The software development industry has the fastest growth rate among other business sectors. With a 5.3% growth rate, the global software market will reach $507.23 billion in 2025. Keeping up with the industry is imperative for businesses and their development teams.
In this article, you will learn about exciting software development statistics, both global and regional.
- Europe has an estimated 6.1 million developers, while China has 7 million developers.
- There are approximately 25.6 million software developers in the world.
- 41.41% of software developers are working remotely.
- Male developers dominate the software industry, reaching over 91%.
- The average annual base salary for a software developer in the US was around $120,730.
- India is the IT outsourcing destination of the world, accounting for 65% of the worldwide population.
How Big is the Software Development Industry?
The software development industry is expanding rapidly, and the demand for software professionals is high. From 2020, the number of software developers will increase by up to 13% by the end of 2023.
With this demand, software developers have among the best-paying jobs in the world. The following sections demonstrate how rapidly growing the industry and technology are and how large the professional population is.
|🎉 Fun Fact: |
The official first piece of software written was with punch cards. It calculated the greatest divisor of 2 to the power of 18, completing the calculation in 52 minutes. One of the results of this achievement was the creation of Fortran, the first programming language.
Software Development Growth Statistics
Software development is the buzzword on the Internet. The industry is experiencing significant growth since more companies are adopting the software trend. This adoption is due to large data sets and customers. One major contributor to this rapid growth is enterprise software, which accounts for about 40% of worldwide revenue.
This section showcases the primary growth of software development in different aspects. These aspects include gender, age, work, and business.
1. There are approximately 25.6 million software developers in the world.
The number of software developers in the world is growing each day. As of 2023, the global population of software developers is 25.6 million. The population increased by more than 20% within five years, from 2018 to 2023.
With the fast-paced software industry, the demand for developers continues to grow by around 22% until 2029. The increased rate indicates a brighter future for this profession.
2. In 2021, the global software development market was $474.61 billion.
(Grand View Research)
The automation of business processes contributes to the growth of the software industry. The demand for software professionals grows to cater to the increasing deployment of enterprise software and services.
In the 2022 report, the business software and services market is worth $474.61 billion. From 2023 to 2030 predictions, the market size continues to grow, with a CAGR of 11.8%.
3. Ages between 25 and 34 contribute to 39.52% of the total population.
The majority of the software developers are in the age range of 25–34 years old. This age range contributes to 39.52% of the total software developer population. Following that age range is the 18–24 age range, with 25.47% of the population.
Software developers’ demand in the industry is on the rise. It is a given that the age distribution sits between 18 and 44 years old. However, it is surprising that professionals in this industry are under 18, contributing 6.52% of the total population.
4. Around 24% of business professionals outsource software development.
In 2022, the IT outsourcing industry expanded, reaching a spending amount of $4.4 trillion. The industry is prevalent among businesses worldwide. Around 24% of business professionals outsource their software development teams, with benefits such as:
- Cost savings
- Access to specialized skills
- Increased efficiency, and scalability
Onshore: Hiring professionals within the city.
Nearshore: Hiring professionals in neighboring countries that share the same time zone.
Offshore: Hiring professionals in a different country.
The global market value of the IT outsourcing market will reach $460.1 billion in 2023 as more companies benefit from IT outsourcing. The industry continues to expand until 2028, with an annual growth rate of 11.07%.
5. Male dominance in the software industry reaches over 91%.
The software industry is a male-dominated environment. The gender imbalance in the software industry is overwhelming and has been going on for years. In 2022, there were 91.88% male developers and around 5% female developers.
6. In 2022, 61% of software developers use Windows, and 46% use macOS.
Windows continues to be the most preferred development environment. In 2022, it reached 61% of the total developer population. MacOS and Linux are in the second and third spots, with 46% and 45%, respectively.
OS usage for software development varies by company and personal preference. It depends on what you are doing and the nature of your work as a software developer.
7. 41.41% of software developers are working remotely.
Remote work became more popular in 2020. Since then, some companies have adapted to this kind of work arrangement. Outsourcing has become a trend in the software industry as well. As a result, more software developers work remotely, accounting for 41.41% of the total population.
Software Development Statistics by Region
Companies are keeping up with the trend and are willing to invest in some software development projects. The cost of the projects ranges from $3,000 to $150,000. For complex software development, it will cost up to $1 million.
Undeniably, software development has impacted the overall value of the global market. This section showcases the regional growth of software development statistics – from its market value to the number of professionals.
8. A software developer’s average annual base salary in the US was around $120,730.
(U.S. News, U.S. Bureau of Labor Statistics)
In 2021, software developers in the US were among the top 25 best-paying jobs and the top 1 in technology jobs. The median annual salary was $120,730. The highest paid was $151,960, while $90,870 was the lowest-paid.
As demand keeps rising, so does the developer’s salary. In 2022, the record shows that the developer’s salary grew to $124,200, accounting for a 2.8% salary increase annually.
9. Europe has an estimated 6.1 million developers.
Europe is one of the regions with the highest population of software developers. As of 2023, Europe has 6.1 million software developers, accounting for 22% of the global population.
The market value of Europe is $146.7 billion, with Germany being the most significant contributor. It remains the country in Europe with the highest concentration of software developers, followed by the UK and France.
The following is the number of developers and the revenue for the top 3 countries:
- Germany: 902k developers and $88.50 billion revenue
- The UK: 850k developers and $65.95 billion revenue
- France: 534k and $22.55 billion revenue
11. Asia has the highest number of application developers, accounting for 32.9% of the professional population.
An application developer is a professional software developer who writes software programs for mobile operating systems. This mobile OS consists of Android and iOS. In 2021, Android dominated the development market with 87%, while iOS fell behind with 60%.
With Asia as the homecourt of cellular technology, the demand for application developers is the highest. Asia still dominates the market, contributing 32.9% of the app developer population.
12. India is the IT outsourcing destination of the world, accounting for 65% of the worldwide population.
India has the largest pool of IT professionals. It holds 65% of the outsourced IT jobs, accounting for $585.57 billion in market revenue in 2023.
The United States dominates Indian IT outsourcing, accounting for 62% of the market. Next on the list is the United Kingdom, with a total of 17%.
Here are some of the top IT outsourcing services in India:
- Web development
- Mobile application development
- Custom software development
- Quality assurance and testing
13. China’s software industry market size reached $1.31 trillion.
(Statista, IBIS World)
The software industry in China is rapidly growing. It is the home of 7 million software developers, making it the country with the largest developer population worldwide.
In 2023, software development in China will have a market size of $1.4 trillion. The market volume continues to grow through 2028, with a growth rate of 11.68%. With this growth rate, the market will have $61.24 billion in revenue by the end of 2028.
In terms of enterprises, over 151 thousand companies are active in the software industry. This large number of companies makes enterprise software the leading software sector, reaching $1 trillion in 2023.
Software Development Statistics by Technology
Software developers work in various specialties. The job opportunities in the software development industry are diverse. You can filter out some of the technologies and still develop a skill set that is enough to land a job in the software industry.
In 2023, web development is the most in-demand tech skill, followed by DevOps and database software. With the increasing digital world, over 16% of recruiters seek IT professionals with cybersecurity skills.
The following shows the different technologies, tools, and resources software professionals use.
(Statista, Web Tech Survey)
15. NodeJS overtook ReactJS as the most popular web framework with a 2.07% difference.
ReactJS has always been at the top of the most popular web framework list. However, as of 2023, NodeJS took over the first spot, accounting for 42.65% of the global population. Though React and Node are frameworks, they differ in purpose. NodeJS is for back-end development, while React is for front-end development.
A web framework is a set of libraries to help software developers build and manage applications.
16. Jira is the most-used tool for managing software development projects by 50%. (Statista)
Most software development companies are using Jira to handle their projects. It is a management tool that supports the Agile method. Initially, Jira was for issue and bug tracking.
Nearly 50% of developers use Jira. Due to its flexibility and customization options, developers prefer to use JIRA more than any other project management tool.
17. The shift to cloud services will immensely affect the software enterprise industry, generating $55.9 trillion by 2030.
(Gartner, Grand Review Research)
Cloud computing is one of the technologies that are emerging in this industry. It immensely affects the software enterprise industry, growing to over $1.3 trillion in 2022.
During the 2022 forecast, the predicted revenue was $354.6 billion. However, the cloud computing market size surpassed the prediction, with a value of $438.98 billion by the end of the year.
18. StackOverflow is the most trusted online community for developers, with an annual revenue of over $50 million.
Even with ChatGPT’s popularity, it’s undeniable that Stackoverflow is the most trusted online community for developers. It remains the go-to online resource, with over $50 million in annual revenue.
The top traffic source for the website is organic search, with 85.16% of the web traffic worldwide. The US contributes 20% of the website’s global traffic by region.
19. Artificial intelligence in software will reach $126 billion in revenue by 2025.
Artificial intelligence (AI) is undeniably expanding. Professionals use AI to be more efficient and effective – from design to development and deployment.
AI helps the business process in the software development industry, improving the software development life cycle (SDLC). According to 2021 reports, AI augmentation in the software market reached $2.9 trillion in total market revenue.
More businesses in the tech industry are investing heavily in software with AI integration. The market’s rapid growth will reach around $126 billion by 2025.
AI can automate repetitive tasks or tedious technical tasks. Still, it can never replace human developers’ creativity, intuitiveness, and critical thinking abilities.
The software industry is dynamic and has remained competitive. Technology developments such as AI and cloud services contribute to a considerable market growth.
As more technology integration keeps emerging, the software industry will continue to expand. Staying updated with the latest software trends as the industry progresses is essential.
FAQs on Software Development Industry
1. How many software developers are there in the US?
4.3 million developers call the US their home. At the same time, Washington is the number one US state with the highest percentage of software developers (6.46%).
2. Is software development a promising career?
The future looks bright for the profession. According to software development statistics, jobs in this industry will grow by 22% in the upcoming years.
Apart from the high demand for this profession, the average annual salary is $107,510. Some other perks of being a developer are flexibility, work-life balance, and a comfortable work environment.
3. Which software development methodology to choose?
Waterfall, rapid application development, and prototype are standard methodologies, while agile is the most used.
Agile software development statistics suggest that this methodology minimizes risks if the team adds new functionality. Agile can take many forms, such as scrum, extreme programming, and crystal.
4. Why do software development projects fail?
25% of all software projects fail. Reasons for project failure vary, but all share the same denominator—bad project management. Insufficient time to finish a project, unclear requirements, or poor communication are all causes of failed projects. 55% of projects fail due to a lack of time.
5. Can software development be automated?
Regarding software development, automating human skills is likely to happen. However, specific tasks could and likely will be. 1 in 3 developers state AI is replacing their main professional fear.