Business Software Market is Segmented by Software Type (ERP, CRM, Business Intelligence and Analytics, and More), Deployment (Cloud, On-Premises), End-User Industry (BFSI, Healthcare and Life Sciences, Government and Public Sector, and More), Organization Size (Large Enterprises, Smes), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

The software market size is recorded to be USD 718.26 billion in 2024 and is expected to reach USD 2,088.89 billion by 2035, at a CAGR of 10.19%.

The global revenue in the software market was forecast to continuously increase between 2025 and 2030 by in total ***** billion U.S. dollars (****** percent). After the ninth consecutive increasing year, the revenue is estimated to reach ****** billion U.S. dollars and therefore a new peak in 2030. Notably, the revenue of the software market was continuously increasing over the past years.Find more information concerning Italy and the United Kingdom. The Statista Market Insights cover a broad range of additional markets.

The global software market size reached USD 675.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,132.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.9% during 2025-2033. The increasing shift toward digital transformation, rising adoption of mobile devices and remote work options, escalating demand for customization, and growing security and privacy concerns, are some of the major factors propelling the market growth.

IMARC Group provides an analysis of the key trends in each segment of the global software market report, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, deployment mode, enterprise size, and industry vertical.

The global software market was valued at USD 656.10 Billion in 2024 and is projected to grow at a CAGR of 9.60% during the forecast period of 2025-2034. Software integration in predictive maintenance tools is gaining momentum as manufacturers seek to reduce unplanned downtime and optimise operational output across connected machinery and industrial automation networks, thereby aiding the market to attain a value of USD 1640.88 Billion by 2034.

Demand in the market is also fuelled by enterprise digitisation, artificial intelligence integration, and scalable cloud computing. According to the United States Bureau of Economic Analysis, software and services industry in the country recorded USD 489.2 billion in 2023. These figures reflect how software is no longer just a utility; it has become a strategic growth lever.

Emerging economies are further boosting the overall market growth. Governments in Africa, notably in Kenya and South Africa, are launching national AI and digital transformation roadmaps, which are driving local demand in the software market. Notably, Kenya’s Ajira Digital Program has trained over 1 million youth in digital skills by 2023, opening fresh opportunities for localised software platforms.

Furthermore, with the growing incorporation of generative AI, blockchain, and autonomous platforms, the software industry has evolved beyond traditional product suites. The value is accelerated by customisability, security compliance, and intelligent automation. Enterprises are shifting from off-the-shelf to modular, composable software ecosystems. Strategic collaborations, such as between Microsoft and OpenAI or Google and SAP, underscore this new direction.

The global revenue in the 'Enterprise Software' segment of the software market was forecast to continuously increase between 2025 and 2030 by in total **** billion U.S. dollars (+***** percent). After the ninth consecutive increasing year, the revenue is estimated to reach ***** billion U.S. dollars and therefore a new peak in 2030. Notably, the revenue of the 'Enterprise Software' segment of the software market was continuously increasing over the past years.Find more information concerning Belgium and the United States. The Statista Market Insights cover a broad range of additional markets.

The Software Development Market Report Segments the Industry Into by Product Type (Solutions, Services), by Deployment Type (On-Premise, Cloud), by Organization Size (SMEs, Large Enterprise), by End-User (BFSI, Media and Entertainment, Government and Defense, IT and Telecommunication, Healthcare, Manufacturing, Others), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

India software market size reached USD 21.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 61.5 Billion by 2033, exhibiting a growth rate (CAGR) of 11.7% during 2025-2033. The increasing demand for cloud computing, which offers scalability, flexibility, and cost-effectiveness, thereby allowing businesses to access and deploy software applications without the need for extensive infrastructure, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, deployment mode, enterprise size, and industry vertical.

According to Cognitive Market Research, the global software development services market size was USD 402.9 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 10.50% from 2023 to 2030. Market Dynamics of Software Development Service Market

Key Drivers of Software Development Service Market

Rapid Digital Transformation Across Industries

Organizations across sectors—from healthcare and finance to retail and education—are undergoing accelerated digital transformation. This creates strong demand for custom software development to modernize legacy systems, automate workflows, and improve customer engagement. The shift to digital-first operations is making software development services a strategic investment priority for businesses globally.

Growing Demand for Cloud-Based and SaaS Solutions

The widespread adoption of cloud computing and Software-as-a-Service (SaaS) models is fueling the need for scalable, secure, and flexible software solutions. Businesses are increasingly outsourcing development services to build cloud-native applications and platforms that support remote work, global access, and real-time data processing.

Rising Adoption of Emerging Technologies

The integration of advanced technologies such as AI/ML, blockchain, IoT, and AR/VR into business applications is driving demand for specialized software development services. Clients are looking for vendors with niche expertise to help them innovate, optimize operations, and enhance user experiences with next-gen tech capabilities.

Restraints of Software Development Service Market

Talent Shortage and Rising Labor Costs

There is a global shortage of skilled software developers, especially those with expertise in cutting-edge technologies. This drives up labor costs and limits the ability of service providers to scale quickly. Smaller firms may also struggle to retain talent in the face of intense competition from tech giants and startups.

Concerns Over Data Security and IP Protection

Outsourcing software development often involves sharing sensitive business data and intellectual property. Concerns over cybersecurity risks, IP theft, and data privacy compliance (e.g., GDPR, CCPA) can deter businesses from fully outsourcing or offshoring development work, especially in highly regulated industries.

Key Trends of Software Development Service Market

Rise of Low-Code and No-Code Development Platforms

To accelerate deployment and reduce dependency on scarce technical talent, businesses are increasingly turning to low-code and no-code platforms. This trend is reshaping how software services are delivered, with providers now offering consulting, customization, and integration support for these platforms instead of building from scratch.

Shift Toward Agile and DevOps Practices

Clients now expect faster delivery cycles and more flexible development models. This is leading to widespread adoption of Agile methodologies and DevOps frameworks, which improve collaboration, automate testing and deployment, and ensure continuous integration and delivery (CI/CD).

Increasing Demand for Vertical-Specific Software Solutions

There is a growing preference for industry-tailored software, such as fintech platforms, healthtech apps, and edtech tools. Service providers that can offer domain-specific knowledge along with technical expertise are seeing higher demand as businesses seek more targeted and efficient solutions. Introduction of Software Development Services

Software development services (SDS) encompass a wide array of services that assist businesses in the creation, maintenance, and enhancement of their software applications. These services can be rendered by internal teams. This process involves the development of brand-new software applications from the ground up. Software development services encompass a wide range of offerings provided by vendors in the market. This delivery model involves hosting software and its associated data centrally, allowing clients to access it through a web browser.

These developments empower businesses to offer better-tailored solutions and services, which, in turn, contribute to the growth of the Software Development Service industry.

Bentley Systems, Incorporated (Nasdaq: BSY), the company that specializes in software for infrastructure engineering, has recently acquired B...

The US Software Market size is estimated to grow at a CAGR of around 7.17% during the forecast period 2024-30. Microsoft Corporation, Alphabet Inc., Oracle Corporation, McAfee Corporation and others are top companies in the US Software Market.

Europe Enterprise Software Market Report Segments the Industry Into by Software Type (ERP Software, CRM Software, BI and Analytics Software and More), Deployment (Cloud, On-Premise), End-User Vertical (BFSI, Healthcare, Public & Institutions, and More), Enterprise Size (Large Enterprises, Mid-Sized, Small Businesses) and by Country. The Market Forecasts are Provided in Terms of Value (USD).

According to Cognitive Market Research, The Global Vertical Market Software market size is USD 120.5 billion in 2023 and will expand at a compound annual growth rate (CAGR) of 12.30% from 2023 to 2030.

The demand for vertical market software is rising due to the demand for specialized software solutions that address unique industry requirements is growing as industries increasingly acknowledge their value.
Demand for large enterprises remains higher in the vertical market software market.
The BFSI category held the highest vertical market software market revenue share in 2023.
North American vertical market software will continue to lead, whereas the Asia Pacific vertical market software market will experience the most substantial growth until 2030.

Industry-Specific Customization to Provide Viable Market Output

The key driver propelling the Vertical Market Software market is the growing demand for industry-specific customization. Businesses are increasingly recognizing the importance of tailored software solutions that address the unique requirements and challenges of their verticals. Whether in healthcare, finance, or manufacturing, organizations seek software that goes beyond generic applications, offering specialized features and functionalities. This customization enhances operational efficiency, compliance adherence, and overall performance, driving the adoption of vertical market software.

In November 2022, Now Vertical Group Inc. is excited to share news of a recent partnership with Grupo Aeroméxico S.A.B. de C.V., the primary airline of Mexico City. As part of the arrangement, NOW will support Aeroméxico in enhancing its data governance program, helping to outline the direction and strategy necessary for the airline to become a data-driven operator.

(Source: www.marketscreener.com/quote/stock/NOWVERTICAL-GROUP-INC-124457378/news/Aeromexico-Selects-NowVertical-Group-Inc-as-a-Latin-American-Vertical-Intelligence-Solutions-Partn-42252162/)

Digital Transformation Imperative to Propel Market Growth

The imperative for digital transformation acts as a significant driver in the Vertical Market Software market. As industries evolve, there is a pressing need to modernize and digitize operations to stay competitive. Vertical market software plays a pivotal role in this transformation by offering solutions that streamline processes, enable data-driven decision-making, and enhance overall business agility. The demand for software that integrates seamlessly into existing workflows and supports advanced analytics and automation is pushing organizations to invest in vertical market solutions as a crucial component of their digital strategy.

In February 2023, Vertical Insure, an embedded insurance platform for platforms, revealed that it secured an extra $2 million in funding, increasing its total initial funding to $6 million. Groove Capital, Daren Cotter, and other strategic angel investors joined Greenlight Re Innovations in spearheading the additional funding.

(Source: www.verticalinsure.com/news/vertical-insure-the-embedded-insurance-platform-for-platforms-secures-4m-in-seed-funding-to-simplify-insurance)

Market Restraints of the Vertical Market Software

High Initial Costs to Restrict Market Growth

The key restraint is the high initial costs associated with implementing vertical market software. Developing industry-specific solutions that cater to the unique needs of various verticals often requires substantial financial investments in research, development, and customization. Small and medium-sized enterprises, in particular, may find the upfront costs prohibitive, impacting their ability to adopt specialized software solutions. The financial barrier to entry poses a challenge for businesses looking to leverage vertical market software for industry-specific advantages.

Opportunity for Vertical Market Software Market

Integration of AI present key market growth opportunity. 

The growth of the vertical market software market has been tremendous and the integration of AI id presenting key market growth opportunity. The AI allows the vertical market software to provide a personalized experience for the user and helps automatize task that frees up time for the user to focus on more important and detail oriented tasks. The software can use AI algorithm and data driven decision making offer predictive insig...

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Software Market Size 2025-2029

The software market size is forecast to increase by USD 30.7 billion, at a CAGR of 8.2% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing volume of enterprise data and the shift towards cloud computing. Businesses are recognizing the value of leveraging data to gain insights and make informed decisions, leading to a surge in demand for software solutions that can manage and analyze large data sets. Additionally, cloud computing is becoming the preferred deployment model for software, as it offers cost savings, flexibility, and scalability. However, the market also faces challenges that require careful navigation. High costs of licensing and support continue to be a significant obstacle for many organizations, particularly smaller businesses and startups. These costs can limit their ability to implement and maintain the software solutions they need to remain competitive. Furthermore, ensuring data security and privacy in a cloud environment is a major concern, as sensitive information is increasingly being stored and processed digitally. Companies must address these challenges effectively to capitalize on the opportunities presented by the market's growth and remain competitive in the evolving software landscape.

What will be the Size of the Software Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market activities unfolding across various sectors. Entities such as version control systems, software quality assurance, software licensing, API integration, software maintenance, data warehousing, unit testing, project management, database management, cost optimization, and others, are seamlessly integrated into the software development lifecycle. Cloud computing is transforming the way software is deployed and accessed, while user experience remains a key focus for developers. Agile methodologies and the waterfall methodology coexist, with the former gaining popularity for its flexibility and the latter for its structured approach. Data mining and data analytics are increasingly being used to gain insights from vast amounts of data, while software security and bug tracking are essential components of any development process. Machine learning and artificial intelligence are also making their mark, enhancing software functionality and improving user experience. Proprietary software and open source software each have their unique advantages, with CI/CD and DevOps streamlining the development process. Requirements gathering and user acceptance testing are crucial steps in ensuring software meets user needs, while code review and integration testing help maintain software quality. Technical support and software updates are ongoing requirements, with risk management and cost optimization essential for businesses to effectively manage their software investments. Business intelligence and software architecture are critical for making informed decisions and building scalable systems.

How is this Software Industry segmented?

The software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeSubscriptionsIdentity and access managementEndpoint/network/messaging/web securityRisk managementDeploymentCloud-basedOn-premisesSectorLarge enterprisesSmall and medium enterprisesApplicationCRMERPCybersecurityCollaboration ToolsGeographyNorth AmericaUSCanadaMexicoEuropeFranceGermanyItalyUKMiddle East and AfricaUAEAPACChinaIndiaJapanSouth AmericaBrazilRest of World (ROW)

By Type Insights

The subscriptions segment is estimated to witness significant growth during the forecast period.In the ever-evolving the market, subscription-based models are gaining significant traction as a key growth driver. This shift is driven by the increasing recognition of the benefits offered by these models, enabling businesses to adapt to their evolving needs. Subscription models provide flexibility, allowing companies to scale their software usage efficiently, adapting to expanding operations or streamlined processes. Additionally, these models promote cost optimization, enabling businesses to spread their software expenses over time, making it a more viable option for organizations of all sizes. The software development lifecycle is undergoing a transformation, with both waterfall and agile methodologies being adopted. Waterfall methodology, with its linear approach, is ideal for projects with well-defined requirements. In contrast, agile methodologies, with their iterative and collaborative nature, are more suitable for projects wit

In the year to end June 2019, Microsoft is the largest vendor in the software industry: the company's products accounted for around 4.7 percent of the global software industry. Oracle and IBM round out the top three largest software vendors in the world, each of which holding over two percent of the trillion-dollar market.

Microsoft: a global software giant    

Founded in 1975 by Bill Gates and Paul Allen, Microsoft has grown into one of the most successful firms in the world. The company’s major business ventures include its Windows operating system, consumer electronics, software packages such as Microsoft Office, and its newer cloud computing offerings. Microsoft achieved its highest revenue in their 2020 financial year - with revenues exceeding 143 billion U.S. dollars. The company has three major business segments: productivity and business processes, intelligence cloud, and personal computing.

A connected world through software   

The software industry can be broken down into the following segments: programming services, system services, open source, and software-as-a-service. Software form the basis of many modern devices/services we have come to rely on in our everyday lives - from PCs and smartphones to navigational systems. As more and more devices and appliances become “smart” devices, the software market will only continue to expand and evolve.

The global business software and services market size was valued at USD 468.51 Billion in 2024. The market is further projected to grow at a CAGR of 10.00% between 2025 and 2034, reaching a value of USD 1215.19 Billion by 2034.

European software developers' revenue is forecast to swell at a compound annual rate of 6.9% over the five years through 2025, including a projected growth of 5% in 2025 to reach €490 billion. Software solutions are increasingly integral to modern business operations and European developers have been at the forefront, crafting bespoke applications tailored to sector-specific needs. Fintech companies have supported growth by leveraging sophisticated technologies that ensure their competitive edge and compliance. Technological advances in cloud computing, artificial intelligence (AI) and cybersecurity are reshaping the market, driving adoption among European businesses. Developers have responded to the burgeoning demand for secure Internet of Things (IoT) software, particularly in mobile and embedded systems. Acquisitions like TRASNA's purchase of Workz and IoTerop signal a trend towards comprehensive service offerings. At the same time, the pressing need for enhanced cybersecurity has catalysed revenue growth, driven by escalating cyber threats driving the need for robust security frameworks. Companies like Darktrace have capitalised on this by delivering AI-driven cybersecurity solutions. Developers’ revenue has also been propped up by embracing Software-as-a-Service (SaaS) models, which enable remote, cost-effective access to critical applications in the cloud. Despite revenue growth, profitability has edged downwards due to a surge in the number of software developers intensifying price competition. Revenue is forecast to surge at a compound annual rate of 10.2% over the five years through 2030 to €795.5 billion. The industry is projected to expand as developers focus on harnessing cloud computing, fintech solutions and open banking, driven by the Payment Services Directive 2 (PSD2). While PSD2 initially launched in 2018, European banks, fintechs and third-party providers have varied adoption timelines, meaning integration and compliance projects are still active and will continue over the coming years. Cloud adoption is expected to accelerate, leaving ample room for growth. However, European developers face regulatory challenges, notably the EU's AI Act, which could stymie innovation. Competition will remain fierce, especially in the burgeoning fintech landscape, as demand for solutions in mobile payments, digital banking and blockchain applications ramps up. Despite these obstacles, an emphasis on compliance and education is anticipated to yield positive outcomes. As European businesses invest in IT, developers are well-positioned to seize opportunities arising from digital transformation initiatives while continuing to adapt to technological advances.

Engineering Software Market is Segmented by Type (Computer-Aided Design Software, Computer-Aided Engineering Software, Computer-Aided Manufacturing Software, and More), Deployment (On-Premise, Cloud, Hybrid), Application (Design Automation, Plant and Process Design, and More), End-User Industry (Automotive and Transportation, Aerospace and Defence and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The revenue in the software market in the United States was modeled to amount to ************** U.S. dollars in 2024. Following a continuous upward trend, the revenue has risen by ************** U.S. dollars since 2016. Between 2024 and 2030, the revenue will rise by ************* U.S. dollars, continuing its consistent upward trajectory.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Software.

Global Database Software market size is expected to reach $269.19 billion by 2029 at 9.7%, segmented as by type, database operation management, database maintenance management

The vertical market software market is valued at USD 172.05 billion in 2025 and is slated to reach USD 578.89 billion by 2035, at a CAGR of 12.9%.

Analyzing Vertical Market Software Market by Top Investment Segments

Analysis of Top Countries Using Vertical Market Solutions