The Business Software and Services Market is poised to expand at a significant CAGR by 2030

 

The business software and services market comprises various software solutions that help optimize business processes, manage finances and workforces, and drive better decision making across industries. Solutions such as accounting and finance, human resource, supply chain and operations management, customer relationship management (CRM), and business intelligence allow businesses to streamline their processes, save costs, boost employee productivity, and gain competitive advantages.

The Global Business Software and Services Market is estimated to be valued at US$ 525.77 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the business software and services are Acumatica, Inc., Unit4, Deltek, Inc., Totvs SA, Epicor Software Corporation, SYSPRO, International Business Machines Corporation, SAP SE, Infor, Inc., Oracle Corporation, Microsoft Corporation, and NetSuite Inc. These major players are focusing on new product launches and enhancing their existing solutions to stay ahead of the competition. For instance, in 2022, Acumatica launched Acumatica Cloud ERP 2022 R1 with new capabilities for customer relationship management, financials, project accounting, and more.

The growing need among businesses to streamline their processes and improve operational efficiencies is driving the demand for business software and services. Various software solutions help optimize workflows, enhance visibility and control across business functions, improve decision making, and enable remote working. This is expected to propel the market forward over the forecast period.

The market is also witnessing significant expansion in developing economies as businesses adopt advanced technologies to gain competitive advantages. Supported by worldwide digitization and investments in digital transformation, the demand for business software is estimated to increase globally. Players are focusing on emerging markets by forming partnerships with local players and improving their multi-language capabilities.

Market key trends

The increasing popularity of cloud-based business solutions is one of the key trends in the market. Cloud computing allows organizations to deploy these solutions easily without upfront capital investments on hardware and infrastructure. It offers benefits such as scalability, easy access from anywhere, automatic updates, and pay-as-you-go pricing models. This has accelerated the demand transition from on-premises to cloud-based deployments. According to estimates, the cloud-based business software segment will grow at a higher CAGR during the forecast period.

Porter's Analysis

Threat of new entrants: The business software and services market requires huge capital investments and has some dominant players making it difficult for new players to enter.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute options but switching costs limit the power.

Bargaining power of suppliers: Software developers and solution providers have moderate to high bargaining power being specialized skills however established brands have advantage.

Threat of new substitutes: Substitute options like open-source and cloud-based technologies pose threat but switching costs and need for specialized skills provide stability to established players.

Competitive rivalry: The market has few huge players and many niche players resulting in high competition on price and innovation.

Geographical Regions

North America accounts for the largest share in the business software and services market currently due to high technology adaptability and digital transformation among enterprise.

Asia Pacific is expected to grow at the fastest pace during the forecast period owing to increasing investments in IT infrastructure, growing digitization, and rising tech-savviness in countries like China and India.

 

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials,  etc

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it