Software License Management Market size is expected to cross USD 6 Billion by the end of 2035, growing at a CAGR of 10.5% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of the software license management was over USD 2.2 Billion. With the proliferation of software applications across industries, organizations are using a wide range of software tools to manage various aspects of their operations. This complexity creates a need for efficient license management to ensure compliance, cost-effectiveness, and optimal utilization of software resources.
Regulatory authorities and industry standards require organizations to maintain proper software license compliance. Failure to comply with these regulations can result in legal and financial consequences. This has driven the adoption of software license management solutions.
Growth Drivers
Challenges
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~ 10.5% |
Base Year Market Size (2022) |
~ USD 2.2 Billion |
Forecast Year Market Size (2035) |
~ USD 6 Billion |
Regional Scope |
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Deployment Type (On-Premises, Cloud-based)
Cloud-based segment is anticipated to have the largest market share of 58% over the forecast period. Owing to the deployment of cloud in businesses globally additional investment in public cloud services is anticipated to generate USD 597.3 billion in revenue by the end of 2023. This opened up opportunities for the deployment of software license management solutions.
End-User (Healthcare, IT & Telecommunications, Manufacturing, Retail, BFSI, Government & Defense)
The largest share of the software license management market is going to be held by the BFSI. The main driver of this will be the growing number of bank account holders. Banks are working towards providing their customers with contactless services and switching to a paperless system with an annual adoption rate progressively at 3.5 %.
Our in-depth analysis of the global market includes the following segments:
Deployment Type |
|
End-User |
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North American Market Forecast
The market in North America is expected to have a dominant market share of 35% over the forecast period. The presence of major software vendors and the strict licensing rules have also contributed to this. The US is a significant contributor to market growth because software solutions are increasingly adopted in various sectors of the region. As per a report, software sales totaled more than USD 1.4 billion in March of 2022. This in turn has boosted the adoption of software licenses in the segment.
European Market Statistics
Europe holds a significant share of the software license management market. The main markets in this area are the United Kingdom, Germany, France, and the Netherlands. The EU's General Data Protection Regulation is increasing the focus on software compliance and driving demand for SLM solutions. Market growth in Europe is supported by the presence of large companies, estimated to be 26.3 million enterprises that operate, as well as increasing digitization across sectors.
Author Credits: Abhishek Verma, Hetal Singh
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