The global application software market reached to USD10.8 billion in 2017 of which Western Europe was the largest geographic region accounted for USD3.9 billion or 35.9% of the global market. However US stood as the largest country accounting for USD2.3 billion or 21.4% of the global application software market. The report titled “Application Software Global Market Report 2018”, provides a comprehensive analysis of global application software market, new products and business models, leading consumer of application software, SaaS and cloud services, and future of application software market.
Industry Overview: Global application software market refers to information technology offerings that help an organisation to detect, analyse, resolve, and report performance issues of the applications used which include word processors, database programs, spread sheets and web browsers. The application software ensures that all the applications perform and behave as expected. Generally, application Software is a part of the systems management of any organization used to monitor and manage the performance and availability of software applications. It also provides seamless access to enterprise applications, helps in giving valued performance of business services and web transactions to the customers. This trend also enhances revenue and improves brand value and overall customer loyalty.
New products in the emerging markets and business models such as cloud computing and Software-as-a-Service (SaaS) are stimulating the global market growth. Both large and small organisations are adopting these products as they provide rapid time to market, cost effective and low maintenance options. The manufacturing, banking and finance sectors are the major drivers for the application software industry. The largest consumer of application software is North America and represents almost half of the global market share. It was observed that the application software industry has faced challenges such as economic crisis, currency fluctuations, and software piracy in the past years.
SaaS in Global Application Software Market: The year 2017 has ruled out that if there was no SaaS in application software market then there was no revenue. It was also observed that the complex data machines shift smoothly towards online operations. All the cloud workflows were delivered as software-as-a-service (SaaS) and it was predicted that the Infrastructure-as-a-service (IaaS) will drop down compare to the recent years. SaaS is an exclusive powerful corporation with more than 80% of their performance applications being hosted and operated in cloud. Majority of the companies confidently claim that their operations no longer depend on legacy systems but on SaaS. SaaS is available at an affordable price and the technology helps to expand the corporate ecosystem with various new apps, and involves everyone on how apps are managed and operated. SaaS application is easy to use, no expensive training required, and no special devices required as data resides entirely online.
Cloud and SaaS in Application Software Market: Many of the businesses in the developing countries are shifting their operations to cloud due to low operational costs, maintains a consistent working process, enables collaboration in large and decentralized teams, saves time, facilitates access to data, mobile-optimized, easier to connect applications, reduces burden of upgrading, easy maintenance, safeguarding data and in line with market trends. The delivering functionality in cloud boosted customer satisfaction in the past years with a positive navigation experience. SaaS reduced the burden of installing and adjusting systems until they blend within a software landscape, and usually require minimal to no maintenance at all. Sometimes system updates are automated due to a single-click approval and also puts a user in control without undergo complex verification processes. Many organizations are interested in SaaS because it uses a remote, large, or decentralized team to run and a shaky reputation to maintain. The growing demand for SaaS will motivate powerful investors to fund important technological innovations.
Future of Global Application Software Market: The global application software industry is actually a consolidated industry consisting of ERP, CRM, SCM, business intelligence and analytics. The factors such as IT spending, technological innovations, and economic growth impacts the application software industry dynamics significantly. India, China, and Latin America contributed immensely in the application software industry growth and is driven by a relatively low penetration of software, local potential. The revenue of the application software market is growing continuously along with the economic growth in developing countries and will continue in the next few years.
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Ankur Gupta, Head Marketing & Communications