Enterprise Software Market Analysis

Enterprise Software Market Overview

The Enterprise Software Market is projected to grow from USD 403.4 billion in 2024 to USD 786.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.0% during the forecast period (2024 - 2032). Additionally, the market size for enterprise software was valued at USD 365.4 billion in 2023.

Increased need for corporate software, and investors have provided significant money to the sector, being the key market drivers for market growth.

Figure 1: Enterprise Software Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, MRFR Database, Primary Research, and Analyst Review

Enterprise Software Market Trends

Boosters to the market growth of the Software Enterprise

The enterprise software market forecast suggests that there is a requirement for a good customer experience that is well-catered by the services of this market. The enterprise software offers support in simplifying the process of CRM. This is the best way to render a good customer experience, which has a major role in customer retention rate, as well. The momentous growth in digitization and social media marketing are other drivers fueling the market growth by the end of the future forecast in 2023.

Further, the deployment scale of the enterprise software market industry is quite high in terms of the cost incurred, time, as well as the need for expertise. Also, the execution processes require a good level of expenditure. These include the proper planning, organizing, training, installation, as well as system layout. The cost is further increased due to the deployment of the new ERP hardware and software, along with network equipment, employee training, and much more.

Additionally, the forecast year of 2023 is a step forward to the era of digitization. The market has shown a great rise in the marketing platforms on social media that are fueling the need for enterprise software. This market is also boosting the idea of e-commerce in various sectors of the market. Therefore, Along with the establishment of direct professional relationships and growth merchandise of the online players, great use of the market technology is coming across in a commendable manner enhanced the Enterprise Software market CAGR and thus are the factors for driving the growth of the enterprise software market revenue.

Enterprise Software Market Segment Insights

Enterprise Software Type Insights

The enterprise software market segmentation type segment of the enterprise software market is based on web conferencing collaboration, business intelligence (BI), (SCM), (CRM), and ERP. The CRM segment recorded the largest share of about 25.0% in 2021. Customer relationship management software is used for conducting consumer analytics, enhancing customer retention, making a centralized client information database, automatic sales reports, sales forecasting, and streamlining internal communications. Market players are focusing on unveiling new CRM solutions for enterprises to increase their customer bases.

However, the ERP segment is expected to register an approx. CAGR of 10.7% from 2022 to 2030. Enterprise resource planning software is showing high demand owing to its capabilities to assist end-user concerns to lessen their inventory and R.M. costs and offers smooth cross-functional intelligence flow. The ERP software vendors are combining with technology providers to improve the productivity of their software and lower the development cost of the software with respect to increasing the enterprise software market revenue.

April 2022: Freshworks Inc. launched a new customer relationship management solution, Freshworks CRM for e-commerce, which gives an allied platform for managing sales, customer support, and retention. This solution also assists final companies in improving their interaction with customers through modern messaging channels such as e-mail and WhatsApp.

Enterprise Software Organization size Insights

The enterprise software market data, based on the size of the organization, there are SMEs- small and medium size enterprises and large enterprises. The large enterprise segment accounts for the largest share of approximately 60.0% in 2021. These enterprises use their enterprise software to run their business operations, such as finance, marketing, sales, production, and IM. These enterprises are focused on automating their various business tasks to reduce human intervention and workforce costs.

Moreover, Small and medium enterprises (SMEs) are also expected to grow at a significant rate of 13.2% from 2022 to 2030. These are significantly adopting enterprise software to enrich employees’ productivity, quickly enlarging the customer base, minimizing compliance risks, and increasing business profitability to positively impact market growth.

April 2022: HPE introduced HPE Machine Learning Development System to enable organizations to build AI and ML models and scale up their businesses faster without any requirement for other platforms. The company has offered various tools in its ML development system for model creation, which eliminates programming complexity and enhances the software's operational efficiency. This further widened the growth opportunity for the Enterprise Software industry.

Figure 2: Enterprise Software Market, by Surgery, 2021 & 2030 (USD Billion)

Source: Secondary Research, MRFR Database, Primary Research, and Analyst Review

Enterprise Software Vertical Insights

Based on vertical, the Enterprise Software industry has been segmented into BFSI, healthcare, retail, IT & Telecommunication. The IT and telecom segment recorded the largest market share of over 20.0% in 2021. These companies are digitalizing their business workings to show greater transparency to business workings and accelerate their product development process. IT and telecom enterprise software givers are focusing on developing 5G- specific enterprise software to gain higher profitability in the IT and telecom sector.

In October 2021, Dell Technologies, Inc. launched new telecom software to help organizations accelerate their cloud-native and open-network deployments in India. This software plays a crucial role in automating the deployment and management of thousands of servers across diverse geographic locations in the Region.

Enterprise Software Regional Insights

By Region, the study states the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America recorded the largest share of over 40.0% in 2021. The gain can be attributed to the rising use of cloud-based enterprise software solutions owing to high working efficiency and low costs. The reason behind this domination is related to big data analytics, along with cloud computing services.

Further, the main countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: ENTERPRISE SOFTWARE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, MRFR Database, Primary Research, and Analyst Review

The Europe Enterprise Software market accounts for the fastest-growing market. The market players operating in the Region are focusing on establishing strategic partnerships with technology providers to increase their revenues from the market. Further, the Germany Enterprise Software market held the largest market share, and the UK Enterprise Software market was the fastest-growing market in the European Region.

The Asia-Pacific Enterprise Software Market is the second-largest and is expected to grow at the fastest CAGR from 2022 to 2030. Factors like the wide demand for business analytics and the need for intelligence applications are expected to fuel market growth. Moreover, the China Enterprise Software market held the largest market share, and the India Enterprise Software market was the fastest-growing market in the Asia-Pacific region.

Furthermore, adopting cloud computing services is another prime parameter supporting the regional market's growth over the review era. Moreover, aspects such as the introduction of modern technology, the rise of improved & well-established facilities, and rapidly growing cloud computing programs are likely to boost the regional market's growth over the coming years.

Enterprise Software Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Enterprise Software market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the enterprise software industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the enterprise software industry to benefit clients and expand the market sector is to produce locally to reduce operating costs. In the enterprise software markets, major players such as Microsoft Corporation (US), IBM Corporation (U.S.), and others are working on expanding the market demand by investing in research and development activities.

Microsoft was established by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. Microsoft Corp. engages in the development and support of software, services, devices, and solutions. It works through the following business segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. For Instance, in March 2020, Microsoft Corporation partnered with Blockchain technology solutions company, Lition to integrate Blockchain technology into the Microsoft Azure cloud platform.

Also, IBM was incorporated in 1911 as the Computing-Tabulating-Recording Company in a consolidation of three smaller companies that made punch-card tabulators and other office products. IBM Corporations, USA, entered into an agreement with Salesforce for the incorporation of AI-related platforms. The main idea behind this is to deliver customer service that is improvised and reliable, Einstein belongs to Salesforce, and the cloud computing technology allied to IBM is popular with the name Watson.

Key Companies in the Enterprise Software market include

• Microsoft Corporation (U.S.)


• VMware Inc. (U.S.)


• CA Technologies Inc. (U.S.)


• IBM Corporation (U.S.)


• HP (U.S.)


• Symantec Corporation (U.S.)


• Oracle Corporation (U.S.)


• EMC Corporation (U.S.)


• Sap Se (Germany) 

Enterprise Software Industry Developments

February 2024:

ITC, a Colombian software provider, leverages Oracle Cloud Infrastructure (OCI) to launch a new SaaS business model, expanding its customer base and enhancing customer satisfaction. This move underscores OCI's role in supporting ITC's growth, facilitating entry into new markets, and fostering the adoption of innovative technologies. With a focus on the financial sector, ITC's solutions target operational, financial, and accounting processes, aligning with the demands of the enterprise software market.

January 2024:

The SAP S/4HANA Cloud Public Edition 2402 update introduces AI-powered features like Joule for enhanced user interaction and productivity. It focuses on improving sales order processing, material inspection, and offers a modern user experience through SAP Fiori. Additionally, it emphasizes advancements in finance, operations, service management, and manufacturing, aligning with market trends and showcasing SAP's leadership in enterprise software innovation.

January 2023:

The 2023 release wave 1 for Dynamics 365 introduces new features across various applications such as Marketing, Sales, Customer Service, Field Service, Finance, Supply Chain Management, Project Operations, Human Resources, Commerce, Fraud Protection, Business Central, Guides, Customer Insights, and Customer Voice, along with Microsoft Viva Sales and the Microsoft supply chain platform. These enhancements aim to empower organizations in transforming their business processes, enhancing productivity, and improving customer experiences.

Enterprise Software Market Segmentation

Enterprise Software Type Outlook

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  ERP

  
  


• 
  

  CRM

  
  


• 
  

  BI

  
  


• 
  

  SCM

  
  


• 
  

  Web Conferencing Collaboration

  
  

Enterprise Software Organization Size Outlook

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  SMEs and Large Enterprises

  
  

Enterprise Software Vertical Outlook

• 
  

  BFSI

  
  


• 
  

  Healthcare

  
  


• 
  

  Retail

  
  


• 
  

  IT & Telecommunication

  
  

Enterprise Software Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America