Software penetrates all aspects of our life in the information age: individuals and businesses rely on operating systems and applications to carry out daily tasks. No wonder, spending on enterprise software has one of the highest growth rates within the tech industry and is projected to grow further in 2024.
One major trend in the industry riding the hype cycle is the integration of artificial intelligence (AI) in software. This trend has also boosted the move to the cloud, namely from on-premises software to software-as-a-service (SaaS), representing around a third of the overall software market. The benefits of SaaS include lower total ownership costs and reduced dependence on owned infrastructure over traditional models, indicating that this trend will only continue in 2024 and beyond.
Information technology (IT) spending on enterprise software worldwide from 2009 to 2024 (in billion U.S. dollars)
Further details: Visit original statistic Information technology (IT) spending on enterprise software worldwide from 2009 to 2024 (in billion U.S. dollars)
The economic downturn in the second half of 2022 forced many companies to reduce expenses, leading to slower IT spending growth. However, the software industry faired more favorably, experiencing more positive growth in spending. The pandemic led to more digital adoption and increased spending on software as customers moved towards online channels. Enterprise software spending is set to approach a trillion U.S. dollars soon as it becomes even more crucial in digital transformation.
Software developmentInformation technology (IT) spending worldwide from 2012 to 2024, by segment (in billion U.S. dollars)
Further details: Visit original statistic Information technology (IT) spending worldwide from 2012 to 2024, by segment (in billion U.S. dollars)
For businesses to enhance their daily operations and core functions, they heavily rely on enterprise software to remain competitive and agile. Enterprise software is the largest segment in the software industry. Examples of enterprise software include enterprise resource planning (ERP) and customer relationship management technologies.
Enterprise softwarePublic cloud application services/software as a service (SaaS) end-user spending worldwide from 2015 to 2025 (in billion U.S. dollars)
The subscription-based model and accessibility demonstrated by SaaS, among other advantages over on-premises software, has made it one of the best-performing tech subsectors during the pandemic. As digitalization deepens, businesses and activities will move to the cloud more and more, pushing SaaS even further to the forefront. As a result, SaaS spending is projected to stay strong, reaching 195 billion U.S. dollars in 2023.
Software-as-a-Service (SaaS)Revenue and total expenses of leading software companies worldwide in 2020 (in billion U.S. dollars)
Further details: Visit original statistic Revenue and total expenses of leading software companies worldwide in 2020 (in billion U.S. dollars)
Best known for its Windows line of operating systems and Office Suite, Microsoft has dominated the software sphere for years. IBM and Oracle are also leading players, albeit with far less revenue than Microsoft. With the recent integration of OpenAI’s technology into its productivity suite, Microsoft has revitalized its cloud business. The German firm SAP is the only European company among the largest software companies and is primarily known for its ERP software.
MicrosoftArtificial intelligence (AI) market size worldwide from 2020 to 2030 (in billion U.S. dollars)
Further details: Visit original statistic Artificial intelligence (AI) market size worldwide from 2020 to 2030 (in billion U.S. dollars)
As large language models such as ChatGPT and Gemini continue to evolve, the use of artificial intelligence (AI) is becoming increasingly common. The ongoing generative AI revolution continues to influence business and industries, increasing efficiency and reducing costs. AI integration in software and increased usage of AI is likely to have a cascading effecting on a plethora of professions, from IT to management, as new possibilities of AI open up.
AI worldwide
The software industry consists of the development, distribution, and maintenance of software. It can be broadly divided into application software, system infrastructure software, SaaS, operating systems, database and analytics software. Statista provides information on software market spending in general and on various software products specifically, on both global and regional scales. Additionally, financial metrics and market share of major players are covered as well, together with data on AI, software development, and usage.
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