by The Software Rental Service Market is estimated to be valued at US$ 42.92 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The software rental service market comprises software applications and tools that are offered on a rental or pay-per-use basis to customers. Customers can access commonly used software applications through subscription or pay-per-use plans. Some key software rental services include productivity tools, project management tools, CRM solutions, cloud computing solutions, and CAD/ CAM software. The rental model provides flexibility to customers and removes upfront capital expenditure requirements.
Market Dynamics:
Growing preference for recurring revenue model- Many software companies are shifting from perpetual licensing model to subscription-based model. The rental model provides predictability in revenues through recurring payments. It also helps drive additional cross-sell and up-sell opportunities.
Rise in cloud adoption- More organizations are adopting cloud-based solutions due to ease of deployment, scalability, and low upfront costs. The cloud-based rental model removes complexity of on-premise software deployment and management. It allows customers to pay only for the resources utilized.
Segment Analysis
The software rental service market is dominated by the monthly and yearly subscription segments. The monthly subscription segment holds the largest share as it offers flexibility to users in terms of payment and cancellation. Customers can optimize their licensing needs on a short-term basis through monthly subscriptions.
PEST Analysis
Political: supportive regulations around data privacy and security will help the growth of the software rental service market.
Economic: rising global IT expenditure and adoption of pay-per-use business models are fueling the demand for software rental services.
Social: increasing digitization of organizations and preference for cloud-based subscription models are positively impacting the market.
Technological: advanced technologies like SaaS and cloud computing are enabling flexible rental and subscription-based access to software, propelling the software rental service market.
Key Takeaways
The Global Software Rental Service Market Trend is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period, due to increasing digitization across industries. The market size is estimated to reach US$ 77.22 Bn by 2030 from US$ 42.92 Bn in 2023.
North America dominates the software rental service market owing to rapid technological adoption and digital transformation efforts of organizations in the region. Asia Pacific is anticipated to exhibit the fastest growth on account of rising IT spending, growing cloud deployment, and expansion of global service providers in the region.
Key players operating in the software rental service market are Adobe Inc., Microsoft Corporation, Salesforce.com Inc., Oracle Corporation, Intuit Inc., SAP SE, Autodesk Inc., IBM Corporation, Dropbox Inc., Slack Technologies Inc., Google LLC, Zoom Video Communications Inc., Atlassian Corporation Plc, ServiceNow Inc., HubSpot Inc. These players are focusing on new product launches, partnerships, and mergers & acquisitions to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
