System Infrastructure Software Market Size, Share & Trends Analysis Report By Type (Storage, Network And System Management, Security), By Application, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global system infrastructure software market size was valued at USD 136.33 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2022 to 2030. The growth can be attributed to the increasing usage of digital tools, systems, hardware, and software, rising cybersecurity threats, enhancing data governance to prevent data loss and increasing demand for hybrid computing. System infrastructure software assists organizations in automating their business operations with the integration of advanced digital tools, supporting their industry growth. The outbreak of the novel COVID-19 virus in early 2020 slowed down the development and sales of system infrastructure software owing to strict lockdown measures by governments of various countries to curb the virus transmission. However, from early 2021, the market witnessed notable growth owing to an increase in the use of system infrastructure software usage by firms to digitalize their business operations and improve their consumer digital experience.

Shifting consumer preference toward cloud-based technologies and solutions and the rising need for an efficient digital framework to handle higher data complexities are creating positive traction for the market. Remarkable cloud integration across various industries, such as manufacturing, BFSI, IT and telecom, and healthcare, is anticipated to create robust opportunities in the forecast timeline. Several organizations are shifting their business operations to cloud platforms for remote work management and optimized internal dataflow through cloud integrations. System infrastructure software assists in managing cloud services across all business operations and ensures security compliance to protect data privacy, thus improving industry statistics.

The growing popularity of smart factories and Industry 4.0 technology is creating a positive outlook for the market. The rising usage of software, digital tools, and hardware encourages organizations to adopt system infrastructure software to manage their digital infrastructure efficiently. Furthermore, the emergence of advanced technologies such as artificial intelligence, machine learning, IoT, blockchain, High-performance Computing (HPC), and data virtualizations is anticipated to favor the growth. The companies operating in the market are heavily investing in R&D to accelerate the development of business infrastructure system software to achieve higher profitability in this potential market.

The proliferation of smart buildings and data centers across the globe is accelerating the sale of cloud infrastructure software globally. Smart buildings require infrastructure to manage connected Internet of Things (IoT) devices, support internet protocols, and optimize data flow with strong security, improving the market representation. Additionally, system infrastructure software offers various solutions such as business transactions, operational support, workforce management, and other internal and external processes and services. Integration of Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) technologies for extending the infrastructure software support for automatic operations is fueling the expansion. This proliferation of advanced technologies will further boost growth during the forecast period.

Major factors restricting the market growth are the high initial and operational costs of system infrastructure software and the limited availability of skilled developers. With the integration of extra features in the software, the base price of infrastructure software increases, affecting the overall budget of clients. Additionally, rising computer viruses, Denial of Service (DoS) attacks, and data breaches pose an immense threat to the sensitive data stored on the cloud infrastructure. To overcome these challenges, market players focus on developing customer-tailored solutions aligning with their budget and investing in their R&D to strengthen the security of their infrastructure software.

Type Insights

The network and system management software accounted for the largest share of over 45.0% in 2021. Various end-use firms are highly emphasizing automating their business operations to reduce workforce costs and bring greater transparency to business processes, propelling the adoption of network and system management infrastructure software. System infrastructure software is used by manufacturers and engineering firms to reduce process downtime and help companies adhere to digital compliances, supporting the industry trend. Increasing adoption of cloud platform models such as Network-as-a-service (NaaS) by enterprises on a subscription basis to avoid excess costs of network infrastructure setup is creating a positive market outlook. These benefits provided by network and system management software will further supplement the growth of the segment.

The security segment is anticipated to grow at a significant rate of 9.4% during the forecast period owing to rising security concerns with the growth in internet penetration and migration to digital infrastructure. The companies preferring cloud platforms are primarily focusing on strengthening software security to deal with evolving digital threats, such as Distributed Denial of Service attacks (DDoS), Trojans, ransomware viruses, and phishing. Security infrastructure software provides various benefits to businesses, such as reducing payment fraud, preventing unauthorized access, capability to the central system to defend against digital threats, and mitigating financial risks, thus augmenting segment growth. These features and capabilities will further boost the demand for the segment during the forecast period.

Application Insights

The data center infrastructure segment held the largest share of over 30.0% in 2021. The building management segment accounted for the second-largest share in 2021. The growing popularity of smart buildings worldwide is expected to create robust opportunities for the market. Smart building service providers integrate system infrastructure software in the Building Management System (BMS) to efficiently control IoT-connected devices and establish a robust unified interconnection system throughout the distributed network. Integration of system infrastructure software enables centralized management for the entire building with enhanced security and reliability. With the help of system infrastructure software, this centralized system can securely store, access, and modify data, improve uptime, increase resource utilization efficiency, and reduce service and operating costs. These benefits provided by the system infrastructure software will create demand for such type of software in building management during the forecast period.

Cloud integration is expected to expand at a lucrative CAGR of 9.7% during the forecast period. The segment growth can be attributed to the increased focus of various end-use companies on developing a unified platform on virtual networks. In cloud integrations, system infrastructure software helps clients manage their network of connected devices and applications through the cloud platform. Moreover, infrastructure software ensures integrity and secure data flow between various multi-cloud, hybrid, private, and public cloud platforms, allowing organizations to complete their task in minimum time with increased accuracy. Furthermore, factors such as the growing adoption of cloud platforms and new infrastructure launches by market players for handling cloud infrastructure are expected to fuel segment growth in the forecast period.

End-use Insights

The IT and telecom segment accounted for the largest share of over 20.0% in 2021. The segment growth can be attributed to the rising demand for 5G connectivity, edge computing and IoT services, and a growing number of internet users. Telecommunication companies are upgrading their network infrastructure to improve connectivity and coverage and attract potential business clients, supporting the industry trend. Furthermore, IT companies are incorporating system infrastructure software in their business model for automating their primary tasks, workforce management, and efficient virtual and physical resource utilization. Moreover, by increasing infrastructure automation, organizations can optimize costs and be more efficient and flexible. These will further boost the demand for system infrastructure software in the IT and telecom sectors during the forecast period.

The BFSI segment is expected to expand at a CAGR of 7.1% during the forecast period. The shifted consumer focus toward digital banking, the growing number of fintech startups, and the proliferation of emerging technologies in banking sectors, such as Banking-as-a-Service (BaaS), neo-banking, digital factoring, and blockchain are factors expected to boost the infrastructure software adoption in the BFSI sector. Several BFSI firms are now adopting digital infrastructure models to meet evolving customer needs. For instance, in May 2022, GB Bank, a financial services provider, announced a partnership with Persistent Systems, a digital engineering solutions provider, to build its digital-first IT infrastructure and provide support to the bank’s ongoing operations. With the help of Persistent’s IT infrastructure solution, the bank would be able to provide better customer service and build an ecosystem of solutions, such as payment and reporting features, which can be integrated or replaced according to the demands of the business. These benefits provided by the system infrastructure software will further boost the demand for such type of software in the BFSI industry during the forecast period.

Regional Insights

The North American region dominated the market in 2021 with a share of over 35.0%. The regional growth can be attributed to the rising proliferation of data centers, encouraging market players to establish their independent data infrastructure systems for data processing and storing, and emerging startups in the region, which are creating robust market opportunities in the U.S. and Canada. Further, shifting government focus on digitizing their business operations to improve the transparency of processes is creating a positive outlook for system infrastructure software in the region. For instance, in June 2021, the Government of Canada invested around USD 1.6 million in 39 projects for Ontario, enabling the Federation of Canadian Municipalities (FCM) to commence the Municipal Asset Management Program (MAMP).

The Asia Pacific market is anticipated to expand at a lucrative CAGR of 10.1% during the forecast period owing to the rising investments in digital infrastructure and the increasing focus of startups on raising funds to accelerate their new product innovations and expand their client network to achieve higher profitability. Furthermore, the increasing construction of data centers in various Asian countries, such as China and India, to handle data complexities and provide secure data access, is creating opportunities for system infrastructure software in data center infrastructures. For instance, in March 2022, the Government of China announced a mega project to construct data center infrastructure in its western region, which is expected to bring in investments worth USD 63 billion annually.

Key Companies & Market Share Insights

Market players are observed to invest 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 a large share.

For instance, in June 2022, Cisco Systems, Inc., an IT and networking solutions provider, unveiled plans for new security solutions for hybrid cloud infrastructure. The company is developing Cisco Security Cloud to develop holistic security solutions for the entire IT infrastructure. With secure access, the company would unveil various advanced functionalities of its new security solutions, such as session trust analysis, risk-based authentication, and continuous trusted access. Some prominent players in the global system infrastructure software market include:

• Amazon Web Services, Inc.

• BMC Software, Inc.

• Broadcom Inc. (CA Technologies)

• Cisco Systems, Inc.

• Dell Inc.

• Hewlett Packard Enterprise

• IBM Corporation

• Microsoft Corporation

• Oracle Corporation

• TIBCO Software Inc.

System Infrastructure Software Market Report Scope

Global System Infrastructure 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 system infrastructure software market report based on type, application, end-use, and region:

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

  • Storage

  • Network and System Management

  • Security

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

  • Building Management

  • Integrated Communications

  • Data Center Infrastructure

  • Cloud Integrations

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

  • Manufacturing

  • IT & Telecom

  • BFSI

  • Transportation & Logistics

  • Retail

  • Healthcare

  • Others (Food & Beverages, Hospitality, Aerospace & Defense, and Government, among others)

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA