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Computer & Application Software Market: Industry Trends & Statistics

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Global Software Industry

In the world software market, home use and general business applications lead the market at almost $64 billion, accounting for around a quarter of the overall market, which encompasses systems and application software. The former includes network and database management, operating systems and other systems software, while the latter involves application software for office and home and vertical applications.

The software market (which especially encompasses the video game industry) is extremely globalized, with expansion proving fastest in developing markets. Over the past twenty years, there has been extensive consolidation within the software industry. Revenue recognition is a significant challenge for the industry.

Software Key Market Segments

Collaboration through enterprise social software and rising productivity are two factors fuelling the enterprise social software market growth. The adoption of social software in the workforce and security sector may prove an obstacle to market growth.

The entertainment industry’s adoption of 3D animation is driving the global 3D animation software market expansion. Obstacles to market expansion include a lack of open source software. Key players operating in this market include MAXON Computer, Side Effects Software, Electric Image and Autodesk.

The global content management software market is expected to reach almost $13 billion by 2017, according to Global Industry Analysts. Market growth is driven by the shift towards content digitization and information retention regulations. Enterprise software budgets have expanded due to a trend towards using the web to build client relations and brand awareness. Regions showing the most potential include the Middle East, Asia, and Africa.

In the world telecom billing software market convergent billing demand continues to rise. Incorrect billing is a major driver behind this market. Obstacles to market expansion include frauds and non-performing accounts. Major companies operating in this market include Intec, Convergys, Ericsson, Huawei, and Oracle.

The global professional service automation software industry is expected to reach almost $8 billion by 2017, reports Global Industry Analysts. The economic recession negatively impacted IT budgets, but the PSA market remains buoyant as companies opt for IT solutions to streamline activity around business development, service delivery and effectively assigning resources. The US and the EU account for the largest share of the global market.

The global cloud computing market is being driven, in part, by the widespread adoption of smartphones and by de-monetization of software, turning into open source projects. Businesses are availing of cloud services in an effort to cut costs, adapt quickly to market trends and step up time-to-market.

Software industry Regional Market Share

In the US software market, network and database management are the leading segments, which represents almost 25% of the overall US software market.

In India’s software market, network and database management represent the most profitable market segment at almost $565 million, or a quarter of the total market.

In China’s software market, network and database management represent the leading segment, at almost $3.5 billion, accounting for more than 27% of the overall market.

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