March 2, 2024

Business Software and Services Market Propelled by Digitization Adoption Across Industries

Business software refers to a variety of applications and services that enable organizations to streamline operations, improve productivity, enhance collaboration and security. Software such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), and Human Capital Management (HCM) help businesses automate routine tasks, manage finances and optimize business processes. Growing digital transformation across industries is driving increased adoption of business software solutions to gain competitive advantage.

The global Business Software and Services Market is estimated to be valued at US$ 1.3 trillion in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Digitization Adoption Across Industries: The key trend propelling the growth of the business software and services market is the rising digitization adoption across various industries. Organizations across sectors like manufacturing, retail, BFSI, healthcare and IT are increasingly embracing digital technologies and modernizing legacy systems to enhance operational efficiency, customer experience and gain competitive edge. Digitization is enabling improved collaboration, streamlined operations and data-driven decision making. For example, ERP solutions allow manufacturing firms to integrate supply chain, order management, inventory, production and finance on a single digital platform. Similarly, CRM software helps retail companies to understand customer behavior and personalize engagement. This rising digitization trend will continue to drive increased spending on business software over the coming years.

Key players operating in the Business Software and Services market include Microsoft, Oracle, SAP, IBM, Salesforce, Sage Group, Intuit, Zoho, and Workday. Microsoft is the largest player with leadership in productivity software and cloud computing. SAP dominates the enterprise resource planning segment. Salesforce has emerged as a major player in customer relationship management space. These companies continue to invest in artificial intelligence capabilities and expansion of their solution portfolios to address emerging digital trends.

SWOT Analysis
Strength: Business Software and Services provide benefits like improved efficiency, reduced costs, data-driven decision making, and access to new capabilities which help organizations gain competitive advantage.
Weakness: Adapting to new software technologies can be challenging and require change management and training for users. There is also risk of cyber threats and security issues.
Opportunity: Growing demand for cloud-based solutions, analytics, automation, collaboration tools provides opportunities for software vendors to expand their offerings. Rising digital transformation spending by enterprises also opens new opportunities.
Threats: Pricing pressures due to increased competition. Rising customer expectations around AI/ML capabilities and personalization also increase pressure on vendors to innovate quickly.

Key Takeaways

The global Business Software and Services Market is expected to witness high growth over the forecast period of 2023 to 2030. The global Business Software and Services Market is estimated to be valued at US$ 1.3 trillion in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030.

North America currently dominates the market led by large technology investments in the US. The US and Canada are heavily investing in digitalization of business processes and adoption of SaaS solutions which is fueling market growth. Asia Pacific region is expected to be the fastest growing market for Business Software and Services due to rapid digitalization of industries and growing technology budgets in major countries like China and India.

*Note:

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