Gartner: AI Coding Agent Market Hits $9.8–11B, Predicts 65% of Engineering Teams Will Treat IDEs as Optional by 2027
Gartner·high signal
Gartner's May 20 report sizes the enterprise AI coding agent market at $9.8–11 billion annualized and declares it entering 'competitive realignment.' Frontier model providers are moving up the stack into direct competition with application-layer vendors, blurring ecosystem boundaries. The most striking prediction: by 2027, over 65% of engineering teams using agentic coding will treat IDEs as optional, shifting control, governance, and validation to automated platforms. Vendors are also shifting from seat-based to usage-based pricing.