Version Control System Market Size, Share & Trends Analysis Report By Type, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2020 - 2026

Report Overview

The global version control system market size was valued at USD 897.2 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.6% from 2020 to 2026. Version control systems provide a log of each change in the software products, which enables development teams to reduce complexities in the software development process. The rising demand for digitalization and automation in the software development process, coupled with the growing adoption of tablets and smartphones, is expected to drive the adoption of version control systems. Version control systems also allow software developers to keep track of all modifications and make comparisons with previous files. Additionally, the systems eliminate the need for manually tracking and managing changes in the data and file and streamline the overall software development process. These factors are further expected to drive market growth over the forecast period.

The increasing need for ease of operations and user-friendly solutions has boosted the demand for automated tracking tools and software solutions, which in turn, is expected to propel the market growth. The numerous benefits offered by version control systems, including portability, interoperability, and auditing, are expected to augment the market growth. These systems can be integrated with software applications such as Integrated Development Environment (IDE), Platform as a Service (PaaS), and build automation software providers and allow the developer to use software from the same tool they are working on. Open-source and cross-platform version control systems such as Git, Github, and Subversion, which support all platforms, languages, multiple sets of technologies, and frameworks, are further expected to propel the market growth.

Growing development teams across the globe and increasing demand for collaboratively working on projects to accelerate product delivery are further expected to propel the market growth. Additionally, the demand for managing multiple versions of codes and files, along with eliminating duplication of efforts while working on the same set of files, is also contributing to the market growth. Higher quality software and increased productivity are the major priorities for today’s software development teams. To achieve these, developers are adopting version control systems to automate tasks such as testing and deployment.

However, challenges such as data privacy and theft issues are expected to hamper the market growth. The increasing use of distributed version control systems for software development, which allows users to clone the repository, can lead to security and data theft issues. Furthermore, projects that are frequently updated and have large files may slow down the development process. This is further expected to pose a challenge to market growth.

Type Insights

The Centralized Version Control Systems (CVCS) segment dominated the market in 2019 with a share of over 53%. CVCS is cost-effective and it allows developers to keep a log of changes in the source code which helps developers to minimize complexities in software development. The Distributed Version Control Systems (DVCS) has gained popularity among individual programmers as it offers better performance and makes the development of new code branches quicker and simpler. DVCS also allows users to work when not connected to the network. Moreover, it enables developers to use various development models such as the commander model and development branches to develop user-friendly software. These factors are further expected to drive the growth of the DVCS segment.

Numerous individual developers with limited requirements for audit history are adopting DVCS to increase their productivity. Open source DVCS, which enables developers to modify and develop the source code as per their requirements for free of cost, is particularly gaining popularity among individual developers. DVCS is scalable and enables users to manage a large number of collaborators in the repository while using the lossless compression technique to store data. These factors are expected to drive the segment growth over the forecast period.

Deployment Insights

The on-premise segment dominated the market in 2019 with a revenue share of over 50% and is anticipated to expand at a CAGR of over 12% during the forecast period. The increasing number of data breaches and data cloning is encouraging developers to adopt the on-premise version control systems to prevent duplication of software. Organizations have adopted the on-premise systems as it allows easy customization of software as per a client requirement. Furthermore, on-premise deployment reduces the total cost of ownership owing to the low monthly or annual subscription fees.

The cloud deployment segment is gaining traction in the market owing to advanced practices and preferred use for cloud platforms in the software development process. Software development companies are now focusing on deploying cloud-based version control systems as they allow companies to reduce the overall operational cost. Furthermore, cloud deployment also offers additional services that are integrated with the source control system and help developers to streamline their development process. For instance, cloud providers offer issue tracking integrated with the source control system, which allows developers to track and identify issues found in the development process.

Enterprise Size Insights

The large enterprise segment dominated the market with a revenue share of over 60% in 2019 and is expected to expand at a CAGR of over 12% over the forecast period. The growing need for better quality solutions and a smooth development process is driving the demand for version control systems in large enterprises. Additionally, an increasing emphasis on resource allocation and strategic decision-making is expected to further augment the segment growth. Large enterprises have access to enough capital and different assets to consolidate more up-to-date newer technologies to lead the pack in the market. Another factor contributing to growth is the high investment of large enterprises in R&D activities to develop the ideal solution for improving their business productivity.

Large enterprises with teams that are geographically distributed may face challenges while working on a common project. The adoption of a version control system enables large enterprises to replicate data so that such developers can work on a common project with ease. The system also allows enterprises to integrate code reviews with the source code management process so that developers can develop software products with fewer bugs. Through a version control system, large enterprises can ensure software quality, build teamwork, and protect IP assets.

End-use Insights

The IT and telecom segments dominated the market in 2019 accounting for over 20% revenue share. The growing development in mobile applications, frequent release of updated software versions, and rising demand for detecting and resolving software bugs are likely to drive the demand for version control systems in the IT and telecom segment. The version control system supports multiple platforms and allows software developers to offer updated versions of the software. Additionally, the systems also help IT and telecom organizations to secure their work on the latest release and source code of the newly released software version.

The growing demand for Artificial Intelligence (AI) and machine learning is expected to increase the deployment of various applications and software in the healthcare and life science verticals. Moreover, the increasing adoption of solutions such as mHealth, wearable technology products, and smartphone applications is leading to a rise in the demand for the latest software versions. This software requires consistent security patches and regular updates as they store crucial drug and patient information. The management and update of the latest software versions are accomplished through version control systems.

Regional Insights

North America dominated the market in 2019 with a revenue share of over 30%. This growth can be attributed to the rising demand for customized software solutions and the significant presence of software vendors in the region. Moreover, the growing adoption of cloud strategy has doubled the rate of usage for version control systems in the region. Various end-use industries such as BFSI, retail, IT & telecom, and healthcare rely on software and mobile applications to execute customer queries and need to upgrade this software and applications regularly. This is also expected to drive the regional market growth over the forecast period.

The presence of major players such as Amazon.com, Inc.; IBM Corporation; and Microsoft Corporation in North America is expected to propel the growth of the regional market. Additionally, the rising penetration of the internet and smartphones in the region also acts as a key factor for driving market growth. Increasing demand for various types of mobile apps such as games, sports, entertainment, and news and the need to manage different versions of these apps are expected to offer lucrative revenue opportunities to established players as well as new entrants in the market.

Key Companies & Market Share Insights

Market players are heavily investing in research and development activities to enhance their existing products and develop new products. For instance, in 2019, Atlassian invested 48% of its revenue in research and development to enhance its existing product offerings as well as develop new products. Market players are focusing on initiatives such as acquisitions, new product launches, and product updates to offer comprehensive products and services in the market. For instance, in June 2018, Microsoft Corporation acquired GitHub, a software development company. The acquisition enabled the former company to offer advanced software and services to its customers. Some of the prominent players in the version control system market include:

• Atlassian

• Amazon.com, Inc.

• Collabnet

• IBM Corporation

• Micro Focus

• Microsoft Corporation

• PTC, Inc.

• SeaPine Software

• WANdisco, Inc.

• Wildbit LLC

Version Control System 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 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global version control systems market report based on type, deployment, enterprise size, end-use, and region.

• Type Outlook (Revenue, USD Million, 2015 - 2026)

  • Centralized Version Control Systems (CVCS)

  • Distributed Version Control Systems (DVCS)

• Deployment Outlook (Revenue, USD Million, 2015 - 2026)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2015 - 2026)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2015 - 2026)

  • BFSI

  • Education

  • Healthcare & Life Sciences

  • IT & Telecom

  • Retail & CPG

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2026)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA