What are the Historical Developments and Current Growth Metrics of the Software Services Market?
The software services market has seen considerable growth due to a variety of factors.
• The market size of software services has significantly expanded in the last few years. From $1491.27 billion in 2024, it is projected to increase to $1618.63 billion in 2025, with a compound annual growth rate (CAGR) of 8.5%. Factors such as the internationalization of business, the implementation of enterprise resource planning (ERP) systems, issues around cybersecurity, business process automation, and the rise of cloud computing have contributed to the growth in the historic period.
What Does Future Hold for The Software Services Market?
The Software Services market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the software services market is projected to expand rapidly in the upcoming years. It is predicted to reach a value of $2437.87 billion in 2029, with a compound annual growth rate (CAGR) of 10.8%.
This anticipated growth can be traced back to the integration of the Internet of Things (IoT), artificial intelligence (AI) and machine learning, remote working solutions, augmented reality (AR) and virtual reality, and edge computing solutions. Key trends for the forecasted timeframe include the adoption of sustainable and green technologies, implementation of 5G technology, digital transformation, cloud-native development, emphasis on user experience (UX) design, and the shift towards subscription-based and SaaS models.
What Are The Primary Growth Drivers In The Software Services Market?
The growth of the software services market is predicted to escalate due to the burgeoning automation of business procedures. Automation, a technology that minimizes the need for human intervention to finish tasks, is viewed as an intelligent and superior tactic for trimming expenses while simultaneously enhancing customer service. Consequently, the integration of automation into business operations is likely to catalyze the demand for software services. For instance, the International Federation of Robotics, a non-profit professional organization based in Germany, reported a significant increase in automation investments by US manufacturing companies in April 2024. This resulted in a 12% surge in the total number of installed industrial robots, reaching 44,303 units in 2023. As a result, the growth of the software services market is being propelled by the heightened automation of business tasks.
What Is The Segmentation Of The Global Software Services Market?
The software services market covered in this report is segmented –
1) By Software: Finance, Sales And marketing, Human Resource, Supply Chain, Other Software Types
2) By Service: Consulting, Managed Services, Support And Maintenance
3) By Deployment: Cloud, On-Premise
4) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
5) By End-Use: Aerospace And Defense, Banking And Financial Institutions (BFSI), Government, Healthcare, IT And Telecom, Manufacturing, Retail, Transportation, Other End-Uses
Subsegments:
1) By Finance: Accounting Software, Financial Planning And Analysis Tools, Tax Management Software
2) By Sales And marketing: Customer Relationship Management (CRM), marketing Automation Tools, Sales Enablement Software
3) By Human Resource: Human Resource Management Systems (HRMS), Payroll Software, Talent Acquisition And Management Tools
4) By Supply Chain: Inventory Management Systems, Order Management Software, Logistics And Transportation Management Tools
5) By Other Software Types: Project Management Software, Collaboration And Communication Tools, Business Intelligence And Analytics Software
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What Emerging Trends Are Shaping The Software Services Market Landscape?
The rise of technology is a significant trend that's becoming increasingly popular in the software services industry. Major players in this market place enormous emphasis on inventing new technologies to fortify their position in the market. For example, in January 2023, Valvoline Inc., an American company that offers automotive and industrial solutions, rolled out Vision Service Lane Technology. What makes Vision unique is its capacity to generate a bespoke, VIN-specific menu of services, thereby providing a robust platform for the service department to enhance their earnings. Vision stands out as one of the most comprehensive fixed-ops software products obtainable, leveraging partnerships to identify their weaknesses and untapped potential in the existing software. Advisors use Vision as a tool for building relationships, confidence, and accountability with customers in the service drive or at the service desk.
Who Are the Key Players In The Software Services Market?
Major companies operating in the software services market include:
• Microsoft Corporation
• Oracle Corporation
• Epicor Software Corporation
• International Business Machines Corporation
• Infor Inc.
• Deltek Inc.
• Acumatica Inc.
• Unit4
• Syspro Technologies
• TOTVS S.A
• SAP SE
• Cloud Software Group Inc.
• Qliktech International AB
• Tableau Software Inc.
• SAS Institute Inc.
• NetSuite Inc.
• Salesforce Inc.
• Adobe Inc.
• Workday Inc.
• Plex Systems Inc.
• Aras Corporation
• PTC Inc.
• Autodesk Inc.
• Dassault Systemes
• Parasoft
• ComplianceQuest
• Siemens AG
• Atlassian Corporation
• Hewlett Packard Enterprise
• Veeva Systems
• Intellect Software Solutions Pvt. Ltd.
• Kovair Software Inc.
What Are The Regional Insights Into The Software Services Market?
North America was the largest region in the software services market in 2024. The regions covered in the software services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
