Automation Drives Growth In Generative AI Software Development Market: Critical Driver Shaping the Global Generative AI In Software Development Market in 2025

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How Large Will the Generative AI In Software Development Market Size By 2025?
The market size for the generative ai in software development has seen a sharp increase in recent times. The market which is expected to be worth $53.4 billion in 2024, is predicted to rise to $66.29 billion in 2025, growing at a compound annual growth rate (CAGR) of 24.1%. The considerable growth during the historic period is due to factors such as enhanced computational capacity, breakthroughs in deep learning algorithms, availability of large-scale datasets, growing necessity for code optimization, and the rise of cloud computing platforms.

How Big Is the Generative AI In Software Development Market Size Expected to Grow by 2029?
The market size for generative AI in software development is predicted to experience a significant surge in the coming years, expecting to reach $149.52 billion by 2029, with a CAGR of 22.5%. This growth during the forecast period can be credited to the integration of generative AI in software development tools, increased applications in creative sectors, adoption of generative AI for producing personalized content, enhanced understanding of natural language, and expediting research in continuously improving AI systems. Key trends expected during the forecast period include a heightened emphasis on ethical and responsible AI development, the widening usage of generative AI in low-code and no-code platforms, the rise of AI-enhanced software development workflows, the birth of cybersecurity solutions powered by generative AI, and the incorporation of generative AI into DevOps practices.

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Which Key Market Drivers Powering Generative AI In Software Development Market Expansion and Growth?
The growing need for automation is poised to fuel the expansion of generative AI within the software development sector. The concept of automation is the use of technology and machinery to execute tasks with limited human input, enhancing effectiveness and output. This increasing requirement for automation is triggered by the desire to streamline procedures, amplify efficiency, decrease expenses and enhance accuracy in numerous industries. Generative AI assists in the automation of design tasks such as building UI layouts, graphics, and architectural models, enabling human designers to invest more time in inventive activities. As an example, a report published by Capgemini SE, a company that provides information technology services based in France, stated that approximately 3 out of 5 organizations opted to utilize generative AI in software engineering in July 2024. Around 46% of software engineers showed a preference for using generative AI tools. By 2026, it is projected that about 85% of the software workforce will embrace generative AI in their software. Thus, the escalating need for automation is propelling the expansion of generative AI in the software development market.

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Which Fast-Growing Trends Are Poised to Disrupt the Generative AI In Software Development Market?
In the field of generative AI software development, leading companies are unveiling innovative generative AI solutions to elevate productivity and increase market earnings. Generative AI encompasses a broad range of uses, including the creation of novel content and ideas such as dialogues, narratives, images, video, and music using artificial intelligence. For example, in July 2023, Capgemini SE, an IT firm from France, rolled out its generative AI suite of services, including generative AI strategy, generative AI for customer experience, generative AI for software engineering, and bespoke generative AI for businesses. The introduction of generative AI for software engineering provides a distinctive service suite that boosts efficiency and quality across the entirety of the software lifecycle, from design and programming to documentation, testing, deployment, and maintenance. This not only accelerates the rollout of new software, but also mitigates technical financial burdens for businesses by aiding in large-scale legacy software modernization efforts. Additionally, it reinforces security by detecting and suggesting fixes for bugs or vulnerabilities, therefore lowering the risk of attack and advising software development groups.

What Are the Emerging Segments in the Generative AI In Software Development Market?
The generative ai in software developmentmarket covered in this report is segmented -

1) By Component: Solutions, Services
2) By Deployment Mode: On-Premise, Cloud-Based
3) By Application: Code Generation, Code Optimization, Bug Detection, Testing And Quality Assurance

Subsegments:
1) By Solutions: AI-Powered Code Generation, Automated Software Testing And Debugging, Intelligent Code Optimization And Refactoring, AI-Based Application Security And Vulnerability Detection
2) By Services: AI Consulting For Software Development, Custom AI Solution Development For Software, AI Integration And Implementation Services, AI-Driven Software Development Training And Support

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Who Are the Global Leaders in the Generative AI In Software Development Market?
Major companies operating in the generative AI in software development market report are Amazon Inc.; Google LLC; Microsoft Corporation; Tencent Holdings Ltd.; International Business Machines Corporation; Deloitte Touche Tohmatsu Limited; Oracle Corporation; Red Hat Inc.; Atlassian Corporation Plc; Alteryx Inc.; Itransition Inc.; Visionet Systems Inc.; BairesDev LLC; Nordcloud Ltd.; CloudBees Inc.; 15Five Inc; ScienceLogic Inc.; Waverley Software Inc.; Alibaba Cloud; 10Clouds SP. Z O.O.; Radiansys Inc.; Tooploox; Blue Label Labs; ASG Technologies Ltd.; HatchWorks Inc

Which are the Top Profitable Regional Markets for the Generative AI In Software Development Industry?
North America was the largest region in the generative AI in software development market in 2024. The regions covered in the generative AI in software development market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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