July 21, 2024
Ict

Increasing adoption of cloud-based applications projected to boost the growth of Independent Software Vendors (ISVs) Market

Independent software vendors (ISVs) develop, sell and distribute commercially available software for vertical and horizontal applications that run on various operating systems, software packages, databases and cloud computing platforms. ISVs provide solutions that improve the productivity and performance across various industries including healthcare, retail, transportation and manufacturing. The adoption of cloud-based applications is increasing rapidly among organizations to gain flexibility, scalability and cost-effectiveness. This has opened significant growth opportunities for ISVs across the globe.

The global Independent Software Vendors (ISVs) Market is estimated to be valued at US$ 302.25 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The rising adoption of cloud-based applications is one of the major trends being witnessed in the global ISVs market. Cloud computing offers benefits such as scalability, flexibility and pay-as-you-go pricing model which is prompting several organizations to migrate their applications and infrastructure to the cloud. As per TechNavio, the cloud applications market is expected to grow at a CAGR of over 12% during 2023 to 2027. This increasing demand for cloud-based solutions is driving ISVs to develop and market cloud-native and cloud-enabled applications, which is fueling the growth of the market.
Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as ISVs face immense challenges to establish themselves due to high capital requirements and the presence of dominating incumbent players with strong brand equity.

Bargaining power of buyers: The bargaining power of buyers is moderate to high as buyers have the option of choosing from a variety of software solutions offered by different vendors. They can negotiate on price and demand customizations.

Bargaining power of suppliers: The bargaining power of suppliers is low as ISVs source generic raw materials and hardware that are easily available from multiple suppliers.

Threat of new substitutes: The threat of new substitutes is moderate as ISVs face competition from open-source alternatives and in-house developed solutions. However, switching costs act as a barrier.

Competitive rivalry: The competitive rivalry is high owing to the presence of software giants competing intensely on pricing, features and customer service.

Key players: Key players operating in the Independent Software Vendors (ISVs) market incorporate Microsoft Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Adobe Inc., IBM Corporation, Autodesk Inc., Intuit Inc., VMware Inc., Red Hat Inc. (part of IBM), ServiceNow Inc., Symantec Corporation (part of Broadcom Inc.), Splunk Inc., Tableau Software (part of Salesforce.com Inc.), Atlassian Corporation Plc

Regional analysis: North America dominates the ISVs market currently, owing to early adoption of advanced technologies and the presence of major software companies in the region. However, Asia Pacific is expected to witness the fastest growth over the coming years led by countries like India and China adopting digital transformation at an exponential rate.

Key Takeaways
The global Independent Software Vendors (ISVs) market is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing digitization and demand for cloud-based solutions. The market size for 2023 is estimated to be US$ 302.25 Bn.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it