Global Business Software and Services Market Grows at a Staggering CAGR of 10.9%

Introduction

Business software analyzes business data to comprehend an organization's assets and weaknesses. This program analyzes a company's requirements and evaluates the effectiveness of its current revenue-generating strategies. Business services are various duties and operations that support a company's operation, even if no physical goods are produced. An example of a business service is information technology, which supports numerous other company services, such as shipping, finance, and procurement.

Market Dynamics

Growing Need for Operational Efficiency and Improved Transparency in Business Operations Drives the Global Market

By incorporating administrative systems into a single program, many businesses turn to business software and services to improve operational efficiency. Business software modules integrate data and information across departments and provide real-time updates. This also increases the openness of business operations. Enterprises can select the appropriate business software modules based on their needs.

Business software grants administrators access to a comprehensive database of vital information, including invoices, client data, and orders. This software is widely adopted because the data is stored accurately and will not be lost across other spreadsheets and programs. Business software integrates all aspects of a company into a centralized system, fostering greater transparency in business operations. This will increase demand for business software and services throughout the forecast period.

Increasing Shift Toward Cloud Computing Creates Tremendous Opportunities

Numerous businesses are adopting cloud computing due to its numerous advantages, including portability, security, reduced total cost of ownership, scalability, optimized business processes, and customization. The scalability provided by cloud computing enables businesses to adjust their computing requirements based on market demand. Cloud computing offers virtual teams and mobile executives growth opportunities. The flexibility of the cloud enables employees to remain connected to their employers from anywhere and on any device. It also facilitates employee collaboration from remote locations. Due to the security of the data, many businesses are transferring their focus to cloud computing, creating opportunities for market expansion.

Regional Analysis

North America is the most significant global business software and services market shareholder and is anticipated to exhibit a CAGR of 10.3% during the forecast period. The expansion of the North American market results from the region's abundance of software vendors and the growing demand for high-speed data networks. In addition, North American companies prioritize initiatives based on software and analytics. Due to the surging demand for high-speed data networks and the significant presence of software vendors, the market for business software and services may expand over the forecast period.

Additionally, companies in North America place a greater emphasis on developing original analytics and intelligence solutions and deploying software and analytics-based initiatives than businesses in other regions. The increased demand for cloud-based business management software among SMBs due to affordability concerns is also anticipated to boost regional expansion over the forecast period.

Key Highlights

• The global business software and services market was valued at USD 535.37 billion in 2022. It is estimated to reach USD 1,357.49 billion by 2031, growing at a CAGR of 10.9% during the forecast period (2023–2031).
• Based on software, the global business software and services market is bifurcated into finance, human resource, sales and marketing, supply chain, and others. The finance segment is the highest contributor to the market share and is anticipated to exhibit a CAGR of 9.91% over the forecast period.
• Based on service, the global business software and services market is bifurcated into consulting, managed services, and support and maintenance. The support and maintenance segment owns the highest market share and is expected to exhibit a CAGR of 11.1% over the forecast period.
• Based on deployment, the global business software and services market is segmented into cloud and on-premise. The on-premise segment is the highest contributor to the market and is projected to exhibit a CAGR of 10.6% over the forecast period.
• Based on enterprise size, the global business software and services market is divided into large enterprises and small and medium enterprises. The large enterprise segment dominates the global market and is expected to grow at a CAGR of 10.5% over the forecast period.
• Based on end-user, the global business software and services market is segmented into aerospace and defense, BFSI, government, healthcare, IT and telecom, manufacturing, retail, transportation, and others. The BFSI segment owns the highest market share and is projected to exhibit a CAGR of 6.5% during the forecast period.
• North America is the most significant global business software and services market shareholder and is anticipated to exhibit a CAGR of 10.3% during the forecast period.

Competitive Players

Competitive Players

The key global business software and services market players are Acumatica Inc., Deltek Inc., Epicor Software Corporation, International Business Machines Corporation, Infor Inc., NetSuite Inc., Microsoft Corporation, Oracle Corporation, SYSPRO, SAP SE, SYSPRO, and Unit4.

Recent Developments

Market News

• In March 2023, Rimini Street, Inc. (Nasdaq: RMNI), a leading supplier of end-to-end enterprise software support, products, and services, the pioneering third-party support provider for Oracle and SAP software, and a partner of Salesforce and AWS, reported the formal launch of Rimini ONETM, its outsourcing service program intended to provide a comprehensive set of unified, integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise software.
• In April 2023, G2, the world's biggest and most reliable software marketplace, introduced Monty, the first business software advisor enabled by artificial intelligence. G2's chatbot assistant, named after the company's mascot, Monty, the mongoose, utilizes the power of OpenAI to revolutionize how businesses discover software.

Segmentation

Global Business Software and Services Market: Segmentation

By Software

• Finance
• Sales and Marketing
• Human Resources
• Supply Chain
• Others

By Service

• Consulting
• Managed Services
• Support and Maintenance

By Deployment

• Cloud
• On-premise

By Enterprise Size

• Large Enterprises
• Small and Medium Enterprises

By End-User

• Aerospace and Defense
• BFSI
• Government
• Healthcare
• IT and Telecom
• Manufacturing
• Retail
• Transportation
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa