Software Consulting Market Size, Share & Trends Analysis Report By End-use (BFSI, Healthcare), By Enterprise Size (SMEs, Large), By Application (Enterprise Solutions, Design Services), By Region, And Segment Forecasts, 2023 - 2030

Software Consulting Market Size & Trends

The global software consulting market size was valued at USD 273.13 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2023 to 2030. The growing preference for the digitalization of business processes across industries and verticals is driving market growth, primarily for the efficient implementation of software into the IT setup of an enterprise. Moreover, technological developments in cloud computing and data analytics are increasing the demand for new services and encouraging enterprises to adopt novel and innovative solutions. In addition, the growing demand for software consulting services is expected to drive investments in advanced software technologies. These services aid enterprises in decision-making processes vis-à-vis their investment strategy for software adoption.

Organizations benefit from larger revenues and budgets during prosperous economic times, which allows them to spend more on consultants. The demand for software consulting services has expanded with the ever-increasing technological development. Consulting services give the right expertise and software implementation in enterprises to enhance revenue and profitability. The digitization of industries and the evolution of the Enterprise 2.0 concept, which involves combining social software and collaborative technologies for business processes, are the main factors driving market growth. Through software deployment, businesses focus on improving job quality, boosting delivery speed, lowering labor costs, and increasing transparency and accountability. Organizations are finding it challenging to meet end customers' needs due to the global pandemic; as a result, they are increasingly turning to software consulting solutions and services to speed up service delivery.

Numerous industries face significant ramifications and complications across critical processes due to the COVID-19 pandemic and global economic slowdown. While the market witnessed significant growth over the last few years owing to digitalization and technology penetration, the pandemic has pushed several economies to the edge of recession. This, in turn, leads to numerous consulting clients delaying their projects, reducing project scope to reduce costs, or canceling these projects altogether. The cancellation of multiple client projects has negatively impacted vendors' revenues and slowed down the market growth for the short term. In the wake of the pandemic, vendors are focusing on adopting a digitally centered approach to provide their services at a lower cost while eliminating expenses, such as the travel costs of consultants. With virtual consulting platforms, vendors can deliver high-impact outcomes similar to physical training but without needing consultants to be physically present. Service providers are also focused on attracting new clients looking to reduce operational spending via automation while opting for innovative solutions to complex business problems.

Despite the strong forces driving the software consulting industry, some significant restraints could stifle the market's growth. The inability to meet client expectations and the need for more technical skills are examples of such constraints. The software consulting market is also projected to be hampered by cultural clashes, business change, and integration challenges. Moreover, with rapid digitalization, data theft are equally on the rise as hackers are trying to leverage the growing adoption of software and the rising penetration rate of cloud computing to gain access to vital organizational data.

Application Insights

The enterprise solutions segment accounted for the largest market share of over 21% in 2022 and is projected to remain dominant over the forecast period. The demand for software, such as Enterprise Content Management (ECM), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM), has been increasing, which is estimated to boost the demand for consulting for enterprise solutions over the coming years. Customer involvement is becoming increasingly important to businesses. As a result, consumer involvement is becoming an increasingly crucial aspect of CRM activity. This encourages companies to develop dedicated solutions for social listening, measurement, management, and monitoring, among other things.

The software security services segment is anticipated to register the highest growth rate over the forecast period. The growth of this segment can be attributed to the increasing use of cloud servers to store information and an increasing number of cyberattacks to gain access to information. Stringent government laws, a boom in trends such as Bring Your Own Device (BYOD) and Bring Your Own Hardware (WFH), and sophisticated assaults across companies are all likely to boost the expansion of software security services. Furthermore, as cloud computing, e-commerce, and social networking become more popular worldwide, the need for enormous amounts of data to be stored in the cloud with increased security is growing. Over the projected period, these factors are expected to enhance demand for software security consulting services.

Enterprise Size Insights

The large enterprise segment accounted for the largest market share of over 60% in 2022. Large enterprises have vast data that needs to be effectively managed in local offices and overseas. These enterprises widely adopt software security services for security monitoring and managing their business data. Large businesses have already invested significantly in setting up their respective IT infrastructure. Large organizations are expected to account for just under half of all public cloud spending over the forecast period, followed by small and medium-sized organizations. The Software-as-a-Service (SaaS) model has also been experiencing high demand in the B2B sector, wherein the use of technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), is likely to improve automation and data-based decision-making across operations. These developments are expected to drive the demand for consulting services in the large enterprise segment.

The small and medium enterprises segment is expected to grow significantly over the forecast period. Increasing government initiatives through various digital SME campaigns in the region are anticipated to drive the segment's growth. Due to budget constraints, SMEs have yet to be able to invest aggressively in setting up IT infrastructure. Cloud-based SaaS can help SMEs ensure easy deployment and flexibility while delivering a better user experience. Also, as the customer base continues to grow, deploying a dedicated IT infrastructure to cope with the changing business requirements and stay up-to-date in the market is becoming necessary for organizations of all sizes, including SMEs. With advancements in SaaS tools, SMEs can use affordable software solutions and compete with larger companies with equal efficiencies. Hence, these factors are expected to boost the demand for software consulting services in the small & medium enterprises segment over the forecast period.

End-use Insights

The BFSI segment accounted for the largest market share of over 18% of the overall market in 2022. Financial services companies are adopting consulting services to expand their resources, integrate tech into data processes, and increase their businesses. In the forecast period, the widespread usage of digital payments and the increase in fin-tech companies are expected to increase the penetration of blockchain technology in banking. Also, the growing number of digital wallets is expected to propel the market growth. Furthermore, as the usage of cloud-based solutions and services increases for customer information storage, so does the frequency of cyberattacks; thus, organizations in the BFSI industry increasingly demand software security consulting services. Large amounts of data are being hosted in the cloud, necessitating sufficient security and creating an opportunity for software consulting firms to provide security services to BFSI companies.

The healthcare segment is anticipated to register the highest growth rate over the forecast period. Software consulting services are increasing in demand due to the penetration of new technologies and increasing competition in the market. The healthcare industry is highly competitive and remains in competition; healthcare companies are demanding software consulting to learn and adopt new innovative technologies such as the Internet of Things (IoT) & wearables, cloud services, product engineering services, integration services, and data science and business intelligence solutions and implement in the healthcare sector. Moreover, mandatory government regulations and standards for quality and other compliances are also expected to propel the demand for software consulting services among healthcare providers.

Regional Insights

North America dominated the market with a revenue share of over 30% in 2022 and will expand further at a steady growth rate from 2023 to 2030. The region is witnessing a high inflow of investments in technological R&D across various industries. The region's demand for IT and software solutions will likely rise as enterprises emphasize the Internet of Things (IoT) and big data technologies. Furthermore, the region's increased demand for software consulting is driven by the expanding digital transformation trend. Software consulting is in higher demand in the United States than in other countries in the North American region. Over the projected period, the region's market expansion will be driven by a growing number of technology start-ups and the continued adoption of ERP, CRM, and cloud services.

The market in Asia Pacific is expected to register a significant growth rate over the forecast period. Various regional governments are pushing software businesses to create and develop FOSS for SaaS, mobile applications, and Service-Oriented Architecture (SOA) (SOA). The usage of software consulting services in the region is likely to increase due to such activities. In addition, as e-commerce grows in the Asia Pacific region, so does the demand for web design and mobile app design advice to help online firms.

Key Companies & Market Share Insights

The market is highly competitive, with several market players catering to different sectors. The presence of established players is a key factor deterring potential players from entering the market. However, the increasing development of differentiated software consulting solutions and services in the market is expected to create growth opportunities for new entrants. Market players focus on expanding their businesses and strengthening their market positions through collaborations and partnerships. For instance, in July 2021, Accenture plc acquired Openminded Open Mind Services Limited, a provider of cybersecurity services. Through this acquisition, Accenture's MSS business in France has been expanded along with its product portfolio.

Vendors operating in the market also focus on delivering innovative solutions to support technology transformation, ensure adequate cybersecurity to protect confidential information, optimize organizational operations, integrate AI with business operations, derive superior business outcomes, and enable proactive remote monitoring. They are also offering various other services to businesses and helping them sustain themselves in the digital age. Some of the prominent players in the global software consulting market include:

• Accenture PLC

• Atos SE

• Capgemini

• CGI Group, Inc.

• Clearfind

• Cognizant

• Deloitte Touche Tohmatsu Ltd.

• Ernst & Young LLP

• International Business Machines Corporation

• Oracle Corp.

• PricewaterhouseCoopers B.V.

• Rapport IT

• SAP SE

• Trianz

Software Consulting Market Report Scope

Global Software Consulting Market Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global software consulting market report on the basis of application, enterprise size, end-use, and region:

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Enterprise Solutions

  • Application Development

  • Migration & Maintenance Services

  • Design Services

  • Application Testing Services

  • Software Security Services

  • Others

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprise

  • Small & Medium Enterprises (SMEs)

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • BFSI

  • Education

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)