GVR Report cover Software Market Size, Share & Trends Report

Software Market Size, Share & Trends Analysis Report, By Type, By Deployment Mode (On-premises Software, Cloud-based Software), By Region, And Segment Forecasts, 2022 - 2028

  • Published Date: May 2022
  • Report ID: GVR-4-68039-926-9
  • Number of Pages: 78
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2020

Report Overview

The global software market size was valued at USD 51.08 billion in 2021 and is expected to register a CAGR of 8.7% from 2022 to 2028. The surge in the volume of enterprise data, rising automation of business processes, and growing digitization are the major drivers for the software market. Moreover, rising network security and privacy concerns are other factors that support the software market. COVID-19 outbreak positively impacted the software market. The increasing concern of cyber threats during COVID-19 has stimulated companies to implement software solutions and configure malware protection, recognition, and mitigation strategies, thus fueling the growth of the software market.

U.S. software market size, by deployment mode, 2019 - 2028 (USD Billion)

The software mainly aims to protect and secure individual computing devices, information systems, internet communication, transactions, and networks. Security software performs tasks such as access management, data and network protection as well as security against viruses, intrusions, and any other system-level security risks. The demands of remote working have increased expenditure on cybersecurity software. With highly sophisticated methods and means of attack development, software innovators are firing back.

Recent years have observed a considerable adoption of software solutions, driven by the increase of e-commerce, large technology developments such as artificial intelligence and IoT, and the growing number of connected devices. The rising sophistication of malware and methods of attack as well as the growing accessibility of it has led to the development of an advanced cybersecurity software market, including innovative and varied cybersecurity tools and solutions.

The COVID-19 pandemic has positively affected the software market. During the COVID-19 pandemic, various incidences and cases of cybercrimes were detected across several sectors. The shift toward a remote working model has also augmented the danger of cyber threats across companies. The increasing concern of cyber threats has stimulated enterprises to implement software solutions and organize malware protection, detection, and mitigation strategies, thereby driving market growth.

Type Insights

The subscriptions segment dominated the market and contributed a share of over 50% in 2021 and is projected to witness a CAGR of 8.8% from 2022 to 2028. As per the survey, all new software entrants and 80% of historical players are offering subscription-based software. For businesses, subscription-based software licensing makes it easier to recognize and assign costs for separate business units or departments. Due to the reasons mentioned above, it is one of the most preferred types of software and thus subscriptions segment contributes more to the market. 

Global software market share, by type, 2021 (%)

The endpoint, network, messaging, and web security segment is expected to witness the highest CAGR of 9.2% from 2022 to 2028. It mainly secures endpoints and remote devices used in organizations from viruses, and malware, as well as advanced threats, such as zero-day malware and advanced persistent threats. Moreover, it enables constant detection and response to innovative cybersecurity threats and considerably increases threat detection, security checking, and incident response abilities for companies across verticals. Due to all of its advantages endpoint, network, messaging, and web security demand is growing rapidly and expected to expand at the fastest CAGR during the forecast period.

Deployment Mode Insights

The analysis estimates that the on-premises software segment contributed to the largest market share of above 70% in 2021. The primary reason for the high demand for on-premises software is the regulatory, compliance, and security requirements. Organizations choose to keep confidential information in-house rather than giving it over to cloud providers. Moreover, storing information in-house decreases dependencies on third-party organizations and helps protect and monitor data clearly. Thus, the on-premises software segment demand is high and contributes more to the market.

On the other hand, the cloud-based software segment is expected to register the highest CAGR of 9.2% from 2022 to 2028. As per the survey, in recent years cloud-based software has made major inroads, with all industries reaching at least 20% penetrations. The migration of on-premises software to cloud-based software is due to low upfront and infrastructure maintenance costs. Furthermore, the need to access applications across devices and remote places is increasing the demand for cloud-based software. Thus, cloud-based software is expected to increase at the fastest CAGR during the forecast period.

Regional Insights

Asia Pacific is forecast to register the highest CAGR of 9.4% from 2022 to 2028. China and India are the two major countries contributing to the high generation of the software market in this region. This can be due to enterprises in the Asia Pacific, taking opportunities to go beyond safeguarding their conventions and compliances and applying technology to limit threats on enterprise devices. Furthermore, Asia Pacific has the maximum adoption of mobile devices and connected devices that are greatly susceptible to endpoint attacks. Thus, the region is expected to expand at the fastest CAGR during the forecast period.

Regional analysis revealed that North America accounted for a significant market share of around 40% in 2021. According to International Data Corporation (IDC) data, the U.S. was the major country in the world that contributed largely to the generation of the software market. Increased spending on software solutions By large enterprises and SMEs in the region contributed to a large generation. Besides, the increasing stringency of data privacy and security standards and policies are the factors that contribute to more generations in North America.

Key Companies & Market Share Insights

The market is characterized by the presence of established as well as new players. Major players operating in this market are actively focusing on mergers & acquisitions to capitalize on their market positions. In addition, emerging and innovative companies are involved in upgrading existing software offerings, as well as establishing partnerships to increase their market shares. For instance, IBM Corp. has partnered with Alert Logic to offer Alert Logic‘s managed detection and response security services to its cloud customers. Some of the prominent players in the global software market include:

  • IBM Corporation

  • McAfee Corporation

  • NortonLifeLock Inc.

  • Microsoft Corporation

  • Oracle Corporation

  • SAP SE

  • Adobe Inc.

  • VMware Inc.

  • Square Inc.

  • Intuit Inc.

Software Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 55.0 billion

Revenue forecast in 2028

USD 91.6 billion

Growth Rate

CAGR of 8.7% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD million and CAGR from 2022 to 2028

Report coverage

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

Segments covered

Type, deployment mode, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France.; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa

Key companies profiled

IBM Corporation; McAfee Corporation; NortonLifeLock Inc.; Microsoft Corporation; Oracle Corporation; SAP SE; Adobe Inc.; VMware Inc.; Square Inc.; Intuit Inc.

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 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 2028. For the purpose of this study, Grand View Research has segmented the global software market on the basis of type, deployment mode, and region:

  • Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Subscriptions

    • Endpoint, Network, Messaging, and Web Security

    • Identity and Access Management

    • Risk Management          

  • Deployment Mode Outlook (Revenue, USD Million, 2017 - 2028)

    • On-premises Software

    • Cloud-based Software

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

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