Software Market Size, Share, Growth Analysis, By Type, By Deployment, By Enterprise Size, By Vertical, By Region - Industry Forecast 2024-2031

Global Software Market size USD 610.13 billion in 2022 and is poised to grow from USD 640.81 billion in 2023 to USD 948.95 billion by 2031, growing at a CAGR of 5.03% during the forecast period (2024-2031).

Software is a collection of instructions, data, or programs used to operate machines and perform specific tasks, in contrast to hardware, which refers to the physical components of a computer. Software includes apps, scripts, and programs running on a device. With the rise of digitization and the increasing collection of data online, businesses' needs for data insights, customer analysis, and other business processes have expanded significantly. This shift is driving demand for enterprise software. The growing need for tools and solutions that support digital transformation is fueling strong growth in application development software. Additionally, consumers' demand for enhanced digital experiences is increasing the popularity of application platforms and platform-as-a-service (PaaS) options, which help developers manage the growing complexity of application infrastructure. Emerging technologies like the Internet of Things (IoT) and Artificial Intelligence (AI) further present substantial growth opportunities for the software industry in the years ahead.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Software market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Software Market Segmental Analysis

Global Software Market is segmented by Type, Deployment, Enterprise Size, Vertical and Region. Based on Type, the market is segmented into Application Software (Enterprise resource planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), Enterprise Collaboration Software, Enterprise Content Management (ECM) Software, Education Software, Others), System Infrastructure Software (Network Management Systems (NMS), Storage Software, Security Software), Development and Deployment Software (Enterprise Data Management (EDM), Business Analytics & Reporting Tools, Application Servers, Integration & Orchestration Middleware, Data Quality Tools), Productivity Software (Office Software, Creative Software, Others). Based on Deployment, the market is segmented into On-premises, Cloud. Based on Enterprise Size, the market is segmented into Small & Medium Enterprises, Large Enterprises. Based on Vertical, the market is segmented into IT & Telecom, BFSI, Retail, Government/Public Sector, Energy & Utilities, Healthcare, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Drivers of the Global Software Market

E-commerce websites shorten lead times and foster direct business interactions with end customers across various industries. A Walmart report highlights significant growth within the Flipkart group, with product value surging 12-fold to $7.5 billion. Organizations need customized software to manage and analyze customer data, broadening opportunities within the global software market.

Restraints in the Global Software Market

The deployment of software involves substantial costs, time, and expertise. Due to lengthy implementation processes, including project planning, installation, system configuration, and training, software can become a major expense. Additionally, businesses may need to invest in new hardware, upgraded network equipment, and security installations, leading to further costs. Factors like staff training, skilled employee recruitment, and ongoing maintenance can significantly increase the initial implementation expenses of enterprise software, potentially hindering market growth during the forecast period.

Market Trends of the Global Software Market

DevOps has gained widespread adoption in software development, becoming a key practice across various organizations. By 2022, observability technologies are expected to be crucial for DevOps teams in both large enterprises and small to medium-sized businesses. This need arises from the increasing use of microservices and cloud-native applications, which demand rapid identification and resolution of issues within these intricate architectures.