Business Software And Services Market Size, Share & Trends Analysis Report By Software, By Service, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global business software and services market size was valued at USD 429.59 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.7% from 2022 to 2030. The growing volume of enterprise data and increased automation of business processes across industries such as retail, manufacturing, and healthcare are driving the market growth. Moreover, the rapid deployment of enterprise software and services across IT infrastructure to improve decision-making, reduce inventory cost, and enhance profitability is also contributing to market growth.

Business expansion initiatives by several organizations across the world are expected to fuel market growth. The rapidly increasing use of cloud platforms, owing to benefits such as flexibility, cost-effectiveness, and mobility, has triggered the demand for cloud-based software solutions and services among small and medium-sized businesses. Furthermore, the market is expected to benefit from the rising use of innovative technologies such as blockchain, hybrid architecture, artificial intelligence, and machine learning over the forecast period.

Business software and services are widely used by companies to simplify corporate operations. To accomplish data privacy and security goals, this software and services provide quick and easy access to unstructured data obtained through data analytics. In addition, enterprise solutions lead to a significant reduction in raw material and inventory costs, allowing businesses to boost their profitability.

Many businesses are implementing business solutions to improve their operational efficiency by combining administrative systems into a single software. Departmental data is linked with real-time updates in business solution modules, resulting in improved data transparency. Businesses select the software and solutions best suited to their requirements.

The COVID-19 pandemic had a favorable impact on the business software and services market. According to an NTT Ltd. report commissioned by International Data Group, Inc. (IDG), the institutionalization of the work-from-home model amid local and worldwide quarantines has boosted the demand for value-added services for mitigating security concerns. Moreover, economic uncertainties caused by the pandemic have encouraged several vendors to focus on customer service-driven methods, including proactive support in customers' digital journeys.

The market growth is likely to be hampered by higher authorization prices and the need for quick assistance. The cost of licensing a solution does not include the cost of software development. While the cost of solution maintenance and support is included in the standard software price, additional integration and personalization often result in higher maintenance and support costs. Businesses often end up incurring additional costs for timely maintenance and frequent updates.

Software Insights

The finance segment held the largest market share of over 25% in 2021 owing to the growing demand for financial management tools among businesses for activities such as planning, budgeting, analysis, and reporting. Financial management software is widely used in the BFSI industry in North America for risk compliance, operational efficiency, and improved productivity. The increasing number of mobile applications facilitating financial data management and providing other use cases related to financing is also anticipated to offer growth opportunities to this segment.

The human resource segment is expected to grow significantly over the forecast period. Functions such as training, payroll, and recruitment widely benefit from the integration and computerization of business solutions. Human resource management systems are used by numerous payroll associations, such as ADP Canada, ASL Consulting, and CADJPRO Payroll Solutions, due to their organizational benefits. Moreover, business software allows companies to improve their productivity by providing insights into the workforce and enhancing the employee experience.

Service Insights

The support & maintenance segment held the largest market share of over 40% in 2021. This can be attributed to the growing popularity of business management systems and software business models for detecting and resolving product quality issues. The increased demand for third-party support & maintenance services, owing to their cost-effectiveness, as well as well-trained and experienced experts, are expected to drive the segment growth. Moreover, increasing developments across smartphone applications are also contributing to the demand for these services. 

The managed services segment is expected to register the fastest growth rate over the forecast period. This can be attributed to the increasing reliance of organizations on IT assets and infrastructure to improve the efficiency of their operations. The consulting services segment is expected to grow substantially over the forecast period. The increased demand for a range of consulting services from businesses seeking help with risk management and discovering growth prospects for future development are driving the segment growth.

Deployment Insights

The on-premise segment held the largest market share of over 60% in 2021. Improved data security offered by the on-premise deployment model has encouraged several companies from developing countries to adopt on-premise software solutions over recent years. Moreover, the segment is expected to further grow over the forecast period owing to the increased need for enterprise software and services that enable the customization of software according to the client's requirements.

Cloud services are widely adopted by companies globally as they eliminate the need for manual upgrades and allow users to easily access data from remote locations. In addition, they enable businesses to pay only for the resources they utilize, thus reducing energy usage. Strict government laws aimed at reducing carbon emissions are encouraging businesses to use cloud-based services. The availability of cloud-based subscriptions at affordable prices, coupled with the growing interest of companies in hybrid cloud deployment, is also anticipated to drive the segment.

Enterprise Size Insights

The large enterprise segment held the largest market share of over 60% in 2021. Business software and services are used by both large and small businesses to improve internal and external business processes. Large enterprises use them to leverage advanced analytical engines, real-time data compilation tools, and process blueprints. Moreover, their focus on improving the productivity of individual departments and enhancing resource allocation and strategic decision-making is encouraging them to adopt effective networking solutions and automation capabilities.

Meanwhile, the SMEs segment is expected to grow as a result of an increase in government activities, including digital campaigns such as social media marketing, video marketing, and search engine marketing. For instance, in May 2019, Singapore's Info-Communications Media Development Authority (IMDA) initiated a public consultation process to establish a policy framework to facilitate the deployment of 5G networks.

End-use Insights

The BFSI segment held the largest market share of over 18% in 2021. This can be ascribed to the rising deployment of enterprise software to improve customer experience and provide benefits such as secure transactions and regular access to client databases. Moreover, an increase in automation and digitization of banking institutions to simplify complex and critical processes and provide better client experiences is also expected to drive the segment growth.

The IT & telecom segment is expected to grow rapidly over the forecast period. This can be attributed to the increasing demand among businesses to re-evaluate strategies and sophisticated technology. Various companies are expanding their operations to serve wider markets, thereby creating a demand for business solutions and services to efficiently cater to their consumers. The growing government support for the digital transformation of businesses in developing economies is encouraging IT & telecom companies to develop newer software solutions, thus driving the segment growth.

Regional Insights

North America dominated the global market with a share of over 30% in 2021. This can be attributed to the rising demand for high-speed data networks and the presence of several software vendors in the region. Moreover, companies in North America focus on implementing software and analytics-based initiatives. The region also has a high number of computer scientists, data analysts, and software engineers who work with enterprise solutions and services.

Europe accounted for the second-largest share in 2021. The promising growth of the regional market can be attributed to the significant investments by large firms in advanced software and services and the implementation of new technologies across various industries. The demand for enterprise solutions is also expected to increase in the region owing to the rising focus on cloud-based facilities and endeavors to develop business intelligence solutions. For example, the European Union’s European Cloud Initiative aims to give enterprises a digital head start in the data-driven market.

Key Companies & Market Share Insights

The need for several industries in developing countries to comply with stringent government regulations has prompted the adoption of business solutions and services. These solutions and services allow businesses to increase their production capacities and expand their operations while reducing the complexity of their processes. The need for having appropriate corporate policies and business standards in place is also driving the growth of the market.

The increased demand for data portability is driving the demand for data-centric solutions, in turn contributing to market growth. Market players are pursuing growth strategies such as partnerships, strategic agreements & collaborations, mergers & acquisitions, and new product development to stay ahead of the competition. For example, International Business Machines Corporation and SAP SE collaborated in June 2020 to develop and deploy advanced intelligent industry solutions to enable end-to-end processes and assist organizations in expediting workflow and system modernization. Some of the prominent players operating in the business software and services market are:

• Acumatica, Inc.

• Deltek, Inc.

• Epicor Software Corporation

• International Business Machines Corporation

• Infor

• NetSuite Inc.

• Microsoft Corporation

• SAP SE

• Oracle Corporation

• TOTVS S.A.

• Unit4

• SYSPRO

Business Software And Services Market Report Scope

Segments Covered in the Report

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 2017 to 2030. For 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, 2017 - 2030)

  • Finance

  • Sales & Marketing

  • Human Resource

  • Supply Chain

  • Others

• Service Outlook (Revenue, USD Billion, 2017 - 2030)

  • Consulting

  • Managed Services

  • Support & Maintenance

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Size Outlook (Revenue, USD Billion; 2017 - 2030)

  • Aerospace & Defense

  • BFSI

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Retail

  • Transportation

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA