Software Licensing Market, By Licensing Type (Proprietary license, GNU General Public License, End User License Agreement, Workstation licenses, Concurrent use license), By Deployment (Cloud-Based, On-Premise), By End-User (Government and Defense, BFSI, Education and Research, Hospitals) - Forecast 2030

Software Licensing Market Summary

As per MRFR Analysis, the global software licensing market is projected to grow significantly, driven by the increasing demand from large IT enterprises and the necessity to combat software piracy. The market is expected to reach a valuation of USD 5 billion by 2030, with a CAGR of 13%. Despite challenges posed by the COVID-19 pandemic, which disrupted demand and supply chains, recovery is anticipated as businesses adapt to new licensing models. Key drivers include the rise in audit activities and the need for compliance, while opportunities lie in cloud governance expansion. However, the market faces restraints due to lack of collaboration and management complexities of licensing models. The competitive landscape features major players like IBM, Microsoft, and Accenture, who are innovating to enhance their market presence.

Key Market Trends & Highlights

The software licensing market is evolving with significant trends and opportunities.

• Market valuation expected to reach USD 14.34 billion with a CAGR of 8.6%.
• Europe anticipated to hold the largest market share due to on-premise and cloud-based deployments.
• North America leads in revenue generation, driven by major vendors.
• Asia Pacific shows rapid growth potential with increased adoption of commercial SLM systems.

Market Size & Forecast

Market Size by 2030: USD 5 Billion

Expected CAGR: 13%

Potential Market Size with 8.6% CAGR: USD 14.34 Billion

Largest Regional Market Share: Europe.

Major Players

IBM, Microsoft, Accenture, Flexera Software, Muduslink Global Solutions, Inishtech Technology Ventures, Safenet, Agilis International, Dimension Data, HP, Vector Networks, DXC Technology, Gemalto, Reprise Software, Snow Software.

Market Dynamics

Drivers

There are various factors that are responsible for driving the growth of the market which include the increase in the requirement of reduction of piracy issues and rise in the audit activities. Optimizing the needs of a license compliance audit is also a major factor that leads the market towards its growth. 

Opportunities

Expansion of the market is a great opportunity that can lead the software licensing business towards growth. An increase in cloud governance may offer the market an opportunity to expand which in turn will provide a major opportunity for the market of software licensing.RestraintLack of internal cross-functional collaboration might pose a huge restraining factor for the growth of the software licensing market. Another major restraining factor that can impede the growth of the market is the management of many licensing models.

Challenge

Along with the drivers, there also come a few challenges that the market may face during the forecast period. The rise in the demand for open-source platforms may affect the software licensing industry in a negative way and hence, may stand as a challenge to the market of software licensing.Cumulative Growth AnalysisAccording to the software licensing market analysis, the market may experience a significant growth during the forecast period which may reach a valuation of USD 14.34 billion only if the CAGR rate is 8.6%. The increase in the rules and regulations associated with the software or a platform is enhancing the growth of the software licensing market. Technology Analysis The software or the platform is becoming extremely important in all the software industries which include automotive, telecommunication, and healthcare. Nowadays, the software is becoming more prominent for the devices that are mostly used in the healthcare sector under the rules and regulations. In Australia, the therapeutic goods legislation is responsible for covering the manufacturers of Software as a Medical Device (SaMD) products in order to obtain the conformity assessment certification.

Segment Overview

The market of software licensing is segmented into three major parts. They are by end-user, by deployment, and by licensing type. Here is a list of the software licensing market segments along with their sub-segments.

By Deployment

• On-premise


• Cloud-based


• Others 

By Licensing type

• GNU General Public License


• Workstation Licenses


• Proprietary license


• Concurrent use license


• End User License Agreement


• Others

By End-User

• BFSI


• Human resources


• Education and Research


• Government and Defense


• Healthcare and Life Sciences


• Manufacturing


• Others

Regional Analysis 

The software licensing market size is segmented into five major regions which include North America, Europe, Latin America, Asia Pacific, and the Middle East and Africa. Among these five regions, Europe is expected to hold the largest share in the market of software licensing. This rise in Europe is because of the deployment of the market of software licensing that is majorly divided into two parts. One is the on-premises and the other one is the cloud-based. The presence of major vendors is making North America the leading region for the market of software licensing by revenues. Therefore it is expected that the North American region may show a significant growth in the market of software licensing during the forecast period. 

Also, Asia Pacific may show rapid growth in the global software licensing market for its increase in the transition from homegrown to commercial SLM systems. This may help in the rise of the adoption rate of various software licensing in the region of Asia Pacific.

Competitive Landscape 

Recently, many new companies are joining the market of software licensing with various strategies which include expansion of the market, the introduction of new services, and forming partnerships with various companies that can offer better products. These strategies are being implemented for the growth of the market and these also help in increasing the customer base. IBM, Microsoft, and Accenture are the most prominent key players of the market of software licensing that are responsible for the rise in the share price of the market. Such markets often launch innovative technologies and offer effective services to stand out in the competition. Here is a list of the other key players that are responsible for enhancing the growth of the software licensing market.

List of Key Companies

• Flexera Software (US)


• Muduslink Global Solutions Inc. (US)


• Inishtech Technology Ventures Ltd. (Ireland)


• IBM Corporation (US)


• Microsoft Corporation (US)


• Accenture Plc. (Ireland)


• Safenet Inc. (US)


• Agilis International (US)


• Dimension Data (South Africa)


• HP Inc (US)


• Vector Networks (US)


• DXC Technology Company (US)


• Gemalto MV (Netherlands)


• Reprise Software (US)


• Snow Software (Sweden)

Recent Developments

The software producers started producing various types of licenses for the software to meet the constantly changing demands of the customers. Nowadays, the traditional software licensing models are transforming to become a new one that will be cloud-based. Hence, most of the organizations are switching to cloud based platforms. 

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