DUBLIN, Jan. 6, 2023 /PRNewswire/ — The “Global Enterprise Software Market Size, Share & Industry Trends Analysis Report By Deployment (On-premise and Cloud), By Type, By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By End-use, By Regional Outlook and Forecast, 2022 – 2028” report has been added to ResearchAndMarkets.com’s offering.
The Global Enterprise Software Market size is expected to reach $404 billion by 2028, rising at a market growth of 11.1% CAGR during the forecast period.
Market Growth Factors
Enhancements In Software And Business Processes
With the rising use of automation and techniques like lean manufacturing, industries have seen an increase in their efficiency, which can also be seen with business software. Routine tasks are being automized so that employees can concentrate more on other important tasks. Organizations may also eliminate slow or inaccurate tasks from the workflow. Enterprises can now point out problems and their solutions at early stages with the use of process mapping tools to trace assets and workflows throughout the organization.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions.
Increasing Use Of Customer Relationship Management Software And Big Data Analytics
CRM oversees the management of a company’s relationship with its customers more precisely. CRM has features like sales force automation, contact management, and marketing automation which assist businesses in customer satisfaction and sales. More businesses are moving towards big data analytics tools to provide them with solutions as these organizations are starting to deal with huge volumes of data. These solutions help to make better business decisions as they provide market trends and valuable insights into customer behavior.
Market Restraining Factors
High Implementation And Adoption Cost Of The Software
Using enterprise software drains a huge amount of capital, and time and takes skills. Due to the project planning, installation, system configuration, and training the implementation process is usually long which adds up to the high cost of the enterprise software. In addition to that, an organization may also need updated network equipment, new hardware, and security software installations, which also add up the costs. Requirement of employees and maintenance of the system will also increase the expenditure.
Based on the Type, the Enterprise Software Market is segmented into Customer relationship management, Business intelligence, Content management, Enterprise resource planning, Human Resource Management, Supply Chain Management, and Others. The supply chain management segment witnessed a significant revenue share in the enterprise software market in 2021. A supply chain creates finished products out of raw materials that are to be delivered to the customers. It consists of a complex system of activities and organizations like manufacturers, raw material suppliers, distributors, customers, and retailers.
By Deployment, the Enterprise Software Market is classified into Cloud and On-premise. The on-premise segment procured the largest revenue share in the enterprise software market in 2021. It is due to the ability to provide consistent services and enhanced data security without an internet connection. Moreover, on-premise software provides flexible system access to multiple users without affecting the speed of data transmission. Organization gets more control in their hands while using on-premise software while also including data security.
Enterprise Size Outlook
Based on the Enterprise Size, the Enterprise Software Market is bifurcated into Large Enterprises and Small & Medium Enterprises. The large-enterprise segment garnered the highest revenue share in the enterprise software market in 2021. A business operation like marketing, talent management, sales, inventory management, and production of large enterprises is overseen by enterprise software. To reduce workforce costs and human intervention these enterprises are automizing their various business processes, which boosts the demand for enterprise software with Machine learning (ML) and Artificial intelligence (AI).
On the basis of End-use, the Enterprise Software Market is categorized into BFSI, Government & Education, Healthcare, IT & Telecom, Manufacturing, Retail, Transportation, and Others. The government & education segment recorded a remarkable revenue share in the enterprise software market in 2021. There is growth in the government & education sector due to the need for automizing management to carry out business processes. The demand for these solutions is also increased by the advancement of administrative modules.
Region-wise, the Enterprise Software Market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North American region procured the highest revenue share in the enterprise software market in 2021. It is due to the rising usage of cloud-based enterprise software solutions due to the low maintenance and high efficiency. End-use companies raised their investments as they opt for digitalizing their businesses. Strategic partnerships between industry players and technology providers increase to raise their revenues from the market.