Global Software Market Overview
The global software market size has witnessed staggering growth in recent decades and is expected to continue its acceleration in the coming years. Software has become essential for enterprises as modern-day equipment such as computers, smartphones, wearable devices, and automated machinery help businesses around the world to conduct business more efficiently. As businesses continue to rely further on various types of software, the global software market will continue to thrive. This blog explores some of the top software market trends to watch in 2019.
Technological developments and advancements of newly emerged software and the growing demand in the enterprise software market are continuously the primary factors driving global software market growth. In 2019, more and more businesses across different industries will begin to witness the increasing impact from these emerging software market trends – including artificial intelligence, blockchain, and cloud services.
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Global Software Market Analysis
The global software market size is already worth hundreds of billions of dollars and is expected to grow at a CAGR of more than 7% by the end of 2022. The software market has numerous major end-user industries including retail, manufacturing, banking, financial services and insurance, enterprises, academia and government, healthcare, and telecommunication. By product type, some of the major segments include customer relationship management (CRM) software, supply chain management software, business intelligence software, enterprise resource planning software, and business process management.
Geographically, North America is currently the largest software market in the world, representing over 40% of the global software market share. The US is the top regional market in terms of software market revenues, as it is the home of many world’s largest software companies, including Oracle, Microsoft, and IBM. However, the fast-growing software demand in Asia Pacific, particularly led by China and India are expected to play a pivotal role in the global software market growth over the next few years.
Top Software Market Trends to Watch in 2019
1. Artificial Intelligence (AI) and Blockchain Technology will go Hand in Hand
Artificial intelligence in the software and IT industry is one of the keys to increasing efficiency and productivity. AI applications have combined machine and deep learning algorithms with automated processes to make business simpler and easier. Today, many large software companies are already integrating AI capabilities into cloud-based enterprise software and an increasing number of small and medium sized businesses are also adopting AI applications into their everyday business. We forecast the size of the global Artificial Intelligence-as-a-service (AIaaS) market will increase over USD 9.4 billion during 2019-2023.
Blockchain is also expected positively impact the global software market in 2019. As the whole world is increasingly connected, digital security and privacy protection have become a top priority. Blockchain offers a robust way to secure and manage user identities. Therefore, it is vital for businesses to implement these technologies to make their offerings more secure. Our latest analysis forecasts the global blockchain technology market size to grow steadily at a CAGR of around 56% by 2021.
2. Cloud Services is More Important than Ever
Cloud services are giving businesses a great opportunity to considerably reduce their technology management costs in the most effective way. Due to these benefits, the global enterprise cloud services market will grow at a significant CAGR of close to 24% from 2018 to 2022. An increasing number of enterprises of all sizes are expected to rapidly adopt cloud computing by moving their IT systems and software applications to cloud based platforms in 2019 as a part of their digital transformation initiatives. The widespread availability and increased adoption of different cloud-based services by companies will also facilitate the enterprise cloud services market and become one of the top software market trends over the next few years.
3. CRM Software is Used Beyond the Conventional Sales Department
Customer relationship management software has become an essential tool in today’s interconnected business world. It is also one of the fastest growing segments in the global software market. CRM software is not only used for conventional sales department as now businesses of all sizes are increasingly understanding the importance and value of data management and analytics. A large number of companies now rely on analytics services to transform unstructured information into the structured information that is collected from various channels. They are increasingly using advanced analytical CRM software and tools to understand the pattern related to consumer behaviours. Today’s CRM software solutions offered by many world’s top CRM software companies can address enterprise’s requirements in different business processes as well as allow for flexibility and customizations. Therefore, the adoption of CRM software is projected to be much wider, making it one of the top trends to watch in the global software market for 2019.