Application Lifecycle Management (ALM) Market Size, Share, Analysis, Growth, 2032

Application Lifecycle Management (ALM) Industry Prospective:

The global application lifecycle management (ALM) market size was worth around USD 3,344.03 million in 2023 and is predicted to grow to around USD 6,147.86 million by 2032 with a compound annual growth rate (CAGR) of roughly 7.00% between 2024 and 2032.

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Application Lifecycle Management (ALM) Market: Overview

The process of managing an application from the ideating stage until retirement is called application lifecycle management (ALM). It deals with initial processes such as ideating, developing, and launching followed by activities involved with managing and maintaining the tool. The end stage of an application lifecycle is retiring the program. ALM is carried out with the joint contribution of business and DevOps teams working in coherence throughout the program lifecycle. The aim is to achieve business objectives through deploying and delivering the tools’ functions. ALM is a comprehensive concept associated with several other information technology (IT) disciplines such as software development, application testing & maintenance, managing changes, project management, consistent integration, and others. ALM tools have become widely popular in recent times since they deliver streamlined protocols or methodology thus ensuring the development of high-quality final deliverables. ALM is successful when all stakeholders participate throughout the application lifecycle. The 5 main stages of application lifecycle management are management of requirements, development of the application, quality assurance & testing, deployment, and optimization & continuous maintenance.

Key Insights:

• As per the analysis shared by our research analyst, the global application lifecycle management (ALM) market is estimated to grow annually at a CAGR of around 7.00% over the forecast period (2024-2032)
• In terms of revenue, the global application lifecycle management (ALM) market size was valued at around USD 3,344.03 million in 2023 and is projected to reach USD 6,147.86 million, by 2032.
• The application lifecycle management market is projected to grow at a significant rate due to the remote work culture
• Based on the deployment mode, the cloud segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the solution, the software segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Application Lifecycle Management (ALM) Market: Growth Drivers

Remote work culture to promote the adoption of ALM in the future

The global lifecycle management (ALM) market is expected to grow due to the rising remote work culture across the globe. During COVID-19 several companies had to resort to remote work culture to keep the business running. While several companies have reverted to traditional means of working onsite, the number of businesses offering hybrid or remote work continues to remain in significant quantities. This is especially applicable to people working in desk jobs such as IT professionals. For instance, as of February 2024, more than 54.01% of professionals in the US preferred a hybrid work culture. Since the talent pool is geographically dispersed the demand for ALM has increased. In certain situations, human resources from other countries and regions are employed as companies continue to seek ways to improve talent quality within the company. Application lifecycle management systems, in such cases, have proven extremely beneficial. The tool ensures that the tasks and processes related to the application lifecycle are systematically followed and adhered to.

Surge in investments in the IT sector worldwide will create more growth avenues for the industry players

The IT sector is considered the backbone of the modern digital world. The industry has managed to revolutionize economic growth across the globe. Information technology has been beneficial for all other industries ranging from oil & gas to the agricultural sector. The surging rate of investments in further development of the IT sector worldwide will create more demand for application lifecycle management systems. In May 2024, technology giant Microsoft announced an investment of R1.3 billion in South Africa to create more jobs in the country. The investment will focus on the development of small & medium size enterprises along with the youth population of South Africa. In June 2024, Amazon, a global company, announced an investment of USD 10.7 billion in Germany’s IT sector thus creating growth scope for the global application lifecycle management (ALM) industry.

Application Lifecycle Management (ALM) Market: Restraints

Integration with legacy systems and high cost of investment may limit the industry’s growth rate

The global industry for application lifecycle management (ALM) is expected to be restricted due to complications arising during the integration of ALM tools with legacy systems. Businesses running on traditional measures to manage the application lifecycle may have to invest in upgrading IT infrastructure. Such projects often lead to high expenditure. Moreover, integrating advanced IT tools with older systems is highly complex. It also requires re-training human resources thus adding to the overall expense. These factors are expected to discourage greater adoption of ALM systems.

Application Lifecycle Management (ALM) Market: Opportunities

Growth prospects of Artificial Intelligence and cloud computing are showing promising signs of growth

Artificial Intelligence (AI) is regarded by technology giants as the next big step in the digital world. AI deals with enabling computers to perform human-like functions such as solving problems. As per market research, Artificial Intelligence (AI) is likely to reshape the ways humans and computers function in the coming years. Major technology companies are betting on AI systems for improved business operations. For instance, China is currently seeking investors for developing a robust generative AI ecosystem which is currently in its early stages of development. In May 2024, Prosperity7 Ventures, LLC, a Saudi Arabian financing company joined the USD 400 million funding projects by China-based AI startup Zhipu AI. The latter is currently working on strengthening generative AI status in China. In June 2024, the North Atlantic Treaty Organization (NATO) commenced its USD 1 billion worth of investment in space, AI, and technology related to robotics defense. In addition to AI, cloud computing solutions may further promote the expansion of the global application lifecycle management (ALM) market. Cloud technology has penetrated deep across economies. However, the continuous efforts toward upgrading cloud systems for better performance are registered universally.

Application Lifecycle Management (ALM) Market: Challenges

Keeping up with the rapidly evolving ALM sector may prove challenging for the industry players

The global application lifecycle management (ALM) industry is projected to be challenged by the industry’s rapidly evolving attributes. New solutions with higher performance value are frequently added to the market. Companies must continuously evolve technologically to keep up with novel tools and systems. Additionally, the industry is becoming highly competitive thus ALM companies must introduce enhanced solutions to retain customers.

Application Lifecycle Management (ALM) Market: Segmentation

The global application lifecycle management (ALM) market is segmented based on deployment mode, platform, solution, and region,

Based on the deployment mode, the global market segments are cloud and on-premise. In 2023, the highest growth was observed in the cloud segment. ALM systems have reached more customers due to the expansion of cloud solutions. Application lifecycle management tools accessed through cloud technology offer several advantages including scalability and lower cost of infrastructure development. Over the forecast period, the cloud industry is expected to reach over USD 2400 billion.

Based on the platform, the global application lifecycle management industry is fragmented into mobile-based applications and web-based applications.

Based on the solution, the global market divisions are services and software. In 2023, the highest revenue-generating segment was software. The high revenue was a result of significant investments in developing advanced ALM solutions with extended applications. Additionally, the cost of frequently upgrading or managing the tool adds to the total revenue earned. Perpetual licensing of ALM software can cost between USD 600 to USD 10,000 per server or user.

Application Lifecycle Management (ALM) Market: Report Scope

Application Lifecycle Management (ALM) Market: Regional Analysis

North America to be led by the US during the projection period

The global application lifecycle management market is expected to be dominated by North America during the forecast period. The USA will lead the regional market revenue. One of the major reasons for higher growth in the US is the robust IT infrastructure in the country. The US is the IT hub and a global leader in terms of technology-related solutions. Silicon Valley based in the US has a market cap of over USD 14 trillion as of 2024. Additionally, major IT companies such as Microsoft, Google, Amazon, Meta, and others are based in the US. It is also home to some highly successful startups working in the IT space. In June 2024, New Relic, an American analytics and web tracking firm, announced integration with the NVIDIA Interference Microservices, an ALM tool. The former plans to simplify the process of developing, launching, and monitoring applications based on generative AI. Additionally, in January 2024, Broadcom Rally Software launched new Rally Software updates which are more developer-friendly and offer higher efficiency along with increased quality.

Application Lifecycle Management (ALM) Market: Competitive Analysis

The global application lifecycle management (ALM) market is led by players like:

• Microsoft (Azure DevOps)
• PTC (Windchill)
• Atlassian (Jira)
• Intland Software (codeBeamer)
• Micro Focus (ALM/Quality Center)
• IBM (DOORS)
• OpenText (ALM Octane)
• Broadcom (CA Technologies)
• Jama Software (Jama Connect)
• Siemens (Polarion)
• CollabNet VersionOne
• Digital.ai
• Visure Solutions
• Inflectra (SpiraTeam)
• Perforce (Helix ALM).

The global application lifecycle management (ALM) market is segmented as follows:

By Deployment Mode

• Cloud
• On-Premise

By Platform

• Mobile-Based Applications
• Web-Based Applications

By Solution

• Services
• Software

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa