The North American Application Development and Deployment Software Market Will More Than Double by 2004, IDC Says

FRAMINGHAM, MA – MARCH 21, 2001 – According to IDC, North American application development and deployment software revenues will increase at a compound annual growth rate (CAGR) of 21%, from $18.5 billion in 1999 to nearly $47.5 billion by 2004. This growth will push revenue share as a portion of the total North American packaged software market up six points to 30% by the end of the forecast.


"The outlook for application development and deployment software revenue is strong," said Anna Toncheva, analyst for IDC’s Software and Systems Vertical Views program. "Industries that require ongoing analyses and manipulation of immense amounts of data, such as banking and discrete and process manufacturing, show high volume and consistently high growth, especially in the midmarket segment. The greatest growth opportunities are in industries with relatively modest contributions to the revenue stream, such as small communications and utilities companies, where lean initial revenue flows will more than triple in volume by 2004."

According to IDC, application design and construction tools will be the fastest-growing segment in the North American application development and deployment software market, with a 1999-2004 CAGR of 27%. However, this growth won’t be sufficient to displace information and data management as the largest segment in the market. "The volume of information and data management’s revenue stream is benefiting from indirect sales through CRM, the most aggressively expanding application market in North America," Toncheva said.

IDC believes manufacturing companies will remain the largest application development and deployment software market throughout the forecast. Financial institutions’ investments are expected to grow the fastest among the 20 industry sectors to account for nearly one-quarter (23%) of the market. Within this segment, banking depository institutions will account for 42% of the $11.3 billion market.

IDC’s report, Software Vendor’s Guide to Vertical Markets in North America, 1999-2004 Part 2: Application Development and Deployment Software (IDC #B23736), analyzes the four tools markets: information access and delivery software, information and data management software, application design and construction tools, and application life-cycle management tools. Revenue forecasts are provided through 2004 by vertical market in North America. Software markets are segmented by 20 vertical industry markets and three company size bands within each vertical. To purchase this report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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