1. Global Industrial Software Market Size Growth Forecast
According to IoT Analytics' "Industrial Software Landscape 2024-2030" report, the global industrial software market reached $146 billion in 2023 and is projected to reach $355 billion by 2030, demonstrating a CAGR of 13.5%. This growth momentum reflects the increasing importance of industrial software in global manufacturing.
2. Rapid growth of cloud infrastructure and services
Cloud infrastructure and services became the fastest-growing category in the overall industrial software market. This category reached $32.7 billion in 2023, with cloud services continuing to be the biggest market driver as manufacturers move critical software workloads to the cloud and adopt SaaS solutions.
3. Significant growth in Product Lifecycle Management (PLM)
In the core value chain software sector, the PLM software category saw the fastest growth between 2021 and 2023, with a CAGR of 13.6%. The EDA software sector is likely to become the fastest-growing core value chain software category in the coming years, thanks to the start of a supercycle for new AI chipsets.
4. Microsoft's market share growth
Microsoft held a 13% share of the global industrial software market in 2023, a 2 percentage point increase from 2021. Its Azure cloud services, deployed in manufacturing and industrial settings, drove this market performance, and Microsoft is a leader in the cloud AI and cloud-generated AI (GenAI) race.
5. Companies with increased market share in the core value chain
Oracle, Synopsys, and Cadence Design Systems saw the largest growth in the "core industrial value chain software" segment, each increasing by 0.6 percentage points. Oracle's market share growth was primarily driven by its supply chain planning, design, and execution software, cloud services, and field service software.
6. SaaS has become a top business focus for vendors.
Industrial software vendors are increasingly focused on expanding their SaaS revenue. For example, SAP's SaaS accounted for 41% of its revenue in 2023, up from 34% in 2022, and the goal is to have all customers transition to cloud-based solutions by 2027.
7. AI and GenAI as key areas of innovation
Of the 180 leading industrial software vendors, 88% have already launched at least one new AI-based software feature, with many more vendors planning to release similar products. For example, Manhattan Associates' ActiveMavin, a customer service chatbot powered by GenAI, and IBM's Maximo application suite utilize IBM Watsonx's GenAI to improve asset management workflows.
Summarize
The above statistics reveal the current state and future trends of the industrial software market, demonstrating that cloud services, SaaS, AI, and GenAI are key drivers of its growth. With continuous technological advancements and evolving market demands, these trends are expected to have a profound impact on the industrial software market from 2025 onwards.
