Software Consulting Market Share, Size, Trends, Industry Analysis Report, By Application, By Enterprise Size (Large Enterprise, Small & Medium Enterprises (SMEs)), By End-Use, By Region, And Segment Forecasts, 2023 - 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM3585
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global software consulting market share was valued at USD 304.01 billion in 2023 and is expected to grow at a CAGR of 11.90% during the forecast period. An increasing trend towards digitizing business processes in various industries is fueling the expansion of the market. Enterprises seek efficient ways to incorporate software into their IT infrastructure to streamline operations. Technological advancements in cloud computing and data analytics drive the demand for new software services and encourage businesses to adopt innovative solutions. Additionally, there is a rising need for software consulting services, which assist enterprises in making informed decisions regarding their software adoption and investment strategies. This growing demand for advanced software technologies and consulting services is expected to drive investments in the market.
Software consulting is a specific B2B practice that focuses on analyzing a firm’s software requirements and creating technology to meet them. With the expertise of experienced software consultants, organizations can get help in any area of their business related to the IT sector. These consultants can analyze the business altogether and provide the most impactful solutions to improve processes and garner better results. The services provided by software consulting market key players can include everything from analyzing existing processes to designing solutions and actually implementing them.
Software consulting encompasses a wide range of applications, including enterprise solutions, application development, design services, application testing services, and software security services. It can provide several benefits to businesses, including valuable insights into software procedures, process optimization, and modernization of existing systems. Furthermore, software consulting can help companies keep their workplace updated with the most innovative technology in their field. Continuous advancements in technology have resulted in increased demand for software consulting, impacting the market growth favorably.
The research report offers a quantitative and qualitative analysis of the software consulting market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.
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The COVID-19 pandemic and the global economic slowdown have had significant implications and complexities across various industries, affecting critical processes. While the market experienced substantial growth in recent years due to digitalization and technology integration, the pandemic has pushed many economies toward recession. As a result, numerous consulting clients have postponed, downsized, or canceled their projects to mitigate costs.
These project cancellations have negatively impacted vendors' revenues and slowed down market growth in the short term. In response to the pandemic, vendors are shifting their focus towards a digital-centric approach to provide services at a lower cost, eliminating expenses like travel costs for consultants. Virtual consulting platforms enable vendors to deliver impactful outcomes like traditional on-site consulting without needing a physical presence. Service providers are also targeting new clients who seek to reduce operational expenses through automation and are seeking innovative solutions for complex business challenges.
While the software consulting industry is influenced by powerful factors that propel its growth, certain constraints have the potential to impede market expansion. Examples of these restraints include the challenge of meeting client expectations and the demand for more advanced technical skills. Cultural clashes, difficulties in managing business change, and integration challenges are potential obstacles to the software consulting market's growth. Additionally, the increasing pace of digitalization and the widespread adoption of software and cloud computing have led to a rise in data theft incidents. Hackers exploit these trends to gain unauthorized access to critical organizational data, posing a risk to the industry.
Industry Dynamics
Growth Drivers
In times of economic prosperity, organizations experience increased revenues and budgets, allowing them to allocate more resources to consulting services. The demand for software consulting has grown alongside the continuous advancements in technology. These consulting services provide expertise and assistance in implementing enterprise software solutions, leading to improved revenue and profitability. The ongoing digitization of industries and adopting Enterprise 2.0 principles, which involve leveraging social software and collaborative technologies for business processes, are key market growth drivers. By deploying software, businesses aim to enhance job quality, accelerate service delivery, reduce labor costs, and enhance transparency and accountability.
Report Segmentation
The market is primarily segmented based on application, enterprise size, end-use, and region.
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By Application |
By Enterprise Size |
By End Use |
By Region |
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The enterprise solutions segment accounted for the largest market share in 2022
The enterprise solutions segment dominated the market in 2022. The rising demand for various software solutions such as content management, Enterprise Resource Planning (ERP), & customer relationship management is expected to drive the need for consulting services related to enterprise solutions in the coming years. Business enterprises recognize the significance of customer involvement and engagement, making it a crucial aspect of CRM activities. This growing emphasis on customer involvement is prompting firms to develop specialized solutions for social listening, management, & monitoring.
The software security services segment recorded a steady growth rate. Implementing strict government regulations, the rise of trends like Bring Your Own Device (BYOD) and Work from Home (WFH), and the prevalence of sophisticated attacks across various organizations are all expected to drive the expansion of software security services. Additionally, the widespread adoption of cloud computing, e-commerce, and social networking globally has led to a significant increase in the volume of data stored in the cloud, necessitating enhanced security measures. These factors are anticipated to drive the demand for software security consulting services throughout the projected period.
The BFSI segment garnered the largest share in 2022
The BFSI segment held the largest revenue share in 2022. Financial services companies are actively adopting consulting services to enhance their resources, integrate technology into their data processes, and expand their businesses. In the forecast period, the increasing prevalence of digital payments and the rise of fintech companies are expected to drive the adoption of blockchain technology in the banking sector. The growing number of digital wallets is also anticipated to fuel market growth.
Additionally, as the BFSI industry increasingly relies on cloud-based solutions and services for customer information storage, the frequency of cyberattacks also rises. Consequently, organizations in the BFSI sector demand software security consulting services to ensure adequate data protection. With substantial amounts of data being hosted in the cloud, there is a growing need for robust security measures, presenting an opportunity for software consulting firms to provide security services to BFSI companies.
The healthcare segment is expected to register steady growth. By incorporating these advanced technologies, healthcare providers aim to enhance operational efficiency, improve patient care, and optimize overall performance. Additionally, the healthcare industry is subject to mandatory government regulations and quality standards, which further fuel the demand for software consulting services to ensure compliance and adherence to these requirements. As the healthcare sector prioritizes digital transformation and technological advancements, the need for software consulting in this segment is expected to experience significant growth.
North America region dominated the global market in 2022
North America dominated the global market with a considerable market share in 2022. The region's strong demand for software consulting is closely linked to the ongoing digital transformation trend. As businesses seek to adapt and thrive in the digital era, they rely on software consulting to navigate the complexities of implementing and optimizing new technologies. The United States stands out as a hub for software consulting demand within the region. The region is witnessing many technology start-ups that rely on software consulting to develop and launch their products and services. Additionally, the continued adoption of enterprise resource planning (ERP) and cloud services will contribute to expanding the software consulting market in the region.
APAC registered a robust growth rate. Governments in the region are actively encouraging software businesses to create and develop Free and Open-Source Software (FOSS) for Software-as-a-Service (SaaS), mobile applications, and Service-Oriented Architecture (SOA). These initiatives are expected to drive the region's demand for software consulting services. Furthermore, the expanding e-commerce sector in the region is fueling the need for web design and mobile app design guidance for online businesses. As more companies venture into the digital marketplace, they require expert software consulting to optimize their online presence and create user-friendly interfaces.
Competitive Insight
Some of the major players operating in the global market include Accenture, Atos SE, Capgemini, CGI Inc., Clearfind, Inc., Cognizant, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, International Business Machines Corporation, Oracle, PwC, Rapport IT, SAP SE, and Trianz.
Recent Developments
- In July 2021, Accenture acquired Openminded Open Mind Services, a cybersecurity services provider. This strategic move aimed to enhance Accenture's Managed Security Services (MSS) business in France and expand its existing product portfolio in the cybersecurity domain.
- In July 2021, ATOS & Ooredoo QSC, a telecommunications firm, joined forces collaboratively. Together, they worked on developing cybersecurity threat detection and response services for the Qatar Smart Program called "TASMU." This initiative was aligned with Qatar's National Vision 2030, which aims to drive technological advancements and transform the country into a knowledge-based economy. The collaboration between ATOS SE and Ooredoo QSC aimed to enhance cybersecurity measures and ensure the secure implementation of smart technologies under the TASMU program.
Software Consulting Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 336.32 billion |
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Revenue forecast in 2032 |
USD 831.20 billion |
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CAGR |
11.90% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Application, By Enterprise Size, By End Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
Accenture, Atos SE, Capgemini, CGI Inc., Clearfind, Inc., Cognizant, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, International Business Machines Corporation, Oracle, PwC, Rapport IT, SAP SE, and Trianz. |
Navigate through the intricacies of the 2024 software consulting market with precision, thanks to the comprehensive statistics on market share, size, and revenue growth rate assembled by Polaris Market Research Industry Reports. This thorough analysis not only provides a glimpse into the historical context but also extends its reach with a market forecast outlook until 2032. Immerse yourself in the richness of this industry analysis by securing a complimentary PDF download of the sample report.
FAQ's
The software consulting market report covering key segments are application, enterprise size, end use, and region.
Software Consulting Market Size Worth $831.20 Billion By 2032.
The global software consulting market is expected to grow at a CAGR of 11.82% during the forecast period.
North America is leading the global market.
key driving factors in software consulting market are increasing demand for software consulting.
