The world software market exceeded $265 billion in 2010, according to MarketLine. Market growth is expected to exceed 6% yearly between 2010 and 2015, bringing the market to almost $357 billion. 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 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.
Key Market Segments The world enterprise social software industry is expected to record yearly growth of almost 18% between 2010 and 2014, reports TechNavio. Collaboration through enterprise social software and rising productivity are two factors fuelling market growth. The adoption of social software in the workforce and security sector may prove an obstacle to market growth.
TechNavio estimates the world global 3D animation software market will exceed 17% early growth between 2010 and 2014. The entertainment industry’s adoption of 3D animation is driving 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 toGlobal 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 Middle East, Asia and Africa.
TechNavio forecasts close to 4.5% yearly growth for the world telecom billing software market between 2010 and 2014. 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, Oracle 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.
Visiongain estimates the global cloud computing market will reach $83 billion by 2016, from under $31 billion in 2011. The market is being driven, in part, by widespread adoption of smartphones. Businesses are availing of cloud services in an effort to cut costs, adapt quickly to market trends and step up time-to-market.
Regional Market Share The US software market reached almost $101 billion in 2010, reports MarketLine. The market is expected to record almost 5% yearly growth between 2010 and 2015 to reach $126 billion. Network and database management are the leading segment, reaching almost $25 billion in 2010, which represents almost 25% of the overall US software market.
India’s software market reached close to $2.5 billion in 2010, according to MarketLine. The market is expected to record 14% yearly growth between 2010 and 2015 to reach almost $4.5 billion. Network and database management represent the most profitable market segment at almost $565 million, or a quarter of the total market.
MarketLine estimates China’s software market exceeded $12.5 billion in 2010. Market growth is expected to remain around 15% yearly from 2010 to 2015, bringing the market to over $25 billion. Network and database management represent the leading segment, at almost $3.5 billion, accounting for more than 27% of the overall market.
Industry Leaders The key players in the global software market include: Symantec, Apple, Adobe, IBM, Oracle and Microsoft. Market Outlook Professionals and private consumers are increasingly reliant on computing for smooth day-to-day living. Companies seek to optimize profit through efficient software use, while private consumers use software for many reasons including work, organization and entertainment.
Other market segments, such as professional service automation, cloud computing and content management software are increasingly popular with businesses seeking to optimize their activities. The global software market is expected to continue recording strong growth across all major segments.