Business Software and Services Market Size, Share and Scope 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
Market Size Value in US$ 494.85 billion in 2022 Market Size Value by US$ 1193.16 billion by 2030 Growth rate CAGR of 11.6% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Business Software and Services Market: Strategic Insights
| Market Size Value in | US$ 494.85 billion in 2022 |
| Market Size Value by | US$ 1193.16 billion by 2030 |
| Growth rate | CAGR of 11.6% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Software, Deployment, Organization Size, Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
North America is expected to hold the highest market share in the business software and services market.
The key players holding majority shares in the global business software and services market are Oracle, SAP SE, Microsoft, IBM, and Cisco Systems Inc.
Emergence of AI and ML is anticipated to play a significant role in the global business software and services market in the coming years.
The major factors driving the business software and services market are increased deployment of business software and services and rapid increase in the volume of enterprise data.
The global business software and services market was estimated to be US$ 555.57 billion in 2023 and is expected to grow at a CAGR of 11.5% during the forecast period 2024 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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