Worldwide Automated Software Quality Forecast, 2021–2025: Digital Transformation Demands Quality and Drives Growth

Worldwide Automated Software Quality Forecast, 2021–2025: Digital Transformation Demands Quality and Drives Growth

This IDC study provides an analysis of the 2021–2025 automated software quality (ASQ) market forecast. It discusses IDC's ASQ assessment for a market that showed single-digit growth of 5.6% to $3.1 billion in 2020 (compared with growth of 4.7% to $2.9 billion in 2019), which has increased growth moving into the forecast time frame feeding higher estimates, driven by the imperative to ship quality software across more complex, distributed, digitized environments more rapidly than ever. As organizations continued to reinvest in ASQ solutions to address increased challenges with digitization in the face of the COVID-19 pandemic across a variety of vectors (including business, technology, software sourcing, and diverse platform deployment with mobile, social business, and cloud), most major share ASQ solution providers are experiencing some revenue increases and some are experiencing high double-digit growth. Others experienced lesser losses (largely because of evolving product releases, acquisition transition challenges, shifts to cloud delivery models, and some encroachment by open source tools). Midsize innovative vendors in emerging technology areas such as mobile, software quality analysis and measurement (SQAM), and cloud testing contributed to what we expect will be improving ASQ growth moving into the forecast time frame. "High investment in and demand for ASQ solutions and meaningful growth provide a foundation for adoption during the current global pandemic as we emerge into what comes next as organizations rely more than ever on quality software for digital execution. These factors underlie our ASQ forecast moving into 2025. Our current ASQ CAGR of 7.1% for the forecast period expands the CAGR that we set initially in December 2020 for the 2020-2024 time frame, based in part on adoption trends and survey data that underscore the impact of rapid digitization demanded by social distancing, along with increased complexity for remote multimodal application development and deployment and highly constrained, distributed staffing resources. These combined factors result in ongoing demand for software quality automation," said Melinda Ballou, program director, IDC's Agile Application Life-Cycle Management, Quality, and Portfolio Strategies. "Responsiveness on the part of ASQ providers to customer needs for quality software will help sustain growth overall, as vendors deliver more complete agile DevOps and quality and life-cycle management solutions via acquisitions and partnerships and as consolidation continues. Smaller and larger vendors continue to play a crucial role for market innovation as we see from agile and cloud testing, quality measurement with static and dynamic analyses and security leverage, and agile and mobile ERP testing for business applications, as well as machine learning (ML), artificial intelligence (AI), and emerging robotic process automation (RPA) solutions for testing as software development democratizes with no-code/low-code options and citizen developers. We expect additional acquisitions and ASQ growth in this space in the 2021–2025 time frame."

Please Note: Extended description available upon request.


IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Advice for Those Targeting the ASQ Market
Market Forecast
Market Context
Drivers and Inhibitors
Drivers
COVID-19 Emergence and Follow-On Impact on Global Competitive Pressures and Velocity
Agile ALM Demand and Need for Governance
Global Competitive Pressures and Multimodal Deployment Demands
Inhibitors
Open Source Software Adoption and Impact
Market Consolidation, COVID-19 Economic Impact, and Slow Evolution of Legacy
Significant Market Developments
Acquisitions Continue to Dominate
Changes from Prior Forecast
Market Definition
Methodology
Historical and Forecast Market Values and Exchange Rates
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