Software Engineering Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 66.33 Billion
CAGR (2026-2031)	13.58%
Fastest Growing Segment	PDM
Largest Market	North America
Market Size (2031)	USD 142.41 Billion

Market Overview

The Global Software Engineering Market will grow from USD 66.33 Billion in 2025 to USD 142.41 Billion by 2031 at a 13.58% CAGR. Software engineering entails the systematic application of engineering principles to the design, development, maintenance, and evaluation of software systems to ensure reliability and efficiency. The market is primarily supported by the acceleration of enterprise digital transformation and the essential requirement for scalable cloud infrastructure that underpins modern business operations. These drivers continuously fuel the demand for robust software solutions capable of managing complex data ecosystems and automation processes. According to CompTIA, in 2024, net tech employment in the United States was projected to increase by 3.1 percent, highlighting the sustained expansion of the workforce required to support these engineering demands.

Despite this growth trajectory, the sector faces a significant impediment regarding the persistent shortage of skilled professionals which restricts the capacity of organizations to deliver projects on schedule. This scarcity of specialized talent creates operational bottlenecks and inflates development costs, ultimately limiting the ability of companies to fully capitalize on market opportunities. Consequently, the widening gap between the demand for technical expertise and the available supply of qualified engineers remains a critical challenge that could slow the broader expansion of the global software engineering market.

Key Market Drivers

The integration of generative AI and automation into development lifecycles is fundamentally reshaping the Global Software Engineering Market by drastically reducing manual coding efforts and optimizing workflow efficiency. Engineering teams are increasingly leveraging AI-driven coding assistants and automated testing frameworks to streamline routine tasks, allowing developers to focus on complex architectural challenges rather than repetitive syntax generation. This widespread incorporation of intelligent tools is evident in the dramatic rise of AI-focused development activity globally. According to GitHub, October 2024, in the 'Octoverse 2024' report, there was a 98% increase in the number of public generative AI projects on the platform year-over-year, underscoring the rapid infusion of these technologies into modern software ecosystems.

Concurrently, the accelerated adoption of cloud-native architectures and SaaS models provides the necessary scalability and resilience for these advanced applications. Organizations are aggressively migrating legacy systems to distributed cloud environments to support microservices and real-time data processing, thereby driving substantial investment in cloud infrastructure services. This momentum is reflected in major provider performance; according to Alphabet Inc., October 2024, in the 'Third Quarter 2024 Results', Google Cloud revenue increased 35% year-over-year to $11.4 billion, driven largely by the essential demand for AI infrastructure and core services. The convergence of these cloud capabilities with automated development practices is yielding tangible operational improvements across the entire sector. According to GitLab, June 2024, in the '2024 Global DevSecOps Report', 69% of CxOs reported that their organizations are shipping software at least twice as fast as they were a year ago, highlighting the market-wide impact of these technological drivers.

Download Free Sample Report

Key Market Challenges

The shortage of skilled professionals constitutes a critical barrier hampering the growth of the Global Software Engineering Market. As organizations aggressively pursue digital transformation and cloud integration, the technical complexity of required software systems has surged, creating a demand for expertise that significantly outpaces the available labor supply. This imbalance forces companies to contend with severe operational bottlenecks, as the inability to secure qualified engineers leads to extended project timelines and delayed product launches. Consequently, businesses often miss critical market windows, stalling their ability to capitalize on new opportunities and stifling overall industry innovation.

This talent scarcity also places substantial financial pressure on the market, driving up the cost of development as competition for limited resources intensifies. The difficulty in sourcing qualified personnel restricts the capacity of organizations to scale their operations effectively. According to The Linux Foundation, in 2024, 64 percent of surveyed tech leaders acknowledged a lack of essential skills or experience in candidates, highlighting the severity of this workforce deficiency. This persistent gap restricts the volume of projects that can be successfully delivered, thereby directly slowing the expansion of the global market.

Key Market Trends

The Emergence of Platform Engineering and Internal Developer Portals is rapidly consolidating as a critical trend to counteract the complexity of modern cloud-native environments. Organizations are increasingly establishing dedicated platform teams to build Internal Developer Platforms (IDPs) that standardize infrastructure management and reduce cognitive load on development teams. By providing self-service capabilities and golden paths for deployment, these portals allow engineers to focus on coding rather than configuration, effectively solving the operational bottlenecks caused by fragmented toolchains. The recent surge in this adoption is evident; according to Humanitec, November 2024, in the 'State of Platform Engineering Report Volume 3', 56 percent of surveyed organizations have had platform teams for less than two years, indicating a massive shift toward professionalizing internal infrastructure services to support scaling engineering organizations.

The Mainstreaming of DevSecOps and Shift-Left Security is simultaneously reshaping the market by integrating compliance and vulnerability management directly into the early stages of the software development lifecycle. As reliance on third-party components grows, engineering teams are moving beyond reactive security measures to implement proactive strategies like automated scanning and the rigorous management of Software Bill of Materials (SBOMs). This transition is driven by the urgent need to secure the software supply chain against sophisticated attacks that target open-source dependencies. This security gap remains a primary focus area; according to GitLab, June 2024, in the '2024 Global DevSecOps Report', while 67 percent of developers reported that open-source libraries make up a significant portion of their code, only 21 percent of organizations are currently using an SBOM to document these components, highlighting the critical market push toward integrated security governance.

Segmental Insights

In the Global Software Engineering Market, the Product Data Management (PDM) segment represents the fastest-growing area of investment. This trajectory is fueled by the critical need for enterprises to manage expanding volumes of design data and ensure consistency across the product lifecycle. As manufacturers integrate diverse engineering tools, PDM systems provide essential centralization, allowing distributed teams to collaborate securely with accurate version control. Additionally, rigorous safety and quality standards in industries like aerospace and medical devices drive the adoption of these solutions to maintain comprehensive audit trails, ensuring regulatory compliance while reducing time-to-market.

Regional Insights

North America maintains a leading position in the global software engineering market primarily due to the extensive presence of major technology corporations and the early adoption of modern development methodologies. The region benefits from significant capital allocation toward research and development, which accelerates the creation of new software tools. Additionally, the widespread integration of cloud computing and automation across enterprise operations supports this market dominance. A mature information technology infrastructure enables businesses to optimize their software development lifecycles, effectively consolidating the region's status as the central hub for industry revenue.

Recent Developments

In May 2024, Atlassian launched Rovo, a generative AI-powered product designed to enhance knowledge discovery and collaboration for enterprise teams. deeply integrated into the company's ecosystem, Rovo provided users with the ability to search for information across various internal and third-party tools, delivering comprehensive and contextual answers. The solution included specialized agents capable of automating workflows, reviewing code, and generating content, effectively functioning as a virtual teammate. This release focused on improving productivity by allowing software engineering teams to convert scattered organizational data into actionable insights and accelerate their development cycles.
In May 2024, GitLab announced the launch of GitLab Duo Enterprise, an end-to-end AI add-on specifically engineered to support every stage of the software development lifecycle. This solution combined developer-focused AI capabilities with enterprise-grade security and privacy controls, enabling organizations to proactively detect and remediate vulnerabilities. The platform introduced features such as AI-powered root cause analysis for CI/CD failures and vulnerability explanation, aiming to streamline DevSecOps workflows. By providing tools to measure the impact of AI on development metrics, the company sought to help businesses improve both efficiency and security in their software delivery processes.
In April 2024, GitHub introduced Copilot Workspace, a Copilot-native developer environment aimed at redefining the software creation process through natural language integration. This platform allowed developers to brainstorm, plan, build, test, and run code within a unified interface, streamlining the workflow from issue description to implementation. By utilizing AI agents to manage the development lifecycle, the tool sought to lower the barrier to entry for building software while enabling experienced engineers to operate as systems thinkers. The technical preview featured capabilities that generated step-by-step plans and automatically implemented code changes based on user directives.
In March 2024, Cognition launched Devin, an autonomous artificial intelligence software engineer designed to execute complex engineering tasks independently. This advanced AI agent was equipped with its own command line, code editor, and web browser, enabling it to plan and complete entire software development projects from initial concept to deployment. The company demonstrated that the tool could autonomously debug code, learn unfamiliar technologies, and contribute to mature production repositories. Devin set a new standard on coding benchmarks, reportedly passing practical engineering interviews and successfully completing real-world jobs on freelancing platforms without human assistance.

Key Market Players

IBM Corporation
Oracle Corporation
Microsoft Corporation
SAP SE
Accenture plc
Capgemini SE
Tata Consultancy Services Limited
Infosys Limited
Cognizant Technology Solutions Corporation
Wipro Limited

By Application	By Deployment	By Industry	By Region
CAD PDM PLM Design Quality	Cloud and On-premises	Automotive Aerospace & Defense Manufacturing Healthcare Semiconductor & Electronics Retail Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Software Engineering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Software Engineering Market, By Application:

CAD
PDM
PLM
Design Quality

Software Engineering Market, By Deployment:

Cloud and On-premises

Software Engineering Market, By Industry:

Automotive
Aerospace & Defense
Manufacturing
Healthcare
Semiconductor & Electronics
Retail
Others

Software Engineering Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Software Engineering Market.

Available Customizations:

Global Software Engineering Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Software Engineering Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Software Engineering Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Application (CAD, PDM, PLM, Design Quality)

5.2.2. By Deployment (Cloud and On-premises)

5.2.3. By Industry (Automotive, Aerospace & Defense, Manufacturing, Healthcare, Semiconductor & Electronics, Retail, Others)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Software Engineering Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Application

6.2.2. By Deployment

6.2.3. By Industry

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Software Engineering Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Application

6.3.1.2.2. By Deployment

6.3.1.2.3. By Industry

6.3.2. Canada Software Engineering Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Application

6.3.2.2.2. By Deployment

6.3.2.2.3. By Industry

6.3.3. Mexico Software Engineering Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Application

6.3.3.2.2. By Deployment

6.3.3.2.3. By Industry

7. Europe Software Engineering Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Application

7.2.2. By Deployment

7.2.3. By Industry

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Software Engineering Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Application

7.3.1.2.2. By Deployment

7.3.1.2.3. By Industry

7.3.2. France Software Engineering Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Application

7.3.2.2.2. By Deployment

7.3.2.2.3. By Industry

7.3.3. United Kingdom Software Engineering Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Application

7.3.3.2.2. By Deployment

7.3.3.2.3. By Industry

7.3.4. Italy Software Engineering Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Application

7.3.4.2.2. By Deployment

7.3.4.2.3. By Industry

7.3.5. Spain Software Engineering Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Application

7.3.5.2.2. By Deployment

7.3.5.2.3. By Industry

8. Asia Pacific Software Engineering Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Application

8.2.2. By Deployment

8.2.3. By Industry

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Software Engineering Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Application

8.3.1.2.2. By Deployment

8.3.1.2.3. By Industry

8.3.2. India Software Engineering Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Application

8.3.2.2.2. By Deployment

8.3.2.2.3. By Industry

8.3.3. Japan Software Engineering Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Application

8.3.3.2.2. By Deployment

8.3.3.2.3. By Industry

8.3.4. South Korea Software Engineering Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Application

8.3.4.2.2. By Deployment

8.3.4.2.3. By Industry

8.3.5. Australia Software Engineering Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Application

8.3.5.2.2. By Deployment

8.3.5.2.3. By Industry

9. Middle East & Africa Software Engineering Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Application

9.2.2. By Deployment

9.2.3. By Industry

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Software Engineering Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Application

9.3.1.2.2. By Deployment

9.3.1.2.3. By Industry

9.3.2. UAE Software Engineering Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Application

9.3.2.2.2. By Deployment

9.3.2.2.3. By Industry

9.3.3. South Africa Software Engineering Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Application

9.3.3.2.2. By Deployment

9.3.3.2.3. By Industry

10. South America Software Engineering Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Application

10.2.2. By Deployment

10.2.3. By Industry

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Software Engineering Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Application

10.3.1.2.2. By Deployment

10.3.1.2.3. By Industry

10.3.2. Colombia Software Engineering Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Application

10.3.2.2.2. By Deployment

10.3.2.2.3. By Industry

10.3.3. Argentina Software Engineering Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Application

10.3.3.2.2. By Deployment

10.3.3.2.3. By Industry

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Software Engineering Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. IBM Corporation

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Oracle Corporation

15.3. Microsoft Corporation

15.4. SAP SE

15.5. Accenture plc

15.6. Capgemini SE

15.7. Tata Consultancy Services Limited

15.8. Infosys Limited

15.9. Cognizant Technology Solutions Corporation

15.10. Wipro Limited

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Software Engineering Market in 2025?

Which is the dominating region in the Global Software Engineering Market?

Which is the fastest growing segment in the Global Software Engineering Market?

What is the expected growth rate of the Global Software Engineering Market?