Why the USA is the largest market for software development


There is no doubt that the USA has become the largest software development market. In this article, we will explore the dominance of the USA, and how it is home to not just thriving giants like Microsoft and Google, but thousands and thousands of successful startups with innovative ideas. According to the reports by Statistica, the USA is likely to dominate the world in terms of software development during the 2020-2028 period, with an annual growth rate of 4.07%. 

The reason for America’s growth in the field of computers is that they started quite early, after the end of World War II and they kept at it. While there has been evidence of the British starting with the world’s first electronic computer (Colossus), they did not come public with it, while the Americans did not keep their ENIAC a secret. However, there are debates on whether the Colossus or the ENIAC is the true ancestor of Google and the smartphone revolution. Whatever the truth is, there has been an electronic boom following World War II, and there have been many unsuccessful experiments and endeavours before the computers and software development as we know evolved. 

There is no need now to go into the deep and fascinating history of how computers evolved, and how the world took it up. Let’s explore further into what made the USA the largest market for software development. From the tech giants in Silicon Valley to the blooming of startups across the nation, the country continues to set the pace for a new kind of technological advancement, and this never slacked. The growth had been strong since the Second World War. 

The myriad factors that set the US apart from the rest of the world

The USA is truly a world leader in technological innovations and has been at the epicentre of creativity and entrepreneurship.  Check out the multiple reasons that sets it apart. 

1. The culture of innovation

The USA boasts of the Silicon Valley in California, Route 128 in Massachusetts, and the Silicon Alley in New York City, and each of these tech hubs has an incredible and conducive environment that fosters growth for software development. The disruptive innovations made by the tech hubs have been game-changing. This is apart from the numerous technological breakthroughs made regularly by the world-famous universities like Stanford and MIT.

2. An excellent breeding ground for startups because of the support

The government funding for research and development in the field of machine learning, artificial intelligence, natural language processing, and of course, cyber security has been a boost in attracting a chunk of investors to the USA. If you have a unique idea for a startup and are looking to develop cutting-edge software to promote the same, the USA is the market to tap. 

Similarly, the venture capitalism ecosystem is also strong in the country. There are investors ready to promote the ideas of promising startups and their open-mindedness to new technologies has enabled the country to be the hub for new kinds of tech innovations. This has also enabled people to come up with new ideas and test their success, making the country a receptive market for tech innovations.

3. Nothing can beat the power of infrastructure

The power of robust infrastructure and their availability makes the US one of the best in the industry. With innovations in internet connectivity, cloud computing services, and data centres, developers can deploy smart software with minimal latency. This is backed by the rich profusion of technology parks and research institutions in the country. All this gives you the perfect formula for success when investing in the USA. The developers are open to new ideas and are quite proficient in the latest kinds of development tools, development methodologies, and programming languages. 

4. An impressively diverse talent pool 

America boasts of talents from across the globe. With its superior educational infrastructure and world-class, innovative teaching styles, there is no doubt the country is home to some of the best talents in the world. The universities in America are all the highest rated ones in the world and there is a steady stream of graduates adept at computer science, and engineering, apart from other capabilities and skills. The immigration policies have made it possible for the country to welcome people with diverse skills. The US market has a heavy influx of specialised software developers who are experts at the latest technologies and have made innovations in their offerings through machine learning, NLP, cybersecurity, etc. Their expertise in these fields has made them highly efficient in creating premium software solutions that create benchmarks. 

5. There is always access to capital

Every venture becomes successful only when there is enough access to capital. In the US, there is always unparalleled support and plenty of opportunities for financial support through private equity funds, angel investors, and venture capital firms. Startups thrive in the country, and they can make use of the rich infrastructure and the diverse talent pool that works well in the software development ecosystem. 

6. Intellectual Property Protection that facilitates growth

Developers are confident of their skills and they are happy to invest their time and efforts in research and development, thanks to the prompt Intellectual Property Protection rights, well-defined patent laws, rare secret protections, and copyright laws. The thriving environment enables growth in the field of software development because developers know their work is protected.

The US legal system is also pretty strong and strict about data privacy regulations (like HIPAA and GDPR, for instance), so the developers trust better, and this leads to better innovations and new ideas. Additionally, the legal system fosters strict contracts between the clients and developers, so the chances of disputes are minimised and both sides will be clear, facilitating a stable business environment. 


It is believed that one-third of the $5 trillion global information technology (IT) market is in the US, making the country the largest tech market in the world. The above factors are proof enough that the USA has a very stable and secure market for software development. Support for infrastructure, availability of a large diverse pool of skilled talent, and protection for the rights of the software developers make the country a world leader. The US is a fertile ground for innovations and is well-positioned to be the leader in software development. With an environment that fosters continuous progress, you can look forward to groundbreaking projects that shape the habits (using apps and devices for practically everything in life) of the users shortly. International companies are already leveraging the benefits available in the country, and are investing in projects in the country, and making use of the multiple benefits. 

Interesting Links:

Why does the US have the strongest software industry than any other country in the world?

The Software Development Industry’s Scope of the USA

Pictures: Canva

The author: Sascha Thattil works at Software-Developer-India.com which is a part of the YUHIRO Group. YUHIRO is a German-Indian enterprise which provides programmers to IT companies, agencies and IT departments.

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