Software - North America

North America

In 2024, the projected revenue in the Software market in North America is expected to reach a staggering US$389.80bn.
The dominant player in this market segment is Enterprise Software , with a projected market volume of US$161.60bn in the same year.
Looking ahead, the revenue is anticipated to display an annual growth rate (CAGR 2024-2029) of 4.14%, leading to a market volume of US$477.40bn by 2029.
When compared globally, United States is set to generate the highest revenue, with an estimated US$363.40bn in 2024.
In the North American software market, the United States leads in technological innovation and dominates the industry with its vast pool of talent and robust infrastructure.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Region

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Analyst Opinion

The North American Software market is one of the most dynamic and rapidly growing markets in the world. With a strong focus on innovation and technology, the region has become home to some of the most successful software companies in the world.

Customer preferences: Customers in North America are increasingly looking for software solutions that can help them streamline their business operations and increase efficiency. Cloud-based solutions are becoming increasingly popular, as they offer greater flexibility and scalability than traditional on-premise software. Additionally, customers are looking for software that is user-friendly and easy to integrate with other systems.

Trends in the market: One of the biggest trends in the North American software market is the rise of artificial intelligence (AI) and machine learning (ML). Companies are using these technologies to develop software that can automate tasks, analyze data, and make predictions. Another trend is the increasing use of software in the healthcare industry, as healthcare providers seek to improve patient outcomes and reduce costs. Additionally, there is a growing demand for software that can help companies comply with data privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe.

Local special circumstances: The North American software market is highly competitive, with many small and large companies vying for market share. Silicon Valley in California is home to many of the world's most successful software companies, and the region has a strong startup culture. In addition, the Canadian software industry is also growing rapidly, with Toronto emerging as a major tech hub.

Underlying macroeconomic factors: The strong economy in North America has contributed to the growth of the software market, as companies have more resources to invest in technology. Additionally, the region has a highly skilled workforce, which has helped to drive innovation in the software industry. Finally, the region's strong intellectual property laws have encouraged innovation and investment in the software industry.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.