USA Software Development Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

The USA Software Development Market size is forecasted to reach USD 2.2 billion by 2030, after growing at a CAGR of 3.4% during 2024-2030. More than 4.4 million software developers are thought to reside in the US. According to statistics on software engineers, the US is where the majority of software engineers reside. Software engineer employment is expected to rise at a steady rate of 21% from 2018 to 2028, which is significantly faster than the average for a variety of industries. DataUSA reports that 1.36 million individuals were employed in the US in 2017 as software developers, applications and software. According to the most recent US workforce statistics from 2021, there were 1.4 million open CS jobs by the end of 2020, which raises serious worries about the talent shortage. However, there are only 400K graduates each year. If the US's lack of software developers continues to expand at the same rate, the US might face an unrealized output of $162 billion. Without new talent, business growth and digital transformation are difficult, which widens the gap between the supply and demand of IT skills.

The report “USA Software Development Market – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the USA Software Development market.

By language: JavaScript, Java, Python, SQL, Go, PHP, C/C++, PERL, Android, iOS, Scala, Ruby, LISA and Others.

By Market Demand: In-house on Payroll, Hired from Secondment Providers, Hired Freelancers and Fully Outsourced.

By Deployment Type: On-premise and Cloud.

By Business Size: Small and Medium Businesses, Enterprises and Government.

By End-use Industry:  Banking and Financial Institution, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing and Others

• Over the past few years, the software sector in the US has grown rapidly. Given that all of the major software businesses are based in the US, the market is predicted to grow at this rate throughout the ensuing years and remain the industry's main driver. 

• Since key industry leaders like IBM, Microsoft, Oracle and others all have US bases and have developed into major players in not only the home market but also the software market globally, the US has played a significant role in growing and nourishing the global software industry.

Python held the largest share of the USA Software Development Market in 2021. Low code development has become popular and has the potential to displace many different sorts of developers in the next years, according to a recent research study. For instance, low code development creates sophisticated apps without the use of coding and instead depends on graphics. The top five coding language skills for job seekers were found after data analysis by CyberCoders, one of the main IT recruitment companies in the nation: Java, SQL, JavaScript, C++ and Python. JavaScript is the most extensively used programming language in the world, followed by HTML/CSS, SQL, Python and Java, according to Stack Overflow's 2020 Developer Survey. Additionally, hiring managers in the Americas are particularly interested in this programming language.

In-house on Payroll held the largest share of the USA Software Development Market in 2021. By 2026, the United States would have a deficit of roughly 1.2 million software engineers, according to the Bureau of Labor Statistics. Python, SQL and Java are the three most highly promoted software skills. The number of times each language appears in an Indeed job posting, as shown by the search results - at the bottom, there are about 2,500 unfilled Golang job advertisements, while at the top, there are 84,000 unfilled Python job postings. (Reference: tunga.io.) The need for engineers with the necessary skill set is predicted to increase by 22% between 2019 and 2029, according to Forbes and the U.S. Bureau of Labor Statistics.

Cloud held the largest share of the USA Software Development Market in 2021.  On-premises and cloud deployment models are used for managed services. Although implementing managed services on-premise is laborious and expensive, it offers greater data integrity and privacy. Professionals are also needed to keep managed services operating smoothly. However, because of their adaptable, dependable and scalable capabilities, cloud-based managed services are becoming more and more popular. In comparison to on-premises deployment, cloud computing requires less hardware and is easily scaleable to meet business needs. Modern hardware, software and communication features are offered by cloud-based services, which are also reasonably priced. In the Software Development market under the Deployment model, the Cloud segment contributes roughly 76%, according to IndustryARC study.

Small and Medium Businesses held the largest share of the USA Software Development Market in 2021. Artificial intelligence (AI), robotics, virtual and augmented reality (VR, AR), 3-D printing and robotics are some of the most transformative technologies that are opening up significant new opportunities for American technology companies and organizations. Software applications are incorporating cognitive technologies like computer vision, machine learning, natural language processing, speech recognition and pattern identification to improve the capabilities of big data. The Internet of Things (IoT) has been overhyped in certain aspects, but it has only recently started to live up to expectations. Technology companies in the US continue to see development opportunities in the consumer market, but they also see expanding opportunities in the enterprise sector as organizations in virtually every industry look to technology to aid with modernization. As they battle for a competitive edge, businesses are adopting a wide range of novel, cutting-edge technologies, many of which are now more practical than ever as power and speed increase and costs fall. Microsoft, for instance, delivered Windows 11 in 2021. Windows 11 utilization was 8.9% according to AdDuplex's system survey data, which was published a few days ago (0.03 percent of Windows Insider program users).

With a market share of 14% as of 2021, banking and financial institutions have dominated the US software development market. A few trends that are anticipated to have an impact on the market in the upcoming years include the introduction of software development-integration-maintenance, networking development-integration-maintenance, information security, mobile services and web applications. To assist businesses in moving more quickly to the cloud, Accenture and VMware established a new business group in February 2021. The new business group intended to unite devoted individuals with in-depth knowledge of cloud-native and application modernization, security across major industries and hybrid cloud and cloud migrations.

The pandemic's effects on workforce challenges and the changing IT requirements are hastening the shift to services. Software-as-a-service, infrastructure-as-a-service and platform-as-a-service would all continue to grow in popularity and hardware-as-a-service would gain ground as a means for companies to offer integrated services to their hybrid workforces. Additionally, leaders believe that everything-as-a-service (XaaS) is essential to their digital transformation and to developing novel solutions and business models that would succeed in the new normal. As AI capabilities, intelligent edge services and improved wireless connection are powered by the cloud, it is quickly becoming the platform of choice for enabling XaaS and fostering innovation. To expand access to best-in-class technology, reduce vendor lock-in, optimize costs and improve resilience and reliability, many enterprises are using a hybrid, multi-cloud strategy. Additionally, spreading workloads across several clouds and on-premises can assist businesses in meeting performance, data security and privacy, legislation and cost needs, which might vary by application and location. Organizations would require a mechanism to effortlessly integrate and coordinate a plethora of cloud-based applications and data from a single platform or dashboard due to the complexity of this multi-cloud, multi-vendor strategy. Technology firms are stepping up to address this expanding need for orchestration and IndustryARC anticipates that the number of available solutions would increase over the next years.

The upfront setup and ongoing maintenance costs of on-premises data hosting are major concerns for businesses. Additionally, employee costs and challenges with downtime are a couple of other worries for businesses. The adoption of cost-effective strategies to reorganize business models has intensified due to the current competitive environment and global economic conditions. Additional factors influencing the adoption of cloud computing services, which in turn are lowering company expenses, include the growing shift of businesses toward adopting digital transformation and the acceleration of customer experience. Additionally, the pay-as-you-go approach provided by the cloud allows businesses to only pay for the cloud services they really use, which lowers costs.

Due to evolving business requirements, a rise in data breaches and cyberattacks and growing data security concerns, it has become more and more important in recent years to meet regulatory and compliance requirements. Additionally, businesses must work to remain in the market by taking steps to satisfy regulatory requirements, avoid financial penalties, protect customers and income and stay out of legal trouble.

Enterprises can increase operational effectiveness and cut expenses by using cloud computing services. Additionally, these services have several benefits, such as flexibility, scalability and agility. The data stored in the cloud is still vulnerable to cyber-attacks even though the cloud provides several advantages and security precautions. The amount of cyberattacks is continually rising due to the growing data volume and escalating organizational initiatives toward digital transformation. Enterprise data is becoming more vulnerable to risks from cyber-attacks like Spectre, Meltdown, cloud malware injection assaults, account or service hijacking and man-in-the-cloud attacks. Threats like these could force closures and losses for businesses.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the USA Software Development market. In 2021, the USA Software Development Market share has been consolidated by the top ten players accounting for a significant percentage of the share. Major players in the USA Software Development Market are Intellectsoft, itransition, Baytech Consulting, Merix Studio and others.