Major companies in the software products market include Microsoft; HP Inc; Oracle; Dell Technologies and IBM. The global software products market is expected to grow from $930. 93 billion in 2020 to $968.
New York, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Software Products Global Market Report 2021: COVID 19 Impact and Recovery to 2030" - https://www.reportlinker.com/p06018825/?utm_source=GNW
25 billion in 2021 at a compound annual growth rate (CAGR) of 4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1493.07 billion in 2025 at a CAGR of 11%.
The software products market consists of sales of software products by entities (organizations, sole traders and partnerships) that develop, market and distribute software products for commercial and personal use. Software products are usually sold in the form of licenses to use the software for a specified period or permanently. The license generally entitles the buyer to receive updates of the programs. Companies in this industry create and distribute computer software by designing software, providing documentation, assisting in installation and providing support services to software purchasers. Some businesses design, develop and publish; others only publish. The software products market is segmented into operating systems & productivity software publishing; database, storage & backup software publishing; business analytics & enterprise software; video game software; and design, editing & rendering software.
Asia Pacific was the largest region in the global software products market, accounting for 41% of the market in 2020. North America was the second largest region accounting for 35% of the global software products market. Africa was the smallest region in the global software products market.
Top software vendors such as Oracle and SAP have been attempting to penetrate the middle market, to expand their client base and increase overall revenues. These companies have begun offering scaled-down, pre-configured versions of their applications. They are pursuing new distribution channels to sell and distribute their software products and are also acquiring mid-market software companies to increase their market shares and revenues. For example, SAP acquired Business One software to penetrate the middle market.
The software products market is expected to be limited due to high competition in terms of pricing, product portfolio and other factors from market competitors and new entrants in the market, during the forecast period. Existing players in the market are offering wider range of products at competitive process to increase their customer base and boost revenues. A large number of start-up companies are also developing innovative products. As most of these start-ups are funded by venture capital companies, they have sufficient capital for research and development of new software products. Furthermore, the increase in competitors in the market is likely to result in price-wars. This would affect the sales of companies, resulting in lower revenues and profit margins. These price-wars further affect the funding available for research and development projects, this limits the launch of new products, thereby having a negative impact on the market growth.
IoT technology adoption by manufacturing and transportation services companies is expected to drive the software products market in the forecast period. IoT is a network of physical objects such as devices, vehicles, buildings and other items which are embedded with electronics, software, sensors and network connectivity enable these objects to collect and exchange data. For instance, Microsoft and Rolls-Royce have announced a partnership centering on future Rolls-Royce intelligent engines, which will integrate Microsoft Suite into its service solutions to expand its digital capabilities. According to International Data Corporation (IDC), global spending on IoT was around $800 billion in 2017 and is expected to rise up to $1.4 trillion by 2021; this includes hardware, software and services for IoT technologies. Thus, IoT technology adoption is expected to expand the demand for software products.
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