Business Software And Services Market Growth & Trends
The global business software and services market size is expected to reach USD 911.77 billion by 2028, registering a CAGR of 11.3% from 2021 to 2028, according to a new report by Grand View Research, Inc. Increasing volume of business data and automation of business processes across various industries such as healthcare, retail, and manufacturing are expected to drive the market growth over the forecast period.
Benefits such as timely product delivery, reduced production costs, and improved operational efficiency rendered by effective business software and services are expected to propel the market growth over the forecast period. Business software and services are extensively used in corporate processes as they help in reducing operational costs. Furthermore, business software allows organizations to merge all aspects of the business into a single central system; thereby increasing transparency in operations. This is also expected to contribute to market growth.
Enterprises are increasingly adopting cloud-based deployment solutions owing to technological developments and a growing focus on offering flexibility and mobility to users. This is prompting vendors to develop software solutions that can be deployed through cloud platforms. The growing use of cloud-based platforms has triggered the demand for cloud-based software solutions and services among small- and medium-sized enterprises owing to advantages such as flexibility and mobility.
Technological innovation, the growing use of new data sources, and the penetration of cloud-based services are further driving the need for customized software solutions for specific business operations. The increasing demand for optimized delivery mechanisms, from point of production to the point of consumption, is encouraging enterprises to adopt supply chain management software.
Business Software and Services Market Report Highlights
- The sales and marketing segment is anticipated to register the highest CAGR from 2021 to 2028. Sales and marketing management software is widely used by businesses to combine their sales procedures and tasks and this is contributing to its increased demand
- The support and maintenance segment dominated the market in 2020. This can be attributed to the emergence of software business models to identify and fix issues related to product quality
- The cloud segment is expected to emerge as the fastest-growing deployment segment over the next seven years as it eliminates the need to periodically and manually upgrade business software solutions and enables users to access data from any location in a hassle-free way
- The small and medium enterprises segment is expected to register a significant CAGR over the forecast period. The growing number of government initiatives through digital Small and Medium Enterprise (SME) campaigns such as video marketing, social media, and search engine marketing is expected to drive the growth of the small & medium enterprises segment
- The healthcare segment is expected to emerge as the fastest-growing end-use segment over the next seven years. This growth can be attributed to the increasing demand for process streamlining in the documentation process, health data exchange, and its storage
- North America accounted for the largest market share in terms of revenue and is expected to continue to dominate the market over the forecast period. Increased adoption of advanced technologies such as hybrid architecture, machine learning, artificial intelligence, and blockchain is contributing to the market growth in North America