Major companies in software products market include Microsoft, Oracle Corp., Google, Salesforce. com, Tencent Holdings Co. Ltd., International Business Machines Corporation, Adobe Systems Incorporated, Nintendo Co.
New York, March 21, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the “Software Products Global Market Report 2022” – https://www.reportlinker.com/p06246415/?utm_source=GNW
ltd., Fiserv, Inc. and Sony Corp.
The global software products market is expected to grow from $1,141.43 billion in 2021 to $1,307.59 billion in 2022 at a compound annual growth rate (CAGR) of 14.6%. The growth is mainly due to companies reorganizing their operations and recovering from the impact of COVID-19, which had previously led to restrictive containment measures involving social distancing, remote working and the closure of business activities that resulted in operational challenges. The market is expected to reach $2,157.19 billion in 2026 with a CAGR of 13.3%.
The software products market includes sales of software products by entities (organizations, sole proprietorships, and partnerships) that develop, market, and distribute software products for commercial and personal use. Software products are generally sold in the form of licenses to use the software for a fixed period or on a permanent basis.
The license generally entitles the purchaser to receive program updates. Companies in this industry create and distribute software by designing software, providing documentation, assisting with installation, and providing support services to software purchasers.
Some companies design, develop and publish; others only publish.
The main types of software products are operating systems and productivity software publishing, database, storage and backup software publishing, business and enterprise analytics software, software video games and design, editing and rendering software. Business and enterprise analytics software tools are types of software applications that retrieve data from one or more business systems and combine it into a repository, such as a data warehouse, to be examined and analyzed.
Enterprise software is computer software used to satisfy the needs of an organization rather than individual users. Software products have applications in large enterprises and small and medium enterprises.
The various end user industries are BFSI, Media & Entertainment, IT & Telecom, Energy & Utilities, Government & Public Sector, Retail & Consumer Goods, Manufacturing and others.
Asia Pacific was the largest software products market region in 2021. North America was the second largest software products market region.
Regions covered in software products market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East & Africa.
The adoption of IoT technology by manufacturing and transportation service companies is expected to drive the software product market over the forecast period. IoT is a network of physical objects such as devices, vehicles, buildings, and other things integrated with electronics, software, sensors, and the network. connectivity allows these objects to collect and exchange data.
For example, Microsoft and Rolls-Royce announced a partnership centered on Rolls-Royce’s future smart engines, which will integrate Microsoft Suite into its service solutions to extend its digital capabilities. According to International Data Corporation (IDC), global IoT spending was around $1.4 trillion in 2021; this includes hardware, software and services for IoT technologies. Thus, the adoption of IoT technology is expected to increase the demand for software products.
The software products market is expected to be restrained due to stiff competition in price, product portfolio, and other factors from market competitors and new market entrants, during the forecast period . The existing players in the market are offering a wider range of competitive process products to increase their customer base and increase their revenue.
A large number of start-ups are also developing innovative products. Since most of these start-ups are funded by venture capitalists, they have sufficient capital for research and development of new software products.
In addition, the increase in the number of competitors in the market is likely to lead to price wars. This would affect business sales, leading to lower revenues and profit margins.
These price wars further affect the funding available for research and development projects, which limits the launch of new products, which negatively impacts the growth of the market.
Major software vendors such as Oracle and SAP have attempted to enter the middle market, expand their customer base and increase their overall revenue. These companies have started offering scaled down, preconfigured versions of their apps.
They are looking for new distribution channels to sell and distribute their software products and also acquire mid-sized software companies to increase their market share and revenue. For example, SAP acquired Business One software to enter the middle market.
The countries covered in the software product 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, United Arab Emirates, United Kingdom, United States, Venezuela and Vietnam.
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