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Apps development and project management market reaches £3.8bn

Antony Savvas

The worldwide application development (AD) and project and portfolio management (PPM) software market reached £3.8bn in 2006, a 7.2% over 2005 sales, said analyst Gartner.

“Across both PPM and AD, the convergence of requirements management, testing, software change and configuration management (SCCM) and PPM tools resulted in shifting of revenue among these classes, and the emergence of suites and integrated offerings across a number of sub-segments,” said Laurie Wurster, an analyst at Gartner.

Wurster said the traditional AD market grew 2% year-over-year and was driven by above-average growth of emerging strongholds in sub-markets, such as SCCM, distributed testing tools and security vulnerability scanners.

Wurster said the PPM market increased 20% in 2006 and is expected to grow at an above-average rate through to 2011, as IT budgets remain tight and management struggles to do more with less.

Applications for PPM boost team performance, and enable access to real-time data via dashboards for prioritisation and quick decision-making.

In 2006, the top five suppliers accounted for 64% of the total worldwide AD and PPM market.

IBM maintained a commanding lead in the market by sales, with a 25.2% share. Microsoft was the number two supplier, while CA was number three.

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