The "Global Software Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Software is a collection of data or computer instructions that tell the computer how to work. It includes computer programs, libraries, and related non-executable data, such as software documentation or digital media. The majority of software today is written in high-level programming languages which are easier for programmers to use because they are closer to natural languages than machine languages.
The market has matured in developed nations but has high growth opportunities in developing economies. Regional software companies in developed and developing economies are facing stiff competition from tech giants who are constantly trying to enter these markets. Software-related inventions are patentable. The German Parliament adopted a joint motion against the growing trend of patent offices to grant patents on software programs.
Companies are focusing on acquisitions to sustain in the market due to huge competition. For instance, In March 2019, FIS a leader in financial services technology announced USD 35 billion deal to acquire Worldpay.
The demand for software industry is increasing by almost all enterprises of all domains can be attributed to the enhancement in operational performance which can be achieved by digitizing the systems and processes.
Increasing usage of Software as a Service (SaaS) via Cloud and rising technological advancements like AI and IoT are the major drivers for the market growth worldwide. The increasing adoption of technological advancements like AI and IoT is the major driver for the market worldwide. The software vendors have developed functionality to take advantage of the software technology including web browser access, web portals for customers and suppliers, mobile technologies with smartphones & tablets, e-commerce capabilities, and much more. Furthermore, investments in the software industry is rising worldwide. For instance, Tiger has invested USD 300 million in India so far in various tech-based startups by July 2019.
With rapid ization, especially in the software industry, Software development firms are facing issues like language barriers. Making text within the software accurately translatable as per the client’s language is a major issue being faced by software companies worldwide. Increasing Malware threats and Cybercrimes have also been a major restraint to the growth of this industry.
Based on the industry, the market is segmented into telecommunication, banking and finance, health care, manufacturing, automotive and others. The banking and Finance Software market size was worth USD XX billion in 2018 and is forecasted to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period. The banking and finance sector is one of the leading end-user for the software industry. Banking software is enterprise software that is used by the banking industry to provide and manage the financial products they provide.
Technological advancements and digital innovations are the major drivers for the growth of the software in banking and financial sector. ATMs, Internet Banking, payment networks, and SMS-based banking are the different channels using software in the banking sector. Companies are focusing to launch different software technologies due to high demand from the banking sector. FIS, Fiserv, SAP are the few companies that provide software to the banking sector. For instance, In May 2019, FIS™ a leader in financial services technology, has announced the launch of an innovative digital onboarding solution for use by trust companies and bank trust departments in creating and opening new investor accounts online.
Based on Software type the market for Software Industry is broadly segmented as application software, system software, and anti-malware. The Software market size by application segment was worth USD XX billion in 2018 and is estimated to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period.
The application software segment is expected to grow with a high CAGR in the forecast period. Usage of the computer system to perform special functions which are beyond the basic operation of the computer itself is called application software. Increasing digitization in all business functions from managing customer relations to inventory management to accounting is the major driver for the growth of the market. Adobe, Kabbage, Microsoft, and DoorDash are the few companies providing application software ly. As per WIRED, the three most popular application software programming services are enterprise resource planning (ERP) software, supply chain management (SCM) software, and customer relationship management (CRM) software services worldwide in 2019.
Based on the form of commercial transaction, the market is segmented into B2B and B2C.
Based on the deployment type, the market is segmented into cloud-based and On-premises.
The software market is segmented into five major regions including North America, Europe, Asia Pacific, South America, and the Middle East & Africa region.
The North American software market size was worth USD XX billion in 2018 and is forecasted to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period. North America has grabbed a major market share in the year 2018. Moving towards the digitalization of every vertical industry and rising adoption of SaaS cloud services are the major driving factors for the market growth in this region.
United States is considered to be the most innovative country in the world due to its highly conducive IT environment. Large domestic companies already have the upper hand in the market, while some startup companies have captured the fresh and innovative ideas segment in software solutions. Companies in North America are focusing to expand their business operations to sustain in the market. For instance, In March 2019, Priority Software has announced the expansion of its business operations in North America worth 1 million USD dollars, with the establishment of Priority Software USA and the recent purchase of US-based ERP consulting and services firm Performa Apps.
The Asia Pacific Software market size was worth USD XX billion in 2018 and is forecasted to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period. Asia Pacific is expected to grow with a high CAGR rate in the forecast period. Increasing demand for software development companies in the Asia Pacific is the major driver for the growth of the market.
The market across the Asia Pacific is exposing particularly high growth rates, with consistently strong client demand for SaaS across all key markets. China is the dominant region in the Asia-Pacific Software market in 2018 and is expected to continue the same in the forecast period. The software market has a high potential for growth in rapidly developing countries of Asian countries like China, India, South Korea, Japan, and Indonesia. For instance, India's software landscape is largely dominated by a bunch of software companies such as Microsoft, Oracle, SAP, IBM, and SAS, etc.
The competition in the Software Industry market is very high due to the presence of a large number of companies. Some of the key market players are Microsoft, Oracle, SAP, Symantec, VMware, Adobe Systems, Infosys, Wipro, Google, and Amadeus IT Group.
Vendors have started providing software development services in specific industries and niche markets to gain expertise in terms of industry-specific technological developments and problems that are being faced by these industries. For instance, in recent years, New York City-based service provider eMazzanti Technologies has been actively targeting the retail fashion industry with services to improve transactional technologies.
The key players in the market have fairly engaged in both organic as well as inorganic development techniques to capture the market share. For instance, SAP’s innovation management software has gained popular mass attraction. This software helps companies to transform ideas into innovations.
The major market players have started acquiring companies that have market expertise in specific broad and niche segments. For instance, in 2018, SAP acquired Qualtrics for USD 8 billion, Adobe acquired Marketo for USD4.75 billion, IBM acquired Red Hat for USD 33 billion and Oracle acquired DataFox as their key competitive strategy.
In March 2019, Nvidia scooped Israel-based Mellanox at around USD 6.9 billion. Mellanox was a high-end networking equipment provider
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