April 12, 2024

Rising adoption of cloud computing technologies to boost the growth of Business Software and Services Market

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Business software and services refer to tools and applications that are used by organizations to manage their business operations efficiently. These include enterprise resource planning (ERP), accounting & finance, human resource, customer relationship management (CRM), supply chain management, and collaboration software. Business software helps streamline processes, enhance productivity, and improve decision making. They enable automation and digitalization of routine tasks. Demand for these solutions is driven by the need for data-driven business insights, workforce optimization, and improved customer experiences.

The global Business Software and Services Market is estimated to be valued at US$ 525.77 Bn or Mn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the market is the rising adoption of cloud computing technologies. Cloud-based business software-as-a-service (SaaS) delivery model is gaining traction as it offers benefits such as scalability, affordability, lower upfront costs, easy deployment and mobility. This has prompted vendors to offer cloud-based versions of their legacy on-premises products. Furthermore, integration of advanced technologies such as AI, machine learning and IoT in business solutions is helping organizations gain real-time actionable insights from vast amounts of data. This is supporting improved operational efficiencies and outcomes. Focus on digital transformation by enterprises will continue to drive innovations and growth opportunities in the business software and services market over the forecast period.
Porter’s Analysis

Threat of new entrants: The business software and services market has moderate threat of new entrants due to the presence of established vendors and requirement of large investments to develop products.

Bargaining power of buyers: Buyers have high bargaining power due to availability of varied options from different vendors. Buyers can select vendors based on customization levels and pricing.

Bargaining power of suppliers: A few large vendors dominate the supply market, giving them moderate bargaining power over buyers. However, availability of alternatives balances this power.

Threat of new substitutes: Substitutes like open-source and in-house developed solutions pose moderate threat. However, established vendors offer customized solutions fulfilling specific business needs.

Competitive rivalry: The market has high competitive rivalry due to presence of global and regional vendors offering varied customized solutions targeting all organization types and sizes.

Key Takeaways

The global business software and services market is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for automated business processes. The market size for 2023 is US$ 525.77 Bn.

Regional analysis: North America dominates the market due to high adoption of automation. Asia Pacific is expected to witness fastest growth owing to growing digitalization across industries. Various government initiatives are also fueling market growth in the region.

Key players operating in the business software and services market are Acumatica, Inc., Unit4, Deltek, Inc., Totvs SA, Epicor Software Corporation, SYSPRO, International Business Machines Corporation, SAP SE, Infor, Inc., Oracle Corporation, Microsoft Corporation, and NetSuite Inc. Key players are focusing on offering industry-specific customized solutions to gain competitive advantage. They are also investing in innovations to integrate advanced technologies like artificial intelligence and machine learning in their solutions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it