Enterprise Software Market (By Deployment: On-premise, Cloud; By Software: ERP, CRM; By Enterprise Size: Large, SME; By End-use: BFSI, Healthcare) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global enterprise software market was estimated at USD 216.71 billion in 2022 and it is expected to surpass around USD 645.93 billion by 2032, poised to grow at a CAGR of 11.54% from 2023 to 2032. The enterprise software market in the United States was accounted for USD 73.8 billion in 2022.

Key Pointers

• North America held the highest market share of 41% in 2022.
• The Asia Pacific regional market is anticipated to reach USD 125.59 billion by 2032 growing at a CAGR of around 13.44% from 2023 to 2032.
• The Customer Relationship Management (CRM) software segment accounted for the largest market share of 27% in 2022.
• The Enterprise Resource Planning (ERP) software segment is anticipated to grow at a CAGR of 10.74% during the forecast period.
• The on-premise segment accounted for a market share of 52% in 2022.
• The cloud segment is anticipated to grow at a CAGR of 13.62% during the forecast period.
• The large enterprise segment accounted for a market share of around 66% in 2022.
• The Small & Medium Enterprises (SMEs) end-use segment is expected to grow at a significant CAGR of 13.24% from 2022 to 2032.
• The IT & telecom segment held the largest market share of around 21% in 2022.
• The healthcare segment is expected to register the highest CAGR of 13.63% from 2023 to 2032.

Report Scope of the Enterprise Software Market

The growth can be attributed to increasing end-use enterprises’ expenditures on improving their digital infrastructure and advancements in cloud analytical tools. Furthermore, enterprise software offers the analysis of unstructured & structured data, which assists companies in identifying current market trends and gaining actionable insights, supporting market growth. The significant spread of the COVID-19 virus in the initial phase of 2020 had a negative impact on the market in the first two quarters owing to stringent safety measures enforced by the majority of governments.

However, from 2020 end, enterprise software experienced increasing demand owing to end-use companies shifting focus toward digitalizing their business model to provide remote working facilities to their employees. The advancements in the latest technologies, such as Artificial Intelligence (AI), cybersecurity, cloud computing, Machine Learning (ML), blockchain, and Robotic Process Automation (RPA), are creating robust market opportunities for enterprise software. Integrating these technologies into enterprise software improves software efficiency and adaptability, creating a positive market outlook. The industry players are focusing on unveiling their enterprise software equipped with the latest technologies, such as blockchain and AI.

The governments of various countries, such as India, Japan, Germany, Australia, Canada, and Brazil, are focusing on digitalizing their economy for greater work flexibility, reduction in business maintenance costs, and maximizing IT infrastructure reliability. These governments are taking supportive initiatives for digitalizing their infrastructure through significant investments in the technology and software sector. For instance, in November 2021, the Government of Australia announced an investment of USD 111 million to develop and accelerate the adoption of quantum technology and create jobs in the software industry. The government expects the development of quantum technology can give an economic value of USD 4 billion and create around 16,000 jobs by 2040 in Australia.

Increasing demand for enterprise software is encouraging industry players to invest in software research & development for product innovation and to enhance their brand value. These companies are adopting various business strategies, such as mergers and acquisitions, to improve their service offerings. For instance, in July 2022, an enterprise software company, IFS AB, expanded its software products portfolio with the acquisition of Enterprise Asset Management (EAM) company, Ultimo Software Solutions, for an undisclosed amount. Ultimo Software Solutions’ expertise in cloud-based EAM products will assist IFS AB in improving its customer bases and brand positioning.

High initial costs of enterprise software and increasing digital threats are key factors challenging market growth. The industry players need to invest in R&D to improve the efficiency and reliability of the software, thereby increasing the cost of the software. Furthermore, increasing cyber-attacks, such as viruses, Distributed Denial-of-Service (DDoS), ransomware, and Corporate Account Takeover (CATO), is affecting the sales of enterprise software. To tackle these issues, the market players are partnering with various security technology providers to strengthen the security of their enterprise software. In addition, these companies are also focusing on providing customized enterprise software as per clients’ needs to reduce the initial costs of the software.

Software Insights

The Customer Relationship Management (CRM) software segment accounted for the largest market share of 27% in 2022. Customer analytics are gathered via CRM software, which is also used to improve customer retention, build a centralized client information database, generate sales reports automatically, anticipate sales, and streamline internal communications. The market participants are concentrating on releasing new CRM solutions for businesses to expand their clientele. For instance, Freshworks Inc. unveiled its Freshworks CRM for e-commerce solution in April 2022. This new CRM solution offers a unified platform for managing sales, customer service, and retention. In addition, this service aids end-user businesses in enhancing communication with clients via contemporary messaging platforms like WhatsApp and email.

The Enterprise Resource Planning (ERP) software segment is anticipated to grow at a CAGR of 10.74% during the forecast period. The increased demand for ERP software can be attributed to its capacity to assist end-user organizations in lowering their inventory and raw material costs and facilitating efficient cross-functional information flow. To increase the productivity of their ERP software and lower the cost of software development, the sellers of ERP software are working together with technology providers. For instance, Conversight, an AI solution provider, teamed up with GreeneStep Technologies, a software vendor, in April 2022, to create a unified ERP business suite to help small and medium-sized firms streamline their end-to-end business operations.

Deployment Insights

The on-premise segment accounted for a market share of 52% in 2022. The on-premise software’s ability to provide enhanced data security and consistent services without the need for an internet connection is playing a vital role in driving the segment's growth. On-premise software also allows several users to access the system flexibly without slowing down data transmission. On-premise software is more expensive than cloud-based software, as it requires additional gear like servers and high license fees. As a result, a number of end-use businesses are turning their attention to cloud-based software, which has an impact on the market statistics for the on-premise software category.

The cloud segment is anticipated to grow at a CAGR of 13.62% during the forecast period. Low subscription and maintenance costs, constant system accessibility, enhanced teamwork, and limitless storage capacity are a few advantages of cloud-based enterprise software that boost its adoption. Corporate software providers are refocusing their attention on cloud-based solutions to enhance their brand value. For instance, in September 2022, Micro Focus announced that its Enterprise Suite for application modernization was now available on Google Cloud. Clients of Micro Focus may now easily and affordably install their enterprise-grade infrastructure solutions on Google Cloud due to new Google Cloud availability.

Enterprise Size Insights

The large enterprise segment accounted for a market share of around 66% in 2022. Enterprise software is used by large businesses to manage their financial, marketing, sales, human resource, production, and inventory functions. These businesses place a strong emphasis on automating their numerous business processes to minimize human involvement and labor expenses, fueling the demand for enterprise software with ML and AI capabilities. To help businesses construct AI and ML models and scale up their operations more quickly without the need for additional platforms, HPE introduced the HPE Machine Learning Development System in April 2022. The business has provided a variety of tools in its ML development system for model construction that reduce the complexity of programming and improve the operational effectiveness of the product.

The Small & Medium Enterprises (SMEs) end-use segment is expected to grow at a significant CAGR of 13.24% from 2022 to 2032. The adoption of enterprise software by SMEs is on the rise as they seek to boost worker productivity, grow their clientele, reduce compliance concerns, and boost profitability. To increase the value of their brand, enterprise software providers are concentrating on creating affordable, SME-specific enterprise software. For instance, Tally Solutions Pvt. Ltd. introduced Tally Prime, a business application, in November 2020 to assist SMEs in managing different financial-related services like payrolls, banking, taxation, accounting, and others.

End-use Insights

The IT & telecom segment held the largest market share of around 21% in 2022. To increase company transparency and speed up the creation of new products, IT and telecom businesses are digitizing their daily operations. To increase profitability in the IT and telecom industries, enterprise software suppliers are placing a strong emphasis on creating 5G-specific business applications. For instance, Dell Technologies, Inc. unveiled new telecom software in October 2021 to help companies speed up their cloud-native and open-network deployments in India. The deployment and management of hundreds of servers across numerous different geographic locations in the region are being automated in large part because of this software.

The healthcare segment is expected to register the highest CAGR of 13.63% from 2023 to 2032 due to the growing usage of Electronic Medical Records (EMR) and Electronic Health Records (EHR) as well as the growing use of big data to generate meaningful insights in the healthcare sector. The expansion of the market is anticipated to be aided by advancements in IT infrastructure and the widespread use of cloud computing services in the healthcare industry. In addition, a number of medical research institutions are making greater use of IT technology to improve Chronic Disease Management (CDM). To improve brand recognition, industry leaders including Allscripts Healthcare, LLC, EPIC Systems Corp., and Cerner Corp. are releasing cutting-edge innovations with healthcare enterprise software.

Regional Insights

North America held the highest market share of 41% in 2022. Due to their high operational efficiency and cheap maintenance costs, cloud-based enterprise software solutions are being adopted more frequently, which is responsible for the market expansion. To stay competitive in the market and support the industry trend, major regional players including Salesforce.com, Inc., Broadcom Inc. (CA Technologies, Inc.), Hewlett Packard Enterprise (HPE), and ECi Software Solutions are concentrating on extending their service offerings. For instance, HPE paid USD 374 million in July 2021 to acquire the cloud data management business Zerto. With this acquisition, HPE enhanced its HPE GreenLake offerings for companies that provide software-defined data services.

The Asia Pacific regional market is anticipated to reach USD 125.59 billion by 2032 growing at a CAGR of around 13.44% from 2023 to 2032 due to an increase in end-user enterprises’ investments in digitalizing their operations. To enhance their revenue from the market, the regionally active industry players are concentrating on forging strategic alliances with technology providers. For instance, Versa Networks and Axiata collaborated to offer Secure Access Service Edge (SASE) technology to businesses across Asia in August 2022. Versa Networks’ enterprise service offerings will be expanded as a result of the cooperation in a number of areas, including cloud computing, smart services, cyber security, and other enterprise-managed services.

Enterprise Software Market Segmentations:

By Software 

• Enterprise Resource Planning (ERP) Software
• Business Intelligence Software
• Content Management Software
• Supply Chain Management Software
• Customer Relationship Management Software
• Others

By Deployment 

• On-premise
• Cloud

By Enterprise Size 

• Small & Medium Enterprises
• Large Enterprises

By End-use 

• BFSI
• Retail
• Healthcare
• IT & Telecom
• Government & Education
• Manufacturing
• Others

By Regional 

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa