Application Release Automation Market Size and Industry Growth in 2025: Key Changes and Transformations

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What are the key drivers behind the application release automation market’s growth in recent years?

The growing adoption of cloud computing is expected to propel the growth of the application release automation market going forward. Cloud computing is the on-demand provision of computing services including storage, processing power, and software over the internet, enabling flexible, scalable, and cost-effective resource management. The growing adoption of cloud computing can be attributed to several factors, including cost efficiency, scalability, and robust disaster recovery solutions. ARA tools automate deployment, allowing organizations to quickly release applications and updates, which is essential for responding to market changes and customer demands in cloud environments. For instance, in April 2024, according to the European Commission, a Belgium-based government body, in 2023, 77.6% of large enterprises reported using cloud computing services, reflecting a 6 percentage point increase from 2021. For medium-sized enterprises, cloud service adoption reached 59% in 2023, up from 53% in 2021. Therefore, the growing adoption of cloud computing is driving the growth of the application release automation market.

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How does the future projection of the application release automation market size compare to its historical growth?

The application release automation market size has grown rapidly in recent years. It will grow from $3.55 billion in 2024 to $4.08 billion in 2025 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to cost efficiency, demand for flexibility and scalability, integration complexity, automation of deployment tasks, and management of modern application architectures.

The application release automation market size is expected to see rapid growth in the next few years. It will grow to $7.03 billion in 2029 at a compound annual growth rate (CAGR) of 14.5%. The growth in the forecast period can be attributed to agile development practices, the emergence of low-code or no-code platforms, seamless integration with enterprise tools, a shift towards microservices, and digital transformation initiatives. Major trends in the forecast period include AI-driven release orchestration, a shift to self-service automation, hybrid cloud deployment models, enhanced security automation, and serverless deployment automation.

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Which key players are shaping the future of the application release automation market?

Major companies operating in the application release automation market are Microsoft Corporation, HP Inc., IBM Corporation, Broadcom, Red Hat Inc., Atlassian Corporation Plc, Micro Focus International plc, BMC Software Inc., ThoughtWorks Inc., Dynatrace LLC, Circle Internet Services Inc., GitLab Inc., Rocket Software Inc., Jfrog Ltd., Digital.ai Software Inc., Electric AI Inc., Chef Software Inc., CloudBees Inc., Puppet Inc., QualiSystems Ltd., Octopus Deploy Pty Ltd., Codefresh Inc., Automic Software Inc., RapidDeploy, Plutora, Travis CI GmbH, Spinnaker Global Limited, DeployHub Inc., Clarive Software Inc., Inedo

What trends will propel the growth and evolution of the application release automation market?

Major companies operating in the application release automation market are focusing on developing comprehensive software solutions for causal artificial intelligence (AI), such as AutomationEngin, to gain a competitive edge. AutomationEngine is a comprehensive software solution that automates various workflows, particularly prepress, packaging, and data remediation. For instance, in February 2023, Dynatrace, a US-based software intelligence company, launched AutomationEngine, a casual AI-based comprehensive software solution. The Dynatrace AutomationEngine employs causal AI and is intended to provide answer-driven automation that allows enterprises to manage clouds more efficiently, innovate faster and more securely, and achieve consistently improved business outcomes.

Which regions are expected to become dominant players in the application release automation market?

North America was the largest region in the application release automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the application release automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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What are the emerging key segments in the application release automation market, and how are they evolving?

The application release automation market covered in this report is segmented –

1) By Component: Tool, Services

2) By Deployment: Cloud, On-Premises

3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises

4) By End-User Industries: BFSI, IT And Telecommunications, Retail And E-Commerce, Media And Entertainment, Other End User Industries

Subsegments:

1) By Tool: Release Orchestration Tools, Deployment Automation Tools, Configuration Management Tools, Test Automation Tools, Monitoring And Reporting Tools

2) By Services: Consulting Services, Integration Services, Support And Maintenance Services, Training And Education Services

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How is the application release automation market defined, and what are its core characteristics?

Application release automation (ARA) refers to the process of automating the deployment, configuration, testing, and release of software applications across various environments, from development to production. It streamlines and accelerates the software delivery pipeline, enabling organizations to release high-quality applications with greater efficiency, reliability, and consistency.

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