The global software market is expected to grow at a compound annual growth rate of 11.5% from 2023 to 2030 to reach USD1,397.31 billion by 2030. ITPro Today tech expert Christopher Tozzi has shared six trends — including decreased use of microservices and reduced hype surrounding AI-assisted development — that are set to shape the developer landscape. The IT & telecom segment held a large market share in 2023 due to the rapid expansion of the IT industry across the globe. The proliferation of 5G technology requires advanced software solution to leverage the high-speed connectivity. Furthermore, IT businesses heavily use smart devices and IoT, which require sophisticated software to manage the data.
The acceptance of the blockchain technology is also spreading to other modes apart from the digital currency ones. Digital identity management, where users’ identities are linked to their biological attributes, identical to that of a fingerprint, ensuring higher security is one example. You don’t have to be psychic to know that the software industry will hold just as much sway in the future as it does now.
The Operational Bill Comes Due After a Decade of Third-Party API-Fueled Innovation
As we turn the calendar to 2025, it is safe to say that both the developers and the organizations developing the software are reinventing the whole process of software development, delivery, and sustainability. Innovation in technology and its application is expected to change the entire concept of application development and consumption to create more effective, affordable and safer software. Over the two years since generative AI (gen AI) emerged, much of the enterprise focus on the technology has revolved around its ability to foster increased productivity for software engineers and developers.
- This is fueled by the rapid development of technological concepts such as artificial intelligence, cloud computing and blockchain technologies.
- Zoho’s suite of apps and Oracle’s software modules are great examples of how software companies are developing into massive modular-based systems where businesses can plug in the necessary components for their situation.
- As a result, new subsectors and niches continue to emerge, offering exciting opportunities for growth and development.
- “Having more data points can change business leaders’ strategy and prioritization decisions,” she says.
- As we learned above, the software industry is anything but simple, encompassing a wide variety of sectors within itself.
- Additionally, cloud computing improves accessibility, allowing developers to collaborate remotely and access software tools and resources from anywhere.
Future Outlook of the Software Industry
In evolving market conditions, it’s important to make better decisions that reflect your clients’ goals. When you know the latest trends, you can deliver personalized solutions and show your value. While Gartner provides widely followed software industry data, Morningstar’s bottom-up forecast is slightly less aggressive over the next two years, which we attribute to our view of heightened macroeconomic uncertainty lasting throughout 2024.
- The major classifications include application software, system infrastructure software, development and deployment software, and productivity software.
- Find out how a wind turbine career can develop into a renewable project management role.
- The industry has witnessed rapid growth and constant evolution due to the increasing demand for software solutions and technological advancements.
- The global cloud computing market was valued at $371.4 billion in 2020, reflecting its significant growth (Techtic).
- Python continues to be one of the highest progress languages with its simple and clear nature, which makes it suitable for both novices and experienced professionals.
- These challenges include cybersecurity risks, IT talent shortages, maintaining code quality, and software development project failures.
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As a result, SaaS spending is projected to stay strong, reaching 195 billion U.S. dollars in 2023. Data security and privacy have evolved into major issues in the software industry. There is a rising need for reliable cybersecurity software and solutions to secure sensitive data due to increased cyber threats and data breaches.
Market segments
SaaS also offers superior economics through lower up-front costs for the customer and a more consistent and valuable software industry revenue stream for the software provider. In the early years of the 21st century, another successful business model has arisen for hosted software, called software-as-a-service, or SaaS; this was at least the third timecitation needed this model had been attempted. From the point of view of producers of some proprietary software, SaaS reduces the concerns about unauthorized copying, since it can only be accessed through the Web, and by definition no client software is loaded onto the end user’s PC. New software was built for microcomputers, so other manufacturers including IBM, followed DEC’s example quickly, resulting in the IBM AS/400 amongst others.
Engineers can use it to interpret seismic activity or produce models to visualize reservoir simulation results. It’s also great for remote workers because it helps team members share and collaborate on projects regardless of location. Junior engineers often use it during the design phase for pipelines and employee facilities. AutoCAD is prized as a staple for so many industries for many reasons but the most popular is because of its versatility. This software monitors production, manages operations, and uses its resources to develop optimal production strategies.
Total Job Growth
It helps both geoscientists and engineers make sense of the information they are given. This designing and drafting software isn’t only used in the mechanical side of the energy sector. AutoCA, or one of the other CAD programs, also finds a home in interior design, machining, manufacturing, project management, architecture, and multi-disciplinary engineering.
NVIDIA DRIVE Hyperion Platform Achieves Critical Automotive Safety and Cybersecurity Milestones for AV Development
The software industry is really only a small part of the overall computer programming activity that takes place in the technology industry sector. Illumina will offer DRAGEN analysis software on NVIDIA accelerated computing within the Illumina Connected Analytics platform. The integration aims to expand DRAGEN accessibility globally to wherever NVIDIA’s computing platform exists. Hotels have been collecting guest data for years, but in 2025, advanced analytics are turning that data into powerful, actionable insights.