Software Market Report 2024 (Global Edition)

Global Software Market Report 2024 Market Size Split by Type (Application Software, System Infrastructure Software, Development and Deployment Software, Productivity Software), by Deployment (On-premi...

Software Market Report Description

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Competitive Landscape of the Software market

The software market is fiercely competitive, characterized by numerous players ranging from established giants like Microsoft, Oracle, and SAP to innovative startups and niche players. Intense rivalry drives constant innovation, price competition, and strategic partnerships, shaping a dynamic landscape where companies vie for market share and technological leadership.

Software Industry News 

In June 2023, the Gujarat Industrial Development Corporation considered giving the Gift City administration control over the construction of the planned IT cluster. Prior to the pandemic, the project was scheduled. However, due to delays, it is currently anticipated that GIDC will transfer the project to Gift City for construction. 

(Source: https://timesofindia.indiatimes.com/city/ahmedabad/gidc-may-hand-it-hub-development-to-gift-city/articleshow/101527777.cms)

In May 2023, Apax Funds disclosed that it had reached a legally binding agreement to pay $450 million for Blackstone's minority stake in the travel technology business IBS Software. IBS Software's founder and executive chairman, V. K. Mathews, would still own a majority interest in the company after the transaction. Blackstone acquired a minority stake in IBS Software in 2015 for $170 million, or roughly 30% of the business. Since its founding in 1997, IBS Software has provided SaaS (software as a service) solutions to companies operating in the logistics, airline, hotel, tour, and cruise sectors. The 4,000-person company has offices in Singapore, Chennai, Kochi, Bengaluru, and Trivandrum for its product, research, and development teams.

(Source: https://www.business-standard.com/companies/news/apax-funds-buys-450-mn-minority-stake-in-travel-tech-company-ibs-software-123051500745_1.html)

Top Companies Market Share in Software Industry: (In no particular order of Rank)

• International Business Machines Corporation.
• Microsoft Corporation.
• Oracle Corporation.
• SAP SE. 
• Cisco Systems Inc.
• Alphabet Inc. (Google)
• Salesforce.com Inc.
• Adobe Inc.
• Red Hat Inc.
• Dassault Systems SE
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of Software Market

Which Region will dominate The Software Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. In North America, the software market is robust, driven by technological innovation and high demand across various industries. Major tech hubs like Silicon Valley in California and the presence of leading software companies contribute to the region's dominance. Additionally, favorable government policies, strong investment in research and development, and a mature IT infrastructure further fuel market growth. North America remains a key player in the global software market, continuously evolving and adapting to emerging trends and technologies.

Which Region is Expanding at the Fastest CAGR?

The European region is witnessing an increase in the sales of reagents. In Europe, the software market exhibits robust growth, driven by factors such as technological advancements, digital transformation initiatives, and increasing adoption of cloud-based solutions. Countries like the UK, Germany, and France are major contributors to market expansion due to their strong economies and thriving tech sectors. Additionally, regulatory compliance requirements, particularly in industries like finance and healthcare, stimulate demand for specialized software solutions. The European software market continues to evolve, presenting lucrative opportunities for both domestic and international vendors.

The current report Scope analyzes Software Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Software Market

According to Cognitive Market Research, the global Software market size was estimated at USD 681241.2 Million, out of which North America held the major market of more than 38% of the global revenue with a market size of USD 272469.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2031. In the North American software market, the primary driver is technological innovation. Advancements in AI, cloud computing, and IoT drive demand for software solutions across industries. Additionally, the growing emphasis on digital transformation in businesses fuels market growth as companies seek to optimize operations and enhance customer experiences. Moreover, increasing investments in cybersecurity software due to rising cyber threats contribute significantly to market expansion. Overall, innovation, digital transformation, and cybersecurity concerns propel the North American software market forward.

Country Analysis

• According to Cognitive Market Research, the US had a major share in the Software market with a market size of USD 214999.72 million in 2024 and is projected to grow at a CAGR of 3.3% during the forecast period. Technological advancements, such as artificial intelligence, cloud computing, and cybersecurity, fuel growth and competition among industry players.
• The Canada Software market had a market share of USD 32499.58 million in 2024 and is projected to grow at a CAGR of 4.3% during the forecast period. Factors like a skilled workforce, a favorable business environment, and supportive government policies further stimulate the sector.
• The Mexico Software market is projected to witness growth at a CAGR of 4.0% during the forecast period with a market size of USD 24797.18 million in 2024.

Europe Software Market

According to Cognitive Market Research, with a market value of USD 681241.2 million in 2024, it is projected to expand at a compound annual growth rate (CAGR) of 3.8% from 2024 to 2031. Europe accounted for a share of over 30% of the global market size of USD 204372.36 million. The European software market thrives on diverse drivers, including rapid technological advancements, heightened digitalization across industries, and evolving consumer preferences. Government initiatives promoting innovation, robust infrastructure development, and supportive regulatory frameworks further propel growth. Increasing demand for cloud-based solutions, cybersecurity measures, and data analytics services also significantly contribute to market expansion. Additionally, a burgeoning startup ecosystem, strategic partnerships, and mergers and acquisitions fuel competitiveness, fostering a dynamic landscape for software companies across Europe.

The United Kingdom's Software market had a market share of USD 34334.56 million in 2024 and is projected to grow at a CAGR of 4.6% during the forecast period. Companies are increasingly investing in bespoke software to gain a competitive edge and streamline operations.

• The French Software market is projected to witness growth at a CAGR of 3.0% during the forecast period, with a market size of USD 18802.26 million in 2024.
• According to Cognitive Market Research, the German Software market size was valued at USD 40465.73 million in 2024 and is projected to grow at a CAGR of 4.0% during the forecast period. Government initiatives supporting digitalization further fuel growth, while a skilled workforce and strong intellectual property protection foster competitiveness.
• The Italian Software market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD 17576.02 million in 2024.
• The Russian Software market is projected to witness growth at a CAGR of 2.8% during the forecast period, with a market size of USD 31677.72 million in 2024.
• The Spanish Software market is projected to witness growth at a CAGR of 2.9% during the forecast period, with a market size of USD 16758.53 million in 2024.
• The Luxembourg Software market is projected to witness growth at a CAGR of 3.9% during the forecast period, with a market size of USD 3665.54 million in 2024.
• The Portuguese Software market is projected to witness growth at a CAGR of 3.6% during the forecast period, with a market size of USD 4291.82 million in 2024.
• The Greece Software market is projected to witness growth at a CAGR of 4.1% during the forecast period, with a market size of USD 2452.47 million in 2024.
• The rest of Europe's Software market is projected to witness growth at a CAGR of 2.5% during the forecast period, with a market size of USD 31677.72 million in 2024.

Middle East and Africa Software Market

According to Cognitive Market Research, the global Software market size was estimated at USD 681241.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 13624.82 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2031. Middle East and Africa, the software market is being propelled by several key drivers. Rapid urbanization, expanding digitalization initiatives by governments, and the growing adoption of cloud computing and SaaS solutions are fueling demand. Additionally, increasing investments in infrastructure development, rising internet penetration, and a burgeoning tech-savvy population are driving the growth further. These factors combined create a fertile environment for the expansion of the software market in the Middle East and Africa region.

• According to Cognitive Market Research, the GCC Countries' Software market size was valued at USD 5831.42 million in 2024 and is projected to grow at a CAGR of 5.8% during the forecast period. These factors create a conducive environment for software developers and businesses to thrive, leading to a dynamic and competitive market landscape in the GCC region.
• The Egypt Software market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 1430.61 million in 2024.
• The South African Software market is projected to witness growth at a CAGR of 6.0% during the forecast period, with a market size of USD 2152.72 million in 2024—government initiatives promoting digitalization further fuel market growth.
• The Turkish Software market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 1430.61 million in 2024.
• The Nigeria Software market is projected to witness growth at a CAGR of 4.1% during the forecast period, with a market size of USD 30.70 million in 2024.

South America Software Market

According to Cognitive Market Research, the global Software market size was estimated at USD 681241.2 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 34062.06 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031. Several key factors are driving the Latin American software market. Increased digitization across industries is spurring demand for software solutions while growing internet penetration and smartphone usage are expanding the consumer base. Government initiatives promoting technology adoption and innovation also play a crucial role. Additionally, the rise of cloud computing and Software-as-a-Service (SaaS) models is making software more accessible and affordable, further fueling market growth in the region.

• According to Cognitive Market Research, Brazil's Software market size was valued at USD 14578.56 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period. The government's initiatives to promote digital transformation and innovation also play a significant role.
• The Argentina Software market had a market share of USD 5722.43 million in 2024 and is projected to grow at a CAGR of 5.6% during the forecast period. Government initiatives promoting entrepreneurship and digital transformation further propel the sector forward.
• The Colombia Software market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 3031.52 million in 2024.
• The Peru Software market is projected to witness growth at a CAGR of 4.9% during the forecast period, with a market size of USD 2793.09 million in 2024.
• The Chile Software market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD 2452.47 million in 2024.
• The Rest of the Latin American Software market is projected to witness growth at a CAGR of 3.8% during the forecast period, with a market size of USD 5483.99 million in 2024.

Asia Pacific Software Market

According to Cognitive Market Research, the global Software market size was estimated at USD 681241.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 15668.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031. In the Asia-Pacific region, the software market is being driven by several key factors. Rapid digital transformation across industries, increasing adoption of cloud computing and SaaS solutions, burgeoning e-commerce activities, and a growing emphasis on data analytics and AI technologies are among the primary drivers. Additionally, government initiatives promoting digitalization, expanding internet penetration, and the rise of mobile technology contribute to the region's dynamic software market landscape, fostering innovation and business growth.

• According to Cognitive Market Research, the China Software market size was valued at USD 70508.46 million in 2024 and is projected to grow at a CAGR of 6.8% during the forecast period. Government initiatives promoting digital transformation further stimulate growth, fostering a competitive landscape.
• The Japan Software market is projected to witness growth at a CAGR of 5.8% during the forecast period, with a market size of USD 21622.60 million in 2024.
• The India Software market had a market share of USD 18802.26 million in 2024 and is projected to grow at a CAGR of 9.1% during the forecast period. Rising internet penetration and smartphone usage further accelerate software consumption, particularly in areas like e-commerce, fintech, and healthcare.
• The South Korean Software market is projected to witness growth at a CAGR of 6.4% during the forecast period, with a market size of USD 15668.55 million in 2024.
• The Australian Software market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 8147.64 million in 2024.
• The South East Asia Software market is projected to witness growth at a CAGR of 8.3% during the forecast period, with a market size of USD 10811.30 million in 2024.
• The Rest of the Asia Pacific Software market is projected to witness growth at a CAGR of 7.1% during the forecast period, with a market size of USD 11124.67 million in 2024.

Software Market Analysis

Software Type Segment Analysis

Application Software refers to programs designed to perform specific tasks or solve particular problems for end-users. This includes a wide range of applications such as word processors, spreadsheet software, graphic design tools, and customer relationship management (CRM) systems. These software solutions are tailored to meet the needs of various industries and individual users, enhancing productivity and efficiency.

System Infrastructure Software encompasses programs that provide essential support for the operation of computer systems and networks. This includes operating systems, device drivers, utilities, and middleware. System Infrastructure Software forms the backbone of IT infrastructure, facilitating communication between hardware components and enabling the execution of application software.

• Application Software
• System Infrastructure Software
• Development and Deployment Software
• Productivity Software

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Software Industry. Request a Free Sample PDF!

Software Deployment Segment Analysis

On-premises software is installed and operated from a company's in-house server and computing infrastructure. It provides control and customization but demands significant initial investment and ongoing maintenance costs.

Cloud-based software is hosted on remote servers and accessed via the Internet. It offers scalability, flexibility, and typically lower upfront costs, making it appealing to businesses of all sizes. Cloud solutions also often provide automatic updates and remote accessibility, facilitating collaboration and remote work.

• On-premises
• Cloud

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Software Enterprise Size Segment Analysis

Small & Medium Enterprises are characterized by their relatively smaller scale of operations, limited resources, and simpler organizational structures. They often seek cost-effective solutions tailored to their specific needs, focusing on affordability, scalability, and ease of implementation.

Large Enterprises are distinguished by their expansive operations, substantial resources, and complex organizational hierarchies. They require sophisticated software solutions capable of handling large volumes of data, supporting intricate workflows, and integrating seamlessly with existing systems. Market players often develop distinct product offerings and marketing strategies targeting each segment to address their unique requirements and preferences, thereby maximizing market penetration and revenue generation.

• Small & Medium Enterprises
• Large Enterprises

Software Vertical Segment Analysis

IT & Telecom software solutions encompass a wide array of offerings tailored to the needs of information technology and telecommunications industries, such as network management, cloud computing, and communication software.

The BFSI segment focuses on software designed specifically for banking, financial services, and insurance institutions, covering areas like core banking systems, risk management software, and insurance claim processing solutions. These segments represent critical sectors where software plays a pivotal role in enhancing operational efficiency, improving customer service, and ensuring regulatory compliance. As technology continues to advance and industries evolve, the demand for specialized software solutions within these segments is expected to persist, driving innovation and market growth.

• IT & Telecom
• BFSI
• Retail
• Government/Public Sector
• Energy & utilities
• Healthcare
• Others

Author's Detail

Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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