As we delve into the realm of technology, the software industry emerges as a rapidly expanding subsector, ripe with innovation.
In the United States alone, the software industry is expected to surge to a staggering $338.20 billion in annual revenue. Globally, the pulse quickens further, with the market size valued at a mammoth $583.47 billion. If you're wondering "how big is the software industry," these are just the top line numbers.
Here at Blaze, we're not just participants in this phenomenal market; we're passionate movers and shakers of its story. Through this article, we aim to offer more than just numbers; we aim to provide a lens through which the sheer scale and potential of the software industry become crystal clear.
So, whether you're a startup, a tech enthusiast, or a business strategist, this deep dive is your gateway to understanding the colossal ecosystem that is the software industry.
To gauge the software industry's worth is to understand the engine powering not just Silicon Valley's bright minds but also the corporate titans that span the globe.
Enterprise software, the linchpin of large-scale business operations, commands a market volume of $271.80 billion as of 2023, signaling its pivotal role in the corporate sphere.
Yet, legacy software products endure, maintaining their market significance amid a shift toward recurring revenue models.
And the horizon? The industry's growth trajectory, propelled by a robust compound annual growth rate, promises an expanding domain, signaling an industry evolving as dynamically as the technology it produces.
This discourse transcends mere financials; it's about appreciating how each segment—from enduring software staples to the burgeoning realms of SaaS and cloud computing—collectively advances a future ever more entwined with the digital thread.
The software industry's value is not merely a number—it's a tapestry of diverse market segments, each pivotal in its own right. Let's explore these sectors:
Each segment's growth reflects the dynamic demand for software—from the ubiquity of cloud solutions to the specialized needs of the retail sector—showcasing the software industry's expansive role in shaping a digitally interconnected future.
The software industry is rapidly growing with no signs of slowing down.
In 2023, the overall IT market, which encompasses our sector, swelled to $8.852 trillion. We're witnessing an 8.2% compound annual growth rate (CAGR), with projections hurtling towards an impressive $11.997 trillion by 2027.
Yet, it's artificial intelligence that's igniting the rocket fuel for growth.
Consider this: the AI market alone is expected to balloon from its current $428 billion to an anticipated $2,025.12 billion by 2030, all at a brisk 21.6% CAGR. It's a thrilling pace, set by AI's proliferation across businesses and the emergence of nimble AI firms reshaping the corporate landscape.
As AI accelerates development in general, sectors such as marketing & sales, product/service deployment, and service operations are booming.
Supply chain management? Transformed. Companies are enlisting AI to cut through complexity like a laser, achieving sleeker operations.
Retail inventory management? Revolutionized. The push for AI in retail is enhancing everything from cashless transactions to inventory tracking. Retailers now have no-code AI platforms to manage operations and analyze consumer behavior
And cloud computing—oh, it's soaring. From a hefty $483.98 billion valuation in 2022, we're charting a course to scale even higher, propelled by a 14.1% CAGR through to 2030.
In the market's expected growth trajectory, AI and cloud computing are not just trends; they're the twin engines powering a new era of digital sophistication and operational agility.
The software industry stands out for its scale as well as the diversity and dominance of its key players. It’s an industry where a few behemoths hold considerable sway.
The aggregate market cap of the titans of software is an eye-watering $92.304 trillion. It's a figure that speaks volumes, not merely about the wealth concentrated within the leaders of software, but about the pivotal role they play in driving technology forward. Apple, Microsoft, and Google are the only three (out of 403 companies) to cross $1 trillion in market cap.
Drilling down, CRM software emerged as a significant pillar within the enterprise software market, boasting the largest share at 27.20% in 2022. Real estate—a sector traditionally not synonymous with cutting-edge tech—is now riding the digital wave. Commercial real estate CRM systems are increasingly embraced to boost productivity and drive sales.
In the realm of ERP software, a predicted CAGR of 10.7% suggests a healthy appetite for systems that streamline business operations. The drive for efficiency isn't just about cutting costs; it's about fostering a seamless flow of information that amplifies business intelligence and decision-making.
Yet, not all legacy systems are yielding ground. Despite the cloud's ascent, on-premises software maintained a strong 54% market share. On-premises software remains popular for its robust security and reliable performance without the tether of internet dependency.
Despite this, cloud computing's rise is undeniable. Cloud-based services are projected to surge at a 13.6% CAGR. The allure here is multifaceted: cost savings, collaborative efficiency, and the promise of infinite scalability, enticing corporate behemoths to pivot to cloud solutions. This pivot isn't just a technological upgrade; it's a strategic recalibration towards a more agile and interconnected corporate ecosystem.
Large enterprises, occupying a 65.0% market share, are not just users of enterprise software; they're driving its evolution, increasingly favoring platforms imbued with AI and ML capabilities. Their investment reflects a broader strategy to leverage automation for operational excellence and competitive advantage.
These trends and figures are more than a snapshot; they are a forecast of an industry in flux, where cloud-based software and management software are becoming central to the narrative of modern business. The software industry, with its colossal size and influence, is not merely growing—it is evolving, integrating, and redefining the future of commerce and technology.
A not-so-quiet revolution is underway with the rise of no-code AI platforms.
From ChatGPT to tech apps, these platforms are simplifying the future of software development.
As of 2022, AI-powered software claimed only $3.06 billion market share. Yet it’s expected to skyrocket to $20.42 billion by 2030, an impressive 27.3% CAGR.
Through no-code platforms like Blaze, organizations are building their own internal tools. Absolutely zero coding knowledge is required. Some of the most common applications include:
The growing no-code AI trend is reshaping software as a service (SaaS). It’s broadening the software market size. It's not just about easier software creation; it's about democratizing technology, making the power of AI accessible to all.
The software industry is rapidly changing and growing.
Fortunately, with no-code platforms, no one has to be left behind.
Start-ups and thriving small-to-medium sized companies can now compete with global enterprises when it comes to software solutions. No-code platforms like Blaze empower you to build your own internal tools without writing a single line of code.
It truly is as simple as drag-and-drop.
The best part?
In addition to supercharging your productivity, you can rely on HIPAA compliance and enterprise-grade security.
No matter how big the software industry is, every player can be part of it. That’s what it means to democratize technology – and that’s exactly what no-code is doing.
Interested in learning more? Schedule a free demo with Blaze today!