Software - United States

United States

The Software market in the United States is projected to achieve a revenue of US$363.40bn by 2024.
The dominant segment within this market is Enterprise Software , which is expected to reach a market volume of US$150.50bn in the same year.
Looking ahead, the revenue is anticipated to display an annual growth rate (CAGR 2024-2029) of 4.12%.
This growth would lead to a market volume of US$444.60bn by 2029.
When comparing the global market, it is noteworthy that United States is forecasted to generate the highest revenue, amounting to US$363.40bn in 2024.
The United States is experiencing a surge in demand for cloud-based software solutions, revolutionizing the way businesses operate.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

The demand for software in the United States has been growing at a rapid pace in recent years, driven by various factors such as the increasing adoption of cloud computing, the rise of mobile devices, and the growing importance of data analytics.

Customer preferences: Customers in the United States are increasingly looking for software solutions that can help them streamline their operations, improve efficiency, and reduce costs. Cloud-based software solutions have become particularly popular, as they offer greater flexibility, scalability, and cost-effectiveness compared to traditional on-premise software.Another key customer preference in the United States is the need for software that is easy to use and integrates seamlessly with existing systems. As such, vendors that offer user-friendly interfaces and robust integration capabilities are likely to be more successful in the US market.

Trends in the market: One major trend in the software market in the United States is the growing importance of data analytics. With the rise of big data, businesses are increasingly looking for software solutions that can help them make sense of the vast amounts of data they generate. This has led to the emergence of new software categories such as business intelligence and analytics tools, which are designed to help businesses gain insights from their data.Another key trend in the US software market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to automate a wide range of business processes, from customer service to supply chain management. As such, vendors that offer AI and ML capabilities are likely to be in high demand in the US market.

Local special circumstances: The United States is home to a large number of technology companies, including some of the world's largest software vendors. This has created a highly competitive market, with vendors competing on factors such as price, features, and customer service.Another unique aspect of the US software market is the regulatory environment. The US has a complex and ever-changing regulatory landscape, which can make it difficult for software vendors to navigate. As such, vendors that are able to stay up-to-date with the latest regulations and compliance requirements are likely to be more successful in the US market.

Underlying macroeconomic factors: The US software market is being driven by a number of macroeconomic factors, including the growing importance of technology in business, the increasing adoption of cloud computing, and the rise of mobile devices. Additionally, the US economy has been growing steadily in recent years, which has led to increased investment in technology and software solutions.Another key macroeconomic factor driving the US software market is the shift towards a more service-based economy. As businesses increasingly rely on software and technology to drive their operations, the demand for software solutions is likely to continue to grow.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.