Software Products Global Market Report 2024

The software products market size has grown rapidly in recent years. It will grow from $1449.4 billion in 2023 to $1605.89 billion in 2024 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historical period can be attributed to the rise of enterprise resource planning, the boom in e-commerce, the development of mobile applications, the momentum of the open-source movement, and increasing concerns about cybersecurity.

The software products market size is expected to see rapid growth in the next few years. It will grow to $2529.03 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. The growth in the forecast period can be attributed to the increasing initiatives in digital transformation, the development of smart cities, the adoption of edge computing, the implementation of robotic process automation, and the focus on privacy and compliance solutions. Major trends in the forecast period include the adoption of cloud-native and SaaS, the utilization of remote collaboration tools, the emergence of low-code and no-code development, the application of blockchain, and the integration of AI in business processes.

The software products market is anticipated to experience growth in the forecast period, driven by the adoption of IoT technology among manufacturing and transportation services companies. IoT, a network of physical objects embedded with electronics, software, sensors, and connectivity, facilitates data collection and exchange. A collaboration between Microsoft and Rolls-Royce, focusing on intelligent engines, exemplifies this trend, where Microsoft Suite is integrated to enhance digital capabilities. Global spending on IoT, covering hardware, software, and services, reached approximately $1.4 trillion in 2021, according to the International Data Corporation (IDC), indicating increased demand for software products.

The growth of the software products market is further expected to be fueled by the rise in industrial automation. Industrial automation involves the use of advanced technologies and control systems to automate industrial processes. Software products play a crucial role in this context, enabling businesses to streamline operations, enhance productivity, and gain the intelligence needed for efficiency and competitiveness. The International Federation of Robotics reported a 6% increase in the number of industrial robots operating in UK factories in 2021, reaching 23,000 units. Hence, the surge in industrial automation is a key driver for the software products market.

The market's growth is projected to face limitations due to intense competition in terms of pricing, product portfolios, and other factors among existing players and new entrants. Established market players are expanding their product offerings at competitive prices to enlarge their customer base, while numerous start-ups with venture capital funding are contributing to innovation in software products. The heightened competition may lead to price wars, impacting sales, revenues, and profit margins. Consequently, this situation could also curtail funding for research and development initiatives, restricting the launch of new products and exerting a negative influence on market growth.

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 report are Amazon Inc., Apple, Alphabet Inc., Microsoft Corp., EMC Corporation, 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, Symantec Corporation, Atlassian Corporation PLC, Splunk Inc., Check Point Software Technologies Ltd., DocuSign Inc., Ubisoft, ServiceNow Inc., CrowdStrike Holdings Inc., Red Hat Inc.

Asia-Pacific was the largest region in the software products market in 2023. 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.

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 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 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.


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