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I AgreeAnalysis of Purpose-Built Application market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
According to Fact.MR, purpose built application market revenue totaled US$ 140.6 Bn in 2020, with the market expected to balloon over 8X by 2031.
Demand for cloud-based custom built application services will accelerate and enjoy 6.6X growth with an absolute dollar opportunity of US$ 687 Bn by 2031. SaaS-based solutions is the largest contributor to the industry, expected to surge at 21% CAGR owing to the rising trend of pay-as-you-go models.
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As per the purpose built application industry analysis by Fact.MR, a market research and competitive intelligence provider, from 2016 to 2020, sales of custom built software increased at around 18% CAGR, with the U.S., Canada, China, India, Ukraine, and Germany holding high share in the global custom-built application market.
Growing need for business-specific applications in order to increase efficiency by streamlining processes mainly drives demand for custom web applications.
Web-based custom-built applications and mobile-based custom-built applications are set to enjoy a market valuation of US$ 251.4 Bn and US$ 337.3 Bn by 2031, respectively. Additionally, rise in use of custom-built applications for online retailers and e-stores augments global market growth.
The market for purpose-built applications is forecast to surge at a promising CAGR of little over 21% over the coming 10 years.
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Implementation of SaaS-based solutions is becoming more prevalent among all sizes of enterprises that are particularly looking to scale up their business operations, which led the segment to capture a market share of nearly 80% in 2020. Demand for mobile-based custom built applications is driven by rising requirement for dynamic platforms among enterprises across various industry verticals.
Furthermore, enterprises are always looking to minimize long-term costs, and deployment of purpose-built apps leads to cost-effectiveness in the long term. Thereby, adoption of web-based solutions is rising, owing to which, the segment is expected to hold a market share of 21.6% by 2031.
Companies are more worried about maintenance costs and initial implementation of accommodating data on-premise. Also, issues with downtime and staff expenses are additional concerns for organizations.
Shifting of organizations towards digital transformation and use of custom-built applications in e-stores are improving customer experience, and is leading to the deployment of purpose-built applications in cloud services. Global cloud-based services are expected to have a market valuation of US$ 787 Bn by 2031. Demand for on-premise custom-built application services is expected to surge at a CAGR of 22.5% and reach with a market share of 32.4% by 2031.
The opportunity for cloud platforms to make purpose-built applications is evident in most developed and developing countries, as they have progressively developed cloud infrastructure for IT services. Additionally, significant rise in the use of custom-built applications by small & medium enterprises (SMEs) will ultimately lead to improved adoption of cloud services, which will directly drive the market for purpose-built apps.
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The primary restraint of purpose-built apps is that most developers are providing freemium periods. Through this model, vendors are permitting end users to use the service for a limited period of time, and they discontinue it after the end of the period, leading to loss in company revenue.
Among the end users, use of custom-built applications by large enterprises is expected to decline, losing a market share from 83% in 2020 to 80.5% by 2031.
However, security of data is also a significant restraint for the growth of purpose-built apps as companies believe in securing data through in-house data centers. Another restraining factors are data administration and data location, which needs to be correctly worked out in order to surge the deployment of purpose-built apps in the global market.
North America is a major shareholder in the market accounting for over 38.5% share in 2021. Rising use of custom-built applications for financial, banking, and payment services and latest innovations in custom-built applications will significantly drive growth of the market in the region during the forecast period.
Growth can be attributed to major presence of software vendors and rising demand for high-speed data networks in the region. Services such as custom software development have witnessed high demand, mostly due to the growing need for more business-specific software.
Japan has been using purpose-built apps across various industry verticals, including BFSI and IT & telecom, holding a market share of 18.9% of the East Asia market in 2021.
Higher adoption of digital platforms and integration with technology-based manufacturing are aiding the Japanese custom-built application market growth through 2031.
Germany has a long history of using purpose-built apps owing to high-scale deployment of CRM software and associated platforms. It is expected that purpose-built app in Germany will account for around 14.2% market share of the over Europe market with a valuation of US$ 22.2 Bn by 2031
Purpose-built application development offers numerous benefits to companies. Revenue from the IT & telecom sector is projected to rise at a CAGR of 16.8% during the forecast period.
For large IT & telecom companies, deployment of purpose-built application is most vital as it allows tailoring their services through personalized platforms. Customized CRM has been playing an important role in the IT & Telecom sector over the past few years.
In order to save costs, IT & telecom companies have underlined the cost associated with expensive data centers. When uncertainty in on-premise data management occurs, integrated cloud infrastructure services have aided as the basis for database management for many companies.
The IT & telecom sector holds 14.1% market share in 2021 with a valuation of US$ 23.8 Bn for the same year.
The COVID-19 pandemic badly impacted several industries, including the technology sector, where a number of enterprises were being forced to re-visit their policies. In order to make sure sales are being closed, customers are served, and at the same time employees are efficient, implementation of purpose-built CRM applications increased.
Whereas, due to rising number of orders for purpose-built applications, the need for timely support and higher costs for licensing were the foremost constraints for the growth of the market.
The market had a downfall of around 6% Y-o-Y owing to the pandemic effect wherein, market valuation reached US$ 140 Bn, which was estimated to have a valuation of US$ 148 Bn if the pandemic uncertainty was not encountered.
Majority of companies discussed in the report have focused on expansion, investments, acquisitions, delivery, portfolio expansion, and brand development.
Some of the key developments are:
Similarly, recent developments by top providers of custom-built applications have been tracked by the team at Fact.MR, which are available in the full report.
Attribute |
Details |
Market Size Value in 2021 |
US$ 169 Bn |
Industry CAGR (2021 to 2031) | 21% |
Top 5 Developers’ Market Share | 5% to 8% |
Forecast Period |
2021-2031 |
Historical Data Available for |
2016-2020 |
Market Analysis |
US$ Bn for Value |
Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Other Companies Analysed |
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Pricing |
Available upon Request |
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The global purpose-built application market is worth more than US$ 169 Bn in 2021.
Deployment of purpose-built apps is projected to increase at a CAGR of over 21% during 2021 – 2031.
Value sales of purpose-built apps increased at a CAGR of 18% during 2016 – 2020.
Digitalization to optimize productivity of business through purpose-built applications is a key trend being observed in the market.
Advancing adoption rate of purpose-built CRM software to fulfill business needs stands as the core driver for the market.
Top 5 developers of purpose-built apps account for around 5% to 8% share in the market.
Top 5 countries driving demand for custom-built software are the U.S., Canada, Germany, China, and India.
North America accounted for 39.2% of global purpose-built app demand in 2020.
The market in Germany and Italy is set expand at 16.8% and 20.5% CAGRs, respectively, with both countries accounting for 27% share in the European market.