Enterprise Software Market Size, Share & Trends Analysis Report By Software (Customer Relationship Management, Enterprise Resource Planning), By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global enterprise software market size was valued at USD 196.40 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.5% from 2022 to 2030. The growth can be attributed to increasing end-use enterprises' expenditure on improving their digital infrastructure and advancements in cloud analytical tools. Furthermore, enterprise software offers the analysis of unstructured and structured data, which assists companies in identifying current market trends and gaining actionable insights, thus supporting industry growth. The significant spread of the COVID-19 virus in early 2020 had a negative impact on the market in the first two quarters of 2020 due to stringent safety measures enforced by the majority of governments. However, from 2020-end, enterprise software witnessed an increasing demand owing to shifting focus of the end-use companies toward digitalizing their business model to provide remote working facilities to their employees.

The advancements in the latest technologies such as Artificial Intelligence (AI), Machine Learning (ML), cybersecurity, Blockchain, cloud computing, and Robotic Process Automation (RPA) are creating robust market opportunities for enterprise software. Integrating these technologies into enterprise software improves software efficiency and adaptability, creating a positive market outlook. Key players are focusing on unveiling their enterprise software equipped with the latest technologies, such as Blockchain and AI. For instance, in March 2020, Microsoft Corporation partnered with Blockchain technology solutions company, Lition to integrate Blockchain technology into the Microsoft Azure cloud platform. The integration of Blockchain aided Microsoft Corporation clients in improving their businesses' transparency and security.

The government of various countries such as India, Japan, Germany, Australia, Canada, and Brazil is focusing on digitalizing their economy for greater work flexibility, reduction in business maintenance costs, and maximizing IT infrastructure reliability. These governments are taking supportive initiatives for digitalizing their infrastructure through significant investment in the technology and software sector. For instance, in November 2021, the Government of Australia announced an investment of USD 111 million to develop and accelerate the adoption of quantum technology and create jobs in the software industry. The government expects the development of quantum technology can give an economic value of USD 4 billion and create around 16,000 jobs by 2040 in Australia.

Increasing demand for enterprise software is encouraging industry players to invest in software research and development for new product innovation and enhance their brand value. These companies are adopting various business strategies, such as mergers and acquisitions, to improve their service offerings. For instance, in July 2022, an enterprise software company, IFS AB, expanded its software products portfolio with the acquisition of enterprise asset management (EAM) company, Ultimo Software Solutions, for an undisclosed amount. Ultimo Software Solutions' expertise in cloud-based EAM products will assist IFS AB in improving its customer bases and brand positioning.

High initial costs of enterprise software and increasing digital threats are key factors challenging industry growth. Key players need to invest in R&D to improve the efficiency and reliability of the software, thereby increasing the cost of the software. Furthermore, increasing cyber-attacks such as viruses, Distributed Denial-of-Service (DDoS), ransomware, and Corporate Account Takeover (CATO) are affecting the sales of enterprise software. To tackle these issues, the market players are partnering with various security technology providers to strengthen the security of their enterprise software. Additionally, these companies are focusing on providing customized enterprise software as per clients’ needs to reduce the initial costs of the software.

Software Insights

The customer relationship management (CRM) segment held the largest share of over 25.0% in 2021. CRM software is used for gathering consumer analytics, enhancing customer retention, creating a centralized client information database, automatic sales report generation, sales forecasting, and streamlining internal communications. Industry players are focusing on unveiling new CRM solutions for enterprises to increase their customer bases. For instance, in April 2022, Freshworks Inc. introduced a new CRM solution, Freshworks CRM for e-commerce, which offers a unified platform for managing sales, customer support, and retention. This solution also helps end-user companies in improving their interaction with customers through modern messaging channels such as e-mail and WhatsApp.

The enterprise resource planning (ERP) segment is anticipated to register a CAGR of 10.7% from 2022 to 2030. ERP software is witnessing high demand owing to its ability to help end-use organizations to reduce their inventory and raw material costs and provide smooth cross-functional information flow. The ERP software vendors are collaborating with technology providers to enhance the productivity of their ERP software and reduce software development costs. For instance, in April 2022, AI solution provider, Conversight partnered with GreeneStep Technologies, a software provider, to develop a unified ERP business suite to assist small and medium-sized businesses in streamlining their end-to-end business operations.

Deployment Insights

The on-premise segment captured the largest market share of over 50.0% in 2021. The on-premise software's ability to provide enhanced data security and consistent services without the need for an internet connection is playing a vital role in driving the segment. Furthermore, multiple users can access the system flexibly in on-premise software without affecting the data transmission speed. However, on-premise software is costlier than cloud-based software owing to external hardware such as servers and expensive license fees. Due to this, various end-use companies are shifting their focus toward cloud-based software, affecting the industry statistics of the on-premise software segment.

The cloud segment is anticipated to register the highest CAGR of 13.6% from 2022 to 2030. The cloud-based enterprise software offers various benefits such as low subscription and maintenance fees, 24*7 system access, improved collaboration, and unlimited storage capacity. Companies operating in enterprise software are shifting their focus toward cloud-based solutions to enhance their brand value. For instance, in September 2022, Micro Focus announced the availability of its Enterprise Suite on Google Cloud for application modernization. With this Google Cloud availability, Micro Focus clients can quickly deploy their enterprise-grade infrastructure solutions on Google Cloud at a minimum price.

Enterprise Size Insights

The large enterprise segment accounted for the largest share of over 60.0% in 2021. Large enterprises use enterprise software to manage their business operations, such as finance, marketing, sales, talent management, production, and inventory management. These enterprises focus on automating their various business tasks to reduce human intervention and workforce costs, thus propelling demand for ML- and AI-equipped enterprise software. In April 2022, HPE launched HPE Machine Learning Development System to enable organizations to build AI and ML models and scale up their businesses faster without any need for other platforms. The company has given various types of tools in their ML development system for model creation, which eliminates the programming complexity and enhances the software’s operational efficiency.

Small and medium enterprises (SMEs) are expected to grow at a significant rate of 13.2% from 2022 to 2030. SMEs are significantly adopting enterprise software to enrich employees’ productivity, quickly expand the customer base, minimize compliance risks, and increase business profitability. The enterprise software developers are focusing on developing SME-specific enterprise software with effective costs to enhance their brand value. For instance, in November 2020, Tally Solutions Pvt. Ltd. launched an enterprise software, Tally Prime, to help small and medium-sized enterprises in managing various finance-related services such as payrolls, banking, taxation, and accounting.

End-use Insights

The IT and telecom segment held the largest market share of over 20.0% in 2021. The IT and telecom companies are digitalizing their business operations to bring greater transparency to business operations and accelerate their product development process. IT and telecom enterprise software providers are focusing on developing 5G specific enterprise software to achieve higher profitability in the IT and telecom sector. For instance, in October 2021, Dell Technologies, Inc. introduced new telecom software to assist organizations in accelerating their cloud-native and open-network deployments in India. This software is playing a vital role in automating the deployment and management of thousands of servers across diverse geographic locations in the region.

The healthcare segment is expected to register the highest CAGR of 13.6% from 2022 to 2030 owing to the rising use of big data for gaining actionable insights in the healthcare segment, increasing demand for telemedicine services, and rising adoption of Electronic Health Records (EHRs) and Electronic Medical Records (EMRs). The improvements in IT infrastructure coupled with the high adoption of cloud computing services in healthcare are expected to boost industry growth. Furthermore, various medical research centers have increased the use of IT infrastructure for enhancement in Chronic Disease Management (CDM). Industry players such as Allscripts Healthcare, LLC, EPIC Systems Corporation, and Cerner Corporation are launching emerging technologies equipped with healthcare enterprise software to increase brand representation.

Regional Insights

North America held the largest share of over 40.0% in 2021. The growth can be attributed to the increasing adoption of cloud-based enterprise software solutions owing to high operational efficiency and low maintenance costs. The key regional players such as Salesforce.com, Inc.; Broadcom Inc. (CA Technologies, Inc.); Hewlett Packard Enterprise (HPE); and ECi Software Solutions are focusing on expanding their service offerings to stay competitive in the market, supporting the industry trend. For instance, in July 2021, HPE acquired cloud data management company, Zerto for USD 374 million. With this acquisition, HPE improved its HPE GreenLake services in software-defined data service businesses.

Asia Pacific is anticipated to expand at a CAGR of 13.4% from 2022 to 2030, owing to increasing investment by end-use companies for digitalizing their businesses. The industry players operating in the region are focusing on establishing strategic partnerships with technology providers to increase their revenues from the market. For instance, in August 2022, Versa Networks partnered with Axiata to provide Secure Access Service Edge (SASE) technology for Asian enterprises. The partnership will expand Versa Networks' enterprise service offerings in various areas such as cyber security, cloud, smart services, and other enterprise-managed services.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in August 2022, OpenText launched three new solutions: OpenText Core Content, OpenText Documentum, and OpenText Media Management (OTMM) for Salesforce AppExchange. These new platforms will assist end-user organizations in managing their information on Software-as-a-Service (SaaS) platforms, which possess various Salesforce applications. Some prominent players in the global enterprise software market include:

• Broadcom Inc. (CA Technologies, Inc.)

• Epicor Software Corporation

• Hewlett Packard Enterprise

• IBM Corporation

• Microsoft Corporation

• Oracle Corporation

• Salesforce.com, Inc.

• SAP SE

• SYSPRO

• Zoho Corporation Pvt. Ltd.

Enterprise Software Market Report Scope

Global Enterprise Software Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global enterprise software market report on the basis of software, deployment, enterprise size, end-use, and region:

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

  • Enterprise Resource Planning (ERP) Software

  • Business Intelligence Software

  • Content Management Software

  • Supply Chain Management Software

  • Customer Relationship Management Software

  • Others (Marketing, Human Resource Management, Payment Processing)

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

  • On-premise

  • Cloud

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

  • Large Enterprise

  • Small & Medium Enterprise

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

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Government & Education

  • Manufacturing

  • Others (Transportation, Hospitality, Automotive)

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)