The global software market size was valued at USD 51.08 billion in 2021 and is expected to register a CAGR of 8.7% from 2022 to 2028. The surge in the volume of enterprise data, rising automation of business processes, and growing digitization are the major drivers for the software market. Moreover, rising network security and privacy concerns are other factors that support the software market. COVID-19 outbreak positively impacted the software market. The increasing concern of cyber threats during COVID-19 has stimulated companies to implement software solutions and configure malware protection, recognition, and mitigation strategies, thus fueling the growth of the software market.
Recent years have observed a considerable adoption of software solutions, driven by the increase of e-commerce, large technology developments such as artificial intelligence and IoT, and the growing number of connected devices. The rising sophistication of malware and methods of attack as well as the growing accessibility of it has led to the development of an advanced cybersecurity software market, including innovative and varied cybersecurity tools and solutions.
World Software Market Share
The COVID-19 pandemic has positively affected the software market. During the COVID-19 pandemic, various incidences and cases of cybercrimes were detected across several sectors. The shift toward a remote working model has also augmented the danger of cyber threats across companies. The increasing concern of cyber threats has stimulated enterprises to implement software solutions and organize malware protection, detection, and mitigation strategies, thereby driving market growth.
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 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.
Asia Pacific is forecast to register the highest CAGR of 9.4% from 2022 to 2028. China and India are the two major countries contributing to the high generation of the software market in this region. This can be due to enterprises in the Asia Pacific, taking opportunities to go beyond safeguarding their conventions and compliances and applying technology to limit threats on enterprise devices. Furthermore, Asia Pacific has the maximum adoption of mobile devices and connected devices that are greatly susceptible to endpoint attacks. Thus, the region is expected to expand at the fastest CAGR during the forecast period.
Regional analysis revealed that North America accounted for a significant market share of around 40% in 2021. According to International Data Corporation (IDC) data, the U.S. was the major country in the world that contributed largely to the generation of the software market. Increased spending on software solutions By large enterprises and SMEs in the region contributed to a large generation. Besides, the increasing stringency of data privacy and security standards and policies are the factors that contribute to more generations in North America.
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global software market on the basis of type, deployment mode, and region:
The software products market research report is one of a series of new reports from The Business Research Company that provides software products market statistics, including software products industry global market size, regional shares, competitors with a software products market share, detailed software products market segments, market trends and opportunities, and any further data you may need to thrive in the software products industry. This software products market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The global software products market grew from $1333.48 billion in 2022 to $1500.2 billion in 2023 at a compound annual growth rate (CAGR) of 12.5%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The software products market is expected to grow to $2357.31 billion in 2027 at a CAGR of 12.0%.
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 $1.4 trillion in 2021; this includes hardware, software and services for IoT technologies. Thus, IoT technology adoption is expected to expand the demand for software products.
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 a 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 the 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.
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.
Major companies in the software products market include Microsoft, Oracle Corp, Google, salesforce.com, Tencent Holdings Co Ltd., International Business Machines Corporation, Adobe Systems Incorporated, Nintendo Co Ltd., Fiserv, Inc. and Sony Corp.
Asia-Pacific was the largest region in the software products market in 2022. North America was the second largest region of the software products market. The regions covered in the software products market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the software products market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.
A video management system refers to a video management server that contains a security camera system that helps to collect the videos from cameras. The video management system is crucial because it keeps track of every system and offers a quick overview, alerting security to any potential dangers, threats, occasions, or planned tasks. It includes cameras, servers for video processing and storage, and encoders for analog cameras. The video management system helps users to monitor events from any surveillance such as CCTV cameras, alarms, and sensors.The main types of components in a video management system are solutions and services. The video management system as a solution is fulfilling the need for a surveillance system and storage of surveillance footage. The different technologies include analog based VMS and IP-based VMS. The various organisation size includes large enterprises and SMEs. The different deployment types include on-premises and cloud. The several applications include mobile application, intelligent streaming, security and surveillance, storage management, data integration, case management, navigation management, and other.The video management system market research report is one of a series of new reports from The Business Research Company that provides video management system market statistics, including video management system industry global market size, regional shares, competitors with a video management system market share, detailed video management system market segments, market trends and opportunities, and any further data you may need to thrive in the video management system industry. This video management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.The global video management system market size grew from $8.98 billion in 2022 to $11.12 billion in 2023 at a compound annual growth rate (CAGR) of 23.9%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The video management system market size is expected to grow to $24.12 billion in 2027 at a CAGR of 21.4%.An increase in security surveillance is expected to propel the growth of the video management system market going forward. Surveillance refers to the monitoring of the behaviour and activities for information gathering, influencing, and managing. The video management system is used to manage data streamed from various surveillance devices such as security cameras. It helps the user to access real-time videos, record, store, and playback recorded videos, and derive useful insights from the surveillance site. For instance, according to an article published in August 2022 by EarthWeb, a US-based provider of internet-based online services, the United States has 15.28 cameras per 100 people and China has 14.36 cameras installed per hundred. Therefore, an increase in security surveillance is driving the growth of the video management system market.Technological advancement is a key trend in the video management system market. Major companies operating in the market are introducing new technologies to sustain their position in the market. For instance, in April 2022, Qognify, a US-based software company launched Qognify VMS, new video management software that stores video data in the cloud to meet the specific physical security needs of organizations. This enables customers to scale storage space quickly, keep the hardware footprint small, and benefit from the resiliency of cloud technology.In March 2022, Motorola Solutions, a US-based telecommunications equipment, and software systems company acquired Ava Security Limited for an undisclosed amount. Through this acquisition, Motorola is well-positioned to support customers' evolving security needs by expanding its portfolio of intelligent video solutions that help to enhance safety and streamline operations. Ava Security is a UK-based software company.Major players in the video management system market are March Networks Corporation, Exacq Technologies Inc., Milestone Systems, Verint Systems, AxxonSoft, Genetec, Salient Systems Corporation, Aimetis Corporation, 3VR Security, On-Net Surveillance Systems Inc., Hanwha Techwin, Honeywell International Inc., Axis Communications, and Johnson Controls International.Asia-Pacific was the largest region in the video management system market in 2022 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the video management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.The countries covered in the video management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.The video management system market includes revenues earned by entities by providing services such as video intelligence, case management, professional service and managed service. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.The global video management system market is segmented -1) By Component: Solution, Services2) By Technology: Analog-Based VMS, IP-Based VMS3) By Organization Size: Large Enterprises, Small and Medium Enterprises (SMEs)4) By Deployment Type: On- Premises, Cloud5) By Application: Mobile Application, Intelligent Streaming, Security And Surveillance, Storage Management, Data Integration, Case Management, Navigation Management, Other Applications 2ff7e9595c
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