Global Business Software and Services Market Report and Forecast 2024-2032

Global Business Software and Services Market Outlook

The global business software and services market size was valued at USD 468.51 billion in 2023. The market is further projected to grow at a CAGR of 10% between 2024 and 2032.

Key Takeaways

• In 2022, IT companies spent approximately USD 783 billion on enterprise software, a 7.1% increase from the year before.

• By 2026, enterprise application software will generate 479 billion dollars in revenue worldwide.

• The largest regional market is in North America, which is followed by Europe and Asia Pacific.

Business software and services are the tools and solutions that help businesses manage their operations, enhance productivity, and improve customer satisfaction. Some examples of business software and services are customer relationship management (CRM), enterprise resource planning (ERP), business intelligence (BI), cloud computing, and human resource management (HRM).

The global business software and services market is expected to grow at a significant rate in the coming years, driven by factors such as digital transformation, automation, competition, and customer demand. These factors enable businesses to leverage the benefits of business software and services, such as cost reduction, efficiency, scalability, agility, security, and data analytics.

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Key Trends and Developments

Advancements in software technology, growing need for data security and privacy, and rising demand for cloud-based solutions are fostering the business software and services market growth

Global Business Software and Services Market Trends

The demand for the business software and services is driven by the growth of managed services, which implies that businesses are increasingly outsourcing IT infrastructure management to focus on their core competencies. This trend is driven by the need for cost-effective and efficient IT solutions, and the growing complexity of technology. Managed services providers offer a range of services, including cloud management, security, and application support, which can help businesses reduce costs, improve efficiency, and enhance their overall IT capabilities.

Moreover, the growing shift towards cloud computing owing to its enhanced features and efficiency is providing a further boost to the business software and services market value. Also, with the increasing adoption of artificial intelligence, big data analytics, internet of things, and blockchain technologies across various industries, the business software and services market outlook look promising.

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Market Segmentation

Global Business Software and Services Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Software for human resource and supply chain can bolster the market growth as they help businesses to manage their complex work operations

According to business software and services market analysis, finance software helps businesses to manage their accounting, budgeting, forecasting, and reporting activities. It also enables them to comply with various financial regulations and standards. The major factors driving the growth of the finance segment are the increasing adoption of cloud-based solutions, the growing demand for automation and digitisation of financial processes, and the rising need for data-driven insights and decision making.

Sales and marketing software helps businesses to plan, execute, and monitor their sales and marketing campaigns, along with managing their customer relationships and interactions. It also helps them to generate leads, increase conversions, and optimise revenue. The key drivers of the segment are the rising adoption of social media and mobile platforms, the growing need for enhanced customer experience and retention, and the increasing integration of AI and analytics. These drivers are aiding the business software and services market growth.

Human resource software helps businesses to manage their human capital and perform various functions such as recruitment, training, performance management, payroll, benefits, and compliance. It also helps them to enhance employee engagement, productivity, and retention. The main factors fueling the growth of the segment are the rising adoption of cloud-based and mobile solutions, the increasing need for workforce optimisation and automation, and the growing demand for talent management and diversity.

Lastly, supply chain software helps businesses to manage their end-to-end supply chain processes, such as sourcing, procurement, production, distribution, and logistics. It also helps them to improve their efficiency, agility, visibility, and resilience. The major drivers of the supply chain segment in the business software market are the increasing globalisation and complexity of supply chains, the growing need for cost and risk reduction, and the rising adoption of artificial intelligence and blockchain.

Large enterprises hold a significant business software and services market share due to adoption of various software and services in their management process

According to business software and services market report, the share of small and medium enterprises (SMEs) is expected to grow steadily due to the need for automation and optimisation of business processes, the growing usage of cloud-based applications, and the rising demand for data analytics. Some of the leading vendors in this segment are Microsoft, Oracle, SAP, Salesforce, and Intuit.

On the other hand, the adoption of artificial intelligence and machine learning, and the integration of various software and services platforms by large enterprises can increase business software and services market size in the future. Some of the leading vendors in this segment are IBM, Adobe, Cisco, Dell, and VMware.

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Competitive Landscape

Market players are offering a wide range of software and services, such as customer relationship management, human capital management, and cloud computing to serve various industries

Other key players in the global business software and services market include Deltek, Inc., NetSuite Inc., SYSPRO, International Business Machines Corporation, and Totvs SA, among others.

Global Business Software and Services Market Analysis by Region

North America is the dominating region due to high adoption of cloud computing software and AI technologies among businesses

North America leads the business software and services market share due to the presence of major players such as Microsoft, Oracle, IBM, and Salesforce, as well as the high adoption of cloud computing and artificial intelligence (AI) among businesses.

Europe is expected to witness significant growth in the forecast period, owing to the increasing demand for digital transformation and automation solutions among small and medium-sized enterprises (SMEs) and the public sector. The European Commission's Digital Single Market strategy and the General Data Protection Regulation (GDPR) are also supporting the adoption of business software and services in the region.

The Asia Pacific region is projected to register the highest CAGR in the forecast period due to the rapid economic development and digitalisation of various industries such as manufacturing, retail, healthcare, and education. Additionally, the growing penetration of the internet and mobile devices as well as the rising investments in IT infrastructure are resulting in business software and services market expansion in the region.

Middle East and African region is expected to witness a gradual growth in the business software and services market, as the businesses are facing challenges such as political instability, security threats, and low internet penetration. However, the rising demand for cloud-based solutions, AI, and big data analytics, and the development of smart cities and e-government projects, are expected to create growth opportunities for the market players in the region.

Key Highlights of the Report

Business Software and Services Market Report Snapshots

Business Software and Services Market Size

Business Software and Services Market Trends

Business Software and Services Market Regional Analysis

Business Software and Services Companies