Market Insights report
In the business environment, the Software market is an important provider for the ongoing digital transformation of business processes in order to make them more efficient. The global Software market has shown stable growth in recent years and is expected to further continue this trend in the coming years. Fueled by increasing cloud adoption, which received an additional momentum in times of COVID-19 pandemic, the software market is driven especially by cloud-based deployment as software-as-a-service solutions.
This report provides an overview of the Software market and includes a range of statistics: The overall market development, a forecast until 2028, market shares for some specific segments, and more are included for the global Software market as well as for the four segments Enterprise Software, Productivity Software, Application Development Software, and System Infrastructure Software. In total, the worldwide Software revenue, which amounted to US$659 billion in 2022, is expected to continue growing at a high rate to reach US$858 billion by 2028.
What's included?
The Software market represents the total market for all kinds of different software and is extensively discussed in this report.
Companies’ digital transformation in general drives investments in software segments. Especially software that focuses on digitization and process automation as well as data analytics to gain more business insights and efficiency is in demand. Relevant top-level software segments include Productivity Software, Enterprise Software, System Infrastructure Software, and Application Development Software.
Software in general can be provided in one of two ways: On-premises software is sold via a transactional license or as a subscription, and cloud-based software (software as a service / SaaS) is most often sold as a subscription. As a result of market speed and volatility, software investments are increasingly shifted to the cloud to be more flexible and independent.
Companies’ needs for data insights, customer analyses, and all kinds of business processes have strongly increased due to digitization and data that is collected online. This development drives the demand for Enterprise Software, the biggest segment of the market, while the segment of System Infrastructure Software provides the necessary framework for business processes – the operating system, IT and storage management, as well as security software.
The second largest segment, Application Development Software, is experiencing strong growth, driven by the high demand for products and technologies that enable digitization. Consumers’ demand for a better digital experience increases the attractiveness of application platforms or platform-as-a-service options, which help to manage the increasing complexity of application infrastructure on behalf of developers. The trend towards new technologies such as Internet of Things (IoT) and Artificial Intelligence (AI) offers further growth potential for this segment in the upcoming years.
The last segment, Productivity Software, supports basic business activities in a digital environment and therefore helps companies to become more flexible in business processes and decision-making in order to react faster to market developments. The biggest segment, Office Software, makes up more than a third of the market and is used in many companies, dominated by Microsoft Office applications. In recent times, in particular the segment of Collaboration Software has become more attractive to companies that focus on agile methods and new work.
Market Outlook
The Software Market
Overview
We provide information on industries, companies, consumers, trends, countries, and politics, covering the latest and most important issues in a condensed format.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)