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Generative AI in Software Development Lifecycle Market Size, Share & COVID-19 Impact Analysis, By Application (Code Generation and Auto-Completion, Personalized Development Tools, Natural Language Interfaces for Development, AI-Enhanced Design and UX, and Others), By End-user (Software Engineers/DevOps Professionals, and Security Professionals/SecOps), and Regional Forecast, 2023-2030

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI109041

 

KEY MARKET INSIGHTS

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The global generative AI in software development lifecycle market size was valued at USD 265.9 million in 2022. The market is projected to grow from USD 341.3 million in 2023 to USD 2,833.9 million by 2030, exhibiting a CAGR of 35.3% during the forecast period.


Generative AI in software development lifecycle refers to automating tasks in the software development process and also aims to enhance the productivity of developers. This process automatically generates, edits, transforms, and optimizes the code. Generative AI, including Anthropic's Claude, Microsoft's Bing Chat, OpenAI's ChatGPT, and Google's Bard generates new content based on large amounts of structured and unstructured data. It can also provide a human-like response to the user.


The growing integration of generative AI into the software development life cycle (SDLC) provides transformative opportunities for developers to reduce code generation errors. It aims to accelerate the delivery of new software solutions. According to researchers’ study, generative AI-powered tools can deliver advanced algorithms to generate the code automatically, save time and cost in many common developer tasks, such as writing new code (47% faster), documenting code functionality (50% faster), and refining the existing code (63% faster).


COVID-19 IMPACT


Rapid Integration of Generative AI in the Healthcare Industry Amid Pandemic Fostered Market Growth


The unprecedented COVID-19 pandemic boosted the adoption of AI applications across various industrial sectors. According to a researchers’ survey, there was a 45% rise in the adoption of Artificial Intelligence (AI) amidst the pandemic. Generative Artificial Intelligence (GenAI) had a significant impact globally and regionally on different industrial sectors, including healthcare, retail, manufacturing, and many others.



  • For instance, in June 2023, to bring digital transformation in the healthcare industry, IBM and the University of Oxford are using generative AI to deploy the COVID-19 antiviral drugs. Thus, the generative AI could be used to expedite the drug discovery process during a public health crisis.


Similarly, the rise in the number of work-from-home operating models during the pandemic boosted the implementation of generative AI in software development lifecycle process to enhance organizations’ productivity. Amid the global pandemic, healthcare and pharmaceutical companies were adopting generative AI techniques to predict the properties of drugs and proteins and also to design and create new molecules with desired medical properties using the UX design process. This factor boosted the demand for generative AI in the healthcare industry.


Generative AI in Software Development Lifecycle Market Trends


Integration of Large-Scale Language Models (LLM) with Generative AI to Drive Market Growth


The rising integration of edge computing with generative AI in software development lifecycle boosts real-time processing and data analysis with improved security and reliability. Generative AI has the potential to improve the productivity of software developers significantly. The integration of Large Language Models (LLMs) with generative AI capabilities brings large deployment in the software development process. As Large Language Models (LLM) have the potential to enhance automated tasks in the software engineering field, they can also analyze the structure and unstructured data.


For instance, In August 2023, Stability AI, a generative AI startup, launched a new open large language model (LLM) named “StableCode”, which significantly helps users generate programming language code. This LLM model can develop code by using Java, markdown, Python, Go, JavaScript, C, C++ and other programming languages.


This factor is expected to drive the generative AI in software development lifecycle growth during the forecast period.


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Generative AI in Software Development Lifecycle Market Growth Factors


Growing Demand for Automation in Software Development in Different Industrial Sectors to Drive Market Growth


Automating repetitive coding tasks can greatly improve the efficiency of software development. Automation reduces the risk of human error in coding. Generative AI tools generate code that adheres to best practices and coding standards, reducing the possibility of errors and vulnerabilities. The fewer errors there are, the more reliable and secure your software will be. AI can identify code issues, suggest improvements, and perform code analysis faster and more consistently than manual reviews. Generative AI fills the supply chain gap by automating certain development tasks and allowing junior developers and amateurs with little programming knowledge to generate code and create solutions quickly.


Additionally, automation processes reduce the need for extensive manual coding and testing, leading to cost savings for businesses. Fewer resources are required to achieve the same or better productivity and code quality. These factors are expected to increase the generative AI in software development lifecycle demand in the coming years.


RESTRAINING FACTORS


Lack of Data Privacy & Security Hinders the Market Growth


Generative AI needs to access large amounts of confidential data, which significantly addresses various ethical, technical, and regulatory issues of the organization.


Despite the growing popularity of generative AI tools, the creation of fake or misleading information, such as videos or images via generative AI and different software tools, is a major concern nowadays. This is due to the generative AI using personal and confidential data of customers and organizations within the testing process. This factor generates phishing scams, and it also leads to data breaches and financial loss incidents. Thus, the lack of data privacy and security concerns hinders the market growth.


Generative AI in Software Development Lifecycle Market Segmentation Analysis


By Application Analysis


Rising Need of Code Generation to Automate Repetitive Tasks Aims to Drive Code Generation and Auto-completion Segment Growth


Based on type, the market is divided into code generation and auto-completion, personalized development tools, natural language interfaces for development, AI-enhanced design and UX, and others.


The code generation and auto-completion segment is estimated to grow with the highest CAGR during the forecast period and also holds the largest part currently in generative AI in software development lifecycle market share. This is due to the code generation process helping to generate portions of the code or complete the program automatically by using generative AI techniques. This factor also helps to save developers’ time and effort by automating repetitive tasks and providing a useful initial code structure for developers. Hence, code generation and auto-completion applications are highly important as compared to others.


Similarly, the natural language interfaces for the development segment holds the second-highest share. This is due to the integration of Gen AI with NLP, which helps to understand human-like text and is able to perform different language-related tasks. This factor can also boost the demand for natural language interfaces in the software development process to accelerate data operations.


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By End-user Analysis


Rapid Adoption of GenAI to Accelerate Coding Process by Software Engineers/DevOps Professionals to Boost Segment Growth


Based on end-user, the market is divided into software engineers/DevOps professionals and security professionals/SecOps.


The software engineers/DevOps professionals segment holds the largest market share and is expected to grow with the highest CAGR during the forecast period. This is due to the DevOps professionals using generative AI to accelerate the coding process, improve security, and boost the supply chain performance. Increasing usage of generative AI models, such as Copilot, ChatGPT, and GitHub helps to revolutionize the image and text data to optimize the application performance and help developers detect real-time threats to maintain the code quality. This factor boosts the software engineers/DevOps professionals segment growth.


Similarly, SecOps is a new approach to software development that combines security and operations to ensure the security of the enterprises by integrating tools and processes of the software development lifecycle (SDLC).


REGIONAL INSIGHTS


The global market is studied across the regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


North America Generative AI in Software Development Lifecycle Market Size, 2022 (USD Million)

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North America is estimated to hold the highest market share due to the presence of a large number of AI-generated data analytics tool providers across the region. According to the researcher's survey, the adoption rate of generative AI is 35% in the technology industry present across the U.S. to bring development to the company’s operational processes and improve business performance. Furthermore, the presence of a large number of startups and generative AI companies in countries, such as the U.S. and Mexico brings automation to companies’ cloud infrastructure. This factor boosts the demand for generative AI in software development lifecycle over the forecast period.


Asia Pacific is estimated to grow with the highest CAGR during the forecast period due to increasing spending on big data and analytics in countries, such as China and India. There is a huge adoption of generative AI in various industrial sectors among Indian enterprises due to increasing development and investments in software development to bring digital transformations across multiple industries. These key factors are responsible for the growth of the market in the region. According to an analyst survey, Indian coders generate 13% of code and reduce 16% of coding time by using Generative AI. The increasing usage of Gen AI in software development among countries, such as India, China and Japan, boosts software efficiency and increases the reliability of software.


Europe is estimated to hold a significant CAGR during the forecast period due to the growing adoption rate of Gen artificial intelligence in European countries, such as Germany, France, Italy, and Spain. The increasing emergence of cloud computing technology and advancement in machine learning and deep learning technology leads to the growth of the market in Europe.


The Middle East & Africa is projected to grow with the third largest CAGR during the forecast period due to the increasing emergence of next-gen technology and growing digital transformations in developing advanced enterprise models across various industries. According to an analyst survey, rising investment in developing generative AI applications in GCC countries, such as the UAE and Saudi Arabia, has a widespread adoption rate in the next 6 to 12 months. It has been estimated that the integration of generative AI will fuel the economic growth of GCC countries by USD 23.5 billion by 2030.


Similarly, South America is in a developing phase due to enterprises' implementation of generative AI to bring innovative capabilities among different industry verticals to fulfil the demands generated by customers. Growing investments in generative AI help expand the business's performance and bring transformation to the software development process, aiming to create more data insights across organizations’ infrastructures.


List of Key Companies in Generative AI in Software Development Lifecycle Market


Increasing Emphasis on Partnerships by Top Players to Fuel Market Development


Leading companies are making partnerships to offer advancement in generative AI in software development lifecycle to improve their software devolvement process. They are focusing on innovations in product offerings to maintain their competitive edge. These players emphasize product launches, strategic acquisitions, partnerships, and collaborations to increase their business and distribution network to fuel their market shares.


List of Key Companies Profiled:



  • SAP SE (Germany)

  • Thoughtworks, Inc. (U.S.)

  • Harness Inc. (U.S.)

  • OpenAI OpCo, LLC (U.S.)

  • Amazon Web Services, Inc. (U.S.)

  • Tabnine Ltd. (Israel)

  • Replit (U.S.)

  • Google LLC (U.S.)

  • C3 AI, Inc. (U.S.)

  • Reply (Italy)


KEY INDUSTRY DEVELOPMENTS:



  • December 2023 – Google Duet AI launched GenAI, a tool designed to manage the entire software development life cycle in cloud infrastructure. GenAI helps to reduce errors, enhance productivity, and boost the time taken by software projects by automating tasks such as testing, code generation, and deployment.

  • November 2023- SAP SE, a German software development firm, unveiled a new series of generative AI tools and capabilities named SAP HANA Cloud, SAP Build Code and a generative AI hub in SAP AI Core for developers to build generative AI-based apps and solutions. These AI capabilities help developers to enhance their skills and to develop generative AI-based apps and solutions.

  • September 2023 – Reply unveiled a new generative AI-based software development platform named KICODE Reply. This platform is capable of supporting all phases of the software development lifecycle, including coding, designing, testing and deployment, to boost the software efficiency and improve the code quality by automating the tasks.

  • June 2023–  Harness Inc., a software delivery platform provider, launched a Generative AI Assistant named AIDA (AI Development Assistant) for the software development lifecycle (SDLC). This AI assistant helps resolve errors, optimize costs, and ensure the security of the SDLC process.  

  • March 2023 –  Google Cloud entered into a partnership with Replit, Inc., a cloud software development platform provider, to boost the creation of generative AI applications and write the code by competing with OpenAI and a similar product of Microsoft Corporation’s GitHub.


REPORT COVERAGE


An Infographic Representation of Generative AI in Software Development Lifecycle Market

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The generative AI in software development lifecycle market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key End-user developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth over the recent years.


REPORT SCOPE & SEGMENTATION










































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 35.3% from 2023 to 2030



Unit



Value (USD million)



Segmentation



By Application



  • Code Generation and Auto-Completion

  • Personalized Development Tools

  • Natural Language Interfaces for Development

  • AI-Enhanced Design and UX

  • Others (Documentation Generation and Code Security and Compliance)


By End-user



  • Software Engineers/DevOps Professionals

  • Security Professionals/SecOps


By Region



  • North America (By Application, By End-user, and By Country)

    • US

    • Canada

    • Mexico



  • Europe (By Application, By End-user, and By Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe



  • Asia Pacific (By Application, By End-user, and By Country)

    • China

    • Japan

    • India

    • South Korea

    • ASEAN

    • Oceania

    • Rest of Asia Pacific



  • Middle East & Africa (By Application, By End-user, and By Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of Middle East & Africa



  • South America (By Application, By End-user, and By Country)

    • Brazil

    • Argentina

    • Rest of South America








Frequently Asked Questions

The generative AI in software development lifecycle market is projected to reach USD 2,833.9 million by 2030.

The market is projected to grow at a CAGR of 35.3% over the forecast period.

Software Engineers/DevOps Professionals segment leads the market.

Growing demand for automation in software development in different industrial sectors drives market growth.

SAP SE, Thoughtworks, Inc., Harness Inc., OpenAI OpCo, LLC, Amazon Web Services, Inc., Tabnine Ltd., Replit, Google LLC, and C3 AI, Inc. are the top players in the market.

North America is expected to hold the highest market share.

Asia Pacific is expected to grow with the highest CAGR over the forecast period.

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