Software Composition Analysis Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment (Cloud, On-Premise), By Enterprise Size (Small & Medium Enterprises (SMEs), Large Enterprises), By End-User (BFSI, IT & Telecom, Manufacturing, Government & Defense, Retail & E-Commerce, Automotive, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Software Composition Analysis Market Size

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).

The software composition analysis (SCA) 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 Software Development Life Cycle, 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.

The global software composition analysis industry is expected to see significant growth during the forecast period, driven by the rising popularity of online transactions and the increasing adoption of services like Electronic Clearing Service (ECS), National Electronic Fund Transfer (NEFT), Real-time Gross Settlement Systems (RTGS), and mobile transactions.

• Each year, over 20,000 common vulnerabilities and exposures (CVEs) are identified in open-source and third-party code. To prevent costly and disruptive supply chain attacks, the first step is to ensure that dependencies and container images are free from critical vulnerabilities.

The chart below illustrates the vulnerabilities and exposures discovered annually, highlighting the urgency of secure software composition management.

Source, Straits Research, Deepfactor Inc.

Latest Market Trends

Rising adoption of DevSecOps techniques

The rising adoption of DevSecOps techniques marks a significant shift toward embedding security throughout the software development lifecycle (SDLC). By integrating security from the start rather than treating it as an afterthought, DevSecOps enables organizations to proactively identify vulnerabilities, particularly in open-source components, and prevent potential security breaches.

• According to the Infosec Institute, 36% of respondents are currently using DevSecOps in software development, up from 27% in 2020, highlighting the increasing shift toward secure development practices.

As the focus intensifies, there is a growing demand for software composition analysis (SCA) tools that seamlessly integrate into Continuous Integration/Continuous Deployment (CI/CD) pipelines. These tools help ensure that security measures are consistently applied.

Software Composition Analysis Market Growth Factor

Shift toward open-source software adoption

The growing popularity of open-source software (OSS) is a key factor fueling the demand for software composition analysis tools. Businesses are increasingly adopting OSS due to its cost-effectiveness, flexibility, and customization options. However, OSS components often come with security risks, as they are not always rigorously tested for vulnerabilities. This shift to OSS creates a need for tools that can manage vulnerabilities effectively.

• The Open-Source Vulnerability (OSV) project, launched in 2021, provides a solution by offering machine-readable vulnerability information in a structured format. This approach allows for more automated triage and faster fixes, helping organizations quickly address security issues in open-source components and reinforcing the demand for real-time vulnerability detection solutions in the market.

Market Restraint

High implementation cost

The upfront costs of purchasing the software, along with additional expenses for training, integration, and sometimes infrastructure upgrades, can be prohibitive. This financial barrier may discourage organizations from adopting SCA tools, particularly when budget constraints are a concern. To overcome this challenge, there is a need for more cost-effective solutions and flexible pricing models tailored to the needs of SMEs, ensuring that the benefits of SCA are accessible without compromising their financial stability.

For instance, according to CAST Software, companies relying on traditional SCA approaches are facing significant difficulties, including slow rollouts, overly complex deployments, and a lack of actionable insights. These issues hinder organizations from effectively managing open-source software (OSS) risks across their most critical business applications, highlighting the need for more streamlined, cost-efficient solutions in the SCA market.

Market Opportunity

Increasing volume of regulations across industries

The growing volume of regulations across industries presents a significant opportunity for the software composition analysis market. Sectors such as healthcare, finance, and government are subject to stringent regulations like GDPR and HIPAA, which require enhanced security measures to protect sensitive data.

As organizations in these sectors strive to ensure compliance and safeguard against vulnerabilities in open-source components, they are increasingly turning to SCA tools. The healthcare sector, in particular, is poised for high growth in SCA adoption due to its tightly regulated environment and the rising threat of cyberattacks.

• For example, Oklahoma State University's Center for Health Services was fined USD 875,000 after a cyberattack compromised its server, underscoring the significant financial risks of non-compliance. This highlights the growing demand for security solutions to manage regulatory compliance and protect against data breaches.

Regional Insights

North America: Dominating region

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, organizations in the region 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.

Asia-Pacific: Rapidly growing region

Asia-Pacific is experiencing rapid digital transformation across industries, fueled by the widespread adoption of open-source software to enhance innovation and operational efficiency. However, this increased reliance introduces security and compliance challenges, making SCA tools essential for risk management. Businesses in the region are increasingly investing in comprehensive SCA solutions to monitor open-source components, detect vulnerabilities, and ensure adherence to evolving regulatory standards.

• For instance, governments across China, India, and Japan are tightening cybersecurity laws, pushing enterprises to integrate SCA solutions for enhanced security and regulatory compliance, further driving market expansion.

Countries Insights

• United States –In the United States, small businesses are highly vulnerable to cyber threats, with nearly 85% of data breaches occurring within this sector. On average, 4,000 attempted cyberattacks happen daily, costing victims around $120,000 per incident. Due to the financial strain, 60% of affected businesses shut down within six months. This alarming trend fuels the demand for SCA solutions, enabling small businesses to secure open-source software and protect against costly breaches.
• Germany: Germany’s software composition analysis market is driven by its automotive and industrial sectors, where open-source components are widely used in IoT and embedded systems. To ensure security and regulatory compliance, nearly 60% of organizations in these industries employ SCA solutions. With increasing cybersecurity regulations and the need for secure software supply chains, the adoption of SCA tools is expected to expand further.
• UK: In the UK, nearly 80% of businesses integrate open-source components into their applications, making cybersecurity a critical concern. Approximately 65% of organizations have adopted SCA tools to monitor and manage these components, ensuring compliance and reducing vulnerabilities. As cyber threats evolve, UK businesses continue to prioritize automated security solutions to mitigate risks associated with open-source software.
• France –France emphasizes digital sovereignty, particularly in securing open-source software across government, healthcare, and aerospace sectors. The SCA market is expanding as organizations focus on protecting critical infrastructure from cyber threats. With rising concerns over data protection laws and compliance, French enterprises are increasingly adopting SCA solutions to safeguard sensitive digital assets.
• China: China’s SCA market is expanding rapidly due to the government’s push for indigenous software development and heightened cybersecurity concerns. State-owned enterprises are increasingly adopting SCA tools to secure open-source software and comply with national cybersecurity regulations. As China enhances domestic software security standards, the demand for comprehensive SCA solutions is rising.
• Canada:Canada’s SCA market is experiencing substantial growth, driven by the increasing use of open-source software across various industries. Organizations recognize the need for robust security measures to manage vulnerabilities and ensure compliance with evolving cybersecurity regulations. As businesses prioritize secure development practices, the adoption of SCA tools continues to expand.
• South Korea – South Korea faces significant cyber threats, with the National Intelligence Service (NIS) reporting 1.2 million hacking attempts per day in 2022. This alarming trend has accelerated the adoption of software composition analysis tools, particularly among technology and government sectors, to enhance cybersecurity resilience. As regulatory frameworks tighten, the demand for secure open-source software solutions continues to grow.

Segmentation Analysis

By Components Type

The solutions segment held the largest market share globally, surpassing the services segment due to its expanded capabilities. Modern SCA solutions offer real-time monitoring, allowing continuous tracking of open-source components for emerging vulnerabilities. AI-driven detection enhances accuracy, reducing false positives and alleviating developer workload by swiftly identifying security threats. As cybersecurity concerns grow, organizations increasingly rely on these automated solutions to strengthen software security and compliance, driving market dominance.

By Deployment

The cloud segment accounted for the largest market share in the global software composition analysis market, driven by its scalability and flexibility. Cloud-based SCA solutions provide organizations with on-demand resources, making it easier to scale security measures across projects of varying sizes. This deployment model enables rapid adaptation to evolving software development needs, ensuring seamless security management for open-source components across distributed teams. As enterprises prioritize agility and cost-efficiency, cloud-based SCA adoption continues to grow.

By Enterprise Size

Large enterprises dominated the SCA market, given their need to manage complex and expansive software ecosystems. These organizations rely heavily on open-source components to accelerate innovation and reduce costs, but their scale also introduces heightened security and compliance risks. Moreover, SCA tools play a critical role in continuously scanning software environments, detecting vulnerabilities, and ensuring license compliance. As cybersecurity threats rise, large enterprises increasingly invest in SCA solutions to safeguard their digital infrastructure.

By End-User

The BFSI sector held the largest market share in the software composition analysis market, driven by its need for robust security measures to protect sensitive financial data. Financial institutions are prime targets for cybercriminals seeking to exploit customer records, transactions, and personal identification details. Moreover, the industry faces risks from fraud and financial disruptions. SCA tools are essential in strengthening security defenses, identifying vulnerabilities in open-source components, and ensuring regulatory compliance, making them indispensable for BFSI cybersecurity strategies.

Company Market Share

Key market players are heavily investing in advanced Software Composition Analysis (SCA) solutions, leveraging AI-driven vulnerability detection, automation, and cloud-based security to strengthen their offerings. Companies are pursuing strategies such as collaborations, acquisitions, and partnerships to enhance their products, expand their global reach, and integrate with DevSecOps pipelines for seamless security management.

FossID: An Emerging Player in the Global Software Composition Analysis Market

FossID is an emerging company specializing in software composition analysis, offering advanced tools that help organizations identify, track, and manage open-source components within their software. Its solutions ensure compliance with licensing regulations, detect security vulnerabilities, and mitigate legal risks associated with open-source usage. FossID’s platform integrates seamlessly with DevSecOps workflows, providing automated risk assessment and real-time insights.

Recent Developments:

• In June 2024, FossID, a provider of open-source software risk management technology, announced the release of FossID Workbench 24.2. This version features ID Assist, an AI-powered technology designed to reduce the time and expertise required to operate SCA tools, thereby enhancing efficiency in managing open-source components.

Recent Developments

• 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.

Analyst Opinion

As per our analysts, the global software composition analysis market is experiencing significant growth as enterprises increasingly embrace open-source software, driven by the rising need for cybersecurity and compliance. The reliance on open-source components continues to expand, necessitating robust tools for vulnerability management and regulatory adherence to frameworks like GDPR and HIPAA.

Advancements in AI and ML are further enhancing SCA tools, improving their ability to detect risks and automate mitigation strategies. However, challenges persist, particularly high implementation costs and complex integration processes, which can deter small and medium-sized enterprises (SMEs) from widespread adoption.

Despite these hurdles, the market remains on an expansionary trajectory, with both established players and new entrants driving continuous innovation to secure a larger market share. In this evolving landscape, SCA solutions are becoming indispensable for modern software development and cybersecurity frameworks.