New York, March 21, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "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 the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2,157.19 billion in 2026 at a CAGR of 13.3%.
The software products market consists of sales of software products by entities (organizations, sole traders and partnerships) that develop, market and distribute software products for commercial and personal use.Software products are usually sold in the form of licenses to use the software for a specified period or permanently.
The license generally entitles the buyer to receive updates of the programs.Companies in this industry create and distribute computer software by designing software, providing documentation, assisting in installation and providing support services to software purchasers.
Some businesses 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 analytics and enterprise software, video game software, and design, editing & rendering software.Business analytics and enterprise software tools are types of application software that retrieve data from one or more business systems and combine it in a repository, such as a data warehouse, to be reviewed and analyzed.
Enterprise software is computer software used to satisfy the needs of an organization rather than individual users.The software products have applications in large enterprises and small and medium enterprises.
The various end-user industries are BFSI, media and entertainment, IT and telecommunications, energy and utilities, government and public sector, retail and consumer goods, manufacturing and others.
Asia Pacific was the largest region in the software products market in 2021.North America was the second largest region of the software products market.
The regions covered in the software products market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
IoT technology adoption by manufacturing and transportation services companies is expected to drive the software products market in the forecast period.IoT is a network of physical objects such as devices, vehicles, buildings and other items which are embedded with electronics, software, sensors and network connectivity enable these objects to collect and exchange data.
For instance, Microsoft and Rolls-Royce have announced a partnership centering on future Rolls-Royce intelligent engines, which will integrate Microsoft Suite into its service solutions to expand its digital capabilities. According to International Data Corporation (IDC), global spending on IoT was around $1.4 trillion in 2021; this includes hardware, software and services for IoT technologies. Thus, IoT technology adoption is expected to expand the demand for software products.
The software products market is expected to be limited due to high competition in terms of pricing, product portfolio and other factors from market competitors and new entrants in the market, during the forecast period.Existing players in the market are offering wider range of products at competitive process to increase their customer base and boost revenues.
A large number of start-up companies are also developing innovative products.As most of these start-ups are funded by venture capital companies, they have sufficient capital for research and development of new software products.
Furthermore, the increase in competitors in the market is likely to result in price-wars.This would affect the sales of companies, resulting in lower revenues and profit margins.
These price-wars further affect the funding available for research and development projects, this limits the launch of new products, thereby having a negative impact on the market growth.
Top software vendors such as Oracle and SAP have been attempting to penetrate the middle market, to expand their client base and increase overall revenues.These companies have begun offering scaled-down, pre-configured versions of their applications.
They are pursuing new distribution channels to sell and distribute their software products and are also acquiring mid-market software companies to increase their market shares and revenues. For example, SAP acquired Business One software to penetrate the middle market.
The countries covered in the software products 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, UAE, UK, USA, Venezuela and Vietnam.
Read the full report: https://www.reportlinker.com/p06246415/?utm_source=GNW
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