Application Development Software Market Share and Future Prospects Details By 2028

Application Development Software Industry Overview

The global application development software market is anticipated to reach USD 733.5 billion by 2028, expanding at a CAGR of 24.3% from 2021 to 2028, as per the research conducted by Grand View Research, Inc. The growing trend of cloud-based solutions, coupled with an increase in the usage of the Internet of Things (IoT) technology, is anticipated to propel the market over the forecast period. Furthermore, a surge in the demand for advanced applications to improve work efficiency, resolve various business issues, and streamline business and operations due to digitalization is expected to support the market growth over the forecast period.

Application Development Software Market Segmentation

Grand View Research has segmented the global application development software market based on type, deployment type, organization size, application, and region:

Based on the Type Insights, the market is segmented into Low-code Development Platforms and No-code Development Platforms.

• The low-code development platforms segment dominated the market and accounted for more than 58.6% share in 2020. The rapid increase in digital transformation in the IT and telecom industry, rising need for scalability and customization, increased responsiveness to the business are the major factors driving the segment growth. The low-code development application platform allows businesses and IT professionals to design and develop business application codes and software with the graphical user interfaces method rather than traditional computer programming.
• The no-code development platform segment is anticipated to expand at the highest CAGR of 25.4% over the forecast period. The segment growth can be attributed to the increasing availability of no-code development platforms such as blogger, Wix, Quixey, and Nintex Process Platforms. These platforms allow the designing and developing of applications without any programming code. They include pre-defined tools that enable developers to create applications efficiently.

Based on the Deployment Type Insights, the market is segmented into On-premise and Cloud.

• The on-premise segment dominated the market and accounted for more than 50.1% share of the overall market in 2020. The software, solution, and delivery models in the on-premise deployment are installed and are operated from the organization's in-house server and infrastructure. On-premise deployment assists the internal IT team in fixing bugs or errors detected in the existing system. Many enterprises generate large amounts of data owing to the increasing trend of digitization, IT servers, and clickstreams.
• The cloud segment is anticipated to register a CAGR of 24.9% from 2021 to 2028. The segment growth can be attributed to the growing cloud service adoption by various large enterprises and SMEs due to benefits such as zero initial infrastructure setup costs and on-demand availability of computing services. Furthermore, cloud services offer advantages such as improved workload management, effective incorporation within DevOps groups, and improved security and compliance.

Based on the Organization Size Insights, the market is segmented into Small & Medium Enterprise and Large Enterprise.

• The large enterprise segment accounted for 52.5% share of the overall market in 2020. Large enterprises have a diverse revenue stream and corporate network, which aids in the adoption of new solutions and technologies in their existing systems. Owing to a diverse corporate network, these enterprises opt for applications and software to present to their clientele.
• The small and medium enterprises (SMEs) segment is anticipated to register a CAGR of 25.0% over the forecast period. Application development software solutions help SMEs prioritize work, enhance visibility, and improve collaboration among organizations. Furthermore, the increasing number of SMEs in the developed and developing economies is expected to contribute to the segment growth over the forecast period.

Based on the Application Insights, the market is segmented into BFSI, Media & Entertainment, IT & Telecom, Healthcare, Travel & Tourism, Others.

• The media and entertainment application segment accounted for more than 26.8% share of the global revenue in 2020. Media and entertainment encompass numerous applications, including data gathering, data processing, and data management for viewers. Increasing adoption of over-the-top (OTT) platforms and increasing viewer screen time due to the lockdowns imposed are expected to support the segment growth over the forecast period.
• The IT and telecom segment is anticipated to expand at a CAGR of 24.4% from 2021 to 2028. The increasing demand for customized services and solutions in the IT & telecom industry and the increasing number of tech-savvy individuals and IT professionals across the globe are expected to fuel the segment growth over the forecast period.

Application Development Software Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Companies Profile & Market Share Insights

The market players focus on undertaking various strategic initiatives, new product launches, joint ventures, contracts and agreements, and partnerships to enhance their position in the market.

Some of the prominent players operating in the global application development software market include,

• Oracle Corporation
• Fujitsu Ltd.
• HCL Technologies
• Wipro Ltd.
• Zoho Corporation

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