Global Collaboration Software Market

The virtual reality software market consists of sales of virtual reality software that are used in different sectors such as aerospace, defense, gaming, entertainment, tourism, diagnostics and surgeries. Related services include software installation, training, upgrade and other services. Virtual reality (VR) is an artificial environment generated with software and displayed to people in such a way that the user suspends convictions and accepts them as real environments.

The global virtual reality software market is expected grow from $2.01 billion in 2020 to $2.97 billion in 2021 at a compound annual growth rate (CAGR) of 47.8%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $13.11 billion in 2025 at a CAGR of 45%.

The virtual reality software market covered in this report is segmented by type into 3D modelling software, 360 degree custom VR software, real time simulation software.

Growth in the gaming industry is a key factor driving the growth of the virtual reality software market. VR-powered games are much more beneficial than books as VR enables the games more appealing. Globally people are resorting to VR games to fight the boredom and fear connected with the pandemic. For instance, an inexpensive coronavirus VR game COVID Escape Room is designed to help children develop real-world activities and concepts in a virtual environment. Through this game, children will not only understand how to wash their hands and handle the sneeze in a fun way to prevent the coronavirus infection (COVID-19) but also get to know in detail why social distancing is vital. In March 2020, the global spending on digital games increased to $10 billion, the highest monthly estimate ever. Therefore, the growth in the gaming industry is expected to drive the virtual reality software market.

The bigger size of VR software hampers the growth of the virtual reality market. The VR software involves a lot of computing power and takes up lots of space compared to other technologies as VR devices require additional programming for their immersive experience. Condensing software is not very hard, shrinking in size will take more time for VR software to do, and this compression, in turn, will increase VR's initial costs. The process of developing virtual reality software professionally will vary from $10,000 to $60,000 or more. As the applications of virtual reality are increasing, the amount of data to be stored is also increasing with some applications generating up to one terabyte of data per hour. This storage problem is resulting in additional costs for VR companies in terms of storage devices and also preventing many companies from investing in virtual reality software.

The integration of virtual reality (VR) in healthcare through mobile apps is a key trend in the virtual reality software market. VR-based mobile apps enable the treatment of several diseases which help to resolve many health issues and these VR apps are also used for education, which is not limited to the use by students alone and can be used by other interested stakeholders too. In 2019, the Royal College of Surgeons in Ireland (RCSI), for instance, developed an innovative VR application that enables medical education accessible to everyone even without a medical background. For non-medical users, the RCSI software has a special mode. In this mode, the application provides extensive information for users about each phase of different medical procedures.

In May 2020, Apple, an America-based company, acquired NextVR, Inc. for an undisclosed amount. Through this acquisition, Apple has been making a deeper push into entertainment and is reportedly developing an AR-VR headset. NextVR, Inc., an American company, is best known for providing access to events like concerts and sporting events through virtual reality.

The major players covered in the global virtual reality software market are Microsoft Corporation, Blippar Inc., Pixologic Inc., Metaio Gmbh, Qualcomm Incorporated, Oculus VR, LLC, WorldViz., Starbreeze Studios, Razer Inc., HTC Corporation, BAE Systems AB, Istaging, Axonom Powertrak, Cupix, Viar, IrisVR, Briovr, Techviz, Unigine, Phenomatics Virtual Reality Software, Worldviz, Virtalis, ESI Group, XVR Simulation, EON Reality, High Fidelity, Mirra, Arcadia Augmented Reality, Smartvizs, Imaginate.

The countries covered in the global virtual reality software market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global VR software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global virtual reality software market is segmented -

1) By Type: 3D Modelling Software, 360 Degree Custom VR Software, Real Time Simulation Software

2) By Deployment: On-Premise, Cloud

3) By Application: Automotive, Medical, Real Estate, Oil and Gas, Entertainment, Industrial, Other

The productivity software publishing market consists of sales of productivity software. Productivity software is an application dedicated to producing information, such as documents, presentations, worksheets, databases, charts, graphs, digital paintings, electronic music and digital video, excluding operating systems.

The global productivity software publishing market is expected to grow from $84.7 billion in 2020 to $86.03 billion in 2021 at a compound annual growth rate (CAGR) of 1.6%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $123.8 billion in 2025 at a CAGR of 9.5%.

Automation in any field would increase the efficiency and would therefore increase the profit margins. The productivity software publishing market is driven by the cloud-based technology. The cloud-based productivity software allows all the team members to share, collaborate and communicate on projects effectively not having to physically meet/share anything on disc/USB. The cloud-based software enhances the work flow by making it simpler and easy to work with. This easy platform could deliver many applications involving the graphics software, spreadsheet applications, database management systems and word processors to the end users. Also, the cloud-based software controls, safeguards and install the software automatically without having to physically monitor it. Due to the software’s ability to turn the technical power of these software tools into strategic action, managers are better positioned to gain visibility into how workers are fulfilling their responsibilities and take steps to ensure they reach crucial milestones. Examples of cloud-based productivity software includes Microsoft office 365, Zoho office online suite, Apple iWork etc.

Interoperability is defined as the ability of computer systems or software to exchange and make use of information. While the other definition could be, the ability of customers to use the same management tools, server images and other software with a variety of cloud computing providers and platforms. It could as well mean the ability of applications to move from one environment to the next, for example, from Savvis to Amazon, and for the applications to work exactly the same in both places. This challenge of compatibility of the productivity software with various systems may hinder the markets growth. For example, for moving physical applications to the Amazon EC2 cloud, first it had to convert the applications to a virtualized version before moving onto the cloud due to compatibility issues, thus increasing the costs and time required for the project.

The advancements in technologies using productivity software is aimed for delivering better consumer satisfaction, decreasing human effort and ensuring the work efficiency. These advancements developed new tools to collaborate and provide round the clock opportunity to engage. Productivity software tools allow to communicate/comment on each task. Some even give you the ability to assign comments to a team member, which then turns into a subtask. For example, Clickup, a productivity software publication startup has created hybrid working platform that combines all the tools and capabilities to setup goals for the team. The company uses its advanced technologies and pays attention to details and has thus acquired clients such as Uber, Google and Nike.

Any organization that works with customer data are required to comply with General Data Protection Regulation (GDPR). The organization should come up with new data managing plans depending on the GDPR rules setup by different countries and as well appoint a data protection officer or data controller who is in charge of GDPR compliance. GDPR gives right to the people to manage their data collected through productivity software. Whenever company is processing personal data it needs to comply with the GDPR. For example, MS office has introduced Data Subject Requests (DSR) systems which capture, clean and harmonizes large data sets so the data can be retrieved later in case of any breach of customer data.

Major players in the market are Microsoft Corporation, IDoneThis, Oracle, Google (Alphabet Inc), IBM.

The countries covered in the global productivity software publishing market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.

The regions covered in the global productivity software publishing market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global productivity software publishing market is segmented -

1) By Application: Usage Tracking, License Management, Advanced Reporting, Others

2) By Deployment Type: Cloud based, On-Premises

3) By End User: BFSI, Manufacturing, Telecommunications, Media & Entertainment, Transportation, Retail

The middleware software market consists of sales of middleware software. It connects enterprise applications or software components and provides an infrastructure that enable the development of business applications. Middleware software also facilitates high availability functionality and provides core services such as transactions, concurrency, messaging, and the SCA framework for service-oriented architecture (SOA) applications, threading and security to an enterprise. Middleware software seamlessly integrates all the business processes, applications and platforms to help businesses reduce their total cost of ownership (TCO) and increase their return on income (ROI). The global middleware software market is expected to grow from $39.38 billion in 2020 to $39.94 billion in 2021 at a compound annual growth rate (CAGR) of 1.4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $51.81 billion in 2025 at a CAGR of 6.7%. Movement of manufacturing organizations towards Industry 4.0, the latest revolution, which focuses on automation, interconnectivity, real-time data and machine learning is expected to benefit the middleware software market in the forecast period. Industry 4.0 includes the latest technologies such as Internet of Things (IoT), machine learning, cloud computing, cyber-physical systems and cognitive computing which are equipped in the computer systems and automated machines including robotics. Manufacturing companies need to integrate with their business processes and operations with these platforms/technologies which is fulfilled using middleware software among others. Thus, the extensive adoption of latest technologies by manufacturing companies are driving the growth of middleware software market. For instance, middleware has made possible the development of Robotics Operating System (ROS), a robotics middleware, which is a collection of software framework, and toolsets upon which robotics systems can be created. The development of industrial automation across business activities is driving the demand for ROS. Data privacy concerns and security risks are expected to limit the growth of the middleware software market. Data privacy concerns and security risks in middleware software involves risks of loss, theft and tampering of data when large amount of data needs to be exchanged between various applications, and platforms to work in a collaborative environment. For instance, there were about 3,800 publicly disclosed breaches that compromised 4.1 billion data records in 2019 and according to a report from Cybersecurity Ventures, cybercrime, as a whole, would cost the world more than $ 6 trillion by 2021. One of the latest trends in the middleware software market is the advent of cognitive computing which helps to create new products and services on the basis of its understanding of machine learning and content analytics. This is a technology of imitating human brain by using self-learning techniques with the help of natural language processing, pattern recognition, and data mining. Cognitive computing in the middleware software enables the systems to analyse previous data and helps in quick decision and also enables exchange of information between various devices and applications. For instance, cognitive computing in healthcare middleware software helps doctors to analyse and understand previous cases and make decisions for current similar cases. The strict guidelines of Sherman Antitrust Act break the split of regulations for middleware software. Section 1 of the Sherman Antitrust Act bans all the agreements that affects fair practices in trade such as fixing and determining the price before the deal or auction takes place, refusals to deal, collusion of parties to choose the winner of the bidding process whereby other submits non-competitive bids. Section 2 of the Sherman Antitrust Act forbids any person, group of persons, or any entity from monopolizing or attempting to monopolize its position in the market. Therefore, the companies in middleware market are required to share interoperability information with third party manufacturers of middleware software in order to promote fair trade and market practices. In June 2018, Oracle acquired DataScience.com for an undisclosed amount. The acquisition is expected to provide a data science platform to the Oracle Cloud which enables customers to fully utilize machine learning. It also allows the customers of both Oracle and DataScience.com to use big data and machine learning applications for predictive analysis and business results. DataScience.com is a company which analyses data by extracting knowledge using human and machine powered solutions. It was established in 2014 and is headquartered in Los Angeles, California, USA. Major players in the market are Microsoft Incorporation, Oracle Corporation, IBM Corporation, Fujitsu and Red Hat. The countries covered in the global middleware software market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia. The regions covered in the global middleware software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The global middleware software market is segmented - 1) By Type: Communication Middleware, Platform Middleware, Integration Middleware, Others 2) By End User: Retail, Healthcare, Automotive, BFSI, Others 3) By Enterprise Size: Small & Medium Enterprises (SMEs), Large Enterprises 4) By Deployment Type: Hosted, On-Premises

The storage and backup software market consists of sales of storage and backup software. The software provides users and programmers with a systematic way to create, retrieve, update and manage data. This software allows users to read, update and delete data, which can then be fetched directly and/or through programmatic access.

The global storage and backup software market is expected to grow from $11.42 billion in 2020 to $11.89 billion in 2021 at a compound annual growth rate (CAGR) of 4.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $17.25 billion in 2025 at a CAGR of 9.7%.

Growing volume of data and the awareness among organizations to backup and protect their data are expected to benefit the storage and backup software market in the forecast period. In addition, the growing adoption of cloud-based technologies, and the need for storage and protection across all enterprises are also driving the growth of storage and backup software market. For example, it is estimated that more than 72% of global enterprises will shift to cloud storage from on-premise data centers by 2022.

Rising concerns about data privacy and governance are expected to restrain market growth. Security concerns over protecting information regarding stakeholders and private data caused due to hacking, espionage and other security threats restrict the deployment of cloud storage and other software for storage and backup. These factors invariably limit the storage and backup software market. For example, industries such as BFSI, healthcare, retail, and others are unwilling to invest in the market due to security issues, thus restraining it to grow at its full potential.

One of the latest trends in the storage and backup software market is the adoption of artificial intelligence (AI) based applications which can create, store and protect data. Artificial intelligence is an area of computer science which simulates human intelligence. AI based applications create information on their own and verify the source of information before composing bits of knowledge to a database. These applications can also refine database management policies, align data to database capabilities and assess metadata across organization storage infrastructure. For instance, Commvault, one of the major vendors in the field of storage and backup software, introduced a new kind of backup and recovery software, which works with AI. This software helps users to keep data backup and recovery more efficient and effective by analyzing their patterns and performance.

The European Parliament and Council's General Data Protection Regulation (GDPR) break the split of regulations for the security of transactions in the European Union (EU). GDPR will replace the Data Protection Directive 95/46/etc. in spring 2018 as the primary law to protect the personal data of EU citizens. The legislation reshape the way in which the data is handled across every sector and also gives customers the right to be removed from the records of companies even if they have previously agreed to the collection and storage of their data which is called the ‘right to be forgotten’. For instance, IBM, as a primary system integrator, helped a European telecom company to update its applications to comply with GDPR by modernizing data infrastructure and governance.

In January 2019, Amazon Web Services Corporation acquired Dell-Backed Cloud Endure in a deal valued in the range of $200 million to $250 million. The transaction is expected to enhance Amazon's ability to deliver innovative and flexible migration, backup, and disaster recovery solutions. Cloud Endure is a provider of continuous backup and enterprise-grade business continuity solutions for businesses. The company was established in 2012 and is headquartered in Ramat Gan, Israel.

Major players in the market are Dell Inc., HPE, Netapp, Hitachi and IBM.

The countries covered in the global storage and backup software market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.

The regions covered in the global storage and backup software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global storage and backup software market is segmented -

1) By Type: Storage Software, Backup Software

2) By End User: Banking, Financial Services & Insurance (BFSI), Telecommunication, Consumer Goods & Retail, Media & Entertainment, Healthcare & Life Sciences, Government

3) By Deployment: Cloud, On-premise

The enterprise resource planning (ERP) software market consists of sales of enterprise resource planning software. ERP software helps to connect the various departments in a business for the smooth flow of communication and information by providing a central database. This central database is a shared database which gathers, stores, analyzes and interprets data, allows any department to retrieve required information at any time, and supports multiple departments with ease.

The global ERP software market is expected to grow from $145.44 billion in 2020 to $148.37 billion in 2021 at a compound annual growth rate (CAGR) of 2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $202.28 billion in 2025 at a CAGR of 8.1%.

Increased need for bringing efficiency and transparency in the business operations is expected to benefit the enterprise resource planning software market in the forecast period as ERP enables the integration of high volume of data among several departments and manages the flow of information and communication throughout the organization. In addition, the use of cloud based technologies for storing and accessing real time data, analytical reporting for business decisions and the need to meet the industry standards processes which are already implanted in the software are also enhancing the growth of the market. For example, Annabelle Candy implemented the Syspro ERP, an ERP software provided by Syspro for manufacturing and distribution industries enabled them to expand their marketing practices to more locations and track their progress with ease.

Increasing number of cyber-attacks are expected to limit the growth of companies in the enterprise resource planning software market during the forecast period. These attacks on ERP applications including compromise and distributed denial of service (DDoS) attacks damage the operations of businesses. According to Onapsis, which is an ERP cyber security and compliance firm, ERP applications such as SAP and Oracle have a combined total of over 9000 security vulnerabilities.

One of the latest trends in the ERP software market is the integration of block chain technology with ERP. Block chain is a chronological series of data managed by multiple computers owned by multiple entities, and each block of data is secured by a cryptographic code. ERP vendors need to keep their software updated in order to maximize the value addition provided to their clients. Integration of ERP with block chain will create a secured platform for collaboration, through which systems of records can be freely shared to trusted parties. For example, SAP, a software company, is exploring ways in which it can implement block chain efficiently to its existing ERP. It is trying to integrate block chain to ERP to improve 3D printing and digital manufacturing.

The strict guidelines taken by the UK and French governments on Internet of Things (IoT) device manufacturers break the split of regulations for ERP software. The adoption of advanced technologies such as IoT and machine learning in almost all the applications including ERP resulted in a lot of fraud practices and the need to prevent such practices through stringent regulations. Some examples of regulations are the stringent guidelines implemented by the French government and the UK government which have to be followed by IoT device manufacturers. These strict regulations hinder the growth of the market and prevent other companies to enter the ERP market. For instance, leading ERP software vendors such as SAP and Oracle have been looking at ways to integrate the latest technologies including IoT and machine learning, but the strict policies constraining the development of their products are restricting the growth of the market.

Major players in the market are SAP, Oracle, Microsoft, Epicor and Infor.

The countries covered in the global ERP software market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.

The regions covered in the global ERP software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global ERP software market is segmented -

1) By Function: Finance, HR, Supply Chain,Others

2) By Deployment: On Premise ERP, Cloud ERP

3) By Vertical: Manufacturing and Services, BFSI, Healthcare, Retail, Government Utilities, Aerospace & Defense, Telecom, Others

The augmented reality software market consists of sales of augmented reality software which is the integration of the user's existing real environment with digital information. The revenue generated by this market consists of sales of software whose functions include 3D modeling, workflow optimization, visualization, navigation, remote collaboration, documentation and others. The companies involved in the development of the augmented reality software are primarily engaged in designing, development and sales of this software which is used by various end-users including medical, aerospace & defense, and oil and gas industries among others.

The global augmented reality software market is expected grow from $12.44 billion in 2020 to $21.97 billion in 2021 at a compound annual growth rate (CAGR) of 76.6%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $152 billion in 2025 at a CAGR of 62%.

The augmented reality software market covered in this report is segmented by software function into 3D modeling; workflow optimization; visualization; navigation; remote collaboration; documentation; others and by vertical into oil and gas; mining; telecom; aerospace and defense; medical; others.

The steps for recovery from COVID-19 and future productivity in the economy will need augmented reality to adjust to the new normal, contributing to the market growth during the forecast period. Many companies are facing an incredible loss of human experience and intelligence due to the COVID-19 pandemic. Many businesses are just focusing on preserving the intelligence and surviving this crisis rather than investments and augmented reality might be much cheaper than expected. For example, PTC, during this COVID-19 crisis, made available Vuforia Chalk for companies letting them to start adapting to AR for the COVID-19 recovery. Vuforia Chalk and Microsoft Dynamics are some of the augmented reality programs which are used by an employee in the future to retrain or learn a task from the expert's already preserved notes and set of instructions using smartphones, tablets and other devices. AR-based training solutions will help companies to preserve and pass on the required intelligence to the employees faster once the path of recovery begins.

Low adoption rate due to security and privacy issues and complexities in the design are expected to hinder the growth of the market. Augmented reality collects a lot of information of users in terms of what the users are doing and their environment more than what social media do. This can lead to privacy and safety concerns of the users and related persons if the hackers gain access to the data. For instance, a survey conducted by Perkins Coie and XR Association in 2019 stated that 61% of the respondents agreed that the top legal risk concerning the developing immersive technology is consumer safety and privacy concerns. This percentage went up from the previous year's (2018) survey which was 44%. The concern of security and privacy threats to the user and their environment and the fear of losing privacy will hinder the adoption of augmented reality technology by the users.

The combination of artificial intelligence and augmented reality shows many opportunities as both are separate but complementary technologies. Artificial intelligence models will enhance augmented reality experience by adding interactivity and effects to AR scenes like real-world object tagging, enabling an AR system to predict the appropriate interface for a person in a given virtual environment, and enhances AR to create a multidimensional and responsive virtual experience that can bring in new levels of insight and creativity. In 2019, Google Maps introduced a global localization technique that combines Visual Positioning Service (VPS), Street View, and machine learning which helps in identifying position and orientation more accurately. The smartphone's camera is used as a sensor by this technology to allow the app to see the surroundings and locate the position by looking at the buildings thereby helping users to quickly determine which direction to opt. This combination will boost the augmented reality software market growth during the forecast period.

In 2019, Alibaba, a multinational company, acquired InfinityAR for an undisclosed amount. This acquisition will bring leading technologies such as sensor fusion, computer vision and navigation technologies, and offer additional benefits to customers, partners and developers of Alibaba. InfinityAR is an Israel based AR company founded in 2012.

The major players covered in the global augmented reality software market are PTC, Inc., Wikitude GmbH, Daqri LLC, Zugara, Inc., Niantic, Augmate Corporation, Ubimax GmbH, Upskill, Catchoom Technologies S.L., Aurasma, EON Reality Inc., Hewlett-Packard Development Company. L.P., Zappar Ltd, Immerseport, Infinity Augmented Reality, Inglobe Technologies, Jbknowledge, Inc., Kudan, Magic Leap, Inc., Marxent Labs LLC, Mortar Studios, Amazon Web Services, Inc., Re’flekt GmbH, Scope AR, Viewar GmbH, Wear S.R.L., Atheer, Inc., HP Reveal, Kentico Software.

The countries covered in the global augmented reality software market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global AR software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global augmented reality software market is segmented -

1) By Software Function: 3D Modelling, Workflow Optimization, Visualization, Navigation, Remote Collaboration, Documentation, Others

2) By Vertical: Enterprise, Oil and Gas, Mining, Telecom, Aerospace and Defense, Medical, Others

3) By Deployment: Cloud Based, On-Premise

The virtual reality software and services market consists of the sale of virtual reality software which is used to create an artificial simulated environment. Some examples of products and services in this market include Google VR services and 3D Modelling Software`s like AutoCAD, Zbrush and 3DS Max.

The global virtual reality software and services market was valued at about $4.74 billion in 2018 and is expected to grow to $19.38 billion at a CAGR of 42.2% through 2022.

Asia Pacific was the largest region in the virtual reality software and services market in 2018.

Growth in the gaming industry is driving the virtual reality software and services market. Virtual reality is a 3D, computer generated environment which can interact with a person, whereas augmented reality turns an environment into a digital interface by placing virtual objects in the real world. Gaming companies are increasingly using VR technology for a more immersive and realistic experience for gamers. Therefore, to improve and enhance the entire gaming experience, companies are redesigning consoles to include technology that enables the gamer to get a 360-degree view. For example, South Korean company, Minkonet uses a software called swing360 in their video games, the software enables the gamer to control the point of view in the video game. This expansion of gaming industry is increasing the demand for VR software and services, thus driving the market.

Inadequate storage capacity is a major restraint on the virtual reality software and services market. The volume of data files created by VR platforms is increasing at a rapid rate, resulting in storage problems for VR companies. Cloud storage is not a feasible solution for storing VR generated data, since there is a constant necessity to make changes to the files. As the applications of virtual reality are increasing, the amount of data to be stored is also increasing with some applications generating up to one terabyte of data per hour. This storage problem is resulting in additional costs for VR companies in terms of storage devices and also preventing many companies from investing in virtual reality software and services industry.

Companies in the virtual reality software and services market are increasingly seeking partnership opportunities to share knowledge and expertise in order to gain a competitive advantage over other players. For example, in 2019, Oxford Metrics plc has formed a strategic alliance with VR software developer company Sandbox V. Similarly, in 2018 Lucyd PTE Ltd, a VR software company, entered into a strategic alliance with Roomful, an AR/VR creaction platform, to develop an application pertaining to virtual reality. Also, in 2016, Imax entered into a strategic partnership with Starbreeze, a Swedish video game developer, to develop VR software for IMAX. Such alliances are expediting the research and development process boosting the virtual reality software and services market.

The virtual reality software and services market is monitored by regulations such as the General Data Protection Regulation (GDPR) practiced in Europe, to protect consumers from data breach. Virtual reality software and services companies require myriads of consumer data to develop a software suited for a particular segment of customer. Also, while rendering service, companies compile a lot of customer information which must remain undisclosed to outsiders. Thus, under GDPR, a company developing software or rendering a service is legally responsible for the protection of customer data.

Major players in the virtual reality software and services market are Google Inc., Facebook, Microsoft Corporation, Zappar and Pixar.

The software and BPO services market consists of sales of software and BPO services by entities (organizations, sole traders and partnerships) that provide software and BPO services including application software programming services, computer program (software) development, computer software support services and web design services. This market includes sales of related goods. The software and BPO services market is segmented into software services and BPO services.

The global software and BPO services market is expected to grow from $2376.31 billion in 2020 to $2498.71 billion in 2021 at a compound annual growth rate (CAGR) of 5.2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $3837.1 billion in 2025 at a CAGR of 11%.

Asia Pacific was the largest region in the global software and BPO services market, accounting for 36% of the market in 2020. North America was the second largest region accounting for 29% of the global market. South America was the smallest region in the global software and BPO services market.

The emergence of startups as major clients of software and BPO service providers is expected to drive the market. Driven by cost efficiency and the necessity to focus on core operations, startups have started outsourcing non-core operations such as finance and recruitment to specialized agencies and companies. For instance, outsourcing of finance and tech operations helps Leverage Edu, an India-based EdTech startup connecting students with mentors, save approximately 40% of its capital through outsourcing. The increasing number of startups is also expected to positively impact the market. The number of startups in India is expected to increase to 10,500 by 2020, a 4000 increase from the current number, depicting new opportunities for the software and BPO services market in the client expansion and revenue generation.

High employee attrition in the BPO services industry is expected to hinder the growth of the BPO services market in the forecast period. According to the Analytics India Employee Attrition Study, in 2017, the USA accounted for the highest attrition rate of 42% in the BPO services industry, followed by Australia - 29%, Europe - 24% and India - 18% attrition. The impact of high attrition is expected to increase hiring costs for training and development of new employees, failure to attract new clients and decrease in productivity of the BPO services sector. All these factors are expected to reduce BPO providers' profitability and stability in the market, hindering the growth.

Many software services companies are adopting quality standards such as Information Technology Infrastructure Library (ITIL) and International Organization for Standardization (ISO) 9001 to align IT services with business requirements. ITIL describes processes, procedures and tasks that can be applied by an organization to deliver software products and services that meet predefined quality metrics. Similarly, ISO 9001 is a standard for quality products and services that meet desired quality standards and are reliable. For instance, about 1.1 million ISO 9001 certificates have been issued till date, to companies including software services, medical devices, oil and gas, automotive companies and government organizations.

The countries covered in the global software and bpo services market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, Vietnam.

The regions covered in the global software and bpo services market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The major players covered in the global software and bpo services market are IBM, Fujitsu, HPE, SAP, Accenture.

The global software and bpo services market is segmented -

1) By Type: BPO Services, Software Services

2) By Organisation Size: Large Enterprises, Small And Medium Enterprises

3) By End-Use Industry: Financial Services, Retail & Wholesale, Information Technology, Manufacturing, Healthcare, Others

Subsegments Covered: CRM BPO, HRO BPO, F&A BPO, Other BPO Services, Application Software, Infrastructure Software, Vertical - Specific Software, Software Outsourcing Services, Other Software Services