Software Market Is Projected To Grow Robustly By 2030

Software Market Summary

The global software market size was estimated at USD 730.70 billion in 2024 and is projected to reach USD 1,397.31 billion by 2030, expanding at a compound annual growth rate (CAGR) of 11.3% from 2025 to 2030. This substantial growth is attributed to several key driving forces, including ongoing technological innovations, supportive government policies, and continuous research and development efforts aimed at enhancing the performance, security, and scalability of software systems across sectors.

The surge in the adoption of cloud-based solutions is significantly reshaping the software landscape. Organizations are increasingly moving their operations to the cloud to gain scalability, reduce infrastructure costs, and improve accessibility. Additionally, digital transformation initiatives across industries are fueling demand for advanced software platforms that can automate processes, improve operational efficiency, and enhance customer experiences. The growing integration of Artificial Intelligence (AI) and Machine Learning (ML) capabilities into software products is also transforming how businesses analyze data, automate decisions, and personalize user interactions.

Moreover, the rise of the Internet of Things (IoT) and the advancement of smart city projects globally are creating an increased need for intelligent software systems. These emerging technologies require sophisticated software tools capable of handling vast and complex datasets in real time, supporting functions such as predictive maintenance, infrastructure monitoring, traffic control, and energy optimization. This evolution is expanding software deployment across industries such as healthcare, transportation, finance, and manufacturing.

Key Market Trends & Insights

• In terms of revenue contribution by segment, the software segment led the global market in 2024, accounting for more than 44% of total revenue. This dominance is driven by the consistent demand for customized enterprise software, productivity tools, and application development platforms that enhance business agility and productivity.
• Regarding deployment, the on-premises segment held the largest revenue share in 2024. Many enterprises, especially those handling sensitive data such as financial services and government agencies, prefer on-premises solutions due to concerns over data security, compliance, and control over internal IT infrastructure. However, hybrid and cloud-native models are expected to gain traction over time.
• By organization size, large enterprises dominated the software market in 2024 due to their high adoption of complex data integration and management software. These organizations often have diverse IT environments and vast datasets that require robust software solutions for real-time processing, analytics, and compliance management.
• Geographically, the North America region led the global software market in 2024, contributing over 41% of global revenue. The region’s dominance is driven by the strong presence of leading software vendors, high digital adoption across industries, and continued investment in emerging technologies such as AI, blockchain, and cloud computing. The U.S., in particular, is projected to see substantial growth in the software industry over the forecast period, supported by increasing enterprise software spending and innovation in cybersecurity and data analytics.

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Market Size & Forecast

• 2024 Market Size: USD 730.70 Billion
• 2030 Projected Market Size: USD 1,397.31 Billion
• CAGR (2025-2030): 11.3%
• North America : Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Several prominent players continue to shape the global software landscape, including IBM Corporation, McAfee Corporation, Oracle, and NortonLifeLock Inc., each offering a diverse range of software solutions catering to enterprise, government, and consumer markets.

• McAfee Corporation is a global leader in cybersecurity software and services, offering end-to-end solutions for threat detection, prevention, and response. The company’s product portfolio includes antivirus software, endpoint protection, and cloud-native security platforms designed to safeguard users and organizations against evolving cyber threats. McAfee is recognized for its advanced threat intelligence, AI-driven defense mechanisms, and commitment to cybersecurity innovation.
• IBM Corporation is a multinational technology and consulting company that provides a wide suite of software solutions tailored to data integration, analytics, cloud services, and enterprise operations. One of its flagship offerings, IBM DataStage, is a powerful ETL (Extract, Transform, Load) tool widely used for data warehousing and business intelligence applications. IBM’s software tools support complex data environments, helping organizations unlock insights, optimize workflows, and drive smarter decision-making across industries.

Key Players

• IBM Corporation
• McAfee Corporation
• Microsoft
• SAP
• Oracle
• NortonLifeLock Inc.
• Adobe Inc.
• VMware Inc.
• Block, Inc.
• Intuit Inc.

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Conclusion

In conclusion, the global software market is poised for robust growth, driven by the rapid adoption of cloud computing, AI integration, IoT, and digital transformation initiatives across industries. As businesses prioritize agility, scalability, and security, demand for advanced software solutions continues to rise. Key players like IBM and McAfee are innovating to meet evolving enterprise and consumer needs. With strong momentum in North America and emerging opportunities globally, the software industry is expected to remain a cornerstone of technological progress. As data-driven operations become the norm, software will play a central role in shaping future digital ecosystems and competitive strategies.