergence of low-code development platforms.

Additionally, the market growth is fueled by increasing reliance on chatbots, robotic process automation, and other emerging technologies to enhance the efficiency of custom software. Platform as a Service (PaaS) and open-source solutions are driving the demand for custom software for cost-effectiveness and ease of upgrading, along with blockchain technologies to ensure enhanced levels of the COVID-19 pandemic, thus demonstrating the potential of a remote workforce. Considering the size of the organization and the remote workforce, a company started implementing custom software to walk the line between cost reduction and remote workforce.

Enterprises rely more on custom software to automate business operations and scale up their business applications. Adapting to evolving business processes, increased workloads, and new integrations is easy with custom software solutions. Custom software adapts more quickly to new changes and integrates these changes into the system, allowing for expansion and reducing downtime. For instance, in July 2021, Fortune Infosys, a customized software development company, launched a customized solution for the U.S. education sector, allowing its clients to achieve operational and administrative efficiency. It has features such as reducing errors in records, maintenance, and workflow following the institutional hierarchy. The educational sector benefits from custom software by establishing interactive, engaging, and value-based learning platforms and providing analytics and in-depth analysis reporting.

Due to the rapid growth of the software market, new technological solutions have become increasingly important to address problems immediately. The development of custom software can now be more easily accomplished due to software development using low-code platforms. Enterprise systems and application architecture are integral to enterprises’ processes and lifecycles. Low-code software development enables companies to create working solutions and integrate them with greater speed and agility, improving user experiences, automating processes, and upgrading key systems. Due to their low cost, companies can prototype, build, or scale applications by using their scripts, codes, and integrations without developing complex infrastructure.

A platform as a service enables custom software developers to create software without having to maintain the underlying infrastructure. Furthermore, companies provide platform as a Service (PaaS) in pay-per-use options while reducing development costs and time. In view of the benefits listed above, many companies are collaborating with PaaS providers. For instance, in March 2022, OpenText, an enterprise information management company, announced the launch of its OpenText core content on Google Cloud. The OpenText solution would enhance user experience, utilizing Google cloud capabilities and a secure software supply chain. OpenText would benefit from this partnership by getting access to cloud-based content services. Increasing use of the platform as a service is expected within enterprises in order to enable streamlined, secure, and governed data access for entire enterprises and offer customers more cloud-based content services.

Custom Software Development Market Report Highlights

  • The web-based solutions segment is expected to grow over the forecast period owing to factors such as low development costs, less development time, ease in software upgradation, data sharing and collaboration, and less hardware cost
  • The cloud segment is expected to grow significantly during the forecast period owing to its scalability, ease of implementation, and software updates. A cloud-based application eliminates the need for end-users to buy licenses
  • The SMEs segment is anticipated to register the highest CAGR over the forecast period. It provides companies with a highly flexible workspace and scalability. Moreover, it is cost-effective in the longer run as SMEs only develop features that are required for business. It provides support and assistance
  • The BFSI segment held the largest share in 2021. Custom software has security control of financial application data. Moreover, it enables time-sensitive maintenance and support for the custom application. Custom software development facilitates the integration of new technologies
  • Asia Pacific is anticipated to register the highest growth rate over the forecast period owing to the increasing use of technology. Corporate is becoming more competitive, and SMEs are increasing in the region. They prefer custom software to gain scalability