Dublin, Jan. 12, 2026 (GLOBE NEWSWIRE) — The “Software Development Services Global Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The software development services market is witnessing a substantial expansion, with the size projected to rise from $443.9 billion in 2024 to $497.16 billion in 2025, reflecting a compound annual growth rate (CAGR) of 12%.
Several factors underlie this growth, including the increasing adoption of enterprise software, significant investments in IT infrastructure, digital transformation initiatives, and the outsourcing of IT services. Furthermore, the demand for custom software solutions is rising significantly.
Looking ahead, the market is expected to reach $772.47 billion by 2029, growing at a CAGR of 11.6%. This growth is expected to be driven by a surge in cloud-based development, AI, and machine learning adoption, the rising demand for cybersecurity solutions, and the continued use of DevOps and agile methodologies. Key trends shaping the market include AI-driven development innovations, advancements in low-code and no-code platforms, research in quantum computing, developments in cloud-native software architectures, and edge computing technologies.
One of the critical drivers of growth is the rising adoption of business automation, which leverages technology to streamline operations, enhance efficiency, and improve decision-making. This trend is accelerated by a need for efficiency, cost optimization, and increased productivity. The transition towards automation is further propelled by advancements in AI, machine learning, and cloud platforms, which provide organizations with custom applications and digital solutions to integrate and scale automated processes.
In recent industry developments, key market players are integrating AI into their workflows through AI-powered integrated development environments (IDEs). For instance, in October 2025, IBM launched Project Bob, an AI-first IDE designed to assist enterprise developers in code generation and modernization. This technology incorporates large language models to support enhanced development workflows, ensuring code security and enabling businesses to simplify development tasks.
In acquisition news, in May 2025, Improving, a digital service company, acquired DragonSpears to strengthen its software development services in cloud adoption, agile coaching, and DevOps. DragonSpears is known for its expertise in delivering custom software solutions, emphasizing cloud technology and data management.
The software development services market is highly competitive, featuring major players such as Accenture, IBM, Oracle, SAP, TCS, and others. Regionally, North America dominated the market in 2024, while Asia-Pacific is poised for the fastest growth in the coming years.
However, the market’s outlook is affected by evolving global trade relations and tariffs. Notably, the U.S. tariffs in 2025 have significantly impacted the IT sector, especially in hardware manufacturing and software deployment. These developments have pushed companies to invest in domestic production, diversify supply chains, and embrace AI-driven automation to enhance cost efficiency and resilience.
The comprehensive market report provides detailed insights into industry trends, market size, and the competitive landscape, offering valuable resources for entities aiming to excel in the software development services sector.
Report Scope:
Markets Covered:
- Service Types: Custom Software Development, Application Development, Web Development, Mobile App Development, etc.
- Engagement Models: Dedicated Team, Fixed Price, Time and Material, On-Demand Development.
- Enterprise Sizes: SMEs and Large Enterprises.
- End-User Industries: BFSI, Healthcare, Retail, IT and Telecommunications, Manufacturing.
Key Companies Mentioned: Accenture plc, IBM, Oracle Corporation, SAP SE, Tata Consultancy Services, Fujitsu Limited, Capgemini, Cognizant, Infosys, DXC Technology, and others.
Regions and Countries: Asia-Pacific, Western Europe, North America, South America, Middle East, Africa; Australia, Brazil, China, France, Germany, India, Japan, Russia, UK, USA, etc.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $497.16 Billion |
| Forecasted Market Value (USD) by 2029 | $772.47 Billion |
| Compound Annual Growth Rate | 11.6% |
| Regions Covered | Global |
Companies Featured
- Accenture plc
- International Business Machines Corporation
- Oracle Corporation
- SAP SE
- Tata Consultancy Services Limited
- Fujitsu Limited
- Capgemini SE
- Cognizant Technology Solutions Corporation
- Infosys Limited
- DXC Technology Company
- HCL Technologies Limited
- Atos SE
- Wipro Limited
- Tech Mahindra Limited
- EPAM Systems Inc.
- Globant S.A.
- Endava plc
- Medidata Solutions Inc.
- Improving Holdings LLC
- Saksoft Limited.
For more information about this report visit https://www.researchandmarkets.com/r/rxtcf6
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- Software Development Services Market
