PUBLISHER: The Business Research Company | PRODUCT CODE: 2087342
PUBLISHER: The Business Research Company | PRODUCT CODE: 2087342
Generative AI in software development refers to the use of advanced artificial intelligence models, particularly those based on machine learning and large language models, to assist in the creation, modification, optimization, and maintenance of software code. These systems are capable of generating human-like code, automating repetitive programming tasks, identifying bugs, and enhancing overall software quality.
The generative AI in software development market consists of revenues generated by entities (organizations, sole traders, and partnerships) that develop and provide generative AI tools, platforms, and services designed specifically for software development workflows. These tools are used by software developers, IT teams, enterprises, startups, and independent programmers across industries such as technology, finance, healthcare, retail, and manufacturing. Generative AI solutions are typically used throughout the software development lifecycle, including design, coding, testing, deployment, and maintenance phases, enabling faster development cycles and improved productivity.
The global generative AI in software development market was valued at $23,042.9 million in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 23.00%.
Ongoing Enterprise-Wide Digital Transformation Investment
During the historic period, generative AI in the software development market was driven by ongoing enterprise-wide digital transformation investment. As organizations across industries increasingly prioritize modernization of legacy systems, adoption of digital-first business models, and integration of advanced analytics and automation technologies, the demand for generative AI-powered development tools has expanded to accelerate software delivery, enhance developer productivity, and enable intelligent application development. Enterprises leveraged generative AI capabilities such as code generation, automated testing, and AI-assisted debugging to streamline development lifecycles and reduce time-to-market for digital solutions. For example, in July 2024, according to the Office for National Statistics, a UK-based government agency, market sector investment in digital infrastructure reached $10.77 billion (£9.2 billion) in 2022, reflecting a 22.9% increase from 2021. Therefore, the generative AI in the software development market was driven by ongoing enterprise-wide digital transformation investment during the historic period.
Artificial Intelligence And Autonomous Intelligence
Major companies in the generative AI in software development market are increasingly focusing on advanced AI-driven modernization solutions, intelligent code analysis, and autonomous system optimization platforms. These initiatives leverage generative AI models, machine learning algorithms, and data visualization technologies to enhance legacy system transformation and streamline development workflows. For example, in February 2025, Fujitsu Limited, a Japan-based information and communication technology company, launched a generative AI-powered software analysis and visualization service designed to support optimal system modernization planning. The solution utilizes AI-driven code analysis, dependency mapping, and visualization capabilities to provide comprehensive insights into complex legacy systems, enabling developers to identify modernization priorities, reduce system complexity, and improve decision-making. By integrating scalable AI models, automated analysis tools, and intelligent visualization frameworks, the platform enhances software development efficiency, accelerates digital transformation, and supports organizations in transitioning toward more agile and autonomous software environments.
The global generative AI in software development market is fairly fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 11.85% of the total market in 2024.
Generative AI In Software Development Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global generative AI in software development market.
Where is the largest and fastest-growing market for generative AI in software development? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The generative AI in software development 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 history and forecasts market growth by geography. It places the market within the context of the wider generative AI in software development market; and compares it with other markets.