AbstractThe primary role of component‐based software engineering is to address the development of systems as an assembly of parts (components), the development of parts as reusable entities, and the maintenance and upgrading of systems by customising and replacing such parts. This requires established methodologies and tool support covering the entire component and system lifecycle including technological, organisational, marketing, legal, and other aspects. The traditional disciplines from software engineering need new methodologies to support component‐based development. IVICA CRNKOVIC assesses the challenges of this emerging technology and discusses its implications for the software development process. Copyright © 2002 John Wiley & Sons, Ltd.