Enterprise Software Market

Global Enterprise Software Market Size (2024 to 2029)

The size of the global enterprise software market is anticipated to reach USD 539.45 billion in 2024 and USD 727.03 billion by 2029, growing at a CAGR of 6.15% during the forecast period.

Enterprise software is increasingly used by organizations across the globe and the various industry verticals for a number of lines of business operations, including but not limited to human resources, business intelligence, manufacturing, planning, sales and service, customer relationship management, inventory and materials management, purchasing, finance, and accounting and marketing. The enterprise software is used to enhance efficiency and productivity to gain a significant competitive advantage.

MARKET DRIVERS

The growing demand for business intelligence and analytics is one of the key factors propelling the growth of the global enterprise software market. Several benefits, such as the increasing use of enterprise software by small, medium, and large organizations in various industry verticals such as manufacturing, healthcare, media and entertainment, public sector, banking and financial services, insurance, telecom, transportation, and energy and utilities, are expected to play an essential role in the growth of the enterprise software market across the globe.

Factors such as the introduction of novel software services and rising awareness regarding enterprise software across the globe will influence the growth of the enterprise software market during the forecast period. Technological innovation and advancement, the rising number of enterprises in the world, and the entry of new industry players are some of the major driving factors that promote the growth of the revenue rate of the enterprise software market during the forecast period.

MARKET RESTRAINTS

The high cost of deployment is one of the important barriers to market growth. Other important deterrents include the drawbacks associated with the software itself, customization and flexibility issues, and the complexities related to migrating existing data.

Impact of COVID-19 on the Global Enterprise Software Market

Due to the COVID-19 pandemic, almost all industries have faced many problems due to the lockdown imposed by the respective government authorities to reduce the spread of the coronavirus. Because of the lockdown, most companies have shut down their operations and allowed their employees to work from home to continue some operational aspects. The enterprise software market had a significant growth rate before the pandemic, and as per the experts' analysis, this market will have an impeccable growth rate after the pandemic.

REPORT COVERAGE

REGIONAL ANALYSIS 

The North American region holds a prominent share of the market since it has been identified as an early adopter of enterprise software, such as software for service and customer relationship management. In contrast, enterprise software penetration rates in this region are high. The adoption of these solutions has become commonplace, with most companies rapidly utilizing hybrid cloud and on-premise product models. Furthermore, the gradual rise in enterprise software adoption in the region, especially in some of the countries such as the US, Canada, and Mexico, propelled the growth of the market. The North American region is expected to hold dominance during the forecast period.

Asia Pacific region is also expected to increase the market growth due to the rising number of enterprises in the world and the entry of new industry players in some of the major economies of the region, such as India, China, and Japan, propel the growth rate of the enterprise software market during the forecast period. Furthermore, the increasing investments by the major key players of the market for R&D activities and for the new advancements in technology are also one of the major driving factors that promote the growth of the revenue rate of the enterprise software market.

The European region will gain good profits from the market, followed by the North American and Asia Pacific regions during the outlook period.

DETAILED SEGMENTATION OF THE GLOBAL ENTERPRISE SOFTWARE MARKET INCLUDED IN THIS REPORT

This global enterprise software market research report has been segmented and sub-segmented based on type, deployment, application, and region.

By Type

• Application Software

  • Business Intelligence (BI)

  • Supply Chain Management (SCM)

  • Customer Relationship Management (CRM)

  • Enterprise Resource Planning (ERP)

• System Software

  • Microsoft Windows

  • iOS

  • Linux

• Software as a Service (SaaS)

  • Cloud Computing

The enterprise resource planning and customer relationship management segments held the prominent share, followed by mobile apps in terms of revenue, and are predicted to remain at the forefront throughout the forecast period.

By Deployment Type

• Proprietary Software

• Outsourcing Software

• Application Service Providers

The proprietary software segment held the largest share of the global market in 2022 and is expected to continue dominating during the forecast period.

By Application

• Supply Chain

• Customer Information Management

• Sales Accounting

• Web Services

• Energy Management

• Government

The customer information management segment held a prominent share of the market among the other segments.

By Region

• North America

• Asia Pacific

• Europe

• Latin America

• Middle East and Africa

KEY PLAYERS IN THE GLOBAL ENTERPRISE SOFTWARE MARKET

Microsoft Corporation, Infor Inc., Kronos Incorporated, IBM Corporation, SAP AG, and Oracle Corporation are some of the major companies in the global enterprise software market.

RECENT HAPPENINGS IN THE GLOBAL ENTERPRISE SOFTWARE MARKET

• IBM partnered with Salesforce in 2018 to integrate their Artificial Intelligence platform and deliver an enhanced customer service experience. Salesforce's in-house platform, Einstein, and IBM’s cognitive computing technology platform, Watson, collaborate to deliver AI-driven recommendations for future actions by the companies.

• Cohesity company, which was a hyper-converged secondary storage company, has announced that they have raised 250 million US dollars in an oversubscribed series D funding round led by the SoftBank vision fund with strong participation from strategic investors such as Cisco Investments, Hewlett Packard Enterprise, Morgan Stanley Expansion Capital to increase the enterprise software development activities towards achieving the increased operational efficiency and cost reduction.