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The custom application development service market share is expected to increase by USD 38.15 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8.5%.
This custom application development service market research report extensively covers custom application development service market segmentation by deployment (on-premise and cloud) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The custom application development service market report also offers information on several market vendors, including Accenture Plc, Capgemini Service SAS, Chetu Inc., Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Iblesoft Inc., Infanion, Infosys Ltd., International Business Machines Corp., Larsen and Toubro Infotech Ltd., Logica Infotech Services Pvt. Ltd., Netguru S.A, NTT DATA Corp., Software AG, Speridian Technologies, Tata Consultancy Services Ltd., Trianz, and Wipro Ltd. among others.
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The increasing adoption of cloud-based services is notably driving the custom software development market size growth, although factors such as the availability of open-source platforms may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the custom application development service industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Custom Application Development Service Market Driver
One of the key factors driving the custom application development service market growth is the increasing adoption of cloud-based services as these services offer advantages such as ease of access, flexibility, and security. End-users need not pay the license cost as the application can be accessed through the cloud. By hosting the application on the cloud, end-users can significantly reduce the following costs:
Companies across the world are partnering with vendors operating in the market to deploy cloud-based applications to manage their business lifecycles. For instance, SAP offers cloud application services that help customers adopt and run the latest SAP technology with reduced complexity and at low costs. Such factors will further drive the market growth in the forecast years.
Key Custom Application Development Service Market Trend
Increasing use of AI in enterprise applications, as it ensures operational efficiency and improves organizational processes, is one of the key custom application development service market trends that is expected to impact the industry positively in the forecast period. The use of AI is increasing in end-user industries such as healthcare, education, retail, and finance is increasing because of the benefits. It is extensively being used by governments. In the retail industry, AI is used in supply chain planning, demand forecasting, price optimizing, customer intelligence, and enhancing day-to-day store operations. AI-based applications can help retailers manage store shelves better. AI-optimized applications offer enterprises the ability to augment their internal processes with quick automation, efficiently address customer service operations, and improve personalization and responsiveness throughout their processes. Hence, the increasing use of AI-enabled enterprise applications is expected to further support the growth of the market in the coming years.
Key Custom Application Development Service Market Challenge
One of the key challenges to the global custom application development service market growth is the availability of open-source platforms. Such platforms are usually developed by and for a large community of software engineers. End-users across the world are actively using open-source platforms as they offer benefits such as free use, free support, and prevention of vendor lock-in. Some of the open-source platforms available in the market are:
These are free and open-source distributed version control systems designed to handle application development with speed and efficiency. Startups and SMEs are the primary users of open-source platforms because of their cost constraints. Open-source platforms can perform functions such as designing and developing applications. Thus, the increasing adoption of open-source platforms may hinder the growth of the market during the forecast period.
This custom application development service market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global custom application development service market as a part of the global IT consulting and other services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the custom application development service market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the custom application development service market encompasses successful business strategies deployed by the key vendors. The custom application development service market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The custom application development service market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the custom application development service market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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37% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for custom application development services in North America. Market growth in this region will be faster than the growth of the market in South America, Europe, and MEA.
The significant increase in the adoption of advanced technologies and the rise in the use of smartphones by consumers and enterprises to develop applications (including custom applications) will facilitate the custom application development service market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 is expected to propel the growth of the market in North America. The emergence of the new business environment, with remote working culture at its core, is increasing the adoption of custom application development services and helps in planning, tracking, and monitoring business projects. Lockdown norms across various industries have multiplied digital and online transactions. Therefore, companies in the region are using custom software to minimize risks and capitalize on the opportunities brought forth by the pandemic. Such factors will drive the regional custom application development service market during the forecast period.
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The custom application development service market share growth by the on-premise will be significant during the forecast period. On-premise application development services refer to hardware and software that are handled on-premise by end-users. A major advantage offered by these services is that they offer clients full control over the functioning of the hardware and software, which will propel its adoption in the coming years (owing to the low risk of security breaches). Large companies that deal with critical business information prefer on-premise application development services as they provide an optimum level of data security with physical access controls and security protocols
This report provides an accurate prediction of the contribution of all the segments to the growth of the custom application development service market size and actionable market insights on post COVID-19 impact on each segment.
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Custom Application Development Service Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.5% |
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Market growth 2022-2026 |
$ 38.15 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
7.51 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key consumer countries |
US, Canada, China, India, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Accenture Plc, Capgemini Service SAS, Chetu Inc., Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., HCL Technologies Ltd., Iblesoft Inc., Infanion, Infosys Ltd., International Business Machines Corp., Larsen and Toubro Infotech Ltd., Logica Infotech Services Pvt. Ltd., Netguru S.A, NTT DATA Corp., Software AG, Speridian Technologies, Tata Consultancy Services Ltd., Trianz, and Wipro Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Deployment
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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