Service industries drive growth in application development market

IDC is predicting that the AD&D market will be worth US$ 27 billion by 2007, representing a compound annual growth rate (CAGR) of 7.3%.

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By  Greg Wilson Published  September 25, 2003

The services industries in the US are fuelling demand for application development and deployment (AD&D) software. According to a report from analyst group, IDC, more than 43% of the revenue for AD&D applications in 2002 came from companies within the services sector of the economy, led by business services, banking and insurance, and engineering/management services.

Within the manufacturing sector, the only robust market for AD&D software was thewith discrete manufacturing companies.

“To compete more effectively in the services industries, companies will need to achieve higher levels of automation and scalability in their IT systems, greater reliability, timeliness and integration of information flows, and optimal utilisation of their digital assets,” comments Anna Toncheva, program manager in IDC’s Software and Systems Vertical Views program.

“These objectives will be met by continued investments in new applications, thereby creating significant opportunities for AD&D providers who can align their efforts to meet the specific needs of service providers in different vertical industries,” she adds.

IDC is predicting that the AD&D market will be worth US$ 27 billion by 2007, representing a compound annual growth rate (CAGR) of 7.3%. The business and financial services sectors, as well as discrete manufacturing sectors of the North American economy will be the largest vertical markets in 2007.

Broadcast communications, mining, discrete manufacturing and telecom offer the greatest growth opportunities over the forecast period.

Successful AD&D providers will enlist the right partners to align niche technologies with platforms and to guide customers in connecting line of business (LOB) and IT imperatives, reengineering business processes, solving development, deployment, integration, and maintenance challenges, reducing product cycles, and increasing developer productivity.

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