Software Market is Set to Garner Staggering Revenues by 2028

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Apr 13

Software Market Growth & Trends

The global software market size is estimated to reach USD 91.6 billion by 2028 and is expected to grow at a CAGR of 8.7% from 2022 to 2028, according to a new report by Grand View Research, Inc. The increase in the volume of enterprise information, growing automation of business processes, and rising digitization are the major factor driving the growth of the software market. In addition, rising network security and privacy concerns are other factors driving the software market. However, high costs of licensing and support are the major restraining factor for the software market. Most of the key players working in the market implement different strategies such as collaboration and acquisition to grab maximum share in the software market. For instance, McAfee has collaborated with Atlassian for innovative information security and risk protection for clients seeing to accelerate their move to the cloud.

U.S. software market size, by deployment mode, 2019 - 2028 (USD Billion)

Software Market Segmentation

Grand View Research has segmented the software market based on type, deployment mode, and region:

Based on the Type Insights, the market is segmented into Subscriptions, Endpoint, Network, Messaging, and Web Security, Identity and Access Management, Risk Management.

The subscriptions segment dominated the market and contributed a share of over 50% in 2021 and is projected to witness a CAGR of 8.8% from 2022 to 2028. As per the survey, all new software entrants and 80% of historical players are offering subscription-based software. For businesses, subscription-based software licensing makes it easier to recognize and assign costs for separate business units or departments. Due to the reasons mentioned above, it is one of the most preferred types of software and thus subscriptions segment contributes more to the market.
The endpoint, network, messaging, and web security segment is expected to witness the highest CAGR of 9.2% from 2022 to 2028. It mainly secures endpoints and remote devices used in organizations from viruses, and malware, as well as advanced threats, such as zero-day malware and advanced persistent threats. Moreover, it enables constant detection and response to innovative cybersecurity threats and considerably increases threat detection, security checking, and incident response abilities for companies across verticals. Due to all of its advantages endpoint, network, messaging, and web security demand is growing rapidly and expected to expand at the fastest CAGR during the forecast period.

Based on the Deployment Mode Insights, the market is segmented into On-premises Software and Cloud-based Software.

The analysis estimates that the on-premises software segment contributed to the largest market share of above 70% in 2021. The primary reason for the high demand for on-premises software is the regulatory, compliance, and security requirements. Organizations choose to keep confidential information in-house rather than giving it over to cloud providers. Moreover, storing information in-house decreases dependencies on third-party organizations and helps protect and monitor data clearly. Thus, the on-premises software segment demand is high and contributes more to the market.
On the other hand, the cloud-based software segment is expected to register the highest CAGR of 9.2% from 2022 to 2028. As per the survey, in recent years cloud-based software has made major inroads, with all industries reaching at least 20% penetrations. The migration of on-premises software to cloud-based software is due to low upfront and infrastructure maintenance costs. Furthermore, the need to access applications across devices and remote places is increasing the demand for cloud-based software. Thus, cloud-based software is expected to increase at the fastest CAGR during the forecast period.

Software Regional Outlook

North America
Europe
Asia Pacific
Central & South America
Middle East and Africa (MEA)

Key Companies Profile & Market Share Insights

The market is characterized by the presence of established as well as new players. Major players operating in this market are actively focusing on mergers & acquisitions to capitalize on their market positions. In addition, emerging and innovative companies are involved in upgrading existing software offerings, as well as establishing partnerships to increase their market shares.

Some of the prominent players operating in the global software market include,