The global software market was valued at USD 719.09 Billion in 2025 and is projected to grow at a CAGR of 9.60% during the forecast period of 2026-2035. Software integration in predictive maintenance tools is gaining momentum as manufacturers seek to reduce unplanned downtime and optimise operational output across connected machinery and industrial automation networks, thereby aiding the market to attain a value of USD 1798.41 Billion by 2035.
Demand in the market is also fuelled by enterprise digitisation, artificial intelligence integration, and scalable cloud computing. According to the United States Bureau of Economic Analysis, software and services industry in the country recorded USD 489.2 billion in 2023. These figures reflect how software is no longer just a utility; it has become a strategic growth lever.
Emerging economies are further boosting the overall market growth. Governments in Africa, notably in Kenya and South Africa, are launching national AI and digital transformation roadmaps, which are driving local demand in the software market. Notably, Kenya’s Ajira Digital Program has trained over 1 million youth in digital skills by 2023, opening fresh opportunities for localised software platforms.
Furthermore, with the growing incorporation of generative AI, blockchain, and autonomous platforms, the software industry has evolved beyond traditional product suites. The value is accelerated by customisability, security compliance, and intelligent automation. Enterprises are shifting from off-the-shelf to modular, composable software ecosystems. Strategic collaborations, such as between Microsoft and OpenAI or Google and SAP, underscore this new direction.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.6%
Value in USD Billion
2026-2035
*this image is indicative*
Generative AI is disrupting how software is developed and consumed, redefining the entire software market trends and dynamics. Adobe Firefly’s AI tools and Salesforce’s Einstein GPT are examples where natural language prompts generate enterprise-level solutions. In April 2024, the United States Department of Energy announced USD 13 million investment in AI-software convergence projects, underlining state-level involvement. Companies are investing heavily in AI model training software, making it a pivotal growth area. This shift is redefining UI/UX norms and enabling automated coding environments. AI copilots in IDEs like GitHub Copilot are improving development efficiency to a significant extent, making the software cycle leaner, faster, and smarter for B2B adopters.
Organisations are increasingly favouring composable software to escape rigid architectures. As per the software market analysis, 60% of large enterprises are expected to embrace composable design principles to remain agile. B2B buyers seek modular functionality for scalability, particularly in industries like manufacturing and finance where workflows change rapidly. For example, SAP offers a composable ERP platform, allowing partners to plug and play industry-specific modules. Governments in the European Union are advocating open-source components for public IT infrastructure.
Blockchain has become the backbone of enterprise audit trails, redefining trends in the software market. For example, IBM’s Blockchain Transparent Supply has already been deployed in sectors like pharma and food safety. Further, South Africa’s government partnered with companies like ConsenSys to explore blockchain for tax compliance and public finance management. In April 2023, Ethiopia launched a blockchain-based student credentialing system to reduce forgery. B2B users prefer these solutions for tamper-proof transaction logs and data immutability. Blockchain’s integration into ERP and SCM software is also growing, transforming how supply chains are validated, especially under ESG and traceability mandates.
The surge in low-code/no-code platforms is democratising the market development. Microsoft’s Power Platform and Mendix are allowing non-technical employees to create custom applications. In the United Kingdom, the Government Digital Service (GDS) is leveraging low-code tools for faster rollout of citizen services. In 2025, industry reports estimated that low-code technologies will account for 70% of new app development, creating fresh software market opportunities in SMB sectors. These tools are shortening product launch cycles and reducing dependency on large development teams. Their drag-and-drop interfaces attract SMEs seeking to optimise workflows without incurring major IT costs.
Tailored solutions are replacing one-size-fits-all software offerings. For instance, for the BFSI sector, Temenos launched an AI-powered AML software for real-time fraud detection in May 2025. In healthcare, Cerner is developing personalised EHR tools compatible with wearable data. The UAE’s Ministry of Health adopted an AI-linked diagnostic software for remote patient monitoring, pushing demand for med-tech platforms and aiding the software market expansion. B2B clients are now demanding niche-specific features like compliance tracking, sector-aligned analytics, and integration with IoT. Vendors creating verticalised software with embedded intelligence are experiencing faster client conversions and higher retention.
The EMR’s report titled “Global Software Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: Application software continues to dominate the global market. These are favoured for diverse functionality across verticals. Development and deployment tools are gaining popularity in the software market as agility and customisation become top priority. System infrastructure tools remain essential for backend orchestration, while productivity software is evolving with AI-powered tools enabling collaborative efficiency. Enterprises increasingly prefer software that align with cloud strategies, AI integration, and secure modularity. Vendors offering plug-in functionalities and industry-centric features are better positioned for market traction.
Market Breakup by Deployment
Key Insight: Cloud deployment leads in terms of global software adoption for its flexibility and ease of integration, especially for SMEs and digitally native firms. On-premises solutions are growing in sectors that emphasise sovereignty and security. Hybrid models are bridging the gap, enabling dynamic workload allocation. The choice of deployment depends on workload sensitivity, compliance mandates, and latency concerns. Providers focusing on interoperability and modular deployment options are well-positioned to grow in the market. Deployment strategy is being influenced by factors like edge computing growth, data localisation laws, and disaster preparedness planning across markets.
Market Breakup by Organisation Size
Key Insight: Large enterprises significantly contribute to the software market revenue due to their size and operational complexity. SMEs represent the fastest growing category as affordability, cloud solutions, and supportive government policies make accessibility easier. Enterprise clients prioritise scalability and compliance, while SMEs seek simplicity and value. As a result, vendors offering personalised onboarding, localised compliance support, and modular solutions are increasingly preferred across these two organisation sizes.
Market Breakup by Industry Vertical
Key Insight: BFSI largely drives demand in the software market by heavily investing in secure and compliant solutions due to increased digitisation and fintech integrations. Retail, as the fastest-growing industry vertical, is rapidly embracing POS cloud systems, customer engagement software, and AI-driven inventory tools to stay competitive. Healthcare increasingly adopts EHR systems and remote diagnostics platforms. Government investments are geared toward e-governance and public safety solutions. IT and telecom are prioritising automation and remote collaboration tools. Other verticals like education and manufacturing, are gradually expanding reliance on custom-built platforms.
Market Breakup by Region
Key Insight: The North American software market dominates the global industry due to established infrastructure, regulatory clarity, and early technology adoption. Europe focuses on data privacy and enterprise resilience, driving demand for secure, compliant solutions. Asia Pacific’s growth is fuelled by mass digitisation, smart city projects, and national software innovation policies. Latin America witnesses increasing cloud and AI adoption, mainly within retail and government services. The Middle East and Africa market is gaining traction through digital government programmes and regional technology accelerators.
By Type, Application Software Accounts for the Largest Share of the Market
Application software dominates the market due to its ubiquity in business operations, from CRM and ERP to advanced data analytics. In 2024, over 80% of large enterprises globally relied on SaaS-based application software, with their demand for personalisation and real-time decision support. Recent launches like Oracle’s AI-enhanced Fusion Cloud ERP exemplify how application software has become smarter and more adaptable. The adoption of DevOps practices also boosts this application’s dominance.
As demand for rapid deployment increases, development and deployment software is gaining traction, particularly within agile and DevOps environments, contributing to the overall software market value. Cloud-native development, containerisation (Kubernetes), and automated CI/CD pipelines are fuelling this application’s growth. The Indian government’s MeitY Startup Hub now supports open-source DevOps projects with research and development grants, giving momentum to local innovation. Platforms like GitLab and Jenkins are enhancing developer productivity by automating repetitive tasks, reducing time-to-market.
By Deployment, Cloud Accounts for the Leading Position in the Market
Cloud deployment has been dominant in terms of software market share due to its scalability, cost-efficiency, and faster time-to-value. Over 89% of enterprise workloads were hosted in public or hybrid clouds, according to industry reports. Initiatives like the African Union’s Digital Transformation Strategy are propelling cloud adoption in regions like Kenya and South Africa. Moreover, in April 2024, Egypt launched the first government data and cloud computing centre. In addition, the new Government Data and Cloud Computing Center will be a substitute for the New Capital Data Station. Vendors are offering sovereign cloud solutions tailored to local regulatory needs. AWS and Google Cloud have partnered with African telecom companies to set up regional cloud zones, strengthening edge deployments. B2B buyers favour cloud deployment for enhanced disaster recovery, real-time analytics, and low-maintenance infrastructure.
As per the software market report, on-premises solutions are regaining favour among sectors prioritising data control and regulatory compliance. Industries like defence, healthcare, and government demand stricter data governance, driving this category’s growth. Hybrid cloud models with localised data centres are also increasing on-premises investment. Vendors are innovating on-premises software with containerisation, offering the same agility as cloud without sacrificing control.
By Organisation Size, Large Enterprises Hold the Leading Position in the Market
The continued dominance of the large enterprises, largely contributing to the software market revenue is driven by their complex operational structures, larger IT budgets, and strategic focus on digital transformation. These enterprises lead in the adoption of AI-enhanced ERPs, cybersecurity software, and end-to-end automation platforms. Many Fortune 500 companies have in-house digital innovation teams experimenting with RPA and blockchain. The EU’s Digital Decade policy compels large firms to lead in technology modernisation. These organisations seek software that supports integration across global offices, meets regional compliance, and scales effortlessly.
SMEs are increasingly stimulating the software market growth, backed by increasing access to low-code platforms and cloud-based SaaS solutions. The Kenyan government's Ajira Digital initiative and India's Startup India mission are catalysing software enablement in this category. SMEs now use software for e-invoicing, CRM, and process automation. Platforms like Zoho and Freshworks specifically cater to SMEs with easy onboarding and localised support.
By Industry Vertical, the BFSI Sector Holds the Majority of the Market Share
The Banking, Financial Services, and Insurance (BFSI) sector holds the dominant position in the global market, driven by heightened digital transformation and stringent regulatory compliance needs. Financial institutions are investing in advanced risk analytics, AI-powered fraud detection, and blockchain-based transaction systems. As per the software industry analysis, the global spending on personal financial software recorded USD 1.8 billion in 2024, driven by open banking regulations and rising demand for embedded finance. Governments, such as in Singapore and the United Kingdom, are pushing digital banking frameworks that necessitate advanced software infrastructure. In Africa, Nigeria's CBN introduced guidelines that encouraged digital loan platforms to adopt robust backend systems in June 2025.
Retail represents the fastest-growing vertical in the global industry, rapidly evolving with omnichannel platforms, POS cloud integration, and AI-driven personalisation. With e-commerce surging in emerging economies, retailers are adopting advanced ERP and CRM solutions to optimise customer journeys and automate backend logistics. For example, South Africa’s Pick n Pay partnered with software startups like OpenText in August 2024 for real-time inventory and checkout solutions. Meanwhile, Egypt’s government-backed “Digital Egypt” initiative is empowering local retailers with access to affordable business software. Retailers are also integrating IoT-based systems in-store to bridge online-offline gaps.
By Region, North America Secures the Leading Position of the Market
North America emerges to be the dominant market fuelled by a mature digital ecosystem, high enterprise technology adoption, and innovation-driven public-private partnerships. The United States leads the market in AI, cybersecurity, and DevOps tools, while Canada is emerging as a hub for fintech and cloud-native startups. Federal investments in digital infrastructure, such as the United States CHIPS and Science Act, have accelerated demand for advanced software in industrial and government sectors. Multinational technology firms like Microsoft and Oracle continue expanding offerings tailored to mid-sized businesses, while state governments increasingly embrace e-governance tools.
Asia Pacific emerges as the fastest-growing regional software market, powered by rapid digital transformation, expanding startup ecosystems, and widespread cloud adoption. India and China are leading the regional market growth through aggressive national digitalisation campaigns like “Digital India” and “Internet Plus.” Governments across the region are pushing smart city and 5G projects, creating new demand for integrated software platforms across sectors.
Leading software market players are increasingly concentrating on AI integration, sustainability in code deployment, and low-code/no-code platforms. Partnerships with government digitalisation programmes and sector-specific initiatives are unlocking new opportunities. Players are focusing on secure, scalable, and customisable solutions as data privacy norms tighten. There is also a clear shift toward vertical-specific offerings such as BFSI-focused RegTech software, government e-services platforms, and AI-powered retail analytics.
Startups, particularly in Africa and Asia, are increasingly catering to niche gaps, prompting global software companies to explore strategic acquisitions. AI integration, hybrid-cloud platforms, sector-specific software, low-code tools, and digital twin applications are attracting enterprise investments and aligning technology capabilities with real-time decision-making needs. Vendor focus is also pivoting towards UX design, multilingual support, and reduced onboarding friction to enhance adoption. Open-source customisation and hybrid-cloud readiness remain pivotal as clients seek cost control and flexibility.
Adobe Inc. was founded in December 1982 and is headquartered in San Jose, California, United States. It makes a wide range of software applications and products that enhance document productivity, drive digital businesses, and tap the creative potential of individuals. This includes Adobe Experience Cloud, Adobe Document Cloud, Adobe Creative Cloud, and Adobe Express, among others.
Established in 1987, McAfee Corp. provides threat protection software applications including antiviruses that guard people’s online identities, their locations, and allows for safe browsing. It minimises the risk of data breaches and can be availed at any retail store or from internet service provider or purchased through any McAfee partner.
Broadcom Inc. was founded in 1960 and is headquartered in Palo Alto, California. It is one of the world’s leading companies providing semiconductor and infrastructure software solutions. It combines its total production capacity, engineering expertise, diverse product portfolio, and sharp operational focus to deliver desired outcomes to its customers.
Established in 1975 and headquartered in Redmond, Washington, Microsoft Corporation is a global leader in enterprise and consumer software solutions. The company offers a vast ecosystem of products including Azure for cloud computing, Dynamics 365 for business operations, and Microsoft 365 for productivity. Microsoft caters to a wide range of industries with tailored digital transformation strategies, leveraging AI, machine learning, and cybersecurity tools.
*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 key players in the market are Alphabet Inc. (Google LLC), IBM Corp., Oracle Corp., SAP SE, Cisco Systems, Inc., Cloud Software Group, Inc., Salesforce, Inc., NortonLifeLock Inc., and VMware, Inc. among others.
Explore the latest trends shaping the global software market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customised consultation on software market trends 2026.
Enterprise Resource Planning (ERP) Software Market
United States Software as a Service (SaaS) Market
United States Personal Finance Software Market
Supply Chain Management Software Market
Australia Digital Marketing Software Market
Proposal Management Software Market
Talent Management Software Market
Brazil Procurement Software Market
Process Mining Software Market
Procurement Software Market
AI and Machine Learning Software Market
Cloud-Based Enterprise Software Solutions Market
Upto 15% Off
USD
$3999 $3599
$2499 $2249
$4999 $4249
$5999 $5099
*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.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the software market reached an approximate value of USD 719.09 Billion.
The market is projected to grow at a CAGR of 9.60% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach a value of around USD 1798.41 Billion by 2035.
Key strategies driving the market include building vertical-focused platforms, scaling low-code modules, optimizing cloud interoperability, collaborating with regional tech hubs, and localizing UX design.
The key trends aiding the market expansion include technological advancements, internal restructuring of companies, and rise in the number of real time applications.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major classifications include application software, system infrastructure software, development and deployment software, and productivity software.
The major players in the market are Microsoft Corp., Alphabet Inc. (Google LLC), IBM Corp., Oracle Corp., SAP SE, Cisco Systems, Inc., Adobe Inc., Broadcom Inc., McAfee Corp., Cloud Software Group, Inc., Salesforce, Inc., NortonLifeLock Inc., and VMware, Inc., among others.
The key challenges found in the software market are fragmented regulatory environments, cybersecurity threats, limited local technological skills in emerging regions, and integration hurdles across legacy systems.
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:
|
| Breakup by Type |
|
| Breakup by Deployment |
|
| Breakup by Organisation Size |
|
| Breakup by Industry Vertical |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share