Internet Software Development Service Global Market Report 2025

The internet software development service market size has grown rapidly in recent years. It will grow from $478.53 billion in 2024 to $551.21 billion in 2025 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to increasing demand for custom software solutions, rising adoption of web-based applications, growing need for IT consulting services, increasing reliance on legacy system modernization, and rising need for data integration solutions.

The internet software development service market size is expected to see rapid growth in the next few years. It will grow to $962.69 billion in 2029 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to increasing adoption of cloud-native applications, rising investment in cybersecurity solutions, growing demand for AI-driven software development, increasing focus on mobile-first development, and rising need for automation in software deployment. Key trends in the forecast period include technological advancements in artificial intelligence, developments in cloud computing infrastructure, innovation in low-code and no-code platforms, advancements in edge computing technologies, and innovation in DevOps and agile methodologies.

The rising adoption of cloud-based platforms is expected to drive the growth of the internet software development service market going forward. Cloud-based platforms refer to online infrastructures and services that deliver computing resources, storage, and applications over the internet instead of on local servers or devices. Their adoption is increasing due to scalability, enabling flexible resource management and cost efficiency. The adoption of cloud-based platforms drives demand for internet software development services as businesses require customized web applications and APIs that integrate efficiently with cloud infrastructure to ensure seamless data access, scalability, and performance across online environments. For instance, in January 2025, according to AAG IT, a UK-based IT services company, an estimated 63% of small and medium-sized business (SMB) workloads and 62% of SMB data were expected to be hosted in public clouds by 2023, up from 57% of workloads and 56% of data in 2022. Therefore, the rising adoption of cloud-based platforms is fueling the growth of the internet software development service market.

Key companies operating in the internet software development service market are focusing on developing custom generative artificial intelligence models for enterprises to enhance operational efficiency, streamline workflows, and deliver personalized digital experiences. Custom generative artificial intelligence models for enterprises refer to AI systems specifically designed and trained using an organization’s proprietary data and processes to generate content, insights, or solutions tailored to the company’s operational needs, strategic objectives, and customer interactions, thereby enhancing efficiency, personalization, and decision-making across business functions. For instance, in October 2025, Adobe Inc., a US-based software company, introduced Adobe AI Foundry, a platform designed to address key challenges in brand-specific content creation. It enables enterprises to train generative AI models using proprietary catalogs of images, videos, audio, and graphics, ensuring content aligns with brand identity while safeguarding intellectual property. The platform supports scalable on-brand content production, enhanced creative efficiency, and improved customer engagement, making it ideal for organizations seeking to integrate customized AI-driven media generation into their marketing and design workflows.

In October 2025, EPAM Systems Inc., a US-based company providing product development, digital transformation, and digital engineering services, collaborated with Oracle Corporation to accelerate the adoption of artificial intelligence-powered cloud solutions. Through this partnership, EPAM and Oracle aim to help enterprises across industries integrate Oracle Cloud Infrastructure and artificial intelligence services into their cloud strategies to enhance scalability, efficiency, and cost-effectiveness. Oracle Corporation is a US-based multinational technology company that offers cloud-based applications for business operations and a cloud infrastructure platform to support enterprise needs.

Major players in the internet software development serivce market are Deloitte Touche Tohmatsu Limited, Accenture Plc, IBM Corp., Oracle Consulting, NTT DATA, Tata Consultancy Services, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Ltd., HCL Technologies, Wipro Limited, Tech Mahindra Ltd., EPAM Systems Inc., Globant SA, Mphasis Limited, Carlyle Group, Persistent Systems Ltd., ThoughtWorks Holding Inc., Endava Plc, and Zensar Technologies Ltd.

North America was the largest region in the internet software development service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in internet software development service report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the internet software development service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The internet software development service market research report is one of a series of new reports that provides internet software development service market statistics, including internet software development service industry global market size, regional shares, competitors with a internet software development service market share, detailed internet software development service market segments, market trends and opportunities, and any further data you may need to thrive in the internet software development service industry. This internet software development service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Internet software development service refers to the process of designing, building, and maintaining software applications that operate over the internet, including websites, web applications, and online platforms. It involves using programming languages, frameworks, and tools to create functional, secure, and scalable digital solutions. This service enables organizations to enhance their online presence, streamline operations, and deliver interactive user experiences through the web.

The key types of internet software development services include cloud-based and on-premises. Cloud-based applications are software solutions hosted on remote servers and accessed over the internet, allowing businesses and individuals to use resources without significant investment in physical infrastructure. These services are applied by individuals and enterprises and are used by several end users, including information technology and telecom, banking, financial services and insurance, healthcare, retail and e-commerce, government and public sector, education, manufacturing, media and entertainment, and travel and hospitality.

The internet software development service market includes revenues earned by entities by providing services such as web application development, mobile application development, cloud application development, software integration services and application maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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