USD 51.08 billion
Software Market Size, Share, Growth Analysis, By Type(Application Software (Enterprise resource planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), Enterprise Collaboration Software), By Deployment(On-premises, Cloud), By Enterprise Size(Small & Medium Enterprises, Large Enterprises), By Vertical(IT & Telecom, BFSI, Retail, Government/Public Sector), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2191 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
87
|Figures:
76
Software Market Insights
Global Software Market size was valued at USD 610.13 billion in 2022 and is poised to grow from USD 640.81 billion in 2023 to USD 948.95 billion by 2031, growing at a CAGR of 5.03% during the forecast period (2024-2031).
Software is a name that needs no introduction in the world that just keeps on becoming more and more digital. Apps, scripts, and programs that run on a device are referred to as software. Rapidly increasing digitization and growing investments in the development of novel software are projected to create new opportunities for software companies. Rising popularity of Software as a Service (SaaS) trend is also estimated to bolster software market development in the future. High sales of consumer electronics and increasing reliance on applications will also favor the demand for software on a global level. Rising use of data analytics around the world will surely offer some lucrative growth for companies developing data analytics software in the future. On the contrary, high complexity of development and increasing risk of data security breaches are slated to hamper software market growth.
US Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Low Code
Fastest Growth
No Code
Growth Rate
8.7% CAGR
Global Software Market ($ Bn)
Country Share for North America Region (%)
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Software Market Segmental Analysis
Global Software Market is segmented by Type, Deployment, Enterprise Size, Vertical and Region. Based on Type, the market is segmented into Application Software (Enterprise resource planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), Enterprise Collaboration Software, Enterprise Content Management (ECM) Software, Education Software, Others), System Infrastructure Software (Network Management Systems (NMS), Storage Software, Security Software), Development and Deployment Software (Enterprise Data Management (EDM), Business Analytics & Reporting Tools, Application Servers, Integration & Orchestration Middleware, Data Quality Tools), Productivity Software (Office Software, Creative Software, Others). Based on Deployment, the market is segmented into On-premises, Cloud. Based on Enterprise Size, the market is segmented into Small & Medium Enterprises, Large Enterprises. Based on Vertical, the market is segmented into IT & Telecom, BFSI, Retail, Government/Public Sector, Energy & Utilities, Healthcare, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Software Market Analysis by Enterprise Size
Large enterprises are forecasted to account for a major chunk of the global software market share. Increasing investments of large enterprises to develop specialized software for their organizations are helping the dominance of this segment. Establishment of in-house software development teams in large enterprises to save costs and boost business profitability is also expected to help this segment maintain a high share of the global market.
Meanwhile, the demand for software in small and medium enterprises (SMEs) is estimated to rise at a rapid CAGR across the forecast period and beyond. SMEs are turning towards software to improve their business operations while optimizing efficiency as well. Growing availability of affordable software around the world will also help this segment generate new business scope for software companies.
Software Market Analysis by Type
Application software is projected to account for a dominant share of the global software market. Growing reliance on applications of individuals and businesses around the world is forecasted to help this segment generate most revenue for software developers. Increasing demand for enterprise applications and growing demand for integration of advanced technologies in applications are also expected to aid the high market share of this segment going forward.
Meanwhile, the demand for deployment and development software is estimated to emerge as the fastest-growing segment in the global software market. The use of unique software development approach such as DevSecOps and growing innovation in software development technologies are slated to create new opportunities for software companies in the future. Moreover, growing deployment of software on cloud platforms is also expected to provide lucrative business scope for software companies in the long run.
Global Software Market By Enterprise Size
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Software Market Regional Insights
North America is estimated to account for a substantial share of the global software market. The presence of a strong technological infrastructure coupled with quick adoption of advanced technologies allows North America to emerge as the top market for software providers. The United States is estimated to be the most opportune market in this region owing to the presence of key tech companies continually launching novel software. High availability of skilled workforce for software development is also expected to help the dominance of this region going forward.
Growing digitization in Asia Pacific is expected to make it the fastest-growing market for software companies in the world. Increasing demand for novel software from all industry verticals, growing investments in novel software development, and the presence of a robust start-up ecosystem are helping create new opportunities for software companies in this region. China, Japan, South Korea, and India are estimated to be the most opportune markets for software companies in this region.
Global Software Market By Region
- Largest
- Fastest
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Software Market Dynamics
Software Market Driver
High Demand for Applications
- Devices across the world are using applications to function properly and an increase in sales of consumer electronics is also boosting the use of applications. Software is a crucial element of any application development, thereby high demand for applications also favors market growth.
Rapid Digital Transformation
- Digital transformation across the world is increasing at a rapid pace and this trend is projected to bolster the importance of software in the future. High demand for advanced software to support digital transformation is projected to help bolster market development over the coming years.
Software Market Restraint
Interoperability Issues
- Integrating and operating software solutions in harmony with other solutions and systems is an issue as some systems might not be compatible. Also, use of incompatible standards if different blockchains also creates interoperability issues and hinders market growth.
Dearth of Skilled Software Developers
- While there is an abundance of software developers in some parts of the world, there is a shortage of the same in some. This disparity in availability of skilled workforce to develop and deploy advanced software around the world is estimated to impede software market development potential in the future.
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Software Market Competitive Landscape
Software providers should focus on developing solutions that are more secure and resilient to complex cyberattacks. Integrating advanced technologies to provide additional functionality will also be a major trend for software companies. Training people in software development could also help software providers maximize their business scope in the future.
Software Market Top Player's Company Profiles
- IBM Corporation
- Avast (NortonLifeLock Inc.)
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- Adobe Inc.
- Broadcom Inc.
- Block, Inc. (Square)
- Intuit Inc.
- Apple Inc.
- Alphabet Inc. (Google)
- Salesforce.com, Inc.
- Autodesk, Inc.
- ServiceNow, Inc.
- Dassault Systèmes SE
- Cisco Systems, Inc.
- ANSYS, Inc.
- Synopsys, Inc.
- Open Text Corporation
- Amazon.com, Inc. (AWS)
Software Market Recent Developments
- In September 2024. Tesla, a leading electric vehicle company led by Elon Musk announced its plans to launch its self-driving software in China and European regions in early or mid 2025. The software is still pending approval from regulatory bodies and the company was optimistic that they would get it by the end of 2024.
- Recently, in September 2024, a new software consulting platform for the hospitality industry was launched by Techjockey.com in India. Techjockey for Hotels is intended to help hoteliers in India manage their IT infrastructure and SaaS offerings.
- In September 2024, Apple, a leading tech giant founded by Steve Jobs, announced the worldwide launch of iOS 18 operating system software for its mobile devices. The software was showcased earlier this year at Apple’s WWDC event and was launched with its new line of iPhones.
Software Key Market Trends
- Low Code and No-Code Development: Software companies should focus on advancing and utilizing no-code and low-code development approaches to streamline software development processes. Use of these technologies and offerings will help companies overcome the restraint of lack of skilled workforce and boost revenue in the future.
- Subscription-based Offerings: Software companies should focus on opting for a subscription-based model to enhance their business scope and reach out to organizations and people with limited spending potential. Utilizing the software as a service (SaaS) model will be essential in creating sustained market growth for software companies in the long run.
Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing demand for digitization around the world and increasing reliance on software for almost all applications are projected to drive software market growth. On the contrary, high costs of software development and dearth of skilled software developers in some parts of the world are expected to slow down software market growth. Growing digital transformation in the Asia Pacific region is expected to make it the most opportune market for software companies in the long run. Opting for low code and no-code development approaches could help software companies maximize their business scope across the study period and beyond.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 610.13 billion |
| Market size value in 2031 | USD 948.95 billion |
| Growth Rate | 5.03% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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