Enterprise Software Market Research Report By Deployment Type (On-Premise, Cloud-Based, Hybrid), By Application (Customer Relationship Management, Enterprise Resource Planning, Supply Chain Management, Human Resource Management, Project Management), By Industry Vertical (Healthcare, Manufacturing, Retail, Financial Services, Telecommunications), By Business Size (Small Enterprises, Medium Enterprises, Large Enterprises) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Enterprise Software Market Summary

As per MRFR analysis, the Enterprise Software Market Size was estimated at 521.69 (USD Billion) in 2023.The Enterprise Software Market Industry is expected to grow from 550.75(USD Billion) in 2024 to 1,000 (USD Billion) by 2035. The Enterprise Software Market CAGR (growth rate) is expected to be around 5.57% during the forecast period (2025 - 2035).. The market is driven by the increasing demand for automation, cloud-based solutions, and enhanced data security, alongside the ongoing digital transformation across industries.

Key Market Trends & Highlights

Key trends driving the Enterprise Software Market include:

• Cloud-Based segment valued at 250.75 USD Billion in 2024, reflecting a shift towards flexible solutions.
• On-Premise segment holds a market value of 220.0 USD Billion in 2024, preferred for security in regulated industries.
• Healthcare sector leveraging software for improved patient care, contributing to market growth.
• 67% of EU businesses investing in compliance solutions to enhance data security as of 2023.

Market Size & Forecast

2023 Market Size: USD 521.69 Billion

2024 Market Size: USD 550.75 Billion

2035 Market Size: USD 1,000 Billion

CAGR (2025-2035): 5.57%

Largest Regional Market Share in 2024: North America.

Major Players

Key Companies include Workday, IBM, SAP, Salesforce, Adobe, Atlassian, Microsoft, Oracle.

Key Enterprise Software Market Trends Highlighted

There are big changes happening in the Enterprise Software Market because organizations need to make their operations more efficient and their decision-making processes better. As businesses in many fields start to use digital transformation techniques, the need for integrated software solutions that make operations easier, let people work together, and handle data well is growing quickly. Cloud computing is one of the main things that drives the industry since it lets businesses use scalable software solutions without having to build much infrastructure on their own. This change not only saves money, but it also gives businesses more freedom and the ability to access important activities from anywhere.

Also, the expanding importance of data analysis is giving software companies many chances. Companies want to get useful information from their data, which is why there is a high demand for analytical and business intelligence solutions. Businesses are looking for new ways to connect with customers and see what is going on in their operations. One important development is the use of artificial intelligence and machine learning in business software applications. These technologies help organizations remain competitive in a market that changes quickly by automating tasks and improving their ability to forecast the future. Companies are becoming more aware of how important it is to keep sensitive information safe in their software solutions. This has led to more attention being paid to cybersecurity lately.

This trend is making business software companies add more robust security measures to their products to fix any holes. The pandemic has also made more people work from home, which has raised the need for collaboration tools. This has forced companies to produce new ideas quickly to meet this new normal. The Enterprise Software Market is in a state of flux because of new technologies and changing company demands. This is leading to a new method of doing business.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Software Market Drivers

Rising Demand for Digital Transformation

The Enterprise Software Market Industry is being significantly driven by the accelerating trend of digital transformation across various sectors. Businesses are increasingly adopting advanced software solutions to streamline operations, improve efficiency, and enhance overall productivity. With governments and organizations pushing for modernization, it is estimated that over 70% of organizations have invested in digital technologies as part of their strategies to transform their operations.

According to a report from the World Economic Forum, it is anticipated that organizations that embrace digital transformation can realize operational efficiencies of up to 40%. Established companies like Microsoft and SAP are at the forefront of offering enterprise solutions that facilitate this transition, enabling businesses globally to enhance their capabilities in this competitive landscape.

Increased Focus on Data Security and Compliance

As cyber threats continue to evolve, the demand for enterprise software that focuses on data security and compliance is growing rapidly in the Enterprise Software Market Industry. Organizations are investing heavily in protecting sensitive information, with an estimated global spending of over USD 150 billion on cybersecurity measures in 2023 according to the International Data Corporation. For instance, software companies like Oracle and IBM are providing advanced security features within their enterprise solutions, directly addressing compliance with regulations such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA).

This increased focus on protecting data has become a significant driver for software solutions, promoting robust platforms that enhance data integrity and security protocols.

Growth in Remote Work Solutions

The Enterprise Software Market Industry is experiencing a surge fueled by the increasing demand for remote work solutions. The COVID-19 pandemic accelerated the shift to remote work, leading organizations to rely on enterprise software for collaboration and productivity. Reports indicate that remote work has risen by 173% since the pandemic began and is expected to remain a viable option for many businesses going forward. Firms like Slack and Zoom have witnessed tremendous growth as their tools support effective communication and teamwork among remote employees.

This transformation toward hybrid work models necessitates robust enterprise software that can accommodate diverse work environments, thereby driving market growth.

Enterprise Software Market Segment Insights

Enterprise Software Market Deployment Type Insights

The Enterprise Software Market, particularly within the Deployment Type segmentation, showcases robust growth trends, driven by a need for businesses to optimize operations and enhance productivity. In 2024, the market is set to be valued significantly, with major contributions from various deployment models including On-Premise, Cloud-Based, and Hybrid. The On-Premise segment demonstrates a strong presence in the market with a valuation of 220.0 USD Billion in 2024, growing to 370.0 USD Billion by 2035. This model allows organizations to maintain direct control over their IT infrastructure, making it appealing for sectors with stringent compliance requirements.

On the other hand, the Cloud-Based segment is projected to lead the market, reflecting a valuation of 250.75 USD Billion in 2024 and expected to rise to 450.0 USD Billion in 2035. The growing demand for flexibility and scalability in the digital landscape drives this deployment type's popularity, making it a preferred choice among businesses looking to lower operational costs and enhance accessibility. It eliminates the need for extensive physical infrastructure and supports remote work dynamics, which have gained importance in recent years.

Meanwhile, the Hybrid segment, valued at 80.0 USD Billion in 2024 and anticipated to reach 180.0 USD Billion by 2035, serves as a crucial bridge between On-Premise and Cloud-Based models. This segment provides organizations with the flexibility to choose a combination of both deployment types, which is particularly advantageous for businesses looking to gradually transition to cloud-based solutions while maintaining certain on-premise functionalities.

The distinct advantages offered by these three deployment types along with their specific market valuations highlight the Enterprise Software Market's segmentation, affirming the importance of adapting to diverse business needs in the fast-evolving digital world.

The growth of these segments is influenced by various factors, including advancements in technology, the rising importance of data security, and the increasing need for businesses to adapt to changing market demands. As organizations increasingly seek to leverage the advantages associated with each model, the overall dynamics of the Enterprise Software Market will continue to transform, aligning with industrial trends and customer expectations. Therefore, understanding these deployment types, alongside their respective market data and statistics, is essential for stakeholders aiming to navigate the complexities of the Enterprise Software Market industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Software Market Application Insights

The Enterprise Software Market is expected to see a significant rise in market revenue, reaching 550.75 USD Billion in 2024, as businesses invest heavily in software applications that enhance functionality and efficiency. The Application segment is critical, consisting of various aspects such as Customer Relationship Management, Enterprise Resource Planning, Supply Chain Management, Human Resource Management, and Project Management, each holding a substantial role in driving market growth. For instance, Customer Relationship Management plays a vital role in modern enterprises by elevating customer engagement and retention efforts, while Enterprise Resource Planning integrates various business processes, improving overall operational efficiency.

Supply Chain Management software assists companies in optimizing logistics and reducing costs, making it a key area of focus for businesses seeking competitive advantage. Human Resource Management ensures that organizations effectively manage their workforce, driving talent retention and performance. Meanwhile, Project Management applications support teams in planning and executing projects effectively. The importance of these applications cannot be overstated as they provide essential tools that facilitate business growth and adaptability in a rapidly changing market landscape.

Ongoing trends such as digital transformation and increased remote work are expected to further enhance the relevance of these applications.

Enterprise Software Market Industry Vertical Insights

The Enterprise Software Market is witnessing robust growth, projected to reach a value of 550.75 USD Billion by 2024 and 1000.0 USD Billion by 2035, reflecting a favorable trajectory within various industry verticals. Within this vast landscape, sectors such as Healthcare, Manufacturing, Retail, Financial Services, and Telecommunications are essential in shaping market trends. For instance, the Healthcare sector is increasingly adopting enterprise software to enhance patient management and streamline operations, while Manufacturing utilizes advanced software solutions to optimize production processes.

Retail stands out by leveraging software for inventory management and customer analytics, thereby enhancing customer experiences. Furthermore, Financial Services rely on enterprise solutions for compliance and risk management. Telecommunications benefit significantly through improved network management and customer relationship management systems. The Enterprise Software Market segmentation highlights these industries as pivotal players, driving innovative trends alongside emerging challenges and opportunities, ensuring resilience and adaptability in a dynamic market landscape.

With a constant influx of technological advancements, these sectors position themselves as leaders in adopting enterprise software solutions, enabling effective operational strategies and improved service delivery across the globe.

Enterprise Software Market Business Size Insights

The Enterprise Software Market, valued at 550.75 USD Billion in 2024, is characterized by its segmentation based on Business Size, which includes Small Enterprises, Medium Enterprises, and Large Enterprises. This framework plays a crucial role in understanding the deployment and utilization of enterprise software tailored to meet varying organizational needs. Small Enterprises typically prioritize cost-effective solutions and scalability, facilitating their growth without substantial upfront investment. Medium Enterprises often seek software that enhances operational efficiency and integrates with existing systems, enabling them to streamline their processes.

Large Enterprises dominate the market, owing to their extensive requirements for robust software solutions that support complex organizational structures and high transaction volumes. The Enterprise Software Market statistics highlight varying needs and expectations across these categories, driving growth and innovation. Cloud computing, mobile accessibility, and Data Analytics are current trends enhancing the software landscape, addressing challenges of security, integration, and rising costs. As the market evolves, opportunities are expanding, particularly for solutions tailored to Small and Medium Enterprises, as they adapt to digital transformation while facing challenges akin to larger counterparts.

Enterprise Software Market Regional Insights

The Enterprise Software Market exhibits significant growth across various regions, with North America leading the market, valued at 250.0 USD Billion in 2024 and projected to reach 450.0 USD Billion by 2035. This region benefits from a technologically advanced industry and robust investment in automation and cloud computing. Europe follows with a value of 150.0 USD Billion in 2024, increasing to 250.0 USD Billion by 2035, driven by a strong emphasis on regulatory compliance and data protection. South America’s market valuation stands at 30.75 USD Billion in 2024, expanding to 80.0 USD Billion by 2035, as businesses increasingly adopt digital solutions to stay competitive.

The Asia Pacific region, valued at 80.0 USD Billion in 2024, is expected to grow significantly to 150.0 USD Billion by 2035, fueled by a large pool of enterprises seeking to enhance operational efficiency. The Middle East and Africa, although smaller, show potential growth, from 40.0 USD Billion in 2024 to 70.0 USD Billion in 2035, driven by the digital transformation initiatives taking place in various sectors. The impressive growth across these regions highlights the diverse opportunities within the Enterprise Software Market and the increasing reliance on software solutions to optimize business processes.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Software Market Key Players and Competitive Insights

The Enterprise Software Market is a dynamic and rapidly evolving sector characterized by intense competition and innovation. This market encompasses a variety of software solutions designed to improve and automate business processes across different organizational functions such as finance, human resources, supply chain management, and customer relationship management.

With advancements in technology, including cloud computing and artificial intelligence, businesses are increasingly adopting enterprise software to enhance operational efficiency, improve decision-making, and drive growth. The competitive landscape features numerous key players, each vying for market share by offering unique products and services tailored to meet the diverse needs of enterprises worldwide. Understanding the competitive insights within this market is crucial for stakeholders aiming to navigate effectively through its complexities and capitalize on emerging opportunities.

SAS is a well-established player in the Enterprise Software Market known for its strong capabilities in analytics, data management, and business intelligence solutions. With a solid market presence, SAS boasts a robust portfolio that enables organizations to leverage data for better decision-making. The company's strengths lie in its advanced analytics offerings, which are designed to cater to various industries such as finance, healthcare, and retail.

Additionally, SAS focuses on providing tailored solutions that address specific business challenges, thereby fostering customer loyalty and long-term relationships. Its innovative approach, combined with a commitment to research and development, positions SAS effectively to address the evolving needs of enterprises in the global context, allowing it to retain a competitive edge in the marketplace.

Epicor is another significant name in the Enterprise Software Market, primarily offering manufacturing, distribution, retail, and services industry solutions that cater to mid-sized companies. Its key products include enterprise resource planning (ERP) software, human capital management solutions, and supply chain management applications. Epicor has a solid global market presence with a focus on creating scalable solutions that meet the growing demands of businesses across various sectors. The company’s strengths are grounded in its deep industry expertise and customer-focused innovation, which enable it to deliver tailored solutions that address specific operational needs.

In recent years, Epicor has engaged in strategic mergers and acquisitions to enhance its product offerings and expand its market reach, thereby further consolidating its position as a leader in the enterprise software segment. By maintaining a proactive approach to customer engagement and continually refining its technology, Epicor solidifies its reputation as a trusted partner for enterprises seeking to optimize their operations on a global scale.

Key Companies in the Enterprise Software Market Include

• SAS


• Epicor


• Oracle


• Microsoft


• ServiceNow


• VMware


• IBM


• Adobe


• Infor


• Atlassian


• Cisco


• Workday


• SAP


• Salesforce


• Zoho

Enterprise Software Market Industry Developments

In recent months, the Enterprise Software Market has witnessed significant developments, particularly with mergers and acquisitions. In November 2023, Microsoft announced the acquisition of a cloud-based project management software company, aiming to enhance its capabilities in business management solutions.

Meanwhile, Adobe revealed the merger with a customer experience platform earlier in the same month, intending to bolster its leadership in digital marketing tools. Additionally, in October 2023, ServiceNow announced a strategic partnership with VMware to provide advanced cloud capabilities and improve operational efficiencies.

The market is also seeing growth in valuations, with companies like Salesforce and SAP expanding their market share through innovations and technology advancements, further driving competition. Over the past two to three years, major trends include a shift towards integrated cloud solutions and increased investments in AI-driven tools.

In April 2022, IBM launched a suite of AI-infused enterprise software applications, marking a significant step in the tech landscape. Overall, these movements reflect a robust and evolving Enterprise Software Market that is heavily influenced by strategic alliances and technological advancements.

Enterprise Software Market Segmentation Insights

• 
  Enterprise Software Market Deployment Type Outlook
  
  
  
  • On-Premise
  
  
  • Cloud-Based
  
  
  • Hybrid
  
  
  
  

• 
  Enterprise Software Market Application Outlook
  
  
  
  • Customer Relationship Management
  
  
  • Enterprise Resource Planning
  
  
  • Supply Chain Management
  
  
  • Human Resource Management
  
  
  • Project Management
  
  
  
  

• 
  Enterprise Software Market Industry Vertical Outlook
  
  
  
  • Healthcare
  
  
  • Manufacturing
  
  
  • Retail
  
  
  • Financial Services
  
  
  • Telecommunications
  
  
  
  

• 
  Enterprise Software Market Business Size Outlook
  
  
  
  • Small Enterprises
  
  
  • Medium Enterprises
  
  
  • Large Enterprises
  
  
  
  

• 
  Enterprise Software Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa
  
  
  
  

Report Attribute/Metric	Details
Market Size 2023	521.69(USD Billion)
Market Size 2024	550.75(USD Billion)
Market Size 2035	1000.0(USD Billion)
Compound Annual Growth Rate (CAGR)	5.57% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	SAS, Epicor, Oracle, Microsoft, ServiceNow, VMware, IBM, Adobe, Infor, Atlassian, Cisco, Workday, SAP, Salesforce, Zoho
Segments Covered	Deployment Type, Application, Industry Vertical, Business Size, Regional
Key Market Opportunities	Cloud-based software solutions, AI-driven analytics tools, Integration of IoT technology, Expansion in emerging markets, Enhanced cybersecurity solutions
Key Market Dynamics	cloud adoption, AI integration, cybersecurity concerns, integration challenges, remote work solutions
Countries Covered	North America, Europe, APAC, South America, MEA