Global Software Composition Analysis Market Grows at a Staggering CAGR of 19.86%

Introduction

The software composition analysis solution ensures that open-source components, software, and scripts do not compromise the user experience or disrupt the functionality of a project. Throughout each stage of the SDLC, these tools rigorously examine open-source information, providing continuous oversight. Key features of software composition analysis solutions include risk management, vulnerability identification, alerting and reporting, policy enforcement, licensing management, and remediation. As the risks associated with open-source code grow, the market for these solutions continues to expand.

Market Dynamics

Shift toward open-source software adoption drives the global market

The rising adoption of open-source software (OSS) is a significant driver for the increasing demand for Software Composition Analysis (SCA) tools. Businesses are turning to OSS for its cost efficiency, flexibility, and adaptability. However, these advantages come with security challenges, as OSS components may not undergo thorough vulnerability testing. As a result, organizations require robust tools to identify and manage security risks effectively.

One notable initiative addressing this concern is the Open-Source Vulnerability (OSV) project, launched in 2021. OSV provides machine-readable vulnerability data in a structured format, enabling automated triage and quicker remediation. By streamlining the identification and resolution of security flaws in OSS components, OSV enhances real-time vulnerability detection, further driving the demand for advanced SCA solutions.

Increasing volume of regulations across industries creates tremendous opportunity

The increasing number of regulations across industries is creating a strong growth opportunity for the Software Composition Analysis (SCA) market. Sectors such as healthcare, finance, and government must comply with strict regulations like GDPR and HIPAA, which mandate robust security measures to protect sensitive data.

To meet compliance requirements and mitigate risks associated with open-source vulnerabilities, organizations are turning to SCA tools for proactive security management. The healthcare sector, in particular, is experiencing a surge in SCA adoption due to its stringent regulatory landscape and the growing threat of cyberattacks.

• For example, Oklahoma State University's Center for Health Services was fined USD 875,000 after a cyberattack compromised its server. This incident underscores the severe financial consequences of non-compliance and highlights the rising demand for security solutions that help organizations maintain regulatory adherence and safeguard against data breaches.

Regional Analysis

North America holds the largest share of the global software composition analysis market, driven by stringent regulatory compliance across industries such as healthcare, finance, and government. These sectors face strict mandates like GDPR, HIPAA, and financial regulations, necessitating robust security measures for open-source software. Moreover, regional organizations increasingly adopt SCA tools to proactively identify and mitigate vulnerabilities, ensuring compliance and reducing cybersecurity risks in an evolving threat landscape.

• For instance, according to a ZenGRC report, the healthcare industry alone spends nearly $39 billion annually on the administrative costs of regulatory compliance, highlighting the critical role of security solutions like SCA in safeguarding sensitive data.

Key Highlights

• The global software composition analysis market size was valued at USD 328.84 million in 2024 and is expected to grow from USD 394.14 million in 2025 to reach USD 1,678.98 million by 2033, growing at a CAGR of 19.86% during the forecast period (2025-2033).
• Based on Components, the global software composition analysis market is divided into solutions and services. The solution segment dominated the market with the largest market revenue.
• Based on Deployment, the global software composition analysis market is divided into on-premises and cloud. The cloud segment dominated the market with the largest market revenue.
• Based on Enterprise Size, the global market is divided into small & medium organizations and large organizations. The large enterprise segment dominated the market with the largest market revenue.
• Based on End-User, the market is divided into BFSI, IT & telecom, manufacturing, government & defense, retail & e-commerce, automotive, healthcare, and others. The BFSI segment dominated the market with the largest market revenue.
• North America is the highest shareholder in the global market.

Competitive Players

1. ARM Limited
2. ARTERIS, INC
3. Cadence Design Systems, Inc.
4. Fujitsu
5. Imagination Technologies
6. Lattice Semiconductor
7. Nvidia Corporation
8. Qualcomm Technologies, Inc.
9. Rambus.com
10. Renesas Electronics Corporation.
11. Silvaco Group, Inc.
12. Synopsys, Inc

Recent Developments

• In April 2024, Synopsys, Inc. announced the availability of Black Duck Supply Chain Edition, a new software composition analysis (SCA) offering that enables organizations to mitigate upstream risk in their software supply chains. Black Duck Supply Chain Edition combines multiple open-source detection technologies, automated third-party software bill of materials (SBOM) analysis, and malware detection to provide a comprehensive view of software risks.

Segmentation

1. By Component
   1. Solution
   2. Services
2. By Deployment
   1. Cloud
   2. On-Premise
3. By Enterprise Size
   1. Small & Medium Enterprises (SMEs)
   2. Large Enterprises
4. By End-User
   1. BFSI
   2. IT & Telecom
   3. Manufacturing
   4. Government & Defense
   5. Retail & E-Commerce
   6. Automotive
   7. Healthcare
   8. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia Pacific
   4. Latin America
   5. The Middle East & Africa