This IDC study provides a 2014-2018 forecast and 2013 vendor share analysis for the worldwide requirements visualization, definition, and management market, which experienced 10.7% growth to $381.4 million in 2013 revenue (up from $344.5 million in 2012).
As companies invest in key emerging areas such as mobile, social, cloud, and big data in the context of ongoing economic volatility, the requirements visualization, definition, and management market is slated for a strong growth trajectory over the forecast period. The demand for intuitive, collaborative capabilities along with complex sourcing and the rapid cycle times demanded by agile processes, mobile development and product life cycle, and embedded software is driving adoption of requirements solutions. As enterprise vendors have announced and delivered offerings in this market in 2013-2014 and smaller innovative players in the requirements visualization and definition arenas successfully execute, IDC expects a good CAGR (on low initial base revenue) of 13.8% for 2014-2018 (up from a CAGR of 13.5% for the 2013-2017 forecast period), resulting in projected 2018 revenue of $728 million.
"Exponential pressure to create mobile and other applications in highly compressed time frames in 2013-2014 moving into 2015 resulted in stronger demand for requirements visualization, definition, and management solutions and will continue to do so throughout the forecast period. This trend is being driven by customer need for innovative approaches to design and offerings from both small third-party and larger providers," says Melinda Ballou, program director for Application Life-Cycle Management at IDC. "We predict uptake and strong additional growth later in the forecast period as the need for requirements and improved software development team productivity with complex sourcing pushes user demand and as SaaS and ALM in the cloud options evolve. Coordination across life-cycle phases to target testing, change management, and IT project and portfolio management is continuing to emerge, as well as leverage of requirements in product life cycle and embedded software and systems engineering environments will also be a key driver. Creating software to target systems of systems and Internet of Things will drive product evolution and growth moving into the 2016-2018 time frame."