HG data shows the number of applications deployed worldwide grew from 57.8 million in 2022 to 67.6 million in 2023. This marks a 252% increase in applications over the last five years. Total global software spend is projected to reach $1.02 trillion in 2023.
We break Software down into three categories and their subcategories:
In the following pages, we will dig into four particularly interesting subcategories: Sales & Marketing, Security, Application Development & Deployment, and Enterprise Resource Planning Applications.
INSIGHTS
Sales & Marketing is one of the busiest spaces in the software market, and also has the fifth highest overall spend of any subcategory. If we break it down even further, Sales software makes up $20.7 billion of the spend while Marketing software accounts for $49.6 billion.
TOP 10
sales vendors
INSIGHTS
HG data indicates that the AMER region spends the most on cloud security. Of the $76B total global spend on cloud security, 38% is from U.S.-based companies.
There are three main areas included in Security software: Information and Threat Management, Identity and Access Management, and Vulnerability Management. HG’s 2023 State Of Cloud Security Report (presented in partnership with Bain Capital Ventures) went into extensive detail on the rapidly growing cloud security market.
INSIGHTS
HG forecasts that $216 billion will be spent on Application Development & Deployment software in 2023, $93.8 billion of which will be spent in the AMER region. Within this sector, the largest subcategories are Application Infrastructure Middleware, Database Management Systems, and Application Life Cycle Management.
TOP 10
Application Infrastructure Middleware Vendors
INSIGHTS
ERP applications have come a long way since the first similar systems popped up in the 1960s for material requirements planning. These days, ERPs are some of the most crucial – and sticky – products that any company will purchase. Customer Relationship Management (CRM) applications and financial applications have the highest forecasted global spend, with $38.1 billion and $36.2 billion, respectively.
ERP Vendors
Chapter 4
IT Services Spend Forecast
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