What is so exciting about managing against these growth expectations, requirements, or desires is that at any point in time you need to be constantly watchful of each of these aspects and make them evolve. At the same time, now that we’re public, there has to be growth with a vision and a path toward profitability. So finding the strategy that fits all of those at Jive Software has been something that we’ve been able to take advantage of. In any given period of time since we’ve been public—growing anywhere from 25 to 50 or 60 percent—growth is the agenda that disruptive-technology companies have to have at the top of their list. Discover West Monroe’s 2025 Software Industry Outlook, highlighting four key trends, including efficient growth strategies, AI-driven transformation, and unlocking the value of data. The Software market comprises revenue and revenue change as the key performance indicators.
- Illumina will offer DRAGEN analysis software on NVIDIA accelerated computing within the Illumina Connected Analytics platform.
- To ensure consistency with official statistics, The EIU has incorporated the BEA’s revised methodology into its analysis.
- Unlock industry potential through cutting-edge research, data-driven insights, and strategic guidance.
- While some effects are already becoming apparent, others are less certain as leaders grapple with complex questions about how this new era will evolve.
- They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.
- In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts.
Market Share by Industry Vertical
In an age of regular technological disruption, for software companies, growing fast has become essential to survival. They also explain why software industry growth alone isn’t enough and why software companies must target becoming profitable rapidly and efficiently. The interviews were conducted by McKinsey director Eric Kutcher, and edited transcripts of their remarks follow.
Software Landscape Report
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. It is mainly utilized in data science, artificial intelligence, machine learning, web-based applications, and automation. Let’s explore the latest trends and predictions for software development in 2025. Stay ahead of the curve with insights on emerging technologies and industry shifts. According to Statista, the software industry is broken down into application software, system infrastructure software, SaaS, operating systems, and database and analytics software. However, organizations may only realize the benefits of an AI-enabled software PDLC with a fundamental shift in their ways of working.
Trends in Software Development
With consumers favoring well-known and established brands, it makes sense that certain tools, programming languages, and platforms become industry staples. Second, once a brand is known it’s incredibly hard for other smaller companies to compete. According to Gartner, 78% of businesses prefer to work with brands they already know or have worked with.
Enterprise Software Development Leaders Will Make Choices That Come Back to Bite Them
Only by breaking down data silos in this way can companies gain a holistic view of their product life cycle, enabling more user-centric decision making. To ensure code quality, software companies should adhere to coding best practices, utilize code review processes, and implement automated testing and continuous integration practices. Regular code refactoring, documentation, and knowledge sharing among team members are also essential for maintaining high-quality code.
The application software segment dominated the market in 2022 and accounted for a revenue share of over 43%. The growth is supported by the rising demand for various software applications designed to accelerate and streamline business processes using cutting-edge IoT technologies and cloud-based solutions. The ERP segment represented a significant share in 2022 owing to the rise in demand for data-driven decisions, increased adoption of mobile & cloud applications, and a growing need for transparency & operational efficiency in business processes. The others segment led the market in 2022, accounting for over 22% share of the global revenue. Furthermore, the IT & telecom segment accounted for a significant share of the revenue in 2022.
Artificial intelligence (AI) and other emerging technologies are set to revolutionize the software industry. AI has the potential to automate and optimize various processes, making them more efficient and accurate. The AI software market is projected to reach a value of $202.57 billion by 2026, with an estimated CAGR of 22.8% from 2021 to 2026 (Exploding Topics). The software industry continually faces challenges related to IT talent shortages.
- Certainly the technologies of today, and some of the technology disruptions we’ve seen, specifically around cloud, mobility, social networks, and big data aspects—these are all of the attributes that are driving purchase decisions.
- Overall, these conjoining factors help paint the picture of the modern-day software industry and what you can expect moving forward.
- While many software tools perform only one or two functions, Landmark can effectively help find, produce, and manage oil and gas reserves.
- Artificial intelligence (AI) and other emerging technologies are set to revolutionize the software industry.
- API-first and microservices development approaches are important as applications continue to be more integrated.
- Techlog Wellbore software integrates all data types related to well-being and converts it to be compatible with multidisciplinary workflows.
‘Software as a Critical Business Asset’ Will Top Agendas
AI agents, AI instruments and AI robots will help address the $3 trillion of operations dedicated to supporting industry growth and create an AI factory opportunity in the hundreds of billions of dollars. This application suite brought to the industry by IBM aims to improve the management of assets such as wells, rigs, pumps, plants, and pipelines and improve their performance. The software uses AI-driven enterprise asset management tailored to the oil and gas industry. The programming language Go, made by Google, embodies ease and efficiency when building applications that require a lot of concurrency.
The following describes the categories of business software used in the industry. Not all software is created or traded between software producers and software end consumers. Many software programs created in-house for very specific uses are never sold outside of the company.