Industrial Software Market Analysis By Platform, End User, Region Size, Trends - Global Forecast to 2029 - ResearchAndMarkets.com

The "Global Industrial Software Market: Analysis By Platform, End User, Region Size, Trends and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.

The global industrial software market was valued at US$110.52 billion in 2023 and is expected to be worth US$189.68 billion by 2029. The market is expected to grow at a CAGR of 9.42 % over the projected period of 2024-2029.

The global industrial software market is moderately fragmented. Those with significant exposure to these aforementioned segments like cloud infrastructure and services, cybersecurity, and data analytics would continue to gain a larger share of the overall industrial software spend as more businesses digitize and modernize their software infrastructure.

Industrial software is a collection of application programs, processes, methods, and functions that can help with data collection, manipulation, and management on a large scale. Industrial software is used in a variety of industries, including operations, manufacturing, design, construction, mining, textile mills, chemicals, food processing, and service providers. Industrial software is used to manage the overall industrial process.

Technological advances, new easily accessible software solutions, and increasing trend of automation and robotics are creating higher opportunities for new market entrants in the industrial software market. For instance, on June 18, 2024, Salesforce announced LLM benchmark for CRM to help businesses evaluate the rapidly growing number of large language models (LLMs) for use in their customer relationship management (CRM) systems. The new benchmark is a comprehensive evaluation framework that measures the performance of LLMs against four key measures: accuracy, cost, speed, and trust and safety.

The global industrial software market has been positively growing over the period as a result of positive shift towards automation, rising adoption of smart manufacturing practices, rapid industrialization in emerging economies, growing demand for qualitative & reliable manufacturing, increased need for mass production with reduced operation costs, emergence of Industry 4.0 technologies, and increasing complexity of industrial operations across various end user industries.

Also, factors like rising acceptance of cloud-based industrial software solutions, growing emphasis on cybersecurity, emergence of digital twins, and growing demand for predictive analytics and AI-based solutions will continue to boost the growth of global industrial software market in the forecasted period.

North America held the dominant share in the global industrial software market in 2023. Due to the increasing adoption of electronic health record, cloud services and presence of advanced healthcare facilities and IT companies, North America market has witnessed a significant increase in the adoption of industrial software solutions. Furthermore, North America is occupied with leading industrial software market players, who continue to drive innovation in their software solutions by introducing new features. Due to the rising trend of automation and increasing deployment of industrial robots, the need of industrial software to manage complex operations is rising and thereby is likely to propel the growth of the industrial software market in North America in coming years.

Asia pacific is the fastest growing region of the global industrial software market, driven by an increase in demand for operational efficiency and transparency in business processes, the adoption of cloud and mobile applications, and an increase in demand for data-driven decision-making. Factors such as increased emphasis on improving process efficiencies and lowering production costs across various industry verticals is expected to continue to augment market growth in the forecasted period.

China remains the largest market in the Asia Pacific. China's society and economy have been transformed by dramatic expansions in manufacturing capabilities and rising consumer consumption. China is a major producer of industrial and consumer goods in the world. China's robust manufacturing sector, which is one of the largest in the world, continues to expand and upgrade. The need for automation, efficiency, and innovation in manufacturing processes drives the demand for industrial software solutions such as MES, PLM, and ERP.

Market Segmentation Analysis:

The on premise segment held the highest share in the market. The increasing concern over security and the problem of transferring data in the cloud, especially when companies are dealing with big data are the contributing factors supporting the on-premise industrial software market growth. On the other hand, cloud segment is expected to be the fastest growing segment in the forecasted period.

Factors such as need for agility and flexibility, real time information and customer behavior have supported the growth of the market in the past few years. Most of the industrial software and solutions are going cloud-based as they cost less and are easy to manage. Moreover, a cloud-based industrial software allows the user to access data from any device. These benefits would surge the adoption of cloud-based platform in the industrial software market.

BFSI segment held the highest share in the market in 2023. BFSI software serves as a means of communication between a bank and a user. Its purpose is to improve the workflow within the company and its branches, to facilitate investment policies, and to provide services that meet the needs of the users. Easy data access, digital banking, and fintech startups are driving the growth of the BFSI industrial software market. In addition, others industrial software market is expected to be fastest growing segment of the market.

The primary goal of educational software development is to improve the learning experience of students while also improving training for administrators, educators, and anyone else involved in the school management process. The numerous benefits associated with industrial software such as efficiency, scale and low cost, could bring in more transparency, visibility & cost efficiency to advertising agencies in advertising and design sector.

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