Software Services Global Market Report 2024

The software services market size has grown strongly in recent years. It will grow from $1625.25 billion in 2023 to $1748.49 billion in 2024 at a compound annual growth rate (CAGR) of 7.6%. The historical growth in software services during the past period can be attributed to several factors. These include the globalization of businesses, widespread adoption of enterprise resource planning (ERP) systems, heightened concerns and emphasis on cybersecurity, the drive towards business process automation, and the increasing integration and utilization of cloud computing technologies. These elements collectively contributed significantly to the growth and evolution of software services during that time.

The software services market size is expected to see rapid growth in the next few years. It will grow to $2626.24 billion in 2028 at a compound annual growth rate (CAGR) of 10.7%. Anticipated growth in the forthcoming period within software services is expected to be driven by various factors. These include the integration of the Internet of Things (IoT), advancements in Artificial Intelligence (AI) and Machine Learning (ML), the development of remote work solutions, the implementation of Augmented Reality (AR) and Virtual Reality (VR), and the deployment of edge computing solutions. Key trends projected for this period encompass the adoption of sustainable and green technologies, the implementation of 5G technology, the acceleration of digital transformation initiatives, the shift towards cloud-native development methodologies, a heightened focus on user experience (UX) design, and the increasing prevalence of subscription-based and Software as a Service (SaaS) models. These trends are expected to play a pivotal role in shaping the evolution of software services in the forecasted period.

The anticipated increase in the automation of business processes is set to drive the growth of the software services market. Automation, characterized by technology requiring less human assistance to complete tasks, is becoming a superior and more cost-effective method for businesses to contain and reduce expenses while expanding customer service. The utilization of automation software is expected to play a pivotal role in increasing demand for the software services market. For example, a report by Zapier in April 2021 highlighted that 63% of Small and Medium-sized Businesses (SMBs) acknowledged that automation enabled them to swiftly adapt in response to the pandemic. Additionally, 66% of employees expressed that automation at work allows them to focus on more innovative roles and initiatives. The trend towards increased automation in business processes is a significant driver behind the growth of the software services market.

The rise in remote work is expected to be a major contributor to the growth of the software services market. Remote work, defined as a work arrangement where employees perform their job responsibilities outside a traditional office setting, has surged in popularity. This trend underscores the need for software services that facilitate seamless collaboration experiences, including communication, project management, and virtual meetings. According to a September 2022 report by the United States Census Bureau, nearly half of the workforce in the District of Columbia (48.3%) engaged in remote work in 2021, marking the highest percentage of home-based workers among states and state equivalents. States with the most significant proportions of remote workers included Washington, Maryland, Colorado, and Massachusetts. The upward trajectory in remote work is a key factor driving the growth of the software services market.

Technological advancement is a prominent trend gaining traction in the software services market, with major companies actively focusing on developing new technologies to strengthen their market positions. An example is Valvoline Inc., a US-based provider of automotive and industrial solutions, which, in January 2023, launched Vision Service Lane Technology. This unique feature provides a tailored, VIN-specific menu of services, empowering service departments to increase income. Vision stands out as one of the most detailed fixed-ops software products available, addressing pain points and unrealized potential in current software through collaborations with partners. Advisors use Vision to establish relationships, trust, and responsibility with clients in the service drive or at the service desk, reflecting a commitment to technological innovation in the software services market.

Leading companies in the software services market are actively engaged in the development of innovative products, such as cloud infrastructure platforms, to expand their customer bases, drive sales, and increase revenue. A cloud infrastructure platform, also known as a cloud platform or cloud computing platform, encompasses a comprehensive set of services and resources provided by a cloud service provider (CSP) for building, deploying, and managing applications in the cloud. An exemplary illustration is Oracle Corporation, a prominent US-based computer software company, which in October 2022, introduced Oracle Alloy. This unique offering is designed to empower service providers, integrators, independent software vendors (ISVs), and various organizations, including financial institutions and telecommunications providers, to transition into cloud providers. Oracle Alloy enables these entities to seamlessly introduce new cloud services to their clientele. It offers customization, branding, and tailoring capabilities to deliver a unique user experience. Organizations can also bundle additional value-added services and applications to meet the specific demands of their markets and industry verticals.

In October 2022, Aptean, a leading US-based provider of purpose-built, industry-specific software, acquired Merlin Business Software Ltd. for an undisclosed amount. This acquisition is expected to enhance Aptean's ability to support UK distributors and wholesalers, with Merlin's software being deployable on-premises or in the cloud as a subscription-as-a-service (SaaS). Merlin Business Software Ltd., a UK-based provider, specializes in offering bespoke enterprise business software solutions. The acquisition aligns with Aptean's strategy to strengthen its presence in specific industries and geographic regions, showcasing the ongoing evolution and expansion within the software services market.

Major companies operating in the software services market report are Microsoft Corporation, Oracle Corporation, Epicor Software Corporation, International Business Machines Corporation, Infor Inc., Deltek Inc., Acumatica Inc., Unit4, Syspro Technologies, TOTVS S.A, SAP SE, Cloud Software Group Inc., Qliktech International AB, Tableau Software Inc., SAS Institute Inc., NetSuite Inc., Salesforce Inc., Adobe Inc., Workday Inc., Plex Systems Inc., Aras Corporation, PTC Inc., Autodesk Inc., Dassault Systemes, Parasoft, ComplianceQuest, Siemens AG, Atlassian Corporation, Hewlett Packard Enterprise, Veeva Systems, Intellect Software Solutions Pvt. Ltd., Kovair Software Inc..

North America was the largest region in the software services market in 2023. The regions covered in the software services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the software services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary software categories within software services encompass finance, sales and marketing, human resources, supply chain management, and others. Financial software streamlines the automation, management, and storage of financial data, catering to both personal and professional needs. Services related to software services include consulting, managed services, and support and maintenance, serving a wide spectrum of enterprises, from large corporations to small and medium-sized businesses. These solutions are designed for cloud-based and on-premise deployment and find applications across diverse sectors such as aerospace and defense, banking and financial services, government, healthcare, IT and telecommunications, manufacturing, retail, transportation, and various other industries.

The software services market research report is one of a series of new reports that provides software services market statistics, including software services industry global market size, regional shares, competitors with software services market share, detailed software services market segments, market trends, and opportunities, and any further data you may need to thrive in the software services industry. This software services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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