Business Software and Services Market Forecast, Share, and Growth 2031

The business software and services market size is expected to grow from US$ 555.57 billion in 2023 to US$ 1,330.88 billion by 2031; it is estimated to grow at a CAGR of 11.5% from 2023 to 2031. Emergence of AI and ML is likely to remain key business software and services market trends.

Business Software and Services Market Analysis

The business software and services market has witnessed significant growth in recent years, driven by technological advancements, rising implementation of software and systems in business operations, and increased enterprise digital transformation. The rapid increase in enterprise data volume and the growing automation of business operations in end-use industries like retail, manufacturing, healthcare, and transportation are anticipated to propel the demand for business software and services. Furthermore, technological developments and changes in cloud computing are providing lucrative opportunities for market growth. The emergence of AI and ML are emerging as a significant trend for business software and services market growth.

Business Software and Services Market Overview

Business software refers to digital solutions that assist organizations in carrying out various duties more successfully, safely, and efficiently. These tasks can include customer relationship management, project coordination, and accounting and payroll management. The best approach to automate many business activities is with business software. It streamlines all activities, especially repetitive ones, to boost profitability and productivity. Enterprises, whether they are small local enterprises or international corporations, depend on software solutions to stay competitive, accurate, efficient, and safe. Since business software eliminates the need for human data entry, it is essential for both large and small firms. Software programs lessen the expenses associated with human mistakes. Data security, user experience, simplicity of integration, communication, a straightforward user interface, and ease of updating are among the essential characteristics of business software. In today's digital age, businesses use business software to streamline operations and achieve a competitive edge.

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Business Software and Services Market: Strategic Insights

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Business Software and Services Market Drivers and Opportunities  

Increased Implementation of Business Software and Services to Favor Market Growth

Adoption of software is essential to any organization for a variety of reasons. Businesses can enforce proper business processes using software adoption tools by using guided flow field validations. Business software tools enable the automation of workflows while reducing the risk of human error and ensuring consistent adherence to established guidelines and regulations. With business software, organizations can establish clear audit trails, monitor activities in real time, and generate accurate and timely compliance reports, which simplifies compliance management and enhances transparency and accountability across the company. Thus, various businesses operating in wide verticals such as BFSI, retail, manufacturing, healthcare, and others are increasingly turning towards business software and services. For instance, according to Productiv data, the average enterprise has around 364 SaaS apps.

Similarly, according to a recent Digital Adoption Trends report, enterprises spend US$195 billion on SaaS products in 2023. According to a blog by Apty, 70% of organizations will use digital adoption platforms by the year 2031. Thus, increased implementation of business software and services drives the growth of the business software and services market.

Rising Enterprise Digital Transformation - An Opportunity in the Business Software and Services Market

Organizations struggle to compete in a rapidly changing and dynamic market. Therefore, through digital transformation, businesses seek to increase their competitive advantage, improve business performance, and achieve business growth. Digital transformation has become a new model for many organizations to gain competitive advantages in the intense and dynamic market competition. Business software helps to transform business as part of a digital transformation. Business software can support and add value to and improve business operations through advanced technology. Business software is at the heart of digital transformation. It provides a unified platform to integrate the operations and processes into business operations. Business software is essential to the digital transformation process as business software solutions automate all procedures, including HR, data analysis, inventory control, and financial management. Thus, rising enterprise digital transformation drives the business software and services market growth.

Business Software and Services Market Report Segmentation Analysis

Key segments that contributed to the derivation of the business software and services market analysis are the software, deployment, organization size, and industry.

• Based on the software, the business software and services market is segmented into finance, sales & marketing, human resources, supply chain, and others.
• Based on deployment, the business software and services market is segmented into cloud and on-premises
• Based on organization size, the business software and services market is segmented into large enterprises and small and medium-sized enterprises.
• Based on industry, the business software and services market is segmented into BFSI, healthcare, it & telecom, manufacturing, retail, transportation, and others.

Business Software and Services Market Share Analysis by Geography

• The business software and services market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.
• North America holds one of the largest global business software and services market shares. High technology adoption trends in various industries in the North American region have fueled the growth of the business software and services market. Factors such as increased adoption of digital tools and high technological spending by government agencies are expected to drive the North American business software and services market growth. Moreover, a strong emphasis on research and development in the developed economies of the US and Canada is forcing the North American players to bring technologically advanced solutions into the market. In addition, the US has a large number of business software and services market players who have been increasingly focusing on developing innovative solutions. Some of the key players in the business software and services market are Microsoft, Oracle, Cisco, IBM, and Infor, among others. All these factors contribute to the region's growth of the business software and services market.

Business Software and Services Market Regional Insights

The regional trends and factors influencing the Business Software and Services Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Business Software and Services Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Business Software and Services Market Report Scope

Business Software and Services Market Players Density: Understanding Its Impact on Business Dynamics

The Business Software and Services Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Business Software and Services Market are:

1. Acumatica, Inc.
2. Deltek, Inc.
3. Epicor Software Corporation
4. IBM Corporation
5. Infor.
6. NetSuite Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Business Software and Services Market News and Recent Developments

The business software and services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the business software and services market:

• In September 2023, Gati Limited, an Allcargo Group company, announced a partnership with Tech Mahindra to develop Gati Enterprise Management System (GEMS) 2.0. Gati’s core operational software system, GEMS 2.0, aims to offer an enhanced customer experience and a modern tech-driven interface while increasing efficiency and lowering costs. (Source: Gati Limited, Press Release)

In May 2023, Wipro announced a five-year business partnership with ServiceNow to invest in and bring new offerings to the market that will empower clients to drive business transformation, overcome business challenges, and deliver better value. Under the partnership, Wipro and ServiceNow would deliver joint clients process consulting, implementation, configuration, and managed services. The partnership would cover all global geographies and would initially focus on four key industries: financial services, healthcare, manufacturing, and energy and utilities. (Source: Wipro, Press Release)

• In July 2023, ESCRIBA AG, an innovative provider of software and digitalization solutions, announced the expansion of its strategic partnership with Software AG. Under this, ESCRIBA has developed powerful business applications based on Software AG’s AgileApps, which allows ESCRIBA to accelerate new feature development as part of the offering, such as data management, case management, and document generation and management.

(Source: ESCRIBA AG, Press Release)

Business Software and Services Market Report Coverage and Deliverables

The "Business Software and Services Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Business software and services market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Business software and services market dynamics, such as drivers, restraints, and key opportunities
• Business software and services market trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Business software and services market industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles