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The software consulting market size is forecast to increase by USD 207.63 billion at a CAGR of 12.04% between 2022 and 2027. Market growth hinges on factors such as the widespread acceptance of cloud-based services, escalating trends in IT consolidation and modernization, and heightened utilization of software solutions. These elements collectively drive market expansion by enhancing operational efficiency, facilitating data management, and fostering technological advancements. The surge in cloud-based services reflects a broader shift towards scalable and flexible IT infrastructures, accommodating diverse business needs. Similarly, the rise in IT consolidation and modernization initiatives underscores the industry's emphasis on streamlining operations and leveraging cutting-edge technologies. Additionally, the increased adoption of software solutions signifies a strategic approach to optimize processes, enhance productivity, and adapt to evolving market demands. These trends align with the ongoing digital transformation efforts across various sectors, driving the market's trajectory toward innovation and efficiency.
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This market report extensively covers market segmentation by end-user (BFSI, IT and telecom, manufacturing, healthcare, and government and others), type (large enterprise, small, and medium enterprises), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is driven by the increasing demand for Software solutions across diverse sectors like the Internet of Things (IoT) and cloud computing, reflecting a trend towards digital transformation and innovation. However, challenges such as cyber threats and data theft necessitate robust data security measures and skilled technical expertise. Additionally, navigating changing regulations and addressing cultural conflicts are emerging trends. The market's future lies in providing hybrid cloud services and supporting Small and Medium Enterprises (SMEs) with multi-sourcing solutions amid evolving technological landscapes.
The increased adoption of cloud-based services is driving the growth of the market. Global enterprises are restructuring their businesses to survive and succeed in this digital age. Cloud-based solutions help enterprises revamp their business models by leveraging technologies, such as big data, AI, and IoT, which provide a robust platform for the digital transformation of their businesses.
Moreover, the adoption of cloud-based solutions is high among SMEs and large enterprises. SMEs are increasingly spending money on data storage services in the public cloud. The adoption of cloud computing solutions will be driven by the pay-as-you-go subscription model, infrastructure as a service, platform as a service, and software as a service and facilitate the growth of the global market during the forecast period.
The increased adoption of IT as a service is a key trend in the market. IT as a service is the model of providing IT services that organizations use to manage their IT systems in line with strategic business needs. The adoption of IT as a service is rising in organizations as they are trying to implement IT solutions to remain competitive in their businesses.
Moreover, SMEs are implementing IT as a service model to reduce upfront IT costs and increase business agility. Small and medium enterprises are enabled to manage their information systems with minimal capital investment through flexible IT services. Such factors will boost the growth of the global market during the forecast period.
The increase in cyberattack activities is a major challenge faced by the market. Cyber attacks have a very serious impact on companies and, as a consequence, production problems and loss of revenue. The IT sector has experienced a sharp rise in cybercrime over the previous ten years, with reported instances of cyberattacks.
However, attackers gain access to corporate networks and interfere with the production process in order to target connected manufacturing systems. Cyberattacks, therefore, raise questions about the security of IoT and cloud-based solutions and hamper the adoption of these technologies among end-users, thereby hampering the growth of the global market during the forecast period.
The Market thrives on delivering innovative solutions and expertise across various domains. Software consultants are pivotal in providing onsite management and guiding businesses through mergers & acquisitions to ensure seamless transitions and optimal outcomes. One of the key areas driving demand in this market is the Internet of Things (IoT), where consultants help in designing and implementing IoT solutions. They offer software solutions tailored to clients' needs, leveraging cloud computing and hybrid cloud services to enable scalability and flexibility. A significant focus lies in catering to Small and Medium Enterprises (SMEs), offering multi-sourcing solutions and harnessing big data technologies for data-driven insights. Consultants also navigate changing regulations and foster industry cooperation to ensure compliance and collaborative growth.
The market share growth by the BFSI segment will be significant during the forecast period. Companies operating in the banking, financial services, and insurance (BFSI) sector are investing in software consulting solutions to reduce costs, find new revenue-generating streams, improve security and compliance systems, and make customer support more efficient. The implementation of digital transformation initiatives at BFSI firms worldwide provides an excellent opportunity for software service providers.
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The BFSI segment showed a gradual increase in the market share of USD 30.18 billion in 2017 and continued to grow by 2021. The growing adoption of cloud-based solutions and services to store customers' vital information, as well as the increase in cyberattacks, is driving the demand for software security consulting services within the BFSI segment. There's a need for sufficient security because the amount of data that goes into the cloud is huge. Software consulting companies that provide security services to BFSI end-users are expected to grow significantly during the forecast period.
The large enterprises held the largest market share in the global market in 2022. Large enterprises have been dominating the global market owing to the rising demand for software consulting services among large enterprises for greater flexibility and scalability in protection solutions. There has been an increase in demand for software consultancy due to the increased adoption of cloud computing by large businesses and the availability of new and innovative cloud services and solutions. Thus, the large enterprises segment is expected to drive the growth of the global 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. The US is the largest contributor of revenue to the market in the region due to its strong IT infrastructure. The growing investment in IT and telecommunication network infrastructure is one of the major factors driving market growth in North America.
Moreover, the data traffic growth, as a result of the increased adoption of IoT devices and the advent of big data analysis, has led to investment in telecommunication network infrastructure across the region. The growing consumption of online video and audio content is also increasing data traffic. The digital transformation in the region is expected to fuel the growth of the regional market during the forecast period.
The Market 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.
Market Customer Landscape
Companies 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.
Accenture Plc - The company offers software consulting services such as social commerce and growSMB.
AECOM - The company offers software consulting services such as cost consulting and strategic planning.
Atos SE - The company offers software consulting services such as digital strategy and process automation.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The Market is experiencing a profound transformation due to the rapid evolution of technology and business landscapes. As businesses across various sectors embrace digitalization, the demand for Internet of Things (IoT) solutions has surged. Software consultants play a pivotal role in this paradigm shift, offering expertise in system design, technical capabilities, and support and testing for IoT implementations.
Moreover, the market is witnessing a significant uptake in cloud computing technologies, particularly hybrid cloud services and cloud servers. This trend is driven by the need for scalable, secure, and cost-effective solutions, which software consultants adeptly navigate through multi-sourcing solutions and enterprise solutions. The rise of big data technologies and large data repositories has further fueled demand for software consulting as businesses seek insights and efficiencies from data analytics. However, this growth is accompanied by challenges such as cyber threats, data security, and malware, necessitating robust software security services.
In addition to technological advancements, the market is shaped by changing regulations, industry cooperation, and micro-economic factors. Financial services institutions, retail, IT & Telecom, and education sectors are prominent clients, highlighting the market's diverse reach. Amidst a highly competitive environment, software consultants differentiate themselves through innovative software solutions, market positioning, and skilled technical expertise, catering to businesses of all sizes, from Small & Medium Enterprises to large enterprises.
Furthermore, the Market is at the forefront of digital transformation, offering a wide range of services to businesses across various industries. Software consultants play a crucial role in providing expert guidance and support for business transformation initiatives, helping organizations navigate challenges like cultural conflicts and lack of cognition during the adoption of new technologies. With the rapid growth of Internet-of-Things (IoT) and the e-commerce industry, software consulting has expanded its scope to include specialized services for IoT implementations and e-commerce platforms. This includes enterprise solutions, application development, and migration & maintenance services tailored to meet the unique needs of these sectors. One of the key focuses of software consulting is data security. Consultants work on data theft prevention strategies, combatting threats such as ransomware, social engineering, phishing assaults, fileless malware, root kits, and injection attacks. They also provide application testing services to ensure robust security measures are in place.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.04% |
Market growth 2023-2027 |
USD 207.63 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
11.9 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, AECOM, Atos SE, Capgemini Service SAS, CGI Inc., Clearfind, Deloitte Touche Tohmatsu Ltd., Ernst and Young Global Ltd., Grant Thornton International Ltd., International Business Machines Corp., KBR Inc., KPMG International Ltd., McKinsey and Co., NEC Corp., Oracle Corp., PricewaterhouseCoopers LLP, Ramboll Group AS, Rapport IT Services INC, SAP SE, and SGS SA |
Market dynamics |
Parent market analysis, Market forecasting, 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 the forecast period |
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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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