The global business software and services market size was valued at USD 479.56 billion in 2022 and is expected to surpass USD 1277.37 billion by 2031, expanding at a CAGR of 11.5% during the forecast period, 2023–2031. The growth of the market is attributed to the rapid growth of various business enterprises, rising expansion of several industries, and increasing adoption of the business automation processes.
Business software and services offer a range of innovative and advanced business automation solutions and services for organizations to enhance their decision-making and improve overall business operations. These solutions allow businesses ranging from small to large enterprises to timely evaluate their operational performance and simplify the analysis of the existing challenges or loopholes that can hamper their business growth.
Using software and services, a company can effectively organize a large volume of business data and extract more informative insight that may help in business expansion. With the proper upgrade of software and services, a company can largely minimize the overall operational cost as well as enhance the result of effective management and organization of various operational units and departments within the organization.
One key driving force for the rising demand for business software and services is that every organization needs to expand its operation and adopt several advanced solution systems to gain a competitive edge in their respective markets.
The COVID-19 pandemic outbreak had accelerated the expansion of the global business software and services market owing to the rising focus on the digital transformation of business operations and increasing spending on digital platform upgrades by enterprises. The majority of corporates had to adopt a work from home (WFH) policy for their employees to avoid the risk of spreading the virus.
Thus, mass implementation of the remote working model had forced companies to upgrade and enhance their level of information and technology (IT) engagement to continue their normal business operations and stay alive in the global competition.
Market Trends, Drivers, Restraints, and Opportunities
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Growing flow of business data, impacted by the rapid expansion of business operation and wide requirement for effective analytical solutions for better management present key drivers of the market.
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Wide integration of the automation process in core functions of businesses to maximize profit and simplify business expansion are other key factors driving the market.
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Easier process of management of departmental data and operational efficiency by combining administrative systems into a single software primarily result in improving data transparency. This is a key factor that helps to expand the market.
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Issues concerning data privacy and security as well high cost of software installation act as major hurdles that can hinder market expansion.
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Rising integration of innovative technologies including Artificial Intelligence (AI) and Machine Learning (ML) in business software and services is creating a lucrative growth opportunity for the market.
Scope of the Report
The report on the global business software and services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Business Software and Services Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Software (Human Resource, Sales & Marketing, Finance, Supply Chain, and Others), Services (Support & Maintenance, Managed Services, and Consulting), Enterprises (Small & Medium Enterprises and Large Enterprises), Deployments (On-premise and Cloud-based), and End-users (Healthcare, IT & Telecom, Aerospace & Defense, Transportation, Government, Manufacturing, BFSI, Retail, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Microsoft Corporation; International Business Machines Corporation; Oracle Corporation; SAP SE; Deltek, Inc.; NetSuite Inc.; Infor; Acumatica, Inc.; and Epicor Software Corporation.
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Market Segment Insights
Rising demand for advanced finance management systems boosts the finance segment
Based on software, the global business software and services market is divided into human resources, sales & marketing, finance, supply chain, and others.
The finance segment accounted for a key market share in 2021, representing more than 24.5% of the total revenue share, and is expected to expand at a rapid pace during the forecast period owing to wide adoption of advanced business service solutions for effective financial management. Moreover, the rapid advancement of financial management tools helps in executing systematic finance planning, analysis, and budgeting.
Support & maintenance segment held a dominant market share in 2021
In terms of services, the market is segmented into support & maintenance, managed services, and consulting. The support & maintenance segment held a dominant market share in 2021, representing more than 35% of the total market revenue share, and is anticipated to exhibit a healthy growth rate in the coming years. The segment growth is attributed to extensive use of the software for a third-party support system and the increasing need for innovative solutions for business management systems.
Rising integration of real-time business updates fuels the large enterprises
Based on enterprises, the global business software and services market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment accounted for more than 55% of the total revenue of the market in 2021 and is expected to constitute a major share during the targeted period.
The segment growth is attributed to the rising integration of real-time business updates and enhanced analytical models in evaluating business data. Wide spending on the development of effective IT network solutions by large enterprises presents another key driver of the segment.
Cloud-based segment is a fast-growing domain
On the basis of deployments, the market is categorized as on-premise and cloud-based. The cloud-based segment is a fast-growing domain and is anticipated to hold a key share of the market in the coming years owing to the availability of cost-effective cloud computing platforms and rising demand for large data storage capacity. The use of cloud-based platforms offers several advantages such as easy access, flexibility of data transfer, and strong security.
BFSI segment to register a considerable CAGR
On the basis of end-users, the market is segregated into healthcare, IT & telecom, aerospace & defense, transportation, government, manufacturing, BFSI, retail, and others. The BFSI segment constituted more than 15% of the global market share in 2021 and is projected to register a considerable CAGR during the forecast period owing to the rising need to constantly upgrade software and service in the banking and financial service sectors to enhance secure and convenient service to customers.
The rapid expansion of digital wallet platforms, increasing automation of the banking system, and wide popularity of mobile applications for smooth and easy financial transactions further propel the segment.
North America to constitute a key market share
In terms of regions, the global business software and services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major share, constituting more than 27% of the global market share in 2021, and is projected to register a robust market growth in the coming years.
The wide acceptance of advanced software solutions among business enterprises and rapid expansion of the IT infrastructure sector are key factors boosting the regional market. Furthermore, the rising adoption of cloud-based platforms across different business enterprises is further fueling the market in the region.
Segments
Software
- Human Resource
- Sales & Marketing
- Finance
- Supply Chain
- Others
Services
- Support & Maintenance
- Managed Services
- Consulting
Enterprises
- Small & Medium Enterprises
- Large Enterprises
Deployments
End-users
- Healthcare
- IT & Telecom
- Aerospace & Defense
- Transportation
- Government
- Manufacturing
- BFSI
- Retail
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Microsoft Corporation
- International Business Machines Corporation
- Oracle Corporation
- SAP SE
- Deltek, Inc.
- NetSuite Inc.
- Infor
- Acumatica, Inc.
- Epicor Software Corporation.
Competitive Landscape
Key players competing in the global business software and services market are Microsoft Corporation; International Business Machines Corporation; Oracle Corporation; SAP SE; Deltek, Inc.; NetSuite Inc.; Infor; Acumatica, Inc.; and Epicor Software Corporation.
Some of these key players have adopted a number of business expansion strategies such as entering into a collaboration or partnership, launching new products, and expansion of production capacity in different geographical locations.
For instance, in June 2020, International Business Machines Corporation and SAP SE entered into a collaboration to develop advanced solutions for the enhancement of enterprises’ business operations.
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