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The Software Engineering Intelligence industry is rapidly expanding, driven by the increasing complexity of R&D operations and the demand for data-driven decision-making. Companies are seeking solutions to optimize software development costs, improve team efficiency, and align engineering efforts with business goals. The focus is on leveraging AI and integrated data platforms for comprehensive visibility and actionable insights.
Total Assets Under Management (AUM)
Software Development Tools Market Size in United States
~Approx. 40-50 Billion USD
(10-15% CAGR)
- Driven by digital transformation and cloud adoption. - Increasing demand for automation and AI/ML tools. - Growing need for efficient R&D spend management.
110 billion USD
Leveraging advanced AI and machine learning models to forecast R&D trends, project delays, and resource needs, enabling proactive decision-making.
Simplified tools that allow non-technical users to build integrations between various engineering and financial systems, reducing setup friction and increasing data accessibility.
Utilizing decentralized ledger technologies to create immutable and auditable records of R&D expenditures and software development lifecycle events, enhancing transparency and compliance.
The Inflation Reduction Act of 2022 made a significant change to the R&D tax credit, specifically regarding the capitalization and amortization of R&D expenses under Section 174 of the Internal Revenue Code, effective for tax years beginning after December 31, 2021.
This policy change requires companies to capitalize and amortize R&D expenses over five years (for domestic R&D) or fifteen years (for foreign R&D) instead of expensing them in the year incurred, significantly impacting companies' taxable income and cash flow.
The National Institute of Standards and Technology (NIST) released its AI Risk Management Framework (AI RMF 1.0) in January 2023, providing voluntary guidance for organizations to manage risks associated with designing, developing, deploying, and using AI.
While voluntary, this framework sets a de facto standard for responsible AI development and deployment, influencing software engineering practices and data governance requirements, especially for AI-powered productivity tools.
The U.S. Securities and Exchange Commission (SEC) adopted new rules in July 2023 requiring public companies to disclose material cybersecurity incidents within four business days and to provide annual disclosures about their cybersecurity risk management, strategy, and governance.
These rules increase scrutiny on software development security practices and data integrity, potentially driving demand for tools that offer robust audit trails and security-related R&D insights.
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