Business Software and Services Market is estimated to be valued at USD 628.11 Bn in 2025 and is expected to reach USD 1,170.51 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 9.3% from 2025 to 2032.
Increasing deployment of business software and services in various organizations and government sectors for better profitability, lower inventory costs, and faster decision-making fuels the business software market growth. Moreover, the growing need for advanced IT infrastructure and high-speed data networks is expected to propel the market demand in the upcoming years.
|
Current Events |
Description and its impact |
|
Market Consolidation and Innovation Trends |
|
|
Sector-Specific Demand Shifts |
|
|
Regulatory and Trade Dynamics |
|
|
Economic Policy Changes Influencing Investment |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Based on Deployment, the market is segmented into Cloud and On-premise. Out of which, Cloud is expected to dominate the global market over the forecast period and this is attributed to the increasing deployment of cloud-based solutions of various business software and services. This offers various benefits, such as a reduced need for regular manual upgrades and access to data from any location without hassle. For instance, Oracle is providing cloud solutions to accelerate SAP ERP, HCM, and Payroll, including data migration services, modernization, and streamlining business operations.
The on-premise segment is also expected to witness significant growth soon, owing to the increasing shift by companies from manual systems to automated systems for various operations, leading to a rise in demand for on-premise software. Owing to the various advantages of this deployment method, the segment is likely to show steady growth in the future.
Based on Software, the market is segmented into Finance, Sales & Marketing, Human Resources, Supply Chain, and Others. Finance is expected to dominate the global market over the forecast period, and this is attributed to the various benefits of financial management software solutions, such as tools for budgeting, planning, analysis, and reporting. Moreover, these solutions also offer businesses a complete suite of accounting functions for tracking their financial operations and generating annual and quarterly financial statements. For instance, Newgen Software introduced low-code, end-to-end trade finance platform in the Middle East. Banks and financial companies in the region can now use Newgen’s advanced platform to bring together and modernize old and disconnected systems. This helps them work more efficiently, grow faster, and find new business opportunities.
Apart from this, the sales & Marketing segment is also expected to witness significant growth soon, and this is owing to the widespread use of sales acceleration software among businesses for combining sales procedures and tasks. This software offers businesses a detailed overview of a company’s sales team’s work in different locations, products, services, and customers. Due to its various benefits, the adoption of sales and marketing management solutions is increasing, which in turn is driving the growth of this segment.
Based on Service, the market is segmented into Consulting, Managed Services, and Support & Maintenance. Consulting is expected to dominate the global market over the forecast period, and this is attributed to the rise in demand for different consulting services in end-user industries to manage risks related to businesses and detect growth opportunities. The Managed Services segment is also expected to witness significant growth soon, and this is owing to the rise in dependence of enterprises on IT assets to improve their productivity.
Along with this, managed services integrate and manage cloud as well as conventional infrastructures, which in turn drives demand for these services. This is further driving the business software and services market growth. For instance, Uniqus launched a new Tech Consulting practice with digital expertise alongside its financial consulting services.
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Out of which, Large Enterprises are expected to dominate the global market over the forecast period, and this is attributed to the growing adoption of business software solutions in large enterprises owing to the presence of a large amount of data. The related processes and operations need different high-tech tools, which include process blueprints, advanced analytical engines, and real-time data compilation tools. As a result, a rise in the adoption of business software and services in these enterprises. The Small & Medium Enterprises segment is also expected to witness significant growth soon, and this is owing to the increasing government initiatives through SME campaigns, such as social media marketing, video marketing, and search engine marketing.
Based on End-Use, the market is segmented into Aerospace & Defense, BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Transportation, and Others. Out of which, Aerospace & Defense is expected to dominate the global market over the forecast period and this is attributed to the increasing development of intelligent business management software solutions using real-time analytics, leading to real-time visibility into manufacturing operations, optimized inventory levels, and extended supply chain and manufacturing processes. For instance, Honeywell introduced Honeywell Forge Performance+ for Aerospace, a cloud-based platform that uses AI and machine learning to help commercial aerospace manufacturing and maintenance (MRO) facilities improve their processes and reduce costs through digital tools.
Besides this, the BFSI segment is also expected to witness significant growth in the near future, and this is owing to the widespread use of business software in banking and financial institutions due to its enhanced client experience. Moreover, the benefits offered by this software and services such as live tracking of operating transactions, secure transactions, and constant access to the client database. This is further propelling the business software and software services market revenue.
To learn more about this report, Download Free Sample
North America is anticipated to exhibit major growth in the global business software and services market with an estimated market share of 35% in 2025. The region is witnessing growing demand for high-speed data networks, and robust presence of major software vendors. These factors are further leading to a rise in demand for business software and services in the region, which in turn is expected to drive the global business software and services market growth in the region. For instance, the American company Adobe launched Adobe Experience Platform Agent Orchestrator for Businesses to Activate AI Agents in Customer Experiences and Marketing Workflows.
Europe is projected to show significant growth in the global business software and services market over the forecast period. The rise in investments by major firms and the adoption of advanced technologies in enterprises and industries in the region are primarily driving market growth.
Moreover, due to the growing focus on cloud-based facilities and endeavors for developing corporate intelligence solutions, the need for enterprise solutions is increasing in the region, further driving the growth of the market. For instance, the British company PwC introduced Agent OS, a platform that supports advanced multi-agent AI systems for businesses. It brings together AI agents from Anthropic, Google Cloud, and Microsoft Azure to collaborate on complex tasks, encouraging smooth cooperation between different agents.
The growth of the United States Business Software and Services market is driven by fast digital changes, wide use of cloud technology, and the growing need for automation across industries. Companies are spending on AI, machine learning, and smart data tools to improve decisions and work faster. Also, flexible work models and rising concerns about online safety are increasing the need for secure and flexible solutions. Government backing for digital systems and higher spending on software by businesses are also helping the market grow, especially for small and mid-sized firms. For instance, the American company IBM announced tools that let users create AI agents in under five minutes using its Granite models and support for 3rd party agents like Salesforce, Workday, and Adobe.
The growth of India’s Business Software and Services market is being supported by fast digital changes in different industries, government programs like Digital India, and more use of cloud services by small and medium businesses. There is a rising need for automation, data analysis, and AI-based tools, which are changing how companies work.
Also, more spending on IT systems, a strong startup network, and the move to remote and flexible work are speeding up BSS use, making India an important market for global providers. For instance, the government of India has launched programs like the Visvesvaraya PhD Scheme and NIELIT centers to encourage research and training in emerging technologies.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 628.11 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 9.3% | 2032 Value Projection: | USD 1,170.51 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
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. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
The use of business software and services is increasing rapidly in end-use industries due to their support in streamlining business processes. These solutions help large enterprises to provide quick and easy access to unstructured data gathered through data analytics methods. They also help these enterprises to achieve the data security goals of a company. Moreover, implementing business management software in an enterprise offers a significant reduction in the costs of inventory and raw materials, which further helps businesses boost profitability. Thus, with the rising need for operational efficiency and transparency in these operations, the demand for business software and services is increasing, which is further expected to fuel market growth.
Cloud computing technology uses remote servers and the internet for maintaining data and different types of applications. Several businesses are adopting cloud computing technology due to its advantages, such as security, mobility, reduced total cost of ownership, scalability, optimized business processes, customization, and others. The use of cloud computing technology provides scalability through which businesses can customize their computing requirements by either increasing or decreasing them depending on the market demand.
Various advantages, such as a major decrease in costs of raw materials and inventory of enterprise solutions, are creating growth opportunities in the global business software and services market over the forecast period. This further increases the profitability of organizations. Several companies are using business management solutions to increase their efficiency in operations through the integration of administrative processes into a single piece of software. The modules of business solutions can integrate departmental data into real-time updates, which further improves data transparency.
Growing applications in the healthcare industry are expected to offer multiple growth opportunities in the global business software and services market over the forecast period. The demand for improved outcomes and cost-efficiency of supply chain and human resource management software solutions is increasing in the healthcare sector. As a result, demand for supply chain and human resource management software is increasing in hospitals. This is further creating major growth opportunities in the global market.
The demand for mobility and data portability is increasing, leading to the need for data-centric solutions and software for businesses. Thus, market players are increasingly engaging in various growth strategies such as product launches, collaborations, contracts, mergers, and acquisitions to gain a competitive edge in the market. For instance, in October 2022, Epicor introduced various novel features in its Epicor Kinetic software, a cloud-based industry ERP software solution for the manufacturing sector.
Interviews with CIOs, digital transformation heads, enterprise architects, IT procurement leads, implementation consultants, cloud infrastructure strategists, product managers at enterprise software firms, SaaS solution architects, industry-specific ERP integrators, AI/ML application developers, mid-market CTOs, and business development executives involved in the design, deployment, and scaling of enterprise software solutions across BFSI, manufacturing, retail, healthcare, and logistics sectors.
*Definition: Business software allows managers to access a database of important information, such as invoices and client details. Such programs can also help to track the performance of staff and improve efficiency by automating tasks.
Share
Share
About Author
Suraj Bhanudas Jagtap is a seasoned Senior Management Consultant with over 7 years of experience. He has served Fortune 500 companies and startups, helping clients with cross broader expansion and market entry access strategies. He has played significant role in offering strategic viewpoints and actionable insights for various client’s projects including demand analysis, and competitive analysis, identifying right channel partner among others.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
