Report Overview

Global Business Software And Service Market - Industry Trends & Forecast Report 2027

The global business software and service market was worth USD 385.3 Billion in 2020 and is further projected to reach USD 786.2 Billion by 2027, at a CAGR of 10.8% during 2021-2027 (forecast period). The rise in cloud-based platforms has triggered the demand for cloud-based software solutions and services within organizations. The software and services help in easy and quick access to unorganized data retrieved through data analytics to maintain the data privacy and security goals. Moreover, the placement of enterprise solutions results in an essential decline in raw material and inventory costs, which helps organizations achieve increased effectiveness.

Source: BlueWeave Consulting

Global Business Software and Service Market Overview:

The primary goal of creating this program is to analyze business data in order to understand an organization's strengths and weaknesses. The key role of the software is to increase organizational revenue growth by evaluating an organization's requirements and assessing the effectiveness of current policies. The growing demand for business intelligence and analytics has increased the demand for enterprise application software programs, propelling the global market. The transition to cloud computing is one of the most important shifts that has impacted the global enterprise software industry.

Global Business Software and Service Market Forecast and Trends

Growth Drivers

Increase in the use of Cloud-Based Software

The use of cloud-based software solutions and services is increasing among small- and medium-sized enterprises due to various benefits such as flexibility, cost-effectiveness, and mobility. In addition, data backup, data security, and system upgrade include in the cloud-based services. Furthermore, the increasing acceptance of advanced technologies such as blockchain, hybrid architecture, artificial intelligence, and machine learning is expected to add to the market's growth over the forecast period. Furthermore, the growing preference for successful networking solutions and automation capabilities is expected to drive enterprise software and services in the large enterprise segment.

Implementation of mobile applications

Mobility is an integral component of digital solutions that is transforming industries around the world and driving market demand for IT services. It is an important component of customer service management and growing engagement between strategic partners and suppliers. It also grants larger permits for information and facilities, which can be combined to complete essential business processes. Furthermore, the production and usage of mobile apps necessitate the use of IT services. Nowadays apps are being used by businesses to advance their procedures and increase the degree of availability their clients have to them.

Restraints

High implementation costs associated with workflow management system

Higher licensing costs and a lack of timely support are the key business growth constraints. The cost of licensing a solution is not included in the cost of software development. The standard software cost consists of the maintenance, support cost of a solution; additional integration and customization usually increase maintenance and support costs.  Enterprises do not mind incurring additional expenditure related to timely care and periodic updates.

Impact of COVID-19 in the industry.

The pandemic has had a global impact on many industries, and the business software and service market are no exception. COVID-19 outbreak has negatively affected the global business software and services market because of trade restrictions imposed by the government of different countries. Employees working for these organizations are also facing technology and connectivity challenges as a result of global government-imposed lockdowns. This is causing staff to work from home. Considering the current scenario, it can be stated that the impact of the ongoing pandemic will continue for some time in the coming years.

Global Business Software and Service Market: By Services

Based on services global business software and service market is categorized into Consulting, Managed Services, and Support & Maintenance. The support and maintenance services segment accounted for the highest market share. The dominance of this segment led to the growing popularity of business management solutions and the creation of software models to identify and resolve product quality issues. In addition, the demand for third-party support & maintenance services is also rising due to cost-effectiveness.

Global Business Software and Service Market: By Deployment mode

Based on deployment, the market has been categorized into cloud and on-premise. Cloud or on-premise technologies are implemented based on an organization's needs.  The on-premise segment holds the largest market share as it offers customization of the software which proves to be convenient for organizations with varied needs. However, the market of cloud services is also expanding all around the world. The numerous advantages provided by cloud services, such as mobile data accessibility and the elimination of the need for manual upgrades, are contributing to the segment's development.

Global Business Software and Service Market: By Organization Size

Based on enterprise size, the market has been categorized as small & medium enterprises and large enterprises. Large enterprises majorly dominate the organization size segment.

Efficient networking technologies and automation capabilities influence demand for enterprise software and services, especially in large enterprises. As a result, businesses are emphasizing strategic decision-making and resource distribution, which is expected to fuel the development of the large enterprise market. The increasing number of government initiatives, including digital trends such as social media marketing, video marketing, and search engine marketing, is expected to drive the growth of large enterprises.

Global Business Software and Service Market – Regional Insights

Based on region, the global business software and service market is divided into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. North America accounted for the largest market share among all the regions. Many large companies are investing in and developing new technologies across sectors, which is driving regional market development. In comparison to other countries, companies in North America are focusing on developing custom intelligence solutions, as well as the implementation of software and analytics-based plans.

Recent Developments

• In April 2021, IBM and HCL Technologies collaborated to modernize defense operations. This partnership builds on the recent alliance extension between HCL and IBM to assist organizations with digital transformation.

• In April 2021, the Aftermarket Auto Parts Alliance, Inc. announced Epicor as the 2021 Technology Partner of the Year. The announcement was made at the Alliance’s virtual IT Summit.

Competitive Landscape

The key players in the global business software and service market are Acumatica, Inc., Deltek, Inc., Epicor Software Corporation, International Business Machines Corporation, Infor Inc., NetSuite Inc. Microsoft Corporation, SAP SE, Oracle Corporation, Totvs SA, Unit4, SYSPRO and other key manufacturers. To remain competitive in the industry, market participants are pursuing various growth strategies such as alliances, strategic agreements and partnerships, mergers & acquisitions, and new product development.

Scope of Report:

By Services

• Consulting

• Managed Services

• Support & Maintenance

By Deployment Mode

• Cloud

• On-premises

By Organization Size

• SMEs

• Large Enterprises

By Vertical

• Banking

• Financial Services and Insurance (BFSI)

• Government

• Retail

• Transportation

• Residential

• Telecom and Information Technology (IT)

• Others

By Region

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East

• Africa