The business software industry is growing faster than ever, with more companies using tools like CRM, HR, ERP, BI, project management, and AI.
I have gathered key statistics on market size, growth projections, and spending trends, as well as insights into the performance of leading software companies like Salesforce, Microsoft, HubSpot, etc.
- 1. Market Size and Growth
- 2. Spending on Business Software
- 3. Global CRM Software
- 4. Global HR Software
- 5. Global ERP Software
- 6. Global Project Management Software
- 7. Collaboration Tools
- 8. Business Intelligence Tools
- 9. Low-Code/No Code Platforms
- 10. Marketing Automation
- 11. AI Tools
- 12. Remote Work
- 13. Software Company Size and Growth
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1. Market Size and Growth
The global business software and services market is predicted to generate a revenue of $1,153.7 million by 2030, with a compound annual growth rate (CAGR) of 11.9% between 2024 and 2030.
2. Spending on Business Software
Companies are significantly investing in business software, contributing to the projected global IT spending of $5.26 trillion in 2024, a 7.5% increase from 2023. The growth is happening because businesses need to improve efficiency, incorporate generative AI (GenAI), and meet the rising demand for data management and IT services.
Software spending is expected to increase by 12.6%, reflecting its importance in digital transformation. Generative AI (GenAI) is a major factor in this growth, with data computing needs.
While software spending is expected to rise by 12.6%, IT services will grow slower at 7.1%, partly due to delayed projects from earlier quarters. Despite challenges, businesses are prioritizing AI and advanced technologies to remain competitive.
3. Global CRM Software
The CRM software market was valued at USD 40.2 billion in 2023 and is expected to reach USD 156.3 billion by 2032, growing at a CAGR of 11.5%. CRM software helps businesses manage customer relationships by analyzing interactions, improving customer service, and enhancing profitability. AI adoption and digital transformation are fueling market growth.
According to HG’s data, global spending on CRM solutions will reach $41.7 billion over the next 12 months. The AMER region (North, Central, and South America) leads with $18.1 billion, representing 43.4% of the total. APAC (Asia-Pacific) follows with 32.3%, and EMEA (Europe, Middle East, and Africa) accounts for 24.3%.
In the U.S., nearly 2 million companies are projected to spend $15.86 billion, making up the largest share of the global CRM market. China follows with a spend of $5.58 billion, while Japan and the UK contribute $2.82 billion and $2.25 billion, respectively.
4. Global HR Software
The global HR software market was valued at $16.43 billion in 2023 and is expected to grow to USD 36,628.3 million at 12.2% annually through 2030. Cloud-based HR solutions are driving this growth, as businesses adopt AI and machine learning to streamline payroll, recruitment, and performance management tasks.
HR spending accounts for 0.76% of revenue, lower than finance (1.30%), IT (3.25%), marketing (7.5%), and sales (4.37%). It makes up 1.47% of operating expenses. On average, HR functions spend $2,810 per employee annually, with the highest investments in recruiting ($401), total rewards ($221), and L&D ($202).
5. Global ERP Software
The global ERP software market is expected to reach US$ 123,410.2 million by 2030, with a growth rate of 11.7% per year from 2025 to 2030. n 2023, the market generated $59,480 million, with on-premise deployment accounting for a significant share. However, cloud-based ERP solutions are expected to see the fastest growth.
North America was the largest revenue-generating market in 2023, and the U.S. is projected to lead the market by 2030. Germany is expected to have the highest CAGR from 2024 to 2030, highlighting its growing importance in the ERP sector.
6. Global Project Management Software
The global project management software market earned USD 7,383.8 million in revenue in 2023 and is projected to grow to USD 20,469.8 million by 2030. The market is anticipated to expand at a CAGR of 15.7% from 2024 to 2030.
7. Collaboration Tools
The global collaboration software market is projected to reach US$15.60bn by 2025, with steady growth at a 1.60% CAGR, reaching US$16.62bn by 2029. The U.S. is expected to lead with US$7,888.00m in revenue in 2025.
The software is popular for remote teams in the U.S., boosts efficiency in Germany, and sees high demand in China due to digital transformation and communication needs in large organizations.
8. Business Intelligence Tools
The global Business Intelligence (BI) market is expected to grow significantly, rising from USD 31.98 billion in 2024 to USD 63.76 billion by 2032, with a compound annual growth rate (CAGR) of 9.0%.
In the U.S., the market is projected to reach around USD 12.82 billion by 2032, driven by advancements in automation and digitization.
The USA leads the market with $22.7 billion spent across nearly 1.97 million companies. China follows with $7.7 billion, Japan with $4 billion, and the UK with $2.8 billion. These four countries represent the largest contributors to the global market, both in terms of spending and the number of companies involved.
Business Intelligence Software Spend by Country
| Country | Total Spend ($) | Total Companies |
|---|---|---|
| United States of America | $22.7bn | 1,972,264 |
| China | $7.7bn | 127,760 |
| Japan | $4bn | 92,643 |
| United Kingdom of Great Britain | $2.8bn | 299,362 |
| Germany | $2.3bn | 189,883 |
| India | $1.9bn | 134,630 |
| Canada | $1.6bn | 176,727 |
| Korea | $1.4bn | 30,443 |
| France | $1.2bn | 106,935 |
| Netherlands | $1.2bn | 75,917 |
9. Low-Code/No Code Platforms
The global low-code development platform market was valued at $22.25 billion in 2023 and is expected to grow from $28.75 billion in 2024 to $264.40 billion by 2032, with a CAGR of 32.0% during the forecast period.
The global no-code AI platforms market is expected to grow from USD 4.9 billion in 2024 to USD 24.8 billion in 2029, at a CAGR of 38.2% during the forecast period.
10. Marketing Automation
The global marketing automation market generated $5.64 billion in revenue in 2023 and is expected to reach $9.29 billion by 2030, growing at a CAGR of 7.4% from 2024 to 2030.
The cloud segment led with $3.55 billion in revenue in 2023 and is expected to grow the fastest during the forecast period. North America was the largest revenue-generating region in 2023, with the U.S. projected to register the highest CAGR from 2024 to 2030.
11. AI Tools
The global Artificial Intelligence (AI) software market is projected to grow from $98 billion in 2024 to $391.43 billion by 2030, reflecting a robust CAGR of 30%. Generative AI is set to be the fastest-growing segment, with a staggering 49.7% CAGR, driven by advancements in foundation models, optimization tools, and deployment software.
Traditional AI frameworks like computer vision, predictive AI, and NLP still dominate revenues, but generative AI is quickly catching up due to its broad industry applications. In 2024, North America leads with 43% of AI investments, but by 2030, Asia-Pacific, driven by China, is expected to generate nearly 40% of revenues.
Key drivers include open-source innovation, MLOps growth, cloud-based generative AI, and rising demand for low/no-code platforms to make AI more accessible.
12. Remote Work
In 2023, the technology industry had the highest share of remote employees worldwide, with 67.8 % of tech industry employees globally working fully or mostly remotely. In the United States, remote hiring trends vary significantly based on company size. Large companies (5,000+ employees) experienced a slight decline in remote hires, decreasing from 21.9% in 2023 to 21.2% in 2024 (-3% YoY).
Similarly, medium-sized companies (250–4,999 employees) saw a reduction, with remote hires dropping from 23.9% to 23.6% (-1.2% YoY). In contrast, small businesses (<250 employees) showed growth, with remote hires increasing from 20.0% to 21.1% (+5.7% YoY).
Onsite hiring trends indicate the continued dominance of larger companies, although small businesses remain leaders in onsite roles across various industries. For hybrid hiring, large companies recorded a significant 9.9% YoY increase, reaching 24.9% of hires. Medium-sized companies saw a 5.6% YoY rise (21.5%), while small businesses achieved a 6.7% growth, reaching 18.5% of hires.
In the United Kingdom, large companies saw a 6.2% drop in remote hires, and medium-sized companies experienced a 2% decline. On the other hand, small businesses showed positive growth, with a 2.3% increase in remote roles.
Germany followed a similar trend, with small and medium-sized companies reporting growth in remote hiring, increasing by 1.4% and 6.8%, respectively. However, large companies in Germany faced a 5% decline in remote hires.
13. Software Company Size and Growth
I found the interesting stats during my research about top software companies and their performance. Here are some key companies and how they are performing in terms of revenue and customers:
| Company | Revenue (2024) | Market Cap (2024) | Key Products/Services | Active Users/Customers |
|---|---|---|---|---|
| Microsoft | $245 billion | $3.3 trillion | Cloud services (Azure), Office 365, Dynamics 365 | 48 Million Active Monthly Users |
| Salesforce | $34.9 billion | $319.95 billion | CRM solutions, Tableau, Salesforce Cloud | Over 150,000 customers |
| SAP | $31 billion | $289.1 billion | ERP solutions, Cloud, Business Technology Platform | 300M+ cloud users globally.(Cloud User Base) |
| Oracle | $52.9 billion | $466 billion | Database management systems, Cloud services | 430,000 Customers |
| Adobe | $21.51 billion | $195.75 billion | Creative Cloud, Document Cloud | Over 30 million Paid Subscribers |
| HubSpot | $2.3 billion | $35.97 billion | Marketing automation, CRM | Over 238,000 customers |
| Freshworks | $713-16 Million | $4.90 billion | Customer engagement software | Over 60,000 customers |
| Monday.com | $964 Million | $11.75 billion | Work management platform | Over 225,000 Customers |
| Zoom | $4.4 billion (Q1-Q4) | $25.1 billion | Video conferencing solutions | 191,000 Enterprise customers |
This growth is dependent on factors such as the rising volume of enterprise data, increasing automation of business processes, and growing concerns about network security. The market also saw a positive impact during the COVID-19 pandemic, with remote working and heightened cyber threats driving demand for advanced software solutions, including malware protection and cybersecurity tools.
The software market is segmented by type, deployment, enterprise size, and industry vertical. Cloud-based solutions are anticipated to experience significant growth due to their cost-effectiveness and ability to support remote work.
The market is also seeing increasing demand across various industries, including IT, telecom, and retail, as businesses focus on improving operational efficiency, securing sensitive data, and streamlining business processes.