Gartner's latest market guide highlights the growing importance of Cloud Development Environments (CDEs) in improving developer productivity, security, and collaboration. CDEs are seen as a key solution to address challenges such as AI engineering complexity, cloud-native development workflow complexity, and securing the software supply chain. The market is still in its early stages, with only 5% penetration, but momentum is building, with 59% of respondents planning to phase out local workstations in favor of CDEs. Gartner identifies three primary value drivers for adopting CDEs: productivity, security, and support for multiple personas. Productivity improvements are cited as the biggest driving factor, reducing time spent on setup, onboarding, and switching between development environments, allowing developers to focus on coding. Security is also a top concern, with CDEs improving centralization of control, enforcing policies without adding extra work for developers. Finally, CDEs provide support for multiple personas, enabling secure collaboration and sharing of data across teams.