Enterprise Software Market Outlook
The global enterprise software market size was valued at USD 216.69 Billion in 2022 and is likely to reach USD 577.18 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 technological advancements in the small and medium sized businesses (SMEs).
Enterprise software helps to gain easy and quick access to the unstructured database. This software aids in improving the efficiency and productivity. It is used across several industry verticals for a number of business operations, including business intelligence, human resources, customer relationship management, manufacturing, planning, sales & services, material and inventory management, finance, and marketing.
Industry players are heavily investing on upgrading core functionalities of enterprise application software. They are especially focusing on replacing and modernizing office and business applications. Increasing need to gather, manage, analyze, and utilize big data has increased the adoption of enterprise software across the globe.
According to a survey by the US Small Business Administration, in the year 2019, there were 30.7 Million SMEs in the country. The increase in the number is expected to create a huge opportunity for industry players, as SMEs are increasingly using enterprise software to reduce costs and improve profitability.
Enterprise Software Market Drivers, Restraints, Trends, and Opportunities
- The emergence of novel software services and ongoing technological innovation and advancement in software such as supply chain management (SCM) and customer relationship management (CRM) are anticipated to spur the enterprise software market growth.
- Increasing number of enterprises are expected to boost the market growth during the forecast period.
- Rising number of technology-focused projects and growing IT budgets in organizations are expected to positively impact the enterprise software market during the forecast period.
- The significant shift of companies toward improving data portability and business standards is enhancing the focus on data-centric solutions, which is anticipated to foster the enterprise software market growth.
- Rising need for mobility and growing proliferation of cloud-based services are estimated to positively impact the growth of the market.
- Growing network complexity can encourage industry players to come up with innovative solutions, which is expected to boost the market growth.
- Enterprise software solutions offer flexibility by helping companies to cater their data security needs. This factor is expected to stimulate the market growth.
- Growing security concerns can restrain the market growth during the forecast period.
- The emergence of COVID-19 pandemic has led to disruption in supply chain activities owing to the trade restrictions and infrastructural and communication hurdles. However, the market is anticipated to recover soon.
- Lack of standardization is expected to hamper the enterprise software market growth during the forecast period.
- Increasing investments by big tech companies owing to modernization and consolidation of the IT infrastructure is projected to positively impact the enterprise software market during the forecast period.
Scope of Enterprise Software Market Report
The report on the global enterprise software 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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Enterprise Software 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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End-uses (Cloud Service Providers, Retail, BFSI, Enterprises, Government, Healthcare and Life Sciences, and Telecommunication Service Providers) and Solutions (SDN Switching, Cloud Virtualization and SDN Controllers)
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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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Oracle, SAP, Red Hat, Mentor Graphics, Symantec, Microsoft, and IBM.
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Global Enterprise Software Market Segment Insights
BFSI segment expected to represent a considerable market share.
On the basis of end-uses, the enterprise software market share is bifurcated by cloud service providers, retail, BFSI, enterprises, government, healthcare and life sciences, and telecommunication service providers.
The BFSI segment is expected to represent a considerable market share during the forecast period. Growing investment by the BFSI sector in IT infrastructure is driving the segment growth. Conversely, the government segment is projected to expand at a robust CAGR increasing security concerns regarding the data.
Cloud virtualization segment to constitute a significant market share.
Based on solutions, the enterprise softwaremarket share is segmented into SDN switching, cloud virtualization, and SDN controllers. The cloud virtualization segment is projected to constitute a significant market share during the forecast period.
Organizations are adopting cloud virtualization solutions to optimize their supply chain and increase their profitability. The presence of hyper-scale data centers and rising demand for cloud-based enterprise solutions in emerging economies are key factors driving the segment growth.
Enterprise Software Market Regional Outlook
North America to account a large market share.
In terms of regions, the enterprise software market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is estimated to account for a large market share owing to increasing trend of big data analytics coupled with growing demand for cloud computing.
Furthermore, the early adoption of enterprise software models such as software as a service (SaaS) and infrastructure as a service (IaaS) is driving the regional market growth.
The Asia Pacific market is projected to expand at a healthy CAGR during the forecast period. Increasing demand for business analytics and rising need for business intelligence applications are projected to boost the market growth in this region.
Segments
End-Uses
- Cloud Service Providers
- Retail
- BFSI
- Enterprises
- Government
- Healthcare
- Life Sciences
- Telecommunication Service Providers
Solutions
- SDN Switching
- Cloud Virtualization
- SDN Controllers
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Some of the key players in the global enterprise software market are Oracle, SAP, Red Hat, Mentor Graphics, Symantec, Microsoft and IBM.
The industry participants are highly focusing on various business strategies such as mergers & acquisitions, collaborations, and product development to improve their presence in the global market.
For instance, IBM and Microsoft partnered to provide their respective enterprise software on IBM Cloud and Microsoft Azure. Software of IBM such as MQ, Websphere Liberty, DB2 and IBM Pure Application Service are available on Microsoft Azure. While Windows Server and SQL Server are available on the IBM Cloud.
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