The global independent software vendor market was valued at USD 2.32 Billion in 2025. The industry is expected to grow at a CAGR of 9.20% during the forecast period of 2026-2035 to reach a value of USD 5.59 Billion by 2035. The rising number of investments in digital transformation projects worldwide is the key driver propelling the global independent software vendor market.
Government bodies and private organizations alike are actively working to modernize business operations with the integration of automation and AI technologies. To cite an instance, the Government of India allocated Rs 782 crore for digital transformation in the 2025-2026 budget, representing a 143% jump from the 2024-2025 budget. This was to promote digital transportation and AI adoption in India. Several enterprises are deploying specialized software solutions from ISVs owing to the advantages it offers, such as improved efficiency and lower operational costs.
Additionally, the ongoing efforts by tech firms in creating tech adoption platforms further contribute to independent software vendor industry growth. Citing a prime example, in April 2025, Convoso, a leading CCaaS provider, developed an ISV Partner Marketplace to help contact centers find integrated third-party solutions and enable ISVs to find new customers, while strengthening Convoso’s tech ecosystem. With such tools, businesses are optimizing workflows and gaining real-time insights for smarter decision-making, further contributing to the growing need for independent software vendors.
Another factor contributing significantly to the market expansion is the formation of strategic partner ecosystems between ISVs and leading platform providers such as IBM, Microsoft, AWS, Salesforce, and Oracle. Such partnerships offer opportunities like co-selling channels, extensive app marketplaces, and marketing support, offering a wide access to independent software vendor markets. For example, in June 2025, Primer Technologies, a leading AI solutions provider, joined the AWS ISV Accelerate Program that connects independent software vendors with AWS Sales to generate new business. This enabled Primer to diversify its reach by integrating its products within the AWS ecosystem and benefiting from co-selling opportunities.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.2%
Value in USD Billion
2026-2035
*this image is indicative*
|
Global Independent Software Vendor Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
2.32 |
|
Market Size 2035 |
USD Billion |
5.59 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
9.20% |
|
CAGR 2026-2035- Market by Region |
North America |
9.9% |
|
CAGR 2026-2035 - Market by Country |
India |
10.5% |
|
CAGR 2026-2035 - Market by Country |
USA |
9.8% |
|
CAGR 2026-2035 - Market by Industry Vertical |
Retail and E-commerce |
10.5% |
|
CAGR 2026-2035 - Market by Deployment Type |
Cloud |
13.6% |
|
Market Share by Country 2025 |
Canada |
3.2% |
The ongoing transition to cloud-native and Software-as-a-Service (SaaS) models is propelling the ISV market forward. Amid this shift, ISVs have gained importance in facilitating secure and scalable cloud migrations, specifically from legacy or on-premises systems. Many enterprises lack in-house cloud expertise, propelling the need for ISVs which provide comprehensive support and services for data migration into cloud. For instance, in June 2025, SentinelOne partnered with the AWS ISV Workload Migration Program, providing secure workload transitions to AWS through its Singularity Cloud Security platform, which equips ISVs with tools and support to securely migrate customer workloads to AWS.
Increasing adoption of healthcare technology emerged as a prominent driver of ISV market development, attributed to the increasing competitive, societal, and regulatory constraints. The rapidly evolving technological landscape is pushing healthcare companies to rely on ISVs to create intelligent software solutions that enable data integration into diverse platforms. Owing to the tight regulatory constraints, the need for scalable, outcome-focused solutions is rising, propelling the demand for ISVs to bridge the innovation gap. For instance, in March 2023, Innovaccer's ISV Partner Program attracted many digital health vendors that are developing interoperable solutions capable of connecting into EHR workflows as well as promoting holistic care delivery.
The preference for embedded analytics, AI-powered insights, and intelligent data integration is rising, leading to independent software vendor industry growth, specifically in sectors relying on real-time decision-making and data-rich environments. Enterprises are shifting towards smarter, data-driven applications to transform software delivery. This is pushing ISVs to focus on creating integrated, scalable, and secure platforms that reduce complexity while driving innovation and growth. For instance, in April 2025, Qlik launched a dedicated ISV platform to help vendors embed AI, analytics, and data integration capabilities directly into their applications.
The mounting need for software that aligns with unique workflows of businesses is driving the independent software vendor market growth. Off-the-shelf solutions lack features which meet complex industry requirements, prompting organizations to invest in configurable and modular platforms from ISVs. The growing emphasis on precision, compliance, and operational efficiency in the finance sector has increased the reliance on software that streamlines financial processes, thereby propelling market growth forward. Addressing this need, in May 2025, four prominent ISVs in the Microsoft Dynamics ecosystem collaboratively created a unified suite enhancing financial automation, fully integrated into the Dynamics 365 environment.
Increasing IT budgets and high global regulatory demands are significantly driving the ISV market. Enterprises are allocating more resources to upgrade legacy systems, adopt cloud technologies, and enhance cybersecurity measures, creating fertile ground for ISVs offering reliable and scalable solutions. ISVs that provide certified, compliant applications are gaining trust among organizations that prioritize mitigating risks and avoid penalties. This convergence of increased IT investment and regulatory pressure further fuels the demand for sophisticated, certified ISV products.
The EMR’s report titled “Global Independent Software Vendor Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Key Insight: Based on product, the security software segment amassed substantial revenue in the independent software market owing to the growing number of cyber-attacks and stringent regulatory compliance requirements. Meanwhile, the business intelligence & analytics segment is recording steady growth due to the growing need for real-time insights and data-driven decision-making across industries. Similarly, the business applications segment contributes largely to market share as enterprises are investing in the use of ERP and CRM solutions to simplify operations, enhance collaboration, and increase productivity. Moreover, the consumer-facing apps segment is expanding owing to growing demand for personalized, seamless digital experiences in retail, entertainment, and leisure industries.
Market Breakup by Deployment Type
Key Insight: In terms of deployment type, cloud is the fastest-growing segment of the independent software vendor industry. Cloud-native ISVs are leveraging SaaS, PaaS, and API-driven models to deliver flexible, subscription-based software with constant updates providing global reach. Additionally, the rise of hybrid tech environments amplifies demand, as companies prefer to combine on-premises control and cloud agility. On the other hand, the on-premises segment is experiencing steady growth as it continues to serve industries where security and regulatory compliances and data sovereignty requirements are high. ISVs offering such high-control software for these sectors address legacy infrastructure and compliance needs, thereby driving market growth.
Market Breakup by Enterprise Type
Key Insight: The global independent vendor market growth is significantly driven by the evolving demands of the large enterprises segment. Large enterprises require highly customizable, secure, and integrated software to manage complex operations, ensure regulatory compliance, and support global scalability. Such organizations are making high investment in tailored ISV solutions. On the other hand, the SMEs segment is experiencing high demand for cost-effective, scalable, and easy-to-deploy software that enables rapid digital adoption without needing extensive IT infrastructure. Moreover, SMEs fuel the demand for ISVs by adopting user-friendly, cloud-based solutions with flexible pricing, enabling cost-effective scalability, and rapid digital adoption.
Market Breakup by Industry Vertical
Key Insight: The healthcare segment’s growing demand for digital solutions to improve patient outcomes and comply with regulations is driving the independent software vendor market growth. In BFSI, the need for compliant, secure and efficient financial software is fueling the adoption of specialized ISV offerings. The manufacturing segment is driving ISV demand through increasing automation, industry 4.0 initiatives, and supply chain optimization. In the retail and e-commerce segment, the need for agile, omnichannel platforms is propelling the need for ISV solutions. The IT and telecom segment rely on scalable infrastructure and analytics tools to support rapid digital transformation, thereby positioning ISVs as essential. Meanwhile, in the automotive segment advances in connected vehicles and smart mobility solutions, while in the government segment’s push for secure, on-premises systems, and digital services is further expanding growth opportunities.
Market Breakup by Region
Key Insight: North America leads the independent software vendor industry owing to the presence of mature digital infrastructure along with innovation hubs fostering cloud and AI integration. Europe follows closely, mainly due to stringent data privacy regulations like GDPR and a focus on sustainable, compliant software. Asia Pacific is the fastest-growing region propelled by the rapid digital transformation in China, India, and Southeast Asia, coupled with the government support for SMEs and digitization initiatives. Latin America is gaining momentum through hefty IT investments and a growing startup ecosystem. Meanwhile, the Middle East and Africa are still emerging markets attributed to the ongoing smart city projects, rapid cloud adoption, and government modernization programs, altogether expanding ISV opportunities.
|
CAGR 2026-2035- Market by |
Region |
|
North America |
9.9% |
|
Middle East and Africa |
8.4% |
|
Europe |
XX% |
|
Asia Pacific |
XX% |
|
Latin America |
XX% |
By Product, Business Applications lead in Market Share
Based on product, the business applications product segment has secured a dominant share in the independent software vendor industry. The segment growth is majorly attributed to the surge in demand for intelligent, integrated tools that streamline enterprise functions such as finance, HR, supply chain, and customer management. With the shift towards hybrid work models and prioritizing automation and remote collaboration, ISVs are stepping in with tailored, cloud-based solutions that outperform traditional software suites. Their ability to offer modular, API-driven platforms that adapt to unique business workflows and compliance needs makes them a need. Reinforcing this trend, in July 2024, Omnissa’s launch as an AI-powered digital workspace platform highlighted how ISVs are shaping the future of enterprise software delivery. Such initiatives are supporting market expansion.
Security software is starting to emerge as a significant growth driver in the global independent software vendor industry, as enterprises encounter heightened cyber threats and rely heavily on third-party providers for security. With the increase of ransomware, phishing, and data theft, organizations need agile, cloud-native solutions that enable rapid setup and real-time security. According to the Identity Theft Resource Center, data breaches increased to 3,205 in 2024, up from 2,365 in 2023, 1,584 in 2022, and 754 in the year 2018, underlining the critical need for strong cybersecurity. ISVs that specialize in endpoint protection and compliance-ready frameworks are in high demand, making them essential partners in today's digital-first market.
By Deployment Type, Cloud Deployment is the largest segment of the market
Cloud deployment is the largest segment primarily driven by the growing need for flexible, resilient, and scalable infrastructure to support modern application development. With rapid digital transformation across industries, enterprises are prioritizing platforms that offer faster time-to-market, reduced data duplication, and simplified operations. Cloud-based deployments provide ISVs with the agility to iterate rapidly, lower total cost of ownership, and provide seamless user experience across web, mobile, and IoT environments. For example, in February 2023, Couchbase expanded its ISV Partner Program to empower vendors with Capella, a cloud-native database platform that enhances speed, scalability, and operational efficiency in cloud app delivery. Such developments are propelling industry growth.
While cloud-based models are gaining ground, the on-premises segment remains vital in the ISV market, especially for sectors with stringent data control, security, or compliance needs, such as government, defense, banking, and healthcare. Additionally, these deployments are favored in regions or industries where regulatory mandates restrict data transfer or where cloud infrastructure is still under development. By providing tailored, high-performance solutions with offline operability and long-term support, ISVs in the on-premises space are significantly contributing to market expansion.
By Enterprise Type, Large Enterprises represent a dominant segment
Large enterprises dominate the ISV market due to their need for highly integrated, secure, and customizable software that supports complex operations, global supply chains, and regulatory compliance. ISVs working with these enterprises often develop advanced solutions incorporating AI, automation, and analytics to meet multi-departmental demands. These collaborations typically involve longer sales cycles but yield higher revenues and long-term contracts. Moreover, large enterprises actively co-develop and adopt cutting-edge technologies with ISVs, making them key innovation partners and propelling overall market sophistication and expansion.
The SMEs segment is significantly contributing to the ISV market growth as they increasingly embrace digital solutions to streamline operations and scale efficiently. Lacking dedicated IT teams, SMEs turn to ISVs for cloud-based, affordable, and user-friendly applications that support agility and business continuity. ISVs cater to this segment with modular, subscription-driven software that ensures fast implementation and flexible usage. The demand for quick ROI and intuitive interfaces further drives ISV adoption. As digital transformation accelerates in emerging markets, SMEs are becoming vital to the global expansion and evolution of the ISV ecosystem.
By Industry Vertical, the Retail and E-commerce generated substantial market revenue
In terms of industry vertical, the retail & e-commerce segment holds a dominant share in independent software vendor industry and is set to expand at 10.5% CAGR through 2025-2034 resulting from the growing demand for AI-powered, integrated frontline solutions. Innovations like AI-driven image recognition and conversational agents that solve merchandising and operational challenges further boost adoption within retail and e-commerce. For instance, in January 2025, Zebra Technologies developed Mobile Computing AI Suite and Zebra Companion to integrate AI capabilities into retail workflows. This encouraged ISVs to build smarter, real-time applications in the retail sector. Such innovations are creating ample opportunities for ISVs to deliver custom software solutions to the sector’s evolving needs.
Moreover, the IT and telecom segment is emerging as a fast-growing segment due to the ongoing efforts for network modernization, particularly through 5G deployment. One such effort is, in May 2025, China Mobile allocated 9.8 billion yuan ($1.4 billion) to upgrade more than 400,000 base stations to 5G-A this year. For such telecom projects, operators require sophisticated software solutions for management of such complex 5G infrastructure, including network slicing, service orchestration, and automation. ISVs play an essential role as they offer platforms that enable real-time monitoring, predictive maintenance, and efficient resource allocation, while ensuring high-quality service delivery. Moreover, 5G’s low latency and high bandwidth offer new opportunities for ISVs, further contributing to industry growth.
By Region, North America holds the largest share in the global Independent Software Vendor market
North America remains the dominant region in the global independent software industry share, majorly because of the heightened demand from enterprises for cloud, data, AI, and cybersecurity solutions. This growth is amplified by the region’s mature digital infrastructure, early cloud adoption, and stringent regulatory compliance. As enterprises prioritize innovation and security, they increasingly rely on ISVs for certified, scalable solutions tailored to their needs. Reflecting this dynamic, in October 2023, TD SYNNEX, a global distributor and solutions aggregator, recently launched an ISV Acceleration Program in North America, providing ISVs with technical resources, cloud marketplace access, and go-to-market support.
On the other hand, the Middle East and Africa region is the fastest-growing segment int he independent software vendor market, owing to the rapid digital transformation and government-led smart city initiatives. The growing need for integrated, niche enterprise solutions, especially across the African manufacturing and warehouse management sector is further boosting regional market growth. Furthermore, regional partnerships like SYSPRO’s ISV referral agreement with DATASCOPE WMS signed in February 2025 reflected the efforts of trusted third-party vendors. This improved ERP systems with dedicated, cost-effective tools for simplifying operations and supporting the Industry 4.0 digital transformation.
Key players in the global independent software vendor (ISV) market are fostering growth by investing in cutting-edge technologies such as cloud computing, artificial intelligence, machine learning, and edge analytics. Additionally, they assist ISVs in accelerating time-to-market, improving software performance, and meeting different customer expectations in industries such as banking, healthcare, manufacturing, and retail by providing flexible APIs, cloud infrastructure, and low-code solutions.
Along with technology help, these companies are promoting market expansion through strategic collaborations, innovation centers, training programs, and co-selling possibilities. Their emphasis on regulatory compliance, cybersecurity, and data protection enables ISVs to create products that satisfy worldwide standards. Furthermore, by broadening their worldwide reach and promoting ecosystem collaboration, they are fostering a favorable climate for smaller software companies to develop, scale, and succeed. This collaborative effort is resulting in a more nimble, efficient, and competitive global ISV ecosystem.
Adobe Inc., incorporated in 1982 and based in California, is well-known for its creative digital media tools. The company aggressively promotes independent software manufacturers via its Adobe Experience Cloud and Creative Cloud platforms. Adobe helps ISVs design, integrate, and deliver personalized digital experiences across several sectors by providing a diverse range of APIs, AI-powered tools, and cloud-based services.
Founded in 2015 and headquartered in Mountain View, California, Alphabet Inc. is the parent company of Google and a key facilitator of cloud-based ISV solutions. Google Cloud Platform provides scalable infrastructure, AI and data analytics capabilities, and marketplace connections, allowing software suppliers to create creative, enterprise-grade apps. Alphabet is continuing to accelerate digital transformation by creating an open ecosystem for ISV cooperation and deployment.
Dell Technologies Inc., founded in 1984 and based in Round Rock, Texas, provides a wide range of IT infrastructure and cloud solutions designed to promote software innovation. The firm collaborates closely with ISVs through its partner program and edge-to-core technology, offering processing capacity, data management, and collaboration tools to help them create and scale contemporary software applications.
HP Inc., founded in 2015 following the Hewlett-Packard split, is headquartered in Palo Alto, California. While HP has traditionally been associated with hardware, it has increasingly concentrated on software-driven solutions and collaborations that benefit ISVs. With a focus on workflow automation, print management software, and security solutions, HP allows ISVs to integrate their services with HP devices and platforms to create value-added business applications.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the global independent software vendor market include Cisco Systems Inc., IBM Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., and SAP SE, among others.
Explore the key forces shaping the Global Independent Software Vendor (ISV) Market from 2026 to 2035 with our expertly crafted report. Get future-ready with detailed forecasts, innovation tracking, and market opportunity insights. Download a free sample or reach out to our team for a personalized consultation today.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the global independent software vendor market reached an approximate value of USD 2.32 Billion.
The market is projected to grow at a CAGR of 9.20% between 2026 and 2035.
The key players in the market include Adobe Inc., Alphabet Inc., Cisco Systems Inc., Dell Technologies Inc., HP Inc., IBM Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., and SAP SE, among others.
Key strategies driving the market include cloud adoption, AI integration, vertical-specific solutions, and partnership-led innovation.
North America dominates the global ISV market, driven by mature digital infrastructure, early cloud adoption, and strong enterprise demand for advanced technologies like AI, cybersecurity, and data analytics.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product |
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| Breakup by Deployment Type |
|
| Breakup by Enterprise Type |
|
| Breakup by Industry Vertical |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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