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The business productivity software market size is projected to increase by USD 87.18 billion, at a CAGR of 15.34% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing requirements for large-scale business portfolio management, the rise of remote and distributed workforces globally, and the growing adoption of cloud technology.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Deployment, which comprises cloud and on-premises. Additionally, it categorizes End-user into large enterprise and SMEs, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The rise of remote and distributed workforces globally is the key factor driving market growth. The surge in remote work has led to a heightened demand for advanced collaboration tools, reshaping the operational landscape for businesses and transforming team interactions. This shift in work dynamics has propelled remote work into mainstream practice, necessitating the adoption of tools that facilitate smooth communication and collaboration. These technological advancements have empowered teams to maintain strong connections, collaborate efficiently, and seamlessly conduct remote work. Essential for organizations striving to sustain productivity across geographically dispersed teams, these tools encompass various applications, including video conferencing platforms, project management software, and virtual communication tools.
Moreover, video conferencing, facilitating face-to-face interactions, and project management software, aiding in task tracking and team coordination, have become cornerstones for remote work. Virtual communication tools, like instant messaging and file-sharing platforms, not only enhance information flow but also contribute to employee engagement by addressing challenges such as isolation and communication barriers. These tools, with their adaptability and integration capabilities, now stand as critical components in the modern workplace, enabling businesses to navigate the complexities of remote work seamlessly. Hence, the increase in the adoption of remote working will continue to drive the growth of the market during the forecast period.
Automatic updating and enhancing coherency in business operations is one of the emerging market trends shaping growth. Streamlining project schedules is a laborious task in business productivity management, often frustrating project managers, engineers, and analysts. Intelligent project portfolio management scheduling tools are integrated into the business operating system to boost project productivity. These tools leverage predefined process libraries, guiding users in generating optimal outputs and prompting the creation of missing processes. If a specific skill is lacking, the tool references the library, performs a system check for resource availability, and proposes selections for approval. Cloud-based services simplify resource allocation.
Notably, Accenture's USD 3 billion investment in Accenture Cloud First in September 2020 highlights the industry trend towards cloud-based project portfolio management for automated updates and monitoring of deliverables. Thus, this feature aligns with market trends and analysis is expected to be adopted by several project portfolio management software companies, thereby contributing to the growth of the market in focus during the forecast period.
The availability of open-source software solutions is a challenge that affects market growth. Open-source solutions are generally free to use, and organizations may be attracted to these alternatives as they seek to minimize licensing fees and lower overall software expenses. This cost advantage can be a compelling reason for businesses, especially SMEs and startups, to opt for open-source productivity tools over commercial alternatives. This poses a direct threat to the revenue streams of proprietary software vendors, forcing them to reassess their pricing models and competitive strategies. Open-source productivity tools, like LibreOffice, present an effective alternative to commercial offerings such as Microsoft Office.
In addition, another notable example is the Apache OpenOffice project. Offering functionalities like proprietary office suites, Apache OpenOffice includes applications, namely Writer and Calc. Its cost-free nature attracts organizations looking to allocate resources judiciously. The adoption of such open-source office productivity tools challenges the traditional revenue models of proprietary companies like Microsoft, compelling them to reassess pricing strategies and introduce more competitive licensing options. Hence, the availability of open-source software solutions may impede market growth during the forecast period.
The market share growth by the cloud segment will be significant during the projection period. Cloud-based software eliminates the need for businesses to invest in expensive hardware, infrastructure, and maintenance. This cost-efficient model makes it accessible to businesses of all sizes, including startups and small businesses. Cloud-based solutions are highly scalable. Businesses can easily scale up or down their software usage as their needs change without the need for significant upfront investments. Furthermore, the robust demand for cloud-based business management software is driven by its cost-efficiency, scalability, flexibility, security, and various other benefits that help businesses operate more efficiently and competitively in today's digital landscape.
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The cloud segment showed a gradual increase in the market share of USD 27.30 billion in 2018. One of the leading examples of cloud-based business productivity software is Microsoft Corp software solutions like Microsoft 365. Formerly known as Office 365, Microsofts suite includes cloud-hosted applications such as Word, Excel, and Teams. Microsoft 365 enables users to collaborate in real-time, access files from multiple devices, and benefit from automatic updates, all facilitated by the cloud infrastructure. Thus, this demand is likely to continue to grow as businesses increasingly rely on technology to streamline their operations and remain competitive in their respective markets, which will drive the growth of the cloud segment of the market in focus during the forecast period.
Large enterprises, characterized by extensive resources and complex structures, are pivotal in shaping the market. Essential for optimizing operations and fostering collaboration, these corporations are increasingly digitizing to enhance efficiency and reduce costs. Business productivity software, particularly cloud-based applications, aids workflow automation, project controls, and effective collaboration. Key vendors like SAP and Oracle offer solutions for seamless integration and management of various business functions, empowering large enterprises to streamline operations and gain data-driven insights for improved productivity and compliance. Hence, the growing need for enhancing operations in large enterprises will continue to drive market growth through the large enterprises segment during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America has always been a lucrative market for companies operating in the market, as the region is an early adopter of advanced technologies across all industries. The strong presence and penetration of the top market layers boost overall market growth in the region. The region has some most advanced and developed economies in the world, such as the US and Canada, which increases the rate of data generation and consumption.
Furthermore, cloud services and social integration are interlinking with economic progress and structuring a new intelligent economy. Business productivity software solutions are playing an integral role in simplifying the flow of information technology and services with real-time tracking to monitor the internal workings of enterprises. Hence, such factors are expected to drive the growth of the market in the region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018-2028
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Business Productivity Software Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.34% |
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Market Growth 2024-2028 |
USD 87.18 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.28 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Alphabet Inc., Amazon.com Inc., Asana Inc., Atlassian Corp. Plc, Bending Spoons S.p.A., Broadcom Inc., Cisco Systems Inc., Dropbox Inc., Expensify Inc., International Business Machines Corp., Microsoft Corp., monday.com Ltd., Oracle Corp., Salesforce Inc., SAP SE, Smartsheet Inc., TIBCO Software Inc., Toggl, and Zoho Corp. Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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