The business software and services market size is expected to grow from US$ 494.85 billion in 2022 to US$ 1193.16 billion by 2030; it is estimated to grow at a CAGR of 11.6% from 2022 to 2030.
Analyst Perspective:
The business software and services market has witnessed significant growth in recent years, driven by technological advancements, rising implementation of software and systems in business operations, and increased enterprise digital transformation. The rapid increase in enterprise data volume and the growing automation of business operations in end-use industries like retail, manufacturing, healthcare, and transportation are anticipated to propel the demand for business software and services. Furthermore, technological developments and changes in cloud computing are providing lucrative opportunities for market growth. The emergence of AI and ML is a significant trend for business software and services market growth.
Market
Overview:
Business software refers to digital solutions that assist organizations in carrying out various duties more successfully, safely, and efficiently. These tasks can include customer relationship management, project coordination, and accounting and payroll management. The best approach to automate many business activities is with business software. It streamlines all activities, especially repetitive ones, to boost profitability and productivity. Enterprises, whether they are small local enterprises or international corporations, depend on software solutions to stay competitive, accurate, efficient, and safe. Since business software eliminates the need for human data entry, it is essential for both large and small firms. Software programs lessen the expenses associated with human mistakes. Data security, user experience, simplicity of integration, communication, a straightforward user interface, and ease of updating are among the essential characteristics of business software. In today's digital age, businesses use business software to streamline operations and achieve a competitive edge.
Business software and services are widely used for a variety of business functions such as financials and accounting, human capital management (HCM) or human resource management software (HRMS), inventory management, customer relationship management (CRM), procurement, order management, project management, supply chain management, material requirements planning (MRP) and others. In today's digital world, business software and services have become an essential part of business infrastructure.
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Business Software and Services Market: Strategic Insights
Market Size Value in US$ 494.85 billion in 2022 Market Size Value by US$ 1193.16 billion by 2030 Growth rate CAGR of 11.6% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Business Software and Services Market: Strategic Insights
| Market Size Value in | US$ 494.85 billion in 2022 |
| Market Size Value by | US$ 1193.16 billion by 2030 |
| Growth rate | CAGR of 11.6% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Driver:
Increased Implementation of Business Software and Services to Drive Growth of the Market
Adoption of software is essential to any organization for a variety of reasons. Businesses can enforce proper business processes using software adoption tools by using guided flow field validations. Business software tools enable the automation of workflows while reducing the risk of human error and ensuring consistent adherence to established guidelines and regulations. With business software, organizations can establish clear audit trails, monitor activities in real-time, and generate accurate and timely compliance reports, which simplifies compliance management and enhances transparency and accountability across the company. Some key reasons organizations are prioritizing business software adoption are:
Improved efficiency:
By leveraging business software, organizations can automate various tasks, streamline workflows, and increase overall efficiency and productivity.Cost savings:
Software adoption reduces costs by eliminating manual processes, minimizing the risk of human errors and rework, and optimizing resource allocation. Moreover, organizations can save cost on paper usage, staffing needs, and other operational expenses, resulting in significant cost savings.Enhanced customer experience:
Adopting business software helps companies to provide outstanding customer service. A seamless and fulfilling customer journey is facilitated by self-service portals, real-time purchase and shipping tracking, personalized suggestions, and responsive customer care via chatbots and other technologies.Competitive advantage:
Adopting Software technology enables companies to innovate, respond swiftly to market demands, set themselves apart from rivals, and attract and retain customers.Business resilience:
COVID-19 brought to light how crucial digital adoption is to the resilience of businesses. Companies that had already embraced digital technology were better able to adjust to changes in the digital landscape, such as online transactions and remote employment.Thus, various businesses operating in wide verticals such as BFSI, retail, manufacturing, healthcare, and others are increasingly turning towards business software and services. For instance, according to Productiv data, the average enterprise has around 364 SaaS apps. Similarly, according to our recent Digital Adoption Trends report, enterprises spend US$195 billion on SaaS products in 2023. According to a blog by Apty, 70% of organizations will use digital adoption platforms by the year 2025. Thus, increased implementation of business software and services drives the growth of the business software and services market.
Segmentation and Scope:
The "Business Software and Services Market" is segmented based on software, deployment, organization size, industry, and geography. Based on software, the market is segmented into finance, sales and marketing, human resources, supply chain, and others. Based on organization size, the market is segmented into cloud and on-premises. Based on industry, the market is segmented into BFSI, healthcare, IT & telecom, manufacturing, retail, transportation, and others. The market, based on geography, is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Segmental Analysis:
Based on organization size, the market is segmented into large enterprises and small and medium-sized enterprises. The large enterprises segment in the business software and services market is expected to dominate with the highest share in 2022. Large enterprises need to manage various processes and thousands of people daily to generate profits. This is complex with manual processes. Managing various tasks becomes reliable with business software. Further, large enterprises often require significant effort and coordination to establish effective communication between numerous departments and employees. Business software can make this process easier by sharing information and data in real-time. Business software and services for large enterprises allow companies to reduce costs and work more efficiently.
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Regional Analysis:
North America holds one of the largest global business software and services market shares. High technology adoption trends in various industries in the North American region have fueled the growth of the business software and services market. Factors such as increased adoption of digital tools and high technological spending by government agencies are expected to drive the North American market growth. Moreover, a strong emphasis on research and development in the developed economies of the US and Canada is forcing the North American players to bring technologically advanced solutions into the market. In addition, the US has a large number of business software and services market players who have been increasingly focusing on developing innovative solutions. Some of the key players in the business software and services market are Microsoft, Oracle, Cisco, IBM, and Infor, among others. All these factors contribute to the region's growth of the business software and services market.
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Key Player Analysis:
The business software and services market analysis consists of players such as Acumatica, Inc.; Deltek, Inc.; Epicor Software Corporation; IBM Corporation; Infor.; NetSuite Inc.; Microsoft Corporation; SAP SE; and Oracle Corporation are among the key business software and services market players profiled in the report.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the market. A few recent key business software and services market developments are listed below:
- In September 2023, Gati Limited, an Allcargo Group company, announced a partnership with Tech Mahindra to develop Gati Enterprise Management System (GEMS) 2.0. Gati’s core operational software system, GEMS 2.0, aims to offer an enhanced customer experience and a modern tech-driven interface while increasing efficiency and lowering costs.
- In May 2023, Wipro announced a five-year business partnership with ServiceNow to invest in and bring new offerings to the market that will empower clients to drive business transformation, overcome business challenges, and deliver better value. Under the partnership, Wipro and ServiceNow would deliver joint clients process consulting, implementation, configuration, and managed services. The partnership would cover all global geographies and would initially focus on four key industries: financial services, healthcare, manufacturing, and energy and utilities.
- In July 2023, ESCRIBA AG, an innovative provider of software and digitalization solutions, announced the expansion of its strategic partnership with Software AG. Under this, ESCRIBA has developed powerful business applications based on Software AG’s AgileApps, which allows ESCRIBA to accelerate new feature development as part of the offering, such as data management, case management, and document generation and management.
- In June 2023, Cloud Software Group announced a strategic partnership with Midis Group through its subsidiary MiCloudSW Ltd. The partnership provides Cloud Software Group with the local resources customers need to support their transformative technology journey and the scale required to expand its reach in Eastern Europe, the Middle East, and Africa regions.
- In October 2022, SAP and Microsoft announced a partnership to take collaboration in SAP S/4HANA Cloud to the next level with the integration of Microsoft Teams. With the SAP S/4HANA Cloud update, the company released the preview of a collaborative ERP feature that allows business users in SAP S/4HANA Cloud to share links to live business data in Microsoft Teams chats.
- In November 2022, Software AG and Persistent announced a partnership to deliver innovative industry solutions for the connected enterprise. The partnership will address the challenges and opportunities that business leaders face as they transform their organizations.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Software, Deployment, Organization Size, Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The List of Companies
1.Acumatica, Inc.
2.Deltek, Inc.
3.Epicor Software Corporation
4.Infor Inc.
5.International Business Machines Corporation
6.Microsoft Corporation
7.NetSuite Inc.
8.Oracle Corporation
9.SAP SE
10.Totvs SA
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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