How Many Software Engineers in The World Are There in 2024?

How Many Software Engineers Are There in the World?

Software engineering has become one of the most in-demand and crucial professions in the modern world. As virtually every industry relies on software and technology to function, the need for qualified software engineers continues to grow at a rapid pace. But exactly how many software engineers are out there building the digital infrastructure of the future? Let‘s take a detailed look at the software engineering landscape worldwide.

Exponential Growth in Global Developer Population

According to data from Statista, there were 23.9 million software developers and engineers worldwide in 2019. This number is projected to grow to 28.7 million by 2024. So in just 5 years, the global developer population is estimated to increase by over 20%.

In fact, a survey by the market research firm Evans Data Corporation found that the global developer population grew by 13.5% annually from 20.5 million in 2019 to 23.9 million in 2020. At this rate, the worldwide developer tally could potentially top 34 million by 2024 assuming the conservative 13% CAGR continues linearly.

This exponential growth is being driven by several key factors:

• The digital transformation of companies across all industries requires more software and developers to build it. The global digital transformation market is projected by IDC to grow at a 19% CAGR between 2020-2024.

• Emerging technologies like artificial intelligence, IoT, blockchain etc. are creating new opportunities for developers. According to GrandView Research, AI software alone is expected to be a $1 trillion market globally by 2028 growing at 40% CAGR.

• Demand from thriving tech hubs like Silicon Valley and cities around the world battling the talent shortage. Tech strongholds like Silicon Valley, New York, London, Berlin as well as Asian hubs like Singapore & Hong Kong have voracious appetite for importing talent.

• Increased interest among younger generations to pursue careers in the lucrative and dynamic software industry. Coding bootcamps and platforms like freeCodeCamp have made learning coding skills ubiquitous for millenials & Gen Z job aspirants.

While the global tally gives us a broad overview, a deeper regional breakdown provides more insightful trends.

India Has the Most Developers While US Leads in Quality

When it comes to sheer number of software engineers, India tops the list with over 5 million developers according to AIMResearch. In comparison, the US has approximately 4.5 million developers while China‘s developer population is estimated to be around 3 million.

However, the US still leads in terms of average compensation per developer which signals quality. The average US developer commands an annual salary of roughly $110k compared to just $9k in India and $14k in China.

The massive developer talent pool in India can be attributed to factors like:

• Large IT outsourcing industry catering to foreign clients. Tata Consultancy Services (TCS), Infosys, Wipro and others hire lakhs of Indian developers annually for offshore delivery.

• High emphasis on STEM education and engineering disciplines producing graduates with coding skills. IITs in India are world renowned for computer science talent they nurture.

• Rising number of India-based startups providing jobs for developers. Indian startups raised a record $26 billion in funding during 2021 and are expected to hire over 100,000 techies in 2022 according to data from NASSCOM.

The advanced software industry centered in Silicon Valley along with abundant job opportunities at companies like Google, Facebook, Netflix etc. attract the best talents globally with lucrative pay packages.

China‘s developer population is also massive fueled by the country‘s booming consumer internet and eCommerce industry. Alibaba‘s Taobao, Tencent‘s WeChat and the rise of Chinese hardware giants like Huawei, Oppo have increased domestic demand for software engineers within China.

Specialized Developer Skills in Greatest Demand

As per Stack Overflow’s comprehensive 2020 survey of over 65,000 developers, a majority of them work on web and mobile app development. Over 50% identified their primary coding language as JavaScript while about 30% used Java or Python.

However, developers should look to diversify their skills as well. For example, expertise in specialized domains like machine learning, blockchain, quantum computing etc. can provide fantastic career opportunities even though overall demand is lower.

Let‘s analyze some of the niche skills that are most sought after currently:

Artificial Intelligence:

AI software market estimated to be $1 trillion globally by 2028. Skills like machine learning, NLP, computer vision see extremely high demand.

Cybersecurity:

With cyber attacks and data breaches on the rise, cybersecurity skills are more crucial than ever. WhiteHat Security estimates there will be 3.5 million global cybersecurity job openings by 2025.

Cloud Computing:

As per Statista, Cloud infrastructure spend is projected to cross $100 billion by 2027. So cloud-native development skills like Kubernetes, serverless, microservices are extremely valuable.

Blockchain:

Blockchain could be a $67 billion industry globally by 2027 progressing at a CAGR of 82% according to GrandView Research. Developers skilled in building decentralized Ledger-based applications have an advantage.

Quantum Computing:

Quantum software market expected to progress at a CAGR of 34% until 2030 per Inside Quantum Technology. Quantum algorithm developers are positioned to be pioneers in computing.

Ultimately developers should look to gain a mix of mainstream programming and niche domain skills to remain competitive and future-ready.

Top Industries Employing Software Engineers

Almost every modern industry utilizes software in some capacity. But some sectors employ far more developers than others currently while also projected to generate more jobs in future:

1. Information Technology

IT industry directly employs developers for building software products and SaaS services. Leading companies like Microsoft, SAP, Cisco, VMware etc. hire developers globally.

2. Financial Services

Banks, insurers, and financial institutions require customized software solutions. The payments processing sector has significant demand with digital transactions booming – Visa and Mastercard have thousands of open tech positions currently.

3. Telecommunications

Developing robust and secure software is crucial for telecom infrastructure as 5G deployment accelerates globally. Verizon, AT&T as well as network gear makers like Ericsson and Nokia are major employers.

4. Automotive

The autonomous and electric vehicle revolution with companies like Tesla, Waymo is built on software innovation by developers. Tech is also transforming legacy carmakers like GM, Ford, BMW pushing huge talent recruitment.

5. Retail

Legacy retailers like Walmart, Target are aggressively transforming digitally to take on Amazon and eCommerce players demanding more technical talent. Walmart plans to hire 5,500 more tech roles in 2022 paying average salaries of $142,000.

6. Healthcare

From clinical systems to telemedicine and mHealth apps, software is revolutionizing medicine. Health tech startups are proliferating alongside providers like hospital chains, insurance firms aggressively hiring developers.

Notable Hiring Trends in the Software Engineering Job Market

Let‘s examine some key global hiring patterns and trends as tech talent demand massively outstrips supply:

• Remote Work: According to LinkedIn’s 2022 Emerging Jobs Report, the top 2 fastest growing jobs are ‘Full Stack Engineer’ (#1) and ‘Back End Developer’ (#2). Both programming and development roles also dominate LinkedIn’s top jobs for remote work. This indicates surging demand for offshore technical talent.

• Specialized Skills: Software automation skills like DevOps, MLOps critical for CI/CD see sharp demand with the global DevOps market projected to be worth $20 billion by 2027 progressing at 24% CAGR as per GrandView Research. Cloud architecture expertise also sees exponential demand with the cloud market expected to top $1.5 trillion by 2030 per Global Market Insights.

• Soaring Salaries: The talent crunch has led to soaring salary packages for developers. Levels.fyi shows top firms like Google, Facebook, Uber pay $300k+ for senior engineers. Even mid-level engineers make ~$200k. High compensation drives intense competition between tech giants, hedge funds, quant firms to grab talent.

• Non-Tech Sectors: Industries not historically tied to software like agriculture, logistics, sports, entertainment etc. have begun large scale tech talent acquisition. John Deere aims to recruit over 1,000 software engineers doubling down on precision farming tech. Logistics giant UPS with its high-tech facilities and tracking network plans to hire 2,000 more programmers by 2023.

The Developer Shortage Crisis

Even with over 25 million developers worldwide currently, the job market continues to face a severe shortage of technical talent. A 2021 Intel survey found 77% of organizations have continuous developer vacancies. There are various factors contributing to and compounding this shortage:

• Rapid digitization as organizations put software and data vital to operations has amplified demand. Developing performant infrastructure and innovative apps has become imperative for survival.

• Modern distributed systems powered by sophisticated algorithms have made excellence in coding a base requirement, making non-technical roles redundant across domains.

• Emerging futuristic technologies from Web 3.0 to quantum computing promise immense commercial potential but require extremely specialized knowledge. Hence developers with niche expertise like blockchain and AI are highly coveted.

As per McKinsey senior executives globally indicated finding tech talent as their top challenge. 40% of companies surveyed said on average they lose 15% revenue due to tech vacancies.

Sadly however, the so-called ‘talent gap’ is projected to become worse over the next decade as demand continues to spiral. Job portal CareerBuilder estimated a shortfall of over 1 million software engineers in the US alone by 2032!

Governments and corporations are pursuing multiple strategies to boost tech talent supply like expanding STEM education and technical internships. Countries are also overhauling immigration policies to attract global talent. But there are no simple fixes to this complex issue plaguing employers worldwide.

Development demand across the next wave of innovations from Web 3 to the metaverse, will far outstrip even the most optimistic talent supply growth estimates. So the developer job market is guaranteed to remain red hot for the foreseeable future.

Software Engineering Outlook for the Next Decade

As the digital revolution powered by software continues transforming society and industry, demand for qualified software engineers shows no signs of slowing down over the next 10 years.

In fact, research firm Gartner predicts global IT spending will cross $5.3 trillion by 2025, growing at 5-6% annually over the next few years and catalyzing tech job growth even further.

Emerging technologies like quantum computing, ambient computing, extended reality promise exciting new frontiers for developers in the coming decade. Even traditional occupations like agriculture, sports, transportation etc. will integrate intelligent software systems built by developers.

For example, the World Economic Forum highlights how developers will code supply chain optimization algorithms, create IoT integrations for greenhouses, develop SaaS for livestock monitoring etc. – essentially transforming food production.

Likewise fledgling domains like commercial space tech, genomics, nanotech and fusion energy also require specialized software engineering talent to realize their epoch-shaping potential.

Considering the gargantuan skill deficit right now, the imbalance between talent supply and demand will likely persist over the next 10 years at least. That is why software engineering along with related fields like data science and ML are truly among the most future-proof career options for young people today.

So while an exact number to the question “how many software engineers in the world?” may vary based on estimates, the unambiguous answer is – not enough to meet the exponential industry demand! We need more talented builders to construct the technological future.