Application Development Software Market Size, Share & Trends Analysis Report By Type (Low-code Development Platforms, No-code Development Platforms), By Deployment Type, By Organization Size, By Application, And Segment Forecasts, 2021 - 2028

Report Overview

The global application development software market size was valued at USD 131.4 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 24.3% from 2021 to 2028. The increasing demand for various software applications to speed up and simplify business operations using advanced IoT technology and cloud-based solutions is expected to support the market growth over the forecast period. The demand for application development software is anticipated to gain steady traction over the coming years owing to the need for scalable and customized software. Due to the COVID-19 pandemic, increasing health awareness among individuals has directed various doctors and health workers to deliver their services over applications. This factor is anticipated to contribute to market growth.

In the first half of 2020, the market witnessed negative growth due to the spread of the COVID-19 virus. Various offices, manufacturing units, and media houses have witnessed a temporary closure owing to the lockdown restrictions globally. However, the demand for software applications from media and entertainment and IT and telecom industries, owing to work from home strategies, is expected to support the market growth over the forecast period.

Application development software is used to design and develop various advanced applications depending on the end user’s requirements. The apps developed can be run on several computer devices, digital gadgets, and smartphones. They help in accomplishing a task more quickly and efficiently. The developed application is equipped with several characteristics to perform tasks such as generating sales reports, scheduling appointments, calculating monthly expenditures, and helping businesses automate processes. The increasing demand for cloud deployment among various small, medium, and large enterprises is expected to support market growth in the coming years.

Application development software allows organizations to develop software products, including desktop and mobile applications, which assist them in reaching mass audiences and catering to different user requirements. They require vast technical knowledge such as code assist tools, mobile development and integration, development tools, application programming interface (API), and testing to cater to customer expectations and requirements. The app assists in managing complex operations with better efficiency at a high speed and minimal cost. It can also help automate processes in robotic automation and enable the collection of feedback from end-users for better business alignment.

Type Insights

Based on type, the application development software market is segmented into low-code 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 WordPress, 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.

Deployment Type Insights

Based on deployment type, 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.

Organization Size Insights

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. Additionally, these organizations prefer to implement their solutions and services on-premise. Implementing data on-premise helps these organizations in maintaining confidentiality and data privacy. All these factors are anticipated to support the segment growth over the forecast period.

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.

Application Insights

Based on application, the market is segmented into BFSI, media and entertainment, IT and telecom, healthcare, travel and tourism, and 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.

Regional Insights

North America dominated the market and accounted for over 40.0% share of the global revenue in 2020. The region is a center for numerous internet users and technological innovations. For instance, according to the data published by World Bank, the number of internet users in the U.S. accounted for 88.4% of the country’s total population in 2018. Furthermore, the presence of various prominent players, including Oracle Corporation and Salesforce.com, Inc., is anticipated to support the market growth in the region.

The market in the Asia Pacific region is anticipated to expand at the highest CAGR of 27.3% from 2021 to 2028. The rising number of manufacturing units and IT companies and the surge in the tech-savvy and urban population in various countries in the region, including India and China, are expected to propel the market growth in the region over the forecast period.

Key Companies & Market Share Insights

The prominent players that dominated the market globally in 2020 include Oracle Corporation; Salesforce.com Inc.; Zoho Corporation; Fujitsu Ltd.; and HCL Technologies. These players focus on acquisition, partnership, and collaboration to enhance their presence in the market and gain a competitive edge. For instance, in May 2020, Oracle Corporation unlocked its second Cloud region in South Korea. The company plans to work around 36 second-gen cloud regions by 2020 as a part of its global plan.

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. For instance, in October 2019, Zoho Corporation introduced Catalyst. It is a full-stack server-less developer platform that allows developers to create and run applications and microservices. Some of the prominent players operating in the global application development software market are:

• Oracle Corporation

• Fujitsu Ltd.

• HCL Technologies

• Wipro Ltd.

• Zoho Corporation

Recent Development

• In April 2023, Fujitsu launched the Fujitsu AI Platform, Fujitsu Kozuchi. The platform delivers reliable solutions and access to a wide range of powerful AI & ML technologies to commercial users worldwide.

• In March 2023, Fujitsu collaborated with Osaka University. This collaboration developed a quantum computing architecture that can perform higher calculations and remove quantum errors.

• In June 2021, HCL Technologies launched the latest version of Domino, the secure enterprise application development platform. This product enhanced the security of the cloud with a flexible backup solution in the market.

Application Development Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global application development software market report based on type, deployment type, organization size, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2028)

  • Low-code Development Platforms

  • No-code Development Platforms

• Deployment Type Outlook (Revenue, USD Million, 2018 - 2028)

  • On-premise

  • Cloud

• Organization Size Outlook (Revenue, USD Million, 2018 - 2028)

  • Small & Medium Enterprise

  • Large Enterprise

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • Media & Entertainment

  • IT & Telecom

  • Healthcare

  • Travel & Tourism

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa