According to TBRC’s software and BPO services market statistics, the global software and BPO services market size is expected to grow to above $1200 billion in 2021 at a compound annual growth rate (CAGR) of more than 9.5%.
One of the drivers of the market is the emergence of Internet of Things (IoT). IoT is a network of physical objects such as devices, vehicles, buildings and other items which are embedded with electronics, software, sensors and network connectivity enable these objects to collect and exchange data. For instance, Microsoft and Rolls-Royce have announced a partnership centering on future Rolls-Royce intelligent engines, which will integrate Microsoft Suite into its service solutions to expand its digital capabilities. Smart Grid encompasses inter related technologies entering public use to manage electricity consumption. Thus, IoT technology adoption is expected to expand the demand for software services.
However, a restraint on the market in the forecast period could be the increase in interest rates. Interest rates are expected to increase in developed nations, particularly the US and Europe, between 2016 and 2018.This will decrease the flow of cheap money which has been available for investment in 2016-2018, making it harder and more expensive for companies in capital-intensive industries such as the software industry to raise funds for research and development and market expansion, thus interest rates increase had a negative impact on this market.
Find TBRC’s report on the software and BPO services market: https://www.thebusinessresearchcompany.com/report/software-and-bpo-services-global-market-report-2018
Software Market Trends:
There has been exponential growth in the use of AI technology by companies operating in the automobile, e-commerce and manufacturing industries. Since AI can detect human motions it is being used to detect customer satisfaction levels and for voice and face recognition. Many major companies such as Facebook, Google and Airbnb are also open sourcing AI libraries to startups, indicating democratization of AI solutions. For example, leading software companies such as Cap Gemini, IBM, Accenture and TCS are offering AI services to optimize resources and reduce operational expenditures.
Download a sample report on the software industry overview: https://www.thebusinessresearchcompany.com/sample.aspx?id=296&type=smp
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