Application Development Software Global Market Report 2025

Application development software encompasses the creation, design, and implementation of software applications tailored for diverse industrial purposes. This process can involve either a sizable team or an individual programmer and entails the entire lifecycle of crafting an application. It delineates the method through which an application is conceived, designed, and built, typically adhering to standardized methodologies that guide the development process from initiation to completion.

Application development software comes in various types, prominently including low code and no code solutions. Low code development represents an approach aimed at streamlining software development processes to expedite software delivery, assisting enterprises in automating every phase of the product lifecycle. These solutions cater to diverse deployment types, including on-cloud and on-premise setups. Primarily utilized by organizations ranging from small and medium enterprises to large enterprises, application development software finds application across multiple sectors such as media and entertainment, telecommunications, information technology, banking, financial services and insurance (BFSI), and healthcare.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.

The application development software market research report is one of a series of new reports from The Business Research Company that provides application development software market statistics, including application development software industry global market size, regional shares, competitors with an application development software market share, detailed application development software market segments, market trends and opportunities, and any further data you may need to thrive in the application development software industry. This application development software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The application development software market size has grown exponentially in recent years. It will grow from $407.25 billion in 2024 to $511.55 billion in 2025 at a compound annual growth rate (CAGR) of 25.6%. The growth in the historic period can be attributed to increasing demand for mobile apps, shift to agile development methodologies, rise in digital transformation initiatives, increasing complexity of software projects.

The application development software market size is expected to see exponential growth in the next few years. It will grow to $1459.41 billion in 2029 at a compound annual growth rate (CAGR) of 30.0%. The growth in the forecast period can be attributed to low-code and no-code development trends, integration with DeVos practices, focus on user experience (UX), cloud-native application development. Major trends in the forecast period include serverless computing, progressive web applications (PWAs), focus on user experience (UX) design, edge computing integration, application security and compliance.

The forecast of 30.0% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by escalating licensing fees for IDE platforms from Sweden and Canada, slowing software innovation. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising need for tailored applications is anticipated to drive substantial growth within the application development software market. Customized applications offer a range of advantages, including adaptability to hybrid environments, catering to specific and intricate requirements, seamless integration with platforms, and improved performance. Notably, as per a survey conducted by SmarterHQ, a US-based provider of a customer intelligence-driven marketing automation platform, data reveals that 72% of consumers exhibit engagement solely with personalized messaging. Moreover, an overwhelming 80% of frequent shoppers prefer brands that personalize their online experiences. This growing demand for personalized applications is projected to be a significant driving force behind the expansion of the application development software market.

The escalating adoption of smartphones is poised to significantly drive the growth trajectory of the application development software market in the foreseeable future. Smartphones, handheld electronic devices combining mobile phone functionalities with a plethora of features and applications, have become ubiquitous, offering capabilities such as internet browsing, email, multimedia playback, and access to a wide array of third-party applications. This widespread adoption has triggered an exponential surge in demand for mobile applications, fostering the development of diverse mobile app development tools and frameworks. For instance, as per a report by Uswitch Limited, a UK-based online and telephone comparison service, there were 71.8 million active mobile connections in 2022, reflecting a notable 3.8% increase from 2021. Projections indicate that by 2025, the UK's population will reach 68.3 million, with an estimated 95% of individuals equipped with smartphones. This proliferation of smartphone adoption stands as a driving force behind the remarkable expansion of the application development software market.

Major companies in the application development software market are introducing technologically advanced services, such as AI solutions, to provide customers with enhanced features. AI services are digital offerings that utilize artificial intelligence technologies to automate tasks, analyze data, and deliver insights, improving decision-making and efficiency across various sectors. For instance, in October 2024, Fujitsu Limited, a Japan-based information and communications technology firm, launched the Fujitsu Kozuchi AI Agent. This advanced AI service is being rolled out through Fujitsu's Data Intelligence PaaS, part of the Fujitsu Uvance business model, aimed at addressing cross-industry societal challenges. Initially designed as an agent for business profitability discussions and negotiations, this AI service will provide relevant insights and suggest solutions. Fujitsu plans to expand its AI agent capabilities to support areas like production management and legal affairs, with a full rollout anticipated in fiscal 2024. Furthermore, the Kozuchi AI Agent will be integrated into digital services such as Uvance's Work Life Shift, enhancing collaborative capabilities across various industries.

Major players in the application development software market are innovating products like cloud-native enterprise application development software to cater to larger customer bases, boost sales, and increase revenue. Cloud-native enterprise application development software consists of tools, frameworks, and platforms designed to simplify the creation, deployment, and management of applications specifically built for cloud environments. For example, in September 2024, F5 Inc., a US-based technology company, launched NGINX One, a comprehensive solution that combines advanced load balancing, web and application server capabilities, API gateway functions, and security features into a single package. This platform allows customers to effortlessly manage and secure both F5 NGINX instances and NGINX Open Source from a unified cloud management interface. Tailored for modern, ephemeral, and cloud-native application components like containers and Kubernetes, NGINX One optimizes, scales, and secures complex application and API environments across multiple teams in a cost-effective manner.

In May 2024, Rocket Software Inc., a US-based software firm, acquired OpenText's application modernization and connectivity (AMC) business for $2.275 billion. This acquisition marks a significant milestone for Rocket Software, establishing a new standard for modernization innovation and excellence. This move substantially accelerates Rocket's strategic growth and market penetration. OpenText is a Canada-based company specializing in the development and sale of enterprise information management software.

Major companies operating in the application development software market include Alphabet Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, Broadcom Inc., SAP SE, Fujitsu Limited, Salesforce.com Inc., Wipro Limited, ServiceNow Inc., Twilio Inc., GitHub Inc., Pegasystems Inc., OutSystems Inc., Appian Corporation, JetBrains s.r.o., Mendix Inc, Kony Inc., HCL Technologies Limited, Alice Technologies Inc., Snappii Custom Mobile Apps LLC, Joget Inc., AppSheet Inc., Axure RP LLC, Zoho Corporation Pvt. Ltd.

North America was the largest region in the application development software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application development software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the application development software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The application development software market includes revenues earned by entities by providing software tools for more efficient app-building and user interface (UI) design process by offering low-coding approaches and user-friendly app-building systems for front and back-end development including security, data storage, and monitoring layers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Application Development Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on application development software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for application development software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The application development software market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Low Code; No Code
• 2) By Organization Size: SMEs; Large Enterprises
• 3) By Deployment: Cloud; On Premise
• 4) By Application: Media and Entertainment; Telecom And IT; BFSI; Healthcare
• Subsegments:
• 1) By Low Code: Low Code Development Platforms; Low Code Application Platforms; Low Code Development Tools for Specific Industries
• 2) By No Code: No Code Development Platforms; No Code Application Builders; No Code Integration Tools
• Companies Mentioned: Alphabet Inc.; Microsoft Corporation; International Business Machines Corporation; Oracle Corporation; Broadcom Inc.; SAP SE; Fujitsu Limited; Salesforce.com Inc.; Wipro Limited; ServiceNow Inc.; Twilio Inc.; GitHub Inc.; Pegasystems Inc.; OutSystems Inc.; Appian Corporation; JetBrains s.r.o.; Mendix Inc; Kony Inc.; HCL Technologies Limited; Alice Technologies Inc.; Snappii Custom Mobile Apps LLC; Joget Inc.; AppSheet Inc.; Axure RP LLC; Zoho Corporation Pvt. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.