Business Software and Services Market Size to Hit USD 1,833.36 Billion by 2034

Business Software and Services Market Size and Forecast 2025 to 2034

The global business software and services market size accounted for USD 594.53 billion in 2024 and is expected to exceed around USD 1,833.36 billion by 2034, growing at a CAGR of 11.92% from 2025 to 2034. The rising industrial collaborations for enhancing the global reach, technological advancements for improving scalability and customer experience are driving the business software and services market.

Business Software and Services Market Key Takeaways

• North America dominated the global market with the largest market share of 30% in 2024.
• Asia Pacific is projected to expand at the notable CAGR during the forecast period.
• By software, the finance segment has held the largest market share in 2024.
• By software, the human resource services segments is estimated to be the fastest-growing segment during the forecast period.
• By service, the support and maintenance segment captured the biggest market share in 2024.
• By service, the managed services segment is expected to grow at a significant CAGR from 2025 to 2034.
• By deployment, the on-premise segment contributed the highest market share in 2024.
• By deployment, the cloud segments is expected to be the fastest-growing segment during the forecast period.
• By enterprise, the large enterprise  segment has held the largest market share in 2024.
• By enterprise, The small and medium enterprise segment is expected the grow at a CAGR during the forecast period.
• By end use, the BFSI segment generated the major market share in 2024.
• By end use, The IT and telecom segment is predicted to grow at the solid CAGR over forecast period.

How is AI Improving Business Software?

The integration of AI tools in business software and services has helped in enabling the automation of tasks, AI-powered chatbots are improving customer experience, in personalized recommendations, for sentiment analysis, in lead scoring, providing predictive insights, in operations and supply chain management and improved decision making across various departments such as sales, marketing, finance among others thereby optimizing the efficiency, scalability and cost reductions driving the business growth.

U.S. Business Software and Services Market Size and Growth 2025 to 2034

The U.S. business software and services market was exhibited at USD 133.77 billion in 2024 and is projected to be worth around USD 422.18 billion by 2034, growing at a CAGR of 12.18% from 2025 to 2034.

North America dominated the market in 2024 with market share of 20%. The expanding demand for high-speed data networks, as well as the considerable presence of software vendors in the region, might contribute to the growth of the business software and services market over the projected period.

Asia Pacific is expected to develop at the fastest rate during the forecast period. The expansion of the regional market is being driven by significant investments by large firms and the adoption of new technologies across industries and enterprises.

Business Software and Services Market Growth Factors

• Increasing demand for advanced software with streamlined workflows.
• Development of software and services driving the productivity of industries.
• Introduction of new software integrated with AI and cloud computing tools.
• Expansion of global business software and services through industrial collaborations.
• Prompt assistance offered by service providers to customers.
• Increased profitability with lower inventory costs enabling adoption by various businesses.

Market Scope

Software Insights

The finance segment dominated the business software and services market in 2022 with revenue share of 20%. This is attributed to the growing relevance of financial management tools in businesses and enterprises for budgeting, planning, analysis, and reporting.

The human resource segment is fastest growing segment of the business software and services market in 2022. The human resource functions like as payroll, training, and recruitment can all benefit from the solution’s integration and computerization.

ServiceInsights

In 2022, the support and maintenance services segment accounted revenue share of around 40%. This is due to the growing popularity of business and enterprise management systems as well as the development of software models to detect and resolve product quality concerns.

The managed services segment, on the other hand, is predicted to develop at the quickest rate in the future years. The managed services segment is expected to develop as businesses become more reliant on information technology assets and infrastructure to boost productivity.

Deployment Insights

The on-premise segment leads the business software and services market with revenue share of 60% in 2022. Over the projection period, the demand for on-premise deployment is predicted to increase due to the growing preference and demand of companies of various enterprise software and services that enable customization of software according to the client’s requirements.

The cloud segment is fastest growing segment of the business software and services market in 2022. The cloud-based services allow businesses to use and pay for exactly the resources they require, reducing energy usage and increasing efficiency.

Enterprise Insights

The large enterprise segment dominated the market in 2022 with market share of 55%. The use of business solutions and services in large enterprises is being driven by factors such as the use of real time data compilation tools, complex analytical engines, and process blueprints.

Thesmall and medium enterprise segment is fastest growing segment of the business software and services market in 2020. This is due to an increase in government activities, including digital campaigns like social media marketing, search engine marketing, and video marketing. 

End Use Insights

The BFSI segment accounted largest market share in 2022 around 15%. This is attributed to the rising deployment of business software, which provides benefits such as secure transactions and constant access to client databases, as well as better client experience. Moreover, the rising digitalization of banking and financial institutions in order to provide better end user experiences is expected to boost the demand for business software and services in the BFSI sector.

The IT and telecom segment is fastest growing segment of the business software and services market in 2022. The importance and necessity of re-evaluating strategies and incorporating advanced technology into company operations is predicted to drive the growth of the segment during the forecast period.

Business Software and Services Market Companies

• Epicor Software Corporation
• Infor Inc.
• Oracle Corporation
• Microsoft Corporation
• Acumatica Inc.
• Unit4
• International Business Machines Corporation
• NetSuite Inc.
• Totvs SA
• SYSPRO

Latest Announcements

• In December 2024, Odoo, a leading provider of integrated business software announced a strategic alliance with Google Cloud for supporting Odoo’s global reach in delivering a streamlined and scalable experience to its customers across the globe. Sébastien Bruyr, Chief Commercial Officer at Odoo said that, “At Odoo, we provide a comprehensive suite of business applications, and we needed a secure, reliable, and scalable cloud infrastructure to deliver those applications to our customers globally. Google Cloud provides us with exactly that – the right machines, the international reach, and the ability to scale quickly. It’s a natural fit for us.”

Recent Developments

• In November 2024, Waters Corporation announced the launch of waters_connect Data Intelligence software which is a new cloud-based application that helps customers in regulated industries for improving the accessibility, organization, analysis thereby driving the productivity from laboratory information.
• In October 2024, Stem Inc., a global leader in AI-enabled clean energy software and services declared the provision of strategy based services with its new software which will enhance the scalable growth and profitability driving the predictable recurring revenue with higher gross margins.

Segments Covered in the Report

By Software

• Finance
• Sales & Marketing
• Human Resource
• Supply Chain
• Others

By Service

• Consulting
• Managed Services
• Support & Maintenance

By Deployment

By Enterprise

• Large Enterprises
• Small & Medium Enterprises

By End Use

• Aerospace & Defense
• BFSI
• Government
• Healthcare
• IT & Telecom
• Manufacturing
• Retail
• Transportation
• Others

By Geography

• North America




• Europe




• Asia-Pacific

• China
• India
• Japan
• South Korea
• Malaysia
• Philippines

• Latin America

• Brazil
• Rest of Latin America

• Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa