PUBLISHER: The Business Research Company | PRODUCT CODE: 1678399
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678399
A software product refers to a software system that is ready for delivery to its customer, accompanied by documentation explaining the installation and usage procedures.
Software products encompass various types, including operating systems, productivity software publishing, database, storage and backup software publishing, business analytics and enterprise software, video game software, and design, editing & rendering software. Business analytics and enterprise software tools, categorized as application software, retrieve data from multiple business systems and consolidate it in a repository, such as a data warehouse, for analysis and review. Enterprise software serves the organizational needs rather than those of individual users. These software products find applications in both large enterprises and small to medium enterprises across diverse industries, including BFSI, media and entertainment, IT and telecommunications, energy and utilities, government and public sector, retail and consumer goods, manufacturing, and others.
The software products market research report is one of a series of new reports from The Business Research Company that provides software products market statistics, including software products industry global market size, regional shares, competitors with a software products market share, detailed software products market segments, market trends and opportunities, and any further data you may need to thrive in the software products industry. This software products 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 products market size has grown rapidly in recent years. It will grow from $1774.09 billion in 2024 to $1982.18 billion in 2025 at a compound annual growth rate (CAGR) of 11.7%. The growth in the historic period can be attributed to enterprise resource planning, e-commerce boom, mobile application development, open-source movement, cybersecurity concerns, open source movement.
The software products market size is expected to see rapid growth in the next few years. It will grow to $3040.45 billion in 2029 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to growing digital transformation initiatives, smart cities development, edge computing, robotic process automation, privacy and compliance solutions. Major trends in the forecast period include cloud-native and SaaS adoption, remote collaboration tools, low-code and no-code development, blockchain applications, AI in business processes.
The adoption of IoT technology by manufacturing and transportation service companies is projected to drive the software products market during the forecast period. IoT, or the Internet of Things, is a network of physical objects, including devices, vehicles, buildings, and other items, equipped with electronics, software, sensors, and network connectivity, allowing them to collect and exchange data. For example, Microsoft and Rolls-Royce have formed a partnership focused on the future of Rolls-Royce intelligent engines, integrating Microsoft Suite into their service solutions to enhance digital capabilities. According to a report from the Health Sector Cybersecurity Coordination Center (HC3) published in August 2022, approximately 7 billion devices were connected via IoT in 2022, with projections suggesting significant growth, as an estimated 20 billion additional devices are expected to utilize this technology by 2025. Therefore, the increasing adoption of IoT technology is anticipated to boost the demand for software products.
An increase in industrial automation is anticipated to drive the growth of the software products market in the future. Industrial automation involves utilizing advanced technologies, control systems, and machinery to automate various industrial processes and operations. Software products play a crucial role in industrial automation by enabling businesses to streamline operations, boost productivity, enhance quality, and provide the intelligence and flexibility necessary for improving efficiency and competitiveness in today's industrial environment. For example, the International Federation of Robotics, a Germany-based non-profit organization, reported in September 2023 that there were 553,052 industrial robot installations in factories worldwide, marking a year-on-year growth rate of 5% in 2022. Thus, the rise in industrial automation is significantly contributing to the growth of the software products market.
To boost revenues in the software products market, major companies are unveiling innovative products such as the Google Pixel 7 and 7 Pro. Google Pixel 7 and 7 Pro operate on the latest Android version, providing a clean, stock Android experience and receiving timely updates directly from Google. Google launched these smartphones in October 2022, featuring enhanced cameras, sophisticated designs, and new color options. Both phones incorporate Android 13, private compute core, Android System Intelligence, Android Messages end-to-end encryption, and Android backup encryption.
Leading software vendors such as Oracle and SAP are actively pursuing opportunities in the middle market to expand their client base and overall revenues. These companies are introducing scaled-down, pre-configured versions of their applications and exploring new distribution channels for selling and distributing their software products. Additionally, they are acquiring mid-market software companies as part of their strategy to enhance market shares and increase revenues. For instance, SAP's acquisition of Business One software exemplifies their effort to penetrate the middle market.
Major companies operating in the software products market include Amazon Inc., Apple, Alphabet Inc., Microsoft Corp., Dell Technologies Inc., Sony Corp., Tencent Holdings Co. Ltd., Intel Corporation, HP Inc., International Business Machines Corporation, Oracle Corp., SAP SE, salesforce.com, Fiserv Inc., Adobe Systems Incorporated, Nintendo Co ltd., NetApp, Autodesk Inc., Zoom Video Communications Inc., Citrix Systems, Atlassian Corporation plc, Splunk Inc., Check Point Software Technologies Ltd., DocuSign Inc., Ubisoft, ServiceNow Inc., CrowdStrike Holdings Inc.
Asia-Pacific was the largest region in the software products market in 2024. North America was the second largest region of the software products market. The regions covered in the software products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the software products market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The software products market includes revenues earned by entities by developing and distributing software products for commercial and personal use. Software products are usually sold in the form of licenses to use the software for a specified period or permanently. The license generally entitles the buyer to receive updates of the programs. Companies in this industry create and distribute computer software by designing software, providing documentation, assisting in installation and providing support services to software purchasers. Some businesses design, develop and publish, others only publish. The market value does not include revenues generated from Software as a Service (SaaS). Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. 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 Products Global Market Report 2025 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 products 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 products ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The software products 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.