Independent Software Vendor Market Size was valued at USD 425.70 Million in 2023.
The Independent Software Vendor market industry is projected to grow from USD 504.03 Million in 2024 to USD 3,024.24 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 23.80% during the forecast period (2024 - 2032).
An independent software vendor (ISV) is a business or individual that builds, develops, and sells enterprise or consumer software to its end users. These software products run on more than one operating system (OS) or computer hardware platforms. Even though ISV-provided software is consumed by end users, it is considered as the property of the vendors. According to MRFR analysis, the market is expected to register high growth during the forecast period. Increased demand for value-added services and OEM support for ISVs solution development and management are some of the factors responsible for the growth of the market during the forecast period.
As per Analyst at MRFR, “The rise of the mobile workforce raises the demand for collaboration tools, mobile apps, and remote access solutions, providing substantial growth prospects for ISVs that build appropriate software.”
FIGURE 1: INDEPENDENT SOFTWARE VENDOR MARKET SIZE 2019-2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The introduction of cloud technologies constituted an important turning point in software development history. Cloud computing refers to the supply of various computing services such as servers, storage, databases, networking, analytics, and more that are all accessible via the internet, indicating a paradigm shift in how technology resources are accessed and utilised. This transition from on-premises infrastructure to cloud-based services resulted in several revolutionary shifts. Cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud provided scalable architecture that allowed developers to simply add resources as needed. This avoided the need for upfront hardware investments and allowed the flexibility to scale up or down dependent on demand. Cloud services can be accessed from any location with an internet connection, allowing for remote development, collaboration, and access to a worldwide talent pool. In a world where distributed teams and remote work have become the norm, geographical flexibility has become critical. Leading cloud providers have made significant investments in security and data redundancy, making cloud-based solutions safer and more dependable than many on-premises alternatives. Backups of data and disaster recovery have become more accessible and efficient. Due to all this demand for cloud-based software solutions is expected to be increasing significantly. This is presenting significant opportunity for ISVs developing and offering cloud-based solutions for various industries.
Based on Type, the Independent Software Vendor Market segmentation Cloud-based, On-premises The cloud-based segment will be the majority share in 2022, contributing around 58.9% to the market revenue. Cloud provides a compelling platform for companies to securely manage their content and applications, with planetary scale and opportunities for innovation. Cloud services allow ISV partners to focus on their core goals of developing and delivering applications; and improving their cloud platform provider. According to the Cloud Adoption and Risk Report 2019, published by McAfee, the adoption of cloud-based applications, including the enterprise cloud application and consumer cloud applications, has witnessed significant growth across the verticals. Cloud services offer immense opportunities to modernize businesses. It provides scalability that offers ISVs to be more agile with their resources and offers new prospects for integration and collaboration. Furthermore, the adoption of software-as-a-service (SaaS) provides better accessibility to secure and access data, whereas infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) provide a better platform to secure their workloads that ensures the underlying application and infrastructure components are not misconfigured.
FIGURE 2: INDEPENDENT SOFTWARE VENDOR MARKET, BY Type, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on the Application, the Independent Software Vendor Market segmentation is E-Commerce, Logistics, Retail, Healthcare, Financial, Educational, Others. Retail Applications dominated the market in 2022. Software applications developed by independent software vendors help retail vendors to offer a customer-centric experience. For retail applications, ISVs offers various solutions that include facilities management, business-centric e-commerce or business to customer solutions, enterprise resource planning (ERP) / customer relationship management (CRM), point-of-sale (POS) systems integration, inventory management, and web applications or portals which help the retailers to boost their business value. By leveraging dynamic platforms offered by major key players in the market such as Oracle Corporation, Microsoft Corporation, and Salesforce.com, the ISVs develop applications in line with client requirements and advanced features, which increases customer satisfaction and helps the retailers to offer the solution with minimum time to market.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The North America Independent Software Vendor market accounted for ~23.4% in 2022. It is expected to exhibit a significant CAGR growth during the study period. North America is one of the most critical regions for the ISV market. North America consists of countries such as the US, Canada, and Mexico. These countries have a large number of ISV providers. For instance, in the US, some of the key ISVs are Ipswitch, Salesforce.com, Intuit Inc., Alpha Software. In Canada, some of the key ISVs include Endeavour, CRG Solutions, and MediaValet Inc. All these ISVs compete based on value-added features and services that they offer. According to TECH COM compuBase, a technology service provider, there were over 1500 ISVs in their database, in the region that provide varied software solutions. Some of the prominent software that ISVs offer in this region include industry-specific solutions and management & production related solutions.
The independent software vendors market in North America is mainly driven by the growing use of various enterprise solutions such as human capital management (HCM), expense management, financials, office suites, and collaborative solutions (mainly web conferencing technology) due to a highly distributed workforce.
Europe region consists of countries including Germany, France, Italy, the UK, and rest of Europe. The DACH region that include the following countries—Austria, Germany, and Switzerland, that have a significant number of ISVs. According to TECH COM compuBase, there were more than 6,938 companies in their database, offering software solutions in the countries mentioned. More than 40% of these ISVs offer management- and production-related software solutions and nearly 30% of these ISVs offer industry-specific software solutions. Following the DACH region, France is one of the prominent countries where a large number of ISVs operate. These ISV providers provide office automation and DBMS solutions, management and production solutions, and industry-specific solutions. Some of the key ISVs in the region include Itransition, Dassault System, Sopra Steria, MUREX S.A.S, and Cegid Group.
Moreover, countries such as the United Kingdom, Germany, and France have well-established software industries and host a considerable number of Independent Software Vendors (ISVs). The market share distribution among ISVs in Europe can differ based on factors such as country-specific regulations, industry focus, and customer preferences.
FIGURE 3: INDEPENDENT SOFTWARE VENDOR MARKET SIZE BY REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, South Korea, and Brazil.
The independent software vendor market is characterized by the presence of many global, regional, and local players. The market is competitive, with all the players competing to gain maximum market share. The need for software solutions is on the rise across various industries. Many businesses are relying increasingly on software for streamlining their operations, gain competitive edge, and improving efficiency and growing adoption of cloud computing are key factors that drive the market growth.
According to MRFR analysis, the growth of the independent software vendor market is dependent on market conditions. The key vendors in the market are Hewlett Packard Enterprise Development LP (HPE), IBM Corporation, Micro Focus., Dell Inc., Google Inc, Apple, Inc, Salesforce, Microsoft, IBM Corporation, Oracle Corporation, SAP SE ServiceNow (US), Mocana (US), and Compuware Corporation.
These companies are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are providers of independent software and compete in the independent software vendor market to increase their geographic presence, expand their customer base, and form strategic partnerships.
The top 5 players in the strategy consulting market are Microsoft, Oracle, SAP SE, IBM Corporation and Salesforce.
In October 2023, Cobo collaborated with Alibaba Cloud, monetizing the business ties in these technologies. The partnership between the two companies is expected to facilitate the advanced wallet infrastructure targeting international organizations within the Web3 space. Cobo’s specialized provision of digital assets solutions and Alibaba Cloud’s capabilities of secure and scalable cloud computing have therefore been highlighted as the purpose of the partnership. Also introduced was a Wallet-as-a-Service solution for developers and organizations.
Commvault is a data management and data protection software company that joined Ingenious Technologies in August 2023 to join the Amazon Web Services (AWS) ISV Workload Migration Program to assist customers' migration to AWS with better technical assistance.
In May 2023, Alibaba Cloud, a cloud computing company, launched a new ISV program to penetrate the Asia Pacific market. The company has intended to provide global ISVs with additional financial and technical benefits.
In March 2023, Datalogic S.p.A. announced the launch of its Global Independent Software Vendor Partner Program as Datalogic devices for mobile computers. This program is designed to improve brand exposure, generate leads and enhance its software development times.
In July 2022, TD SYNNEX launched the preferred partner program for independent software vendors optimally in the market. This ISV experience will leverage SaaS opportunities that are contract based.
In September 2021, Azure ISV Connect was launched by Microsoft, with plans to integrate into its first American cloud management platform, Microsoft Azure. This program encompasses a wide variety of activities, from resources through support, and even co-selling opportunities, clearly outlining for independent software vendors ways to develop their solutions and go to market with them.
In September 2020, Salesforce, Inc. announced the launch of their cloud initiative called Salesforce Industries, previously branded as Salesforce Vertical Solutions, helping independent software vendors targeting the financial, healthcare and manufacturing industries in delivering sector-specific solutions to the market.
US
Canada
Mexico
UK
Germany
France
Italy
Spain
Rest of Europe
China
Japan
India
Rest of Asia-Pacific
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 425.70 Million |
| Market Size 2024 | USD 504.03 Million |
| Market Size 2032 | USD 3,024.24 Million |
| Compound Annual Growth Rate (CAGR) | 23.80% (2024-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application and Region |
| Geographies Covered | Europe, North America, Asia-Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Germany, Canada, U.K., Italy, France, Indonesia, Japan, China, Australia, India, and Brazil |
| Key Companies Profiled | ·      IBM·      Microsoft·      SAP SE·      Salesforce·      Oracle·      Google, Inc.·      Apple Inc.·      Dell, Inc·      HPE·      Compuware (BMC)·      ServiceNow·      Symantec Corporation (Broadcom)·      Cisco Systems,Inc.·      MicroFocus.·      Carbonite, Inc. (OPENTEXT)·      Mocana |
| Key Market Opportunities | Rising demand for cloud-based solutions |
| Key Market Dynamics | Increased demand for value added services·OEM support for ISVS solution development and management |
Independent Software Vendors Market Highlights:
Frequently Asked Questions (FAQ) :
The Independent Software Vendor Market size is expected to be valued at USD 425.70 Million in 2023.
The global market is projected to grow at a CAGR of 23.80% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are IBM, Microsoft, SAP SE, Salesforce, Oracle, Google, Inc., Apple Inc., Dell, Inc, HPE, Compuware (BMC), ServiceNow, Symantec Corporation (Broadcom), Cisco Systems,Inc., MicroFocus., Carbonite, Inc. (OPENTEXT), Mocana
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Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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