GVR Report cover Software Consulting Market Size, Share & Trends Report

Software Consulting Market Size, Share & Trends Analysis Report By End-use (BFSI, Healthcare), By Enterprise Size (SMEs, Large), By Application (Enterprise Solutions, Design Services), And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-447-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 184

Report Overview

The global software consulting market size was valued at USD 218.60 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.0% from 2021 to 2028. The growing preference for digitalization of business processes across industries and verticals is driving the market growth, primarily for the efficient implementation of software into the IT setup of an enterprise. However, numerous industries are facing significant ramifications and complications across critical processes owing to the Covid-19 pandemic and global economic slowdown. While the market witnessed significant growth over the last few years owing to digitalization and penetration of technology, the pandemic has pushed several economies to the edge of recession. This, in turn, is leading to numerous consulting clients delaying their projects, reducing project scope to reduce costs, or canceling these projects altogether. The cancellation of multiple client projects has negatively impacted the revenues of vendors and slowed down the market growth for the short term.

U.S. software consulting market size, by application, 2016 - 2028 (USD Billion)

In the wake of the pandemic, vendors are focusing on adopting a digitally centered approach to provide their services at a lower cost while eliminating expenses, such as travel costs of consultants. With virtual consulting platforms, vendor scan delivers high-impact outcomes similar to that of physical training but without the need for consultants to be physically present. Service providers are also focused on attracting new clients that are looking to reduce operational spending via automation while opting for innovative solutions to resolve complex business problems.

The digitization of industries and the evolution of the Enterprise 2.0 concept, which involves the use of a combination of social software and collaborative technologies for business processes, are the main factors driving the market growth. Technological developments in cloud computing and data analytics are increasing the demand for new services and encouraging enterprises to adopt novel and innovative solutions. In addition, the growing demand for software consulting services is expected to drive investments in advanced software technologies. These services aid enterprises in decision-making processes vis-à-vis their investment strategy for software adoption.

Organizations are putting a strong emphasis on improving work quality, enhancing delivery speed, reducing the cost of work, and increasing transparency & accountability via software implementation. Owing to the global pandemic, organizations are finding it difficult to meet the end users’ demands; hence, they are increasingly opting for software consulting solutions and services to accelerate service delivery.

On the other hand, with rapid digitalization, instances of data theft are equally on the rise as hackers are trying to leverage the growing adoption of software and rising penetration rate of cloud computing to gain access to vital organizational data. This is anticipated to hamper the software consulting market growth to a certain extent.

Application Insights

The enterprise solutions segment accounted for the largest market share of over 21% in 2020 and is projected to remain dominant throughout the forecast period. As per the findings by Forbes in 2017, around 55% of the companies in North America were using business intelligence and big data analytics solutions to solve their business problems. The demand for software, such as Enterprise Content Management (ECM), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM), has been increasing, which is estimated to boost the demand for consulting for enterprise solutions over the coming years.

The software security services segment is anticipated to register the highest growth rate over the forecast period. The growth of this segment can be attributed to the increasing use of cloud servers to store information and an increasing number of cyberattacks to gain access to information. Moreover, the adoption of cloud computing, e-commerce, and social networking is increasing across the globe and this is creating the need for storing large volumes of data on the cloud with enhanced protection.

Software applications have become an integral part of enterprises regardless of the main business operations of the company. The security of these software applications has been a critical concern for companies as they are continuously accessible to the network and susceptible to a wide range of security threats. These factors are anticipated to boost the demand for consulting services for software security over the forecast period.

Enterprise Size Insights

The large enterprise segment accounted for the largest market share of more than 61% in 2020. Large enterprises have vast data that needs to be effectively managed in local offices as well as overseas. These enterprises are widely adopting software security services for security monitoring and managing their business data. The Software-as-a-Service (SaaS) model has also been experiencing high demand in the B2B sector, wherein the use of technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), is likely to improve automation and data-based decision-making across operations. These developments are expected to drive the demand for consulting services in the large enterprise segment.

The small & medium enterprises segment is expected to register the fastest CAGR over the forecast period. Increasing initiatives by various governments through digital SME campaigns are anticipated to drive the growth of the segment. With the advancements in SaaS tools, SMEs can use affordable software solutions and compete with larger companies with equal efficiencies. These factors are expected to boost the demand for software consulting services in the small & medium enterprises segment over the forecast period.

End-use Insights

The BFSI segment accounted for the largest market share of over 19% in 2020. Financial service firms are widely adopting consulting services to focus on their resources, integrate software across critical processes, and drive business growth. The extensive use of digital payments, the introduction of blockchain technology in banking, and the increasing number of digital wallets are likely to drive the segment growth in the coming years.

Europe software consulting market share, by end-use, 2020 (%)

Furthermore, the growing adoption of cloud-based solutions and services for the storage of critical information of the customers and the growing number of cyberattacks are driving the demand for software security consulting services in the BFSI segment. Large volumes of data are being stored on the cloud and would require adequate security, thereby providing growth opportunities to software consulting firms that offer security services to the incumbents of the BFSI industry.

The healthcare segment is anticipated to register the highest CAGR over the forecast period. Increasing technological developments, such as Internet of Things (IoT) & wearables, cloud services, product engineering services, integration services, and data science and business intelligence solutions, in the healthcare sector are expected to boost the segment growth. Moreover, mandatory government regulations and standards for quality and other compliances are also expected to propel the demand for software consulting services among healthcare providers.

Regional Insights

North America dominated the global market with a revenue share of over 31% in 2020 and will expand further at a steady growth rate from 2021 to 2028. The region is witnessing a high inflow of investments in technological R&D across various industries. The increased focus of industries on the Internet of Things (IoT) and big data technologies is expected to boost the demand for IT and software solutions in the region. Moreover, the rising trend of digital transformation is leading to the increased demand for software consulting in the region. The demand for software consulting among U.S. enterprises is higher than that in other countries across the North America region. The growing number of technology start-ups and continued adoption of ERP, CRM, and cloud services are expected to drive the market growth in the region over the forecast period.

The market in Asia Pacific is expected to register the fastest CAGR from 2021 to 2028. Various governments in the region are encouraging software companies to design and develop Free and Open-Source Software (FOSS) for SaaS, mobile applications, and Service-Oriented Architecture (SOA). Such initiatives are expected to promote the adoption of software consulting services. Furthermore, the growth of e-commerce sector in the region is boosting the demand for web design and mobile app design consultation to assist online businesses. This, in turn, is expected to create growth opportunities for the regional market.

Key Companies & Market Share Insights

The market is highly competitive with several market players catering to different sectors. The presence of established players is a key factor deterring potential players from entering the market. However, the increasing development of differentiated software consulting solutions and services in the market is expected to create growth opportunities for new entrants.

Market players are focusing on expanding their businesses and strengthening their market positions through collaborations and partnerships. For instance, in July 2020, Accenture and Vodafone Business, a telecommunication company, collaborated to provide managed security services for Small & Medium Enterprises (SMEs) and international clients in Europe. Through this collaboration, Accenture would support Vodafone Business in offering enterprise-grade cyber security solutions to businesses across numerous industries.

Vendors operating in the market are also focusing on delivering innovative solutions to support technology transformation, ensure adequate cyber security to protect confidential information, optimize the organizational operations, integrate AI with business operations, derive superior business outcomes, and enable proactive remote monitoring. They are also offering various other services to businesses and helping them in sustaining in the digital age. Some prominent players in the global software consulting market include:

  • Accenture PLC

  • Atos SE

  • Capgemini

  • CGI Group, Inc.

  • Clearfind

  • Cognizant

  • Deloitte Touche Tohmatsu Ltd.

  • Ernst & Young LLP

  • International Business Machines Corp.

  • Oracle Corp.

  • PricewaterhouseCoopers B.V.

  • Rapport IT

  • SAP SE

Software Consulting Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 244.29 billion

Revenue forecast in 2028

USD 539.18 billion

Growth rate

CAGR of 12.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, enterprise size, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil

Key companies profiled

Accenture PLC; Atos SE; Capgemini; CGI Group, Inc.; Clearfind; Cognizant; Deloitte Touche Tohmatsu Ltd.; Ernst & Young LLP; International Business Machines Corp.; Oracle Corp.; PricewaterhouseCoopers B.V.; Rapport IT; SAP SE

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global software consulting market report on the basis of application, enterprise size, end-use, and region:

  • Application Outlook (Revenue, USD Billion, 2016 - 2028)

    • Enterprise Solutions

    • Application Development

    • Migration & Maintenance Services

    • Design Services

    • Application Testing Services

    • Software Security Services

    • Others

  • Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2028)

    • Large Enterprise

    • Small & Medium Enterprises (SMEs)

  • End-use Outlook (Revenue, USD Billion, 2016 - 2028)

    • Automotive

    • BFSI

    • Education

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa (MEA)

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