The global business software and services market size was valued at USD 322.91 billion in 2018 and is expected to expand at a CAGR of 10.7% from 2019 to 2025. The rapid rise in the volume of enterprise data and automation of business processes across several industries such as retail, manufacturing, healthcare, and transportation is expected to drive the growth.
Significant rise in deployment of enterprise software and services in IT infrastructure for enabling better strategic decision-making, reducing inventory cost, enhancing profitability, and enabling organizations to improve their market position is expected to drive the market over the forecast period.
Enterprise software and services are significantly used in end-use industries such as BFSI, government, healthcare, manufacturing, and retail, among others, since they enable the streamlining of business processes. The software and services enable easy and quick access to unstructured data gathered through data analytics to achieve a security goals. Moreover, the deployment of enterprise solution may result in a significant reduction in raw material and inventory costs, which helps organizations to achieve increased profitability.
Numerous organizations are adopting business solutions to increase operational efficiency by integrating administrative systems into a single program. Business solution modules link departmental information and data together with real-time updates,which offers better transparency in business operations. Enterprises opt for the ideal software and solutions depending on their need.
Higher costs of licensing and providing timely support are the major constraints for the market growth. The price of licensing of solution excludes software development costs. The maintenance and support cost of solution is covered in the standard software cost and additional integration and customization often lead to an increase in maintenance and support costs. Enterprises also incur additional expenditure related to timely maintenance and periodic updates.
On the basis of software, the market is segmented into finance, human resource, sales & marketing, supply chain, and others. The finance segment led in 2018 and was valued at USD 60.67 billion. Increasing importance of financial management tools for planning, budgeting, analysis, and reporting is expected to drive the demand. Financial management software is extensively adopted in the BFSI industry in North America owing to the need for risk compliance and improvements in efficiency and productivity of business operations.
The human resource is expected to emerge as the fastest growing segment over the forecast period as this software is widely deployed across a wide number of end-use industries. The solutions help integrate and computerize human resource processes such as training, payroll, and recruitment. Furthermore, several payroll associations such as ADP Canada, ASL Consulting, Apex Time Solutions, and CADJPRO Payroll Solutions are adopting human resource management solution owing to its benefits on organizational scale.
The sales and marketing segment witnesses a steady growth owing to wider deployment in combination with business processes and tasks. It offers a detailed overview of the company’s services, products, customers, and sales team in different locations.
On the basis of service, the business software and services market is segmented into consulting, managed services, and support and maintenance. The support and maintenance services segment led the market in 2018 owing to the rising popularity of supply chain management solutions and the emergence of business models to detect and fix issues pertaining to the quality of a product.
Consulting services is expected to emerge as the fastest-growing segment over the forecast period. The growth can be attributed to the increase in demand for various consulting services in end-use industries for managing risks and identifying growth opportunities for future development.
Cloud and on-premise technologies are preferably deployed based on organizational needs and requirements. The growing demand and rising preference of organizations for different enterprise software and services as it enables a customization of software according to client’s requirements. This is expected to drive demand for on-premise deployment over the forecast period.
Cloud services are widely being used in the global market as it minimizes the need for a manual upgrade in enterprises and enables users to access data from remote locations in a hassle-free way. Cloud-based services allow organizations to utilize only the amount of resources they need, which helps them to minimize energy consumption. Furthermore, stringent government regulations for minimizing carbon footprint are encouraging organizations to opt for cloud-based services, is expected to drive growth of the cloud segment.
Large and Small and Medium Enterprises (SME) deploy business software and services to strengthen the internal and external business processes. The large enterprises segment led the market in 2018. Factors such as the use of advanced analytical engines, real-time data compilation tools, and process blueprints are driving the adoption of enterprise solution and services in large enterprises.
Increasing preference for efficient networking solutions and automation capabilities is expected to drive demand for enterprise software and services in large enterprises segment. The growing emphasis on strategic decision-making and resource allocation are expected to further drive the segment growth.
Increasing number of government initiatives through digital campaigns such as social media, video marketing, and search engine marketing are s anticipated to trigger the growth of the SME segment. For instance, Info-Communications Media Development Authority (IMDA), Singapore, recently launched a public consultation process to design policy framework for facilitating 5G rollout by 2020.
On the basis of end use, the market is segmented into aerospace and defense, BFSI, government, healthcare, IT and telecom, manufacturing, retail, and transportation, among others. BFSI led the market in 2018 and was valued over USD 59 billion owing to increased deployment of enterprise software to enable enhanced client experience and to offer several advantages such as secure transactions and constant access to client database.
The IT and telecom segment is expected to witness remarkable growth over the forecast period owing to the growing importance of re-evaluating strategies and deploying advanced technologies in business processes. Various organizations are expanding their business operations as they want to cater to larger market; thereby driving the demand in organizations to efficiently offer solutions to their customers.
North America led the global market and was valued at USD 103.14 billion in 2018 owing to the demand for high-speed data networks and significant presence of software vendors. Companies in North America are focusing on developing analytics and business intelligence solutions, in addition to the implementation of software and analytics-based strategies as compared to other regions. Canada is home to a large, educated workforce of computer scientists, data analysts, and software engineers, who deal with enterprise solutions and services is further expected to drive the regional growth.
Europe was the second dominant regional market in 2018. Significant investment by large corporations and deployment of new technologies are driving the regional expansion. Emphasis on cloud facilities and initiatives towards developing enterprise intelligence solution are expected to boost the demand for enterprise solutions in Europe.
Compliance with stringent government regulations for various industries in developing countries has triggered the implementation of business solution and policies. This enables enterprises to enhance productivity and minimize the complexities of business operations. The need for strengthening business policies, business standards, and data portability is driving the market growth.
Growing need for mobility and data portability is leading to a higher emphasis on the use of data-centric solutions, subsequently driving the demand for enterprise solution. The key vendors in the market are Acumatica, Inc.; Deltek, Inc.; Epicor Software Corporation; IBM Corporation; Infor Inc.; NetSuite Inc.; Microsoft Corporation; SAP SE; Oracle Corporation; Totvs SA; Unit4; and SYSPRO.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Billion and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, Germany, U.K., India, Japan, China, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analyst working days)
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global business software and services market report based on software, service, deployment, enterprise size, end use, and region.
Software Outlook (Revenue, USD Billion, 2019 - 2025)
Sales & Marketing
Service Outlook (Revenue, USD Billion, 2019 - 2025)
Support & Maintenance
Deployment Outlook (Revenue, USD Billion, 2019 - 2025)
Enterprise Size Outlook (Revenue, USD Billion, 2019 - 2025)
Small & Medium Enterprises
End Use Size Outlook (Revenue, USD Billion; 2019 - 2025)
Aerospace & Defense
IT & Telecom
Region Outlook (Revenue, USD Billion, 2019 - 2025)
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.