The significance of browser compatibility in web development lies in ensuring that websites function correctly across different web browsers and devices. As users may access content through various platforms, consistent performance is crucial for providing a seamless user experience. Incompatibility can lead to layout issues, broken features, or inaccessible content, which may frustrate users and drive them away. Achieving browser compatibility also affects search engine rankings; better compatibility often leads to improved accessibility and user satisfaction, enhancing overall website effectiveness and reach in the digital marketplace.