Custom Software Development Market Growth, Size, Trends Analysis - By Type, By Deployment Mode, By Enterprise Size, By Industry Vertical - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
Description
Custom Software Development Market Introduction and Overview
According to SPER Market Research, the Global Custom Software Development Market is estimated to reach USD 350.78 billion by 2034 with a CAGR of 22.82%.
The report includes an in-depth analysis of the Global Custom Software Development Market, including market size and trends, product mix, Applications, and supplier analysis. The global market for custom software development was valued at approximately USD 44.91 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 22.82% from 2025 to 2034. Several factors are driving the expansion of the custom software development market, including the increasing demand for industry-specific applications for real-time data analysis, the heightened need for flexible workspaces to boost productivity, and the growing adoption of low code development platforms (LCDPs) to facilitate software development.
Custom Software Development Market
By Type Insights:
In 2024, the largest market share in custom software development was held by the enterprise software segment. This growth is attributed to benefits such as a centralized system for departments, improved scalability, integration, and enhanced security across various platforms. Enterprise software automates business workflows, increases efficiency, reduces data entry errors, lowers costs, supports growth, and integrates strategies across large organizations. It features various functionalities that organizations can customize to meet their specific needs, including supply chain tracking, resource management, and customer communication. The web-based solutions segment is expected to grow at the fastest rate during the forecast period. This is mainly due to the advantages of remote access, real-time information availability, and lower hardware costs. It also allows easy data sharing and collaboration through a centralized server, facilitating the addition of users through access control systems, enabling enterprises to handle more simultaneous processes effectively.
By Deployment Mode Insights:
The cloud segment also accounted for a significant market share in 2024. This segment thrives on the convenience, flexibility, and affordability it offers, especially for small and medium-sized businesses that benefit from a no upfront cost model. Cloud custom software allows access to data from smartphones and other devices, further fueled by the growing number of smartphone users and the trend toward Bring Your Own Device (BYOD) policies. In contrast, the on-premise segment is projected to have the fastest expansion. On-premise software provides businesses with complete ownership, control, reliability, and high data security managed through physical measures and protocols. It enables access without requiring internet connectivity and typically involves lower maintenance and one-time license fees.
By Enterprise Size Insights:
The large enterprises segment commanded the highest revenue share in 2024, with many corporations relying on custom software to gain a competitive edge. Custom software is designed to meet specific requirements, often at a lower cost than off-the-shelf solutions, and can integrate seamlessly with existing systems. Furthermore, custom solutions are generally more secure, with higher resistance to infiltration due to encryption. The small and medium enterprises (SMEs) segment is projected to grow rapidly, driven by the expansion of SMEs, cost efficiency, and scalability, allowing these businesses to enhance operations through modern technologies without needing to adapt their processes to fit generic software.
By Industry Vertical Insights:
The IT and telecom segment was also a leader in the market, offering custom software that meets essential security needs while being flexible. This software provides lower maintenance costs, enhances operational efficiency, and allows businesses to produce clear reports and focus on core tasks. Conversely, the government sector is expected to experience the fastest growth rate, as customized software solutions are increasingly recognized for their role in upgrading legacy systems, automating processes, and improving transparency in services provided to citizens.
Regional Insights:
In 2024, the North American custom software development market captured the largest share. This region's growth can be attributed to several factors, such as the extensive utilization of advanced technologies, the increase in IT services, and the growth of small and medium-sized enterprises (SMEs). Furthermore, with the rise of automation and digital transformation in the area, North America is emerging as the preferred hub for custom software development services.
The custom software development market in the Asia Pacific region is expected to experience the highest CAGR from 2025 to 2034, driven by advancements in technological implementation within enterprises. The rise of SMEs, the expanding market for custom software, and the necessity to modernize outdated software development systems are also propelling market growth.
Market Competitive Landscape:
The market is marked by fierce competition among global leaders and regional players, all vying for market share through innovation, strategic alliances, and geographic expansion. Global companies utilize strong research and development capabilities and state-of-the-art technologies such as artificial intelligence (AI), cloud computing, the Internet of Things (IoT), and extensive distribution networks to provide customized solutions that cater to the demand for digital transformation and scalable business models. Major players focus on mergers and acquisitions, joint ventures, and post-merger integration to enhance their capabilities and penetrate new markets to sustain their dominance. In contrast, regional players compete by meeting niche demands with cost-effective solutions and localized expertise.
Recent Developments:
August 2024: Brainvire introduced a mobile application aimed at enhancing children's acquisition of the Chinese language through interactive features such as games, speech-to-text functionality, and flashcards. This platform allows educational institutions to provide personalized and engaging learning experiences for their students.
May 2024: IBM Corporation formed a partnership with Salesforce, a cloud software company based in the U.S., to integrate IBM watsonx AI and Data Platform with the Salesforce Einstein 1 Platform. This collaboration seeks to improve AI-driven CRM solutions by allowing bidirectional data integration, offering flexibility in large language models, and providing prebuilt AI-powered actions.
In July 2023, Tietoevry revealed its acquisition of MentorMate, a company specializing in digital engineering, consulting, and design services. This acquisition is intended to accelerate Tietoevry's software and digital engineering capabilities while expanding its customer base and digital talent within the market.
Scope of the report:
Report Metric Details
Market size available for years 2021-2034
Base year considered 2024
Forecast period 2025-2034
Segments covered By Type, By Deployment Mode, By Enterprise Size, By Industry Vertical
Regions covered North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa
Companies Covered
Accenture, Brainvire, Infotech Inc, Capgemini, Cognizant, HCL Technologies Limited, Iflexion, Infopulse, Infosys Ltd, Magora, Microsoft, Tata Consultancy Services Limited, Thoughtworks, Inc.
Key Topics Covered in the Report:
Global Custom Software Development Market Size (FY 2021-FY 2034)
Overview of Global Custom Software Development Market
Segmentation of Global Custom Software Development Market By Type (Web-based Solutions, Mobile App, Enterprise Software)
Segmentation of Global Custom Software Development Market By Deployment Mode (Cloud, On-premise)
Segmentation of Global Custom Software Development Market By Enterprise Size (Large Enterprises, SMEs)
Segmentation of Global Custom Software Development Market By Industry Vertical (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Others)
Statistical Snap of Global Custom Software Development Market
Expansion Analysis of Global Custom Software Development Market
Problems and Obstacles in Global Custom Software Development Market
Competitive Landscape in the Global Custom Software Development Market
Details on Current Investment in Global Custom Software Development Market
Competitive Analysis of Global Custom Software Development Market
Prominent Players in the Global Custom Software Development Market
SWOT Analysis of Global Custom Software Development Market
Global Custom Software Development Market Future Outlook and Projections (FY 2025-FY 2034)
Recommendations from Analyst
According to SPER Market Research, the Global Custom Software Development Market is estimated to reach USD 350.78 billion by 2034 with a CAGR of 22.82%.
The report includes an in-depth analysis of the Global Custom Software Development Market, including market size and trends, product mix, Applications, and supplier analysis. The global market for custom software development was valued at approximately USD 44.91 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 22.82% from 2025 to 2034. Several factors are driving the expansion of the custom software development market, including the increasing demand for industry-specific applications for real-time data analysis, the heightened need for flexible workspaces to boost productivity, and the growing adoption of low code development platforms (LCDPs) to facilitate software development.
Custom Software Development Market
By Type Insights:
In 2024, the largest market share in custom software development was held by the enterprise software segment. This growth is attributed to benefits such as a centralized system for departments, improved scalability, integration, and enhanced security across various platforms. Enterprise software automates business workflows, increases efficiency, reduces data entry errors, lowers costs, supports growth, and integrates strategies across large organizations. It features various functionalities that organizations can customize to meet their specific needs, including supply chain tracking, resource management, and customer communication. The web-based solutions segment is expected to grow at the fastest rate during the forecast period. This is mainly due to the advantages of remote access, real-time information availability, and lower hardware costs. It also allows easy data sharing and collaboration through a centralized server, facilitating the addition of users through access control systems, enabling enterprises to handle more simultaneous processes effectively.
By Deployment Mode Insights:
The cloud segment also accounted for a significant market share in 2024. This segment thrives on the convenience, flexibility, and affordability it offers, especially for small and medium-sized businesses that benefit from a no upfront cost model. Cloud custom software allows access to data from smartphones and other devices, further fueled by the growing number of smartphone users and the trend toward Bring Your Own Device (BYOD) policies. In contrast, the on-premise segment is projected to have the fastest expansion. On-premise software provides businesses with complete ownership, control, reliability, and high data security managed through physical measures and protocols. It enables access without requiring internet connectivity and typically involves lower maintenance and one-time license fees.
By Enterprise Size Insights:
The large enterprises segment commanded the highest revenue share in 2024, with many corporations relying on custom software to gain a competitive edge. Custom software is designed to meet specific requirements, often at a lower cost than off-the-shelf solutions, and can integrate seamlessly with existing systems. Furthermore, custom solutions are generally more secure, with higher resistance to infiltration due to encryption. The small and medium enterprises (SMEs) segment is projected to grow rapidly, driven by the expansion of SMEs, cost efficiency, and scalability, allowing these businesses to enhance operations through modern technologies without needing to adapt their processes to fit generic software.
By Industry Vertical Insights:
The IT and telecom segment was also a leader in the market, offering custom software that meets essential security needs while being flexible. This software provides lower maintenance costs, enhances operational efficiency, and allows businesses to produce clear reports and focus on core tasks. Conversely, the government sector is expected to experience the fastest growth rate, as customized software solutions are increasingly recognized for their role in upgrading legacy systems, automating processes, and improving transparency in services provided to citizens.
Regional Insights:
In 2024, the North American custom software development market captured the largest share. This region's growth can be attributed to several factors, such as the extensive utilization of advanced technologies, the increase in IT services, and the growth of small and medium-sized enterprises (SMEs). Furthermore, with the rise of automation and digital transformation in the area, North America is emerging as the preferred hub for custom software development services.
The custom software development market in the Asia Pacific region is expected to experience the highest CAGR from 2025 to 2034, driven by advancements in technological implementation within enterprises. The rise of SMEs, the expanding market for custom software, and the necessity to modernize outdated software development systems are also propelling market growth.
Market Competitive Landscape:
The market is marked by fierce competition among global leaders and regional players, all vying for market share through innovation, strategic alliances, and geographic expansion. Global companies utilize strong research and development capabilities and state-of-the-art technologies such as artificial intelligence (AI), cloud computing, the Internet of Things (IoT), and extensive distribution networks to provide customized solutions that cater to the demand for digital transformation and scalable business models. Major players focus on mergers and acquisitions, joint ventures, and post-merger integration to enhance their capabilities and penetrate new markets to sustain their dominance. In contrast, regional players compete by meeting niche demands with cost-effective solutions and localized expertise.
Recent Developments:
August 2024: Brainvire introduced a mobile application aimed at enhancing children's acquisition of the Chinese language through interactive features such as games, speech-to-text functionality, and flashcards. This platform allows educational institutions to provide personalized and engaging learning experiences for their students.
May 2024: IBM Corporation formed a partnership with Salesforce, a cloud software company based in the U.S., to integrate IBM watsonx AI and Data Platform with the Salesforce Einstein 1 Platform. This collaboration seeks to improve AI-driven CRM solutions by allowing bidirectional data integration, offering flexibility in large language models, and providing prebuilt AI-powered actions.
In July 2023, Tietoevry revealed its acquisition of MentorMate, a company specializing in digital engineering, consulting, and design services. This acquisition is intended to accelerate Tietoevry's software and digital engineering capabilities while expanding its customer base and digital talent within the market.
Scope of the report:
Report Metric Details
Market size available for years 2021-2034
Base year considered 2024
Forecast period 2025-2034
Segments covered By Type, By Deployment Mode, By Enterprise Size, By Industry Vertical
Regions covered North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa
Companies Covered
Accenture, Brainvire, Infotech Inc, Capgemini, Cognizant, HCL Technologies Limited, Iflexion, Infopulse, Infosys Ltd, Magora, Microsoft, Tata Consultancy Services Limited, Thoughtworks, Inc.
Key Topics Covered in the Report:
Global Custom Software Development Market Size (FY 2021-FY 2034)
Overview of Global Custom Software Development Market
Segmentation of Global Custom Software Development Market By Type (Web-based Solutions, Mobile App, Enterprise Software)
Segmentation of Global Custom Software Development Market By Deployment Mode (Cloud, On-premise)
Segmentation of Global Custom Software Development Market By Enterprise Size (Large Enterprises, SMEs)
Segmentation of Global Custom Software Development Market By Industry Vertical (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Others)
Statistical Snap of Global Custom Software Development Market
Expansion Analysis of Global Custom Software Development Market
Problems and Obstacles in Global Custom Software Development Market
Competitive Landscape in the Global Custom Software Development Market
Details on Current Investment in Global Custom Software Development Market
Competitive Analysis of Global Custom Software Development Market
Prominent Players in the Global Custom Software Development Market
SWOT Analysis of Global Custom Software Development Market
Global Custom Software Development Market Future Outlook and Projections (FY 2025-FY 2034)
Recommendations from Analyst
Table of Contents
243 Pages
- 1. Introduction
- 1.1. Scope of the report
- 1.2. Market segment analysis
- 2. Research Methodology
- 2.1. Research data source
- 2.1.1. Secondary Data
- 2.1.2. Primary Data
- 2.1.3. SPERs internal database
- 2.1.4. Premium insight from KOLs
- 2.2. Market size estimation
- 2.2.1. Top-down and Bottom-up approach
- 2.3. Data triangulation
- 3. Executive Summary
- 4. Market Dynamics
- 4.1. Driver, Restraint, Opportunity and Challenges analysis
- 4.1.1. Drivers
- 4.1.2. Restraints
- 4.1.3. Opportunities
- 4.1.4. Challenges
- 5. Market variable and outlook
- 5.1. SWOT Analysis
- 5.1.1. Strengths
- 5.1.2. Weaknesses
- 5.1.3. Opportunities
- 5.1.4. Threats
- 5.2. PESTEL Analysis
- 5.2.1. Political Landscape
- 5.2.2. Economic Landscape
- 5.2.3. Social Landscape
- 5.2.4. Technological Landscape
- 5.2.5. Environmental Landscape
- 5.2.6. Legal Landscape
- 5.3. PORTERs Five Forces
- 5.3.1. Bargaining power of suppliers
- 5.3.2. Bargaining power of buyers
- 5.3.3. Threat of Substitute
- 5.3.4. Threat of new entrant
- 5.3.5. Competitive rivalry
- 5.4. Heat Map Analysis
- 6. Competitive Landscape
- 6.1. Global Custom Software Development Market Manufacturing Base Distribution, Sales Area, Product Type
- 6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Custom Software Development Market
- 7. Global Custom Software Development Market, By Type (USD Million) 2021-2034
- 7.1. Web-based Solutions
- 7.2. Mobile App
- 7.3. Enterprise Software
- 8. Global Custom Software Development Market, By Deployment (USD Million) 2021-2034
- 8.1. Cloud
- 8.2. On-premise
- 9. Global Custom Software Development Market, By Enterprise Size (USD Million) 2021-2034
- 9.1. Large Enterprises
- 9.2. SMEs
- 10. Global Custom Software Development Market, By Industry Vertical (USD Million) 2021-2034
- 10.1. BFSI
- 10.2. Government
- 10.3. Healthcare
- 10.4. IT & Telecom
- 10.5. Manufacturing
- 10.6. Retail
- 10.7. Others
- 11. Global Custom Software Development Market, (USD Million) 2021-2034
- 11.1. Global Custom Software Development Market Size and Market Share
- 12. Global Custom Software Development Market, By Region, (USD Million) 2021-2034
- 12.1. Asia-Pacific
- 12.1.1. Australia
- 12.1.2. China
- 12.1.3. India
- 12.1.4. Japan
- 12.1.5. South Korea
- 12.1.6. Rest of Asia-Pacific
- 12.2. Europe
- 12.2.1. France
- 12.2.2. Germany
- 12.2.3. Italy
- 12.2.4. Spain
- 12.2.5. United Kingdom
- 12.2.6. Rest of Europe
- 12.3. Middle East and Africa
- 12.3.1. Kingdom of Saudi Arabia
- 12.3.2. United Arab Emirates
- 12.3.3. Qatar
- 12.3.4. South Africa
- 12.3.5. Egypt
- 12.3.6. Morocco
- 12.3.7. Nigeria
- 12.3.8. Rest of Middle-East and Africa
- 12.4. North America
- 12.4.1. Canada
- 12.4.2. Mexico
- 12.4.3. United States
- 12.5. Latin America
- 12.5.1. Argentina
- 12.5.2. Brazil
- 12.5.3. Rest of Latin America
- 13. Company Profile
- 13.1. Accenture plc
- 13.1.1. Company details
- 13.1.2. Financial outlook
- 13.1.3. Product summary
- 13.1.4. Recent developments
- 13.2. Brainvire Infotech Inc
- 13.2.1. Company details
- 13.2.2. Financial outlook
- 13.2.3. Product summary
- 13.2.4. Recent developments
- 13.3. Capgemini
- 13.3.1. Company details
- 13.3.2. Financial outlook
- 13.3.3. Product summary
- 13.3.4. Recent developments
- 13.4. Cognizant
- 13.4.1. Company details
- 13.4.2. Financial outlook
- 13.4.3. Product summary
- 13.4.4. Recent developments
- 13.5. HCL Technologies Limited
- 13.5.1. Company details
- 13.5.2. Financial outlook
- 13.5.3. Product summary
- 13.5.4. Recent developments
- 13.6. Iflexion
- 13.6.1. Company details
- 13.6.2. Financial outlook
- 13.6.3. Product summary
- 13.6.4. Recent developments
- 13.7. Infopulse
- 13.7.1. Company details
- 13.7.2. Financial outlook
- 13.7.3. Product summary
- 13.7.4. Recent developments
- 13.8. Infosys Ltd
- 13.8.1. Company details
- 13.8.2. Financial outlook
- 13.8.3. Product summary
- 13.8.4. Recent developments
- 13.9. Magora
- 13.9.1. Company details
- 13.9.2. Financial outlook
- 13.9.3. Product summary
- 13.9.4. Recent developments
- 13.10. Microsoft
- 13.10.1. Company details
- 13.10.2. Financial outlook
- 13.10.3. Product summary
- 13.10.4. Recent developments
- 13.11. Tata Consultancy Services Limited
- 13.11.1. Company details
- 13.11.2. Financial outlook
- 13.11.3. Product summary
- 13.11.4. Recent developments
- 13.12. Thoughtworks, Inc.
- 13.12.1. Company details
- 13.12.2. Financial outlook
- 13.12.3. Product summary
- 13.12.4. Recent developments
- 13.13. Others
- 14. Conclusion
- 15. List of Abbreviations
- 16. Reference Links
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