Software Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, India, Germany - Size and Forecast 2023-2027

Software Market Forecast 2023-2027

The Software Market size is estimated to increase by USD 27.86 billion and grow at a CAGR of 8.47% between 2022 and 2027. Market growth hinges on various factors such as the expansion of enterprise data volumes, the escalating trend of digital transformation, and the burgeoning prevalence of mobile computing. The Software encompasses a compilation of instructions, programs, data, and documentation that empower computers or other digital devices to execute specific tasks, operations, or functions. Essentially, it comprises electronic directives guiding the operation and interaction of a computer's hardware components, facilitating users in accomplishing diverse objectives and tasks.

What will be the Size of the Software Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by type (subscriptions, identity, and access management, endpoint/network/messaging/web security, and risk management), deployment (cloud-based and on-premises), 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 historical market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The rise of cloud computing has revolutionized how businesses operate, offering flexibility and scalability. However, with this advancement comes the ever-looming threat of cyber threats. Software solutions, particularly Software-as-a-Service (SaaS), provide essential tools for businesses to combat these threats, including malware protection and privacy safeguards for mobile applications. Machine learning and artificial intelligence are driving innovations in threat recognition and mitigation strategies, bolstering the Asia Pacific software market. Data security and privacy remain paramount, especially with the surge in remote working and cloud-based software adoption.

Productivity software plays a vital role in optimizing business functions, while data intelligence tools empower organizations to make informed decisions. Balancing the benefits of individual computing devices and information systems with internet communication and secure transactions requires robust network security and access management. Automation of business processes and digitization further enhance efficiency but necessitate heightened privacy concerns. As businesses navigate these challenges, the software market functions as a critical enabler of growth and innovation. Embracing technology while prioritizing security and privacy is key to unlocking the full potential of the digital age.

Key Market Driver

One of the key factors driving the growth is the increase in the volume of enterprise data. There is a tremendous increase in volume of data across enterprises which is significantly contributing to the market growth. Several organizations are generating and collecting huge amounts of data from different sources such as customer interactions, transactions, and IoT devices. 

Moreover, there is an increase in demand for software and services due to the increase in data volume. as it can effectively manage, analyze, and derive insights from this data. Additionally, there is an increasing focus on the need for business software tools that can handle large datasets and offer meaningful insights, due to the rising importance of data-driven decision-making. Hence, such factors are positively impacting the market which, in turn, will drive the market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the increasing cloud computing. There is a significant shift among organizations from traditional on-premises software models toward cloud-based solutions. Some of the main benefits of the adoption of cloud-based software solutions include flexibility in deployment, reduced IT infrastructure costs, and enhanced accessibility. Additionally, these solutions enable users to access applications and data remotely from any device with an internet connection, facilitating smooth collaboration and remote work capabilities.

Moreover, another advantage of cloud-based solutions is their scalability as they can be implemented across businesses of different sizes. Furthermore, cloud-based software can easily accommodate changes such as as enterprises experiencing fluctuating demand or growing their user base, without requiring significant hardware investments or complex updates. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.

Restrain

High costs of licensing and support are one of the key challenges hindering the software market growth. There has been a significant transformation in the software industry from a service-oriented sector to a product-oriented industry and subsequently to a combination of both product and service industries. As a result, there are several changes in the product licensing and maintenance licensing situation associated with the industry.

Moreover, the licensing offered in the corporate application area includes both single-user and concurrent-user licensing models were conventional licenses. However, concurrent-user licensing is slowly phasing out. Hence, such changes in licensing situation can negatively impact the market which in turn will hinder the market growth during the forecast period.

Software Market Segmentation By Type

The subscriptions segment is estimated to witness significant growth during the forecast period. There is growing awareness regarding the benefits of subscription-based software models, leading to a paradigm shift in how software solutions are accessed and utilized.  Some of the key advantages of subscription-based software models include flexibility, cost efficiency as well as updates and improvements. The main advantage of this segment is that it offers flexibility such that it enables businesses to scale their software usage as per their requirements.

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The subscriptions segment was the largest segment and was valued at USD 18.52 billion in 2017. Additionally, this segment promotes cost efficiency such that it enables companies to spread their costs over time, making them more accessible to businesses of different sizes. The pay-as-you-go model of this segment suits well with the budget considerations and positively impacts better financial planning.  Regular updates and continuous improvements are other significant advantages that comes with the package. Such updates ensure that enterprises have access to the latest features, security patches, and performance enhancements. Hence, such advantages are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Software Market Segmentation By Deployment

The advantages offered by the cloud-based segment will increase the market growth during the forecast period. There is an increasing adoption of cloud-based segments across enterprises due to their operational efficiency and scalability.  The increasing adoption is fuelled by the numerous benefits offered by this segment including greater flexibility, reduced infrastructure costs, and improved accessibility. Several enterprises are shifting their software applications to cloud platforms to make use of on-demand resources and to streamline their IT infrastructure. Hence, such factors are fuelling the growth of this segment which, in turn, will drive the market growth during the forecast period.

Regional Overview

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North America is estimated to contribute 49% 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. There is a significant growth of the software market in North America across various sectors ranging from business and finance to healthcare and entertainment. The increasing focus on technological innovation and digital transformation is significantly fuelling the growth of the software market is significantly contributing to the market growth in North America.

Additionally, North America is known for its deep-rooted culture of technological advancement with several tech hubs including Silicon Valley, Seattle, and Boston are known for nurturing startups, fostering R and D, and attracting top talent from around the globe. Such kind of environment boosts the innovation of cutting-edge technology solutions, from cloud computing and AI to cybersecurity and e-commerce platforms. Hence, such factors are driving the market growth during the forecast period.

Software Market Customer Landscape

The Software 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.

Global Software Market Customer Landscape

Who are the Major Software Market Companies?

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.

Adobe Inc: The company offers software such as Adobe Photoshop, Adobe Acrobat, Adobe Premiere Pro, and Adobe InDesign.

Autodesk Inc: The company offers software such as AutoCAD, Autodesk Maya, Autodesk 3ds Max, and Autodesk Revit.

Cisco Systems Inc: The company offers software such as Cisco IOS, Cisco Webex, Cisco ASA, and Cisco Meraki

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• ANSYS Inc.
• Dassault Systemes SE
• Focus Softnet Pvt. Ltd.
• Gen Digital Inc.
• Hewlett Packard Enterprise Co.
• IFS World Operations AB
• International Business Machines Corp.
• McAfee LLC
• Microsoft Corp.
• Oracle Corp.
• OTSUKA CORP.
• Salesforce Inc.
• SAP SE
• SYNERGIX TECHNOLOGIES PTE LTD.
• Synopsys Inc.
• VMware Inc.
• Zoho Corp. Pvt. Ltd.

Qualitative and quantitative 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. 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.

Segment Overview

The software 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. 

• Type Outlook 
  • Subscriptions
  • Identity and access management
  • Endpoint/network/messaging/web security
  • Risk management
• Deployment Outlook
  • Cloud-based
  • On-premises
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Asia Pacific Software market, bolstered by government support and initiatives like Gift City in India and the growth of IT clusters, is witnessing significant growth. Additionally, the BFSI sector is embracing cybersecurity software and data protection tools to mitigate cyber threats and safeguard sensitive information. Enterprise collaboration software, customer relationship management (CRM) systems, and enterprise resource planning (ERP) solutions are essential for large firms and businesses of all sizes to streamline operations and enhance collaboration. Moreover, the demand for cloud services and Software-as-a-Service (SaaS) models is soaring as organizations shift towards virtual operations and remote working arrangements.

However, the Market also faces challenges such as cybersecurity threats, privacy concerns, and legal and regulatory issues. To address these challenges, companies are investing in cybersecurity software, privacy-enhancing technologies, and security upgrades to protect against intrusions, malware, and system-level security risks. Overall, with rapidly advancing technology, mergers and acquisitions, and recent developments in software supply chains, the Software Market continues to evolve, offering innovative solutions to meet the changing needs of industries ranging from retail and education to healthcare and beyond.

In the realm of business and technology, various factors and entities shape the landscape, driving innovation, security, and growth. From cybersecurity measures to enterprise software solutions, the integration of advanced technologies and strategic partnerships play a crucial role in navigating the complexities of the modern marketplace. Funds like Apax Funds and Blackstone provide capital and resources to fuel the growth and expansion of big firms, facilitating mergers, acquisitions, and investments in key sectors such as technology, healthcare, and retail. These investments often involve the deployment of enterprise software solutions, including application servers, development and deployment software, and enterprise content management tools. With the rise of cybercrimes and data breaches, data security and protection have become paramount concerns for businesses of all sizes. Utilizing data intelligence tools, data quality tools, and malware protection software, organizations strive to safeguard their networks and information systems from potential threats and vulnerabilities.

Educational technology, health technology, and productivity software are areas experiencing significant growth and innovation, driven by the increasing demand for remote employment solutions, education software, and health management platforms. Companies like IBS Software and TeamSystem SpA are at the forefront of developing software solutions tailored to the needs of specific industries and sectors. Integration and orchestration middleware play a crucial role in facilitating seamless communication and collaboration across individual computing devices, networks, and applications. Platforms like Microsoft Teams and social media platforms serve as vital tools for remote labor and communication, enabling teams to collaborate effectively regardless of geographical location.

 

Software Market Scope
Report Coverage	Details
Page number	176
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.47%
Market growth 2023-2027	USD 27.86 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.18
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 49%
Key countries	US, Canada, China, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Adobe Inc., ANSYS Inc., Autodesk Inc., Cisco Systems Inc., Dassault Systemes SE, Focus Softnet Pvt. Ltd., Gen Digital Inc., Hewlett Packard Enterprise Co., IFS World Operations AB, International Business Machines Corp., McAfee LLC, Microsoft Corp., Oracle Corp., OTSUKA CORP., Salesforce Inc., SAP SE, SYNERGIX TECHNOLOGIES PTE LTD., Synopsys Inc., VMware Inc., and Zoho Corp. Pvt. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, market growth analysis, market research and growth, market growth and forecasting, Market forecasting, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and 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.

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What are the Key Data Covered in this Software Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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