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Independent software vendors (ISVs) develop and market software products and applications that run on cloud infrastructure platforms or other computing platforms without assistance from hardware manufacturers or IT administrators. They license the use of their software products to customers either on the basis of per-use, time-based subscriptions, or perpetual software licenses. Some common examples of ISV products and solutions include website design platforms, e-commerce solutions, database management software, online business applications, office productivity tools, and professional/technical software. The global ISV market also encompasses software resellers that purchase licenses in bulk from ISVs to distribute to end-users.
The global Independent Software Vendors (ISVs) Market is estimated to be valued at US$ 302.25 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing demand for cloud computing solutions from various industrial verticals is expected to drive the growth of the global ISVs market over the forecast period. Cloud computing provides on-demand access to shared computing resources and applications via the internet, eliminating upfront infrastructure costs. The cost-effective pay-as-you-go pricing model of cloud services is encouraging enterprises to adopt cloud-based ISV solutions to reduce capital expenditure on hardware, infrastructure, and in-house IT support. Furthermore, cloud technologies enable ISVs to focus on software product development rather than infrastructure support.
Additionally, increasing digital transformation initiatives by organizations around the world is also fueling the demand for specialized cloud-based ISV solutions. Organizations are rapidly adopting digital strategies and technologies like internet of things, cloud, artificial intelligence, cybersecurity, etc. to streamline business processes, enhance customer experiences, and gain competitive advantages. This is creating strong lucrative opportunities for ISVs offering innovative solutions catering to ever-evolving digital transformation needs of enterprises.
Key players related content comprises:
Key players operating in the independent software vendors (ISVs) market are Microsoft Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Adobe Inc., IBM Corporation, Autodesk Inc., Intuit Inc., VMware Inc., Red Hat Inc. (part of IBM), ServiceNow Inc., Symantec Corporation (part of Broadcom Inc.), Splunk Inc., Tableau Software (part of Salesforce.com Inc.), Atlassian Corporation Plc.
Segment Analysis
The independent software vendors (ISVs) market comprises commercial off-the-shelf, independent software, and public domain software segments. The commercial off-the-shelf software segment dominates the market as it allows customers to purchase standardized software products and solutions at competitive prices. This segment provides cost-effective options to customers compared to developing custom software to meet requirements.
PEST Analysis
Political: Regulation around data privacy and security has increased, compelling ISVs to strengthen data protection in their offerings.
Economic: The economic growth has boosted IT spending of enterprises, driving demand for specialized software from ISVs.
Social: Younger workforce prefers tools that offer collaboration and mobility, prompting ISVs to develop socially enabled products.
Technological: Emerging technologies like cloud, AI/ML and blockchain have expanded the scope for ISVs to innovate offerings and create new revenue streams.
Key Takeaways
The global Independent Software Vendors (ISVs) Market is expected to witness high growth over the forecast period. The global Independent Software Vendors (ISVs) Market is estimated to be valued at US$ 302.25 Bn in 2024 and is expected to exhibit a CAGR of 13. % over the forecast period 2023 to 2030.
The North American region currently dominates the market due to strong adoption of advanced technologies and presence of key players in the US and Canada. The Asia Pacific region is expected to register fastest growth during forecast period driven by increasing technology adoption among SMBs and growing internet penetration in developing economies like India and China.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
