Software

Software penetrates all aspects of our life in the information age: individuals and businesses rely on operating systems and applications to carry out daily tasks. No wonder spending on enterprise software has one of the highest growth rates within the tech industry and is projected to grow further in 2023.

One major trend in the industry is the move to the cloud, namely from on-premises software to software-as-a-service (SaaS), representing around a third of the overall software market. The benefits of SaaS include lower total ownership costs and more straightforward implementation over traditional models, indicating that this trend will only continue in 2023 and beyond.

Market size

IT spending on software shows significant growth

Information technology (IT) spending on enterprise software worldwide from 2009 to 2023 (in billion U.S. dollars)

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The economic downturn in the second half of 2022 forced many companies to reduce expenses, leading to slower IT spending growth. However, the software industry faired more favorably, experiencing more positive growth in spending. The pandemic led to more digital adoption and increased spending on software as customers moved towards online channels. Enterprise software spending is set to approach a trillion U.S. dollars soon as it becomes even more crucial in digital transformation.

Software development
Open source software
Software industry financial insights

Market segments

Enterprise software segment keeps expanding

Revenue of the software market worldwide from 2016 to 2027, by segment (in billion U.S. dollars)

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For businesses to enhance their daily operations and core functions, they heavily rely on enterprise software to remain competitive and agile. Enterprise software is the largest segment in the software industry. Examples of enterprise software include enterprise resource planning (ERP) and customer relationship management technologies.

Enterprise software
Security software
System infrastructure software

Industry trends

SaaS remains strong in the cloud computing market

Public cloud application services/software as a service (SaaS) end-user spending worldwide from 2015 to 2024 (in billion U.S. dollars)

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The subscription-based model and accessibility demonstrated by SaaS, among other advantages over on-premises software, has made it one of the best-performing tech subsectors during the pandemic. As digitalization deepens, businesses and activities will move to the cloud more and more, pushing SaaS even further to the forefront. As a result, SaaS spending is projected to stay strong, reaching 195 billion U.S. dollars in 2023.

Software-as-a-Service (SaaS)
Cloud computing
Microsoft Azure

Market leaders

Microsoft keeps the lead among software giants

Revenue and total expenses of leading software companies worldwide in 2020 (in billion U.S. dollars)

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Best known for its Windows line of operating systems and Office Suite, Microsoft has dominated the software sphere for years. The company has also caught up with cloud migration and is now one of the major cloud service providers. IBM and Oracle are also leading players, albeit with far less revenue than Microsoft. The German firm SAP is the only European company among the largest software companies and is primarily known for its ERP software.

Microsoft
Adobe
SAP

Unique aspect of the industry

Incorporation of AI in software products

Artificial intelligence (AI) market size worldwide in 2021 with a forecast until 2030 (in million U.S. dollars)

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Further details: Visit original statistic Artificial intelligence (AI) market size worldwide in 2021 with a forecast until 2030 (in million U.S. dollars)

As large language models such as ChatGPT and Bard continue to evolve, the use of artificial intelligence (AI) is becoming increasingly common. AI is creating virtual assistants that help with tasks like retrieving information, sending emails, setting reminders, and providing coding assistance for businesses. With the constant advancement of technology, we can anticipate the emergence of more creative and advanced software applications in the industry.

AI worldwide
ChatGPT
Bard

State of the industry

  • Software as a Service: market data & analysis
  • Artificial Intelligence: in-depth market analysis
  • Cybersecurity: market data & analysis
  • Artificial intelligence (AI) in business
  • Python
  • Generative artificial intelligence (AI)
  • Software: market data & analysis
  • Top 100 companies worldwide: IT & Software
  • Google Cloud
  • Oracle
  • Edge computing

Industry Definition

The software industry consists of the development, distribution, and maintenance of software. It can be broadly divided into application software, system infrastructure software, SaaS, operating systems, database and analytics software. Statista provides information on software market spending in general and on various software products specifically, on both global and regional scales. Additionally, financial metrics and market share of major players are covered as well, together with data on AI, software development, and usage.

More interesting topics from the industry "Software"

More interesting topics from the industry "Software"

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