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The independent software vendors (ISVs) market size is estimated to grow at a CAGR of 14.01% between 2022 and 2027. The market size is forecast to increase by USD 1,738.53 billion. The growth of the market depends on several factors, including the increase in the volume of enterprise data, the growing digitization, and the growing automation of business processes.
This independent software vendors (ISVs) market report extensively covers market segmentation by deployment (on-premise and cloud), component (software and services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increase in the volume of enterprise data is notably driving the market growth, although factors such as data security concerns may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in the volume of enterprise data is the key factor driving the growth of the global ISVs market. The rapid growth in the volume and complexity of data being generated is due to increased mobile data traffic, cloud computing traffic, and the rapid development and adoption of technologies such as IoT and artificial intelligence (AI). Every click, swipe, share, search, and stream generate data, driving the need for big data analytics and storage solutions around the world. Also, the growing use of IoT-connected devices around the world has created an enormous amount of data.
Increased adoption of connected cars, connected homes, connected healthcare systems, and smart cities is increasing the amount of data collected by these devices. Organizations are searching for software analytics solutions from ISVs to successfully use the vast amount of data to boost operational efficiency and optimize their value offer to obtain a competitive advantage in today's highly competitive business climate. Such factors will fuel the growth of the independent software vendors market during the forecast period.
Increasing cloud computing is the primary trend shaping the global ISVs market. Government agencies and businesses use cloud-based software for a variety of applications such as authentication processes, video management, biometric information storage, and big data computing. The flexibility and scalability of cloud-based solutions help organizations and government agencies meet their diverse needs. The increasing use of IoT-connected devices around the world has generated massive amounts of data.
Furthermore, the rise in the adoption of connected cars, connected homes, connected health, and smart cities has increased the data generated by these devices. Many industries, such as manufacturing, utilities, retail, automotive, and social media, use IoT for increased data transfer. In 2020, IoT-enabled devices increased data center traffic by around 40 times. This growing number of IoT-enabled devices triggered the need for cloud-based solutions. Also, the commercial deployment of 5G will boost the growth of the market by the end of the forecast period.
Data security concerns are a major challenge impeding the growth of the global ISVs market. Data breaches are a cause for great concern around the world. News of hacking and industrial espionage is spreading. Such breaches are a major threat to small businesses and large enterprises. Local software programs have security issues. However, cloud solutions also come with security concerns. When companies and users share information and data with third parties, concerns arise about who has access to the information and data. Many businesses around the world, including SMBs and large enterprises, use cloud-based software solutions that are cost-effective, scalable, and easy to use. Most SMEs outsource certain tasks, such as IT.
However, when they outsource IT, they do not have control over the operation of the service provider. Hence, they are exposed to several risks. Services providers are often secretive and assure their clients that they are better at keeping the data safe. Despite such assurances, the data center used by software can be compromised by malware attacks or hacking. Thus, the increased concern for data security may hamper the growth of the global market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Independent Software Vendors Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers independent software vendor services such as Google Cloud ISV and SaaS Center of Excellence.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. On-premises software is locally hosted software inside the organization's premises. The on-premises software uses the organization's computer systems, and the organization pays a one-time license fee. The on-premises software offers data security, and local ownership, with the feature of additional integrations.
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The on-premise segment was valued at USD 739.60 billion in 2017 and continued to grow until 2021. High hardware costs and frequent maintenance required for on-premises software discourage enterprises from deploying on-premises software. Also, local software cannot be updated frequently as computer systems change. This further reduced the demand for on-premises software. On-premises ISVs include SAP, Oracle, Microsoft, and IBM. Therefore, businesses may prefer on-premises due to security concerns, which is likely to boost the growth of the global independent software vendor market during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In this region, small and medium-sized enterprises (SMEs) are increasingly working with e-commerce players and integrating with other online applications as this increases the demand for software written by ISVs. In addition, enterprise software provided by ISVs has emerged as a great alternative to managing company finances as it can quickly manage accounts payable, accounts receivable, company payroll, and general ledger among other business modules. Such factors will boost the growth of the independent software vendor market during the forecast period.
In 2020, the COVID-19 pandemic affected all segments of society, including individuals and businesses. Due to the COVID-19 pandemic, the dependency on online business has increased significantly. Industries such as BFSI, healthcare and life sciences, manufacturing, automotive, retail, transport, and logistics are using online platforms to provide necessary services to consumers, which positively impacted the software market and benefited the independent software vendors market. Moreover, the outbreak of COVID-19 has led to the adoption of the work-from-home office model. Companies across the world have turned to ISVs to provide a wide range of services and solutions. This factor is likely to continue in the US and Canada, which will fuel the growth of the independent software vendors market during the forecast period.
The independent software vendors (ISVs) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global independent software vendors market as a part of the global information technology (IT) spending market. The parent global IT spending market covers revenue generated from the sales and subscription of IT services, communications services, cloud services, IT hardware, and IT software. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Independent Software Vendors Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.01% |
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Market growth 2023-2027 |
USD 1,738.53 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
12.15 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
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Key companies profiled |
Alphabet Inc., American Software Inc., Apple Inc., Autodesk Inc., BMC Software Inc., Cisco Systems Inc., Gamma Technologies LLC, H and W Computer Systems Inc., HP Inc., International Business Machines Corp., Microsoft Corp., Mocana Corp., Nutanix Inc., Odyssey Computing Inc., Open Text Corp., Oracle Corp., RSA Security LLC, SAP SE, ServiceNow Inc., and Vision ID Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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