The software rental service market size has experienced strong growth in recent years, projected to rise from $42.36 billion in 2023 to $46.16 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. This growth during the historical period can be attributed to the increasing adoption of cloud computing, a rise in remote work and virtual teams, growth in small and medium-sized enterprises (SMEs), demand for scalable software solutions, and an emphasis on software security and compliance. The software rental service market is expected to see further strong growth, reaching $65.52 billion in 2028 at a CAGR of 9.1%. Factors driving growth in the forecast period include expanding digital transformation initiatives, rising use of big data and analytics, a growing focus on cybersecurity measures, demand for flexible subscription models, and the need for enhanced collaboration tools. Key trends for the forecast period include a rise in hybrid and multi-cloud environments, increased adoption of software-as-a-service (SaaS), greater integration of AI in software solutions, the development of blockchain-based software services, and a focus on personalized and adaptive software solutions.
Major Driver In The Software Rental Service Market
The increasing adoption of cloud computing is expected to propel the growth of the software rental service market going forward. This rising adoption is attributed to the ability of cloud computing to offer scalable, flexible, and cost-effective computing resources and services. Cloud computing facilitates software rental services by providing scalable, on-demand access to software applications and infrastructure, which reduces the need for upfront investments and enables flexible, subscription-based models. For instance, in December 2023, data from Eurostat, a Luxembourg-based intergovernmental organization, indicated that approximately 45.2% of EU enterprises utilized cloud computing services, primarily for email hosting, file storage, and various operational tasks, reflecting an increase of 4.2 percentage points from 2021. The most sought-after services included email hosting (82.7%), file storage (68.0%), office software (66.3%), security applications (61.0%), finance or accounting software (51.6%), and enterprise database hosting (43.0%). Therefore, the increasing adoption of cloud computing is driving the growth of the software rental service market through 2023, into 2024, and is anticipated to continue expanding by 2028.
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Software Rental Service Market Competitive Landscape
Major companies operating in the software rental service market are Alphabet Inc., Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Adobe Inc., Intuit Inc., ServiceNow Inc., Autodesk Inc., Atlassian Corporation Plc, Zoom Video Communications Inc., Dropbox Inc., Tableau Software LLC, HubSpot Inc., Slack Technologies Inc., Box Inc., Smartsheet Inc., Monday.com Ltd., Asana Inc., Pipedrive Inc.
Key Software Rental Service Market Trend
Major companies in the software rental service market are focusing on developing innovative solutions, such as Arm-based cloud computing services, to enhance scalability, flexibility, and accessibility for users. These services utilize Arm architecture processors, known for their energy efficiency and performance, to provide scalable, cost-effective computing resources and services. For example, in May 2021, Oracle Corporation, a US-based database management and cloud service provider, launched the Oracle Cloud Infrastructure (OCI) Ampere A1 Compute service, leveraging Ampere Computing's data center chips based on Arm Ltd. technology. This service features scalable, secure infrastructure with flexible virtual machine options, competitive pricing, and support for various workloads. The shift to Arm architecture for data centers represents a technological advancement, offering high core counts, performance, and energy efficiency that significantly impacts the software rental service market by increasing choices, reducing costs, and enhancing performance and efficiency.
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Global Software Rental Service Market Segmentation
The software rental service market covered in this report is segmented –
1) By Software Type: Productivity Software, Creative Software, Accounting And Finance Software, Customer Relationship Management (CRM) Software, Enterprise Resource Planning (ERP) Software, Project Management Software, Collaboration And Communication Software, Other Software Types
2) By Deployment Type: Cloud-Based, On-Premises
3) By Subscription Model: Monthly Rental, Annual Rental, Pay-As-You-Go
4) By Enterprise Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
By Geography:The regions covered in the software rental service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the software rental service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Software Rental Service Global Market Report 2024 furnishes information about the global software rental service market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
