NEW YORK, Feb. 7, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global independent software vendors (ISVs) market size is estimated to grow by USD 1.56 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 11.9% during the forecast period. Rise in volume of enterprise data is driving market growth, with a trend towards increasing adoption of cloud computing by end-users. However, high costs of licensing and support poses a challenge. Key market players include Adobe Inc., Alphabet Inc., Autodesk Inc., Avgi Solutions Inc., Cisco Systems Inc., Dell Technologies Inc., HP Inc., International Business Machines Corp., Intuit Inc., Magic Software Enterprises Ltd., Microsoft Corp, Mocana Corp., Nutanix Inc., Open Text Corp., Oracle Corp, Salesforce Inc., SAP SE, ServiceNow Inc., Virtusa Corp., and VMware Inc..
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| Forecast period | 2025-2029 |
| Base Year | 2024 |
| Historic Data | 2019 – 2023 |
| Segment Covered | Deployment (On-premises and Cloud based), Component (Software and Services), Geography (North America, Europe, APAC, South America, and Middle East and Africa), and Industry (BFSI, IT & Telecom, Logistics, Education, Healthcare, and Others) |
| Region Covered | North America, Europe, APAC, South America, and Middle East and Africa |
| Key companies profiled | Adobe Inc., Alphabet Inc., Autodesk Inc., Avgi Solutions Inc., Cisco Systems Inc., Dell Technologies Inc., HP Inc., International Business Machines Corp., Intuit Inc., Magic Software Enterprises Ltd., Microsoft Corp, Mocana Corp., Nutanix Inc., Open Text Corp., Oracle Corp, Salesforce Inc., SAP SE, ServiceNow Inc., Virtusa Corp., and VMware Inc. |
Key Market Trends Fueling Growth
Independent Software Vendors (ISVs) create and sell software solutions to businesses, from productivity tools to industry-specific applications. Hardware manufacturers and multinational corporations are key customers. Trends include cloud computing, AI integration, data analytics, and UX focus. Startups and SaaS companies dominate, offering web-based services for retail & e-commerce, IT & telecom, automotive, finance, education, and more. Technologies like IaaS, PaaS, and AI are used. Salesforce Industries and Cloud Technologies lead the market. Mobile apps and IoT applications are growing. AI and data security are concerns. ISVs provide technical support and training. Businesses seek software products for specific problems. Latest technologies include programming languages, platforms, and integration & interoperability. Privacy concerns persist.
Cloud-based software solutions have become increasingly popular among agencies and corporations for various applications, including authentication, video management, biometric information storage, and big data computing. The flexibility and scalability of these solutions enable organizations and governments to meet their evolving needs. The proliferation of IoT-connected devices globally has led to an enormous data generation. Industries such as manufacturing, utilities, retail, automotive, and social media utilize IoT for enhanced data transfer. The rise of connected cars, homes, health, and smart cities further contributes to the data influx. Cloud-based software’s ability to handle and process vast amounts of data efficiently makes it an indispensable tool for businesses and governments in today’s data-driven world.
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Market Challenges
- Independent Software Vendors (ISVs) face various challenges in today’s market. Hardware manufacturers can pose obstacles with proprietary systems, making it difficult for ISVs to develop software solutions that integrate seamlessly. Enterprise applications, industry-specific software, productivity tools, and even startups require ISVs to offer solutions that cater to specific business problems. Technologies and platforms like cloud computing, AI, data analytics, and IoT applications offer immense opportunities but also present challenges. ISVs must ensure their software integrates with these technologies and addresses privacy concerns and data security. Multinational corporations demand customized solutions, while smaller businesses seek affordable, easy-to-use software products. Salesforce Industries, Cloud Technologies, IaaS, PaaS, and E-Commerce sectors are booming, requiring ISVs to keep up with the latest technologies. SaaS, retail & e-commerce, IT & telecom, automotive, and other industries have unique needs. ISVs must provide technical support, training, and integration with programming languages and platforms. On-premises software still exists, but the shift to web-based services and mobile apps is unstoppable. Finance, education, healthcare, and other sectors require specialized software. Large technology companies offer stiff competition, making differentiation essential. ISVs must navigate these challenges to succeed.
- Independent Software Vendors (ISVs) have evolved from service providers to a product-focused industry, now transforming into a hybrid of both. Traditional licensing models like single-user and concurrent-user have given way to usage-based and perpetual licensing in the corporate application sector. Perpetual licensing remains popular, but expensive license and maintenance costs may negatively impact the ISV market during the forecast period. Usage-based licensing is increasingly common, offering more flexibility for businesses. ISVs must adapt to these changes to remain competitive.
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Segment Overview
This independent software vendors (isvs) market report extensively covers market segmentation by
- Deployment
- On-premises
- Cloud Based
- Component
- Software
- Services
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
- Industry
- BFSI
- IT & Telecom
- Logistics
- Education
- Healthcare
- Others
1.1 On-premises- Independent Software Vendors (ISVs) often choose to deploy their software through the on-premises model. On-premises software is locally hosted within an organization’s premises, utilizing their computer systems. ISVs charge a one-time license fee for this solution. On-premises software offers organizations data security and local ownership, along with the flexibility for additional integrations. Organizations have complete control over their data in on-premises software, enhancing data security. Many on-premises software solutions are open source, allowing organizations to customize the program to their unique requirements. Large organizations, particularly those handling sensitive data, frequently opt for on-premises software. Despite the high hardware costs and frequent maintenance requirements, security concerns and cyber threats continue to drive organizations towards on-premises software. This trend is anticipated to fuel the expansion of the on-premises segment within the global ISVs market throughout the forecast period.
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Research Analysis
The Independent Software Vendors (ISV) market refers to the industry of software companies that develop and sell applications that run on top of a software platform or infrastructure developed by other companies. ISVs offer various software solutions, including enterprise applications, industry-specific software, productivity tools, and web-based services, catering to various businesses and industries such as retail & e-commerce, IT & telecom, automotive, finance, education, and more. Technologies and platforms like cloud computing, IaaS (Infrastructure-as-a-Service), PaaS (Platform-as-a-Service), and AI (Artificial Intelligence) are driving innovation in the ISV market. ISVs are developing software solutions for specific business problems using programming languages and platforms, providing technical support and training to their clients. ISVs can be startups or multinational corporations, offering software solutions for various industries and business needs. E-commerce, logistics, and software-as-a-service (SaaS) are some of the rapidly growing segments in the ISV market. Hardware manufacturers are also partnering with ISVs to offer integrated hardware-software solutions to businesses. Overall, the ISV market is a dynamic and innovative space, providing businesses with the tools they need to succeed in an increasingly digital world.
Market Research Overview
The Independent Software Vendors (ISV) market encompasses a vast array of businesses that develop and sell software solutions to address specific business problems across various industries. These offerings range from enterprise applications and industry-specific software to productivity tools and standalone applications. ISVs cater to both startups and multinational corporations, leveraging the latest technologies and platforms such as cloud computing, artificial intelligence (AI), data analytics, and user experience (UX). Cloud Technologies, IaaS, PaaS, and Software-as-a-Service (SaaS) are increasingly popular delivery models for ISVs. Industries like retail & e-commerce, IT & telecom, automotive, finance, education, and healthcare are major consumers of ISV software. Programming languages and platforms form the foundation of these solutions, with technical support, training, and integration and interoperability ensuring seamless deployment. Cloud computing markets, mobile apps, IoT applications, and AI integration are key growth areas. However, data security and privacy concerns remain critical challenges for ISVs, necessitating solutions to protect sensitive business information. Salesforce Industries and Cloud Technologies are significant players in this domain, offering a range of industry-specific solutions. ISVs cater to businesses of all sizes, from small startups to large technology companies, addressing their unique needs through custom software products and web-based services. The market is dynamic, with constant innovation and evolution driven by emerging technologies and evolving business requirements.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Deployment
- On-premises
- Cloud Based
- Component
- Software
- Services
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
- Industry
- BFSI
- IT & Telecom
- Logistics
- Education
- Healthcare
- Others
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio