PUBLISHER: The Business Research Company | PRODUCT CODE: 1582605
PUBLISHER: The Business Research Company | PRODUCT CODE: 1582605
Software rental service involves providing software applications to customers on a rental or subscription basis, allowing users to access and use the software without needing to buy permanent licenses. This service enables both businesses and individuals to utilize various software solutions-such as productivity tools, creative applications, and enterprise management systems-with greater flexibility and cost-efficiency.
The main types of software in software rental services include productivity software, creative software, accounting and finance software, customer relationship management (CRM) software, enterprise resource planning (ERP) software, project management software, collaboration and communication software, and other software types. Productivity software consists of applications designed to assist with tasks such as word processing, spreadsheets, and presentations, aimed at improving efficiency and streamlining business operations. This software is available through cloud-based and on-premise solutions, with subscription options such as monthly rental, annual rental, and pay-as-you-go. It is used by various enterprises, including small and medium-sized enterprises (SMEs) and large companies.
The software rental service market research report is one of a series of new reports from The Business Research Company that provides software rental service market statistics, including software rental service industry global market size, regional shares, competitors with a software rental service market share, detailed software rental service market segments, market trends and opportunities, and any further data you may need to thrive in the software rental service industry. This software rental service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The software rental service market size has grown strongly in recent years. It will grow from $42.36 billion in 2023 to $46.16 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. The growth during the historic period can be attributed to the rising adoption of cloud computing, the increase in remote work and virtual teams, the expansion of small and medium-sized enterprises (SMEs), the demand for scalable software solutions, and a focus on software security and compliance.
The software rental service market size is expected to see strong growth in the next few years. It will grow to $65.52 billion in 2028 at a compound annual growth rate (CAGR) of 9.1%. The growth during the forecast period can be attributed to the expansion of digital transformation initiatives, the increasing use of big data and analytics, a heightened focus on cybersecurity measures, a demand for flexible subscription models, and the need for improved collaboration tools. Major trends in this period include the rise of hybrid and multi-cloud environments, increased adoption of software-as-a-service (SaaS), greater integration of AI in software solutions, the development of blockchain-based software services, and a focus on personalized and adaptive software solutions.
The rising adoption of cloud computing is anticipated to drive the growth of the software rental service market. This increase is due to cloud computing's ability to offer scalable, flexible, and cost-effective computing resources and services. Cloud computing supports software rental services by providing scalable, on-demand access to software applications and infrastructure, reducing the need for upfront investment, and enabling flexible, subscription-based models. For example, in December 2023, Eurostat, a Luxembourg-based intergovernmental organization, reported that approximately 45.2% of EU enterprises used cloud computing services, mainly for email hosting, file storage, and various operational tasks, marking a notable increase of 4.2 percentage points from 2021. The most popular services included email hosting (82.7%), file storage (68.0%), office software (66.3%), security applications (61.0%), finance or accounting software (51.6%), and enterprise database hosting (43.0%). Thus, the growing adoption of cloud computing is fueling the expansion of the software rental service market.
Major companies in the software rental service market are developing innovative solutions, such as Arm-based cloud computing services, to improve scalability, flexibility, and accessibility for users. Arm-based cloud computing services involve cloud infrastructure that uses processors based on Arm architecture, known for their energy efficiency and performance, to provide scalable, cost-effective computing resources and services. For example, in May 2021, Oracle Corporation, a US-based database management and cloud service provider, introduced the Oracle Cloud Infrastructure (OCI) Ampere A1 Compute service, which employs Ampere Computing's data center chips built on Arm Ltd. technology. This service offers scalable, secure infrastructure with flexible virtual machine options, competitive pricing, and support for a range of workloads. The advancement in technology comes from adopting Arm architecture for data centers, which provides high core counts, excellent performance, and energy efficiency, significantly impacting the software rental service market by increasing options, lowering costs, and enhancing performance and efficiency.
In November 2023, Broadcom Inc., a US-based technology firm, acquired VMware LLC for $69 billion. This acquisition is intended to boost the adoption of subscription models and transform market dynamics by transitioning to subscription-based licensing, lowering prices for VMware Cloud Foundation, streamlining the product portfolio, improving support services, and offering flexible license portability. VMware LLC is a US-based technology company that includes software rental services among its offerings.
Major companies operating in the software rental service market are Alphabet Inc., Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Adobe Inc., Intuit Inc., ServiceNow Inc., Autodesk Inc., Atlassian Corporation Plc, Zoom Video Communications Inc., Dropbox Inc., Tableau Software LLC, HubSpot Inc., Slack Technologies Inc., Box Inc., Smartsheet Inc., Monday.com Ltd., Asana Inc., Pipedrive Inc.
North America was the largest region in the software rental service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software rental service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the software rental service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The software rental service market includes revenues earned by entities by providing services such as regular updates and maintenance, data storage and backup, security and compliance, analytics, and reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Software Rental Service Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on software rental service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for software rental service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The software rental service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.