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Software License Management Market Size & Share, by Deployment Type (On-Premises, Cloud-based); End-user (Healthcare, IT & Telecommunications, Manufacturing, Retail, BFSI, Government & Defense) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

  • Report ID: 5204
  • Published Date: Nov 15, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Software License Management Market size was valued at USD 3.41 billion in 2024 and is expected to reach USD 18.1 billion by 2037, registering around 13.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of software license management is assessed at USD 3.78 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.

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Software License Management Sector: Growth Drivers and Challenges

Growth Drivers

  • Cost Optimization & Reduction - Software licenses can represent a significant portion of an organization's IT budget. Effective license management helps organizations identify unused or underutilized licenses, enabling them to optimize costs by reallocating or discontinuing unnecessary licenses.  By 2024, 40% of enterprises will use software license management (SLM) as the primary mechanism for reducing SaaS contract costs with "dominant" vendors.
  • Rise of Cloud and SaaS- The shift toward cloud computing and Software as a Service (SaaS) enterprise applications have changed the way software is deployed and licensed. Businesses and activities are moving towards cloud technology, which will continue to give SaaS a strong position in the evolution of digitalization. Consequently, it is projected that the spending on SaaS will reach 195 billion U.S. dollars in 2023, growing the need for software license management solutions
  • Globalization of Businesses – Organizations with global operations often need to manage software licenses across different regions and jurisdictions. Software license management solutions provide centralized control, enabling businesses to maintain compliance across diverse geographical locations.

Challenges

  • Complex Licensing Model - Software vendors often use complex and varied licensing models, including per-user, per-device, subscription-based, concurrent user, and more. Managing these diverse models can be challenging for organizations, leading to confusion and potential over-purchasing.
  • Shadow IT & Unauthorized software.
  • Inaccurate Reporting

Software License Management Market: Key Insights

 

 

Base Year

2024

Forecast Year

2025-2037

CAGR

13.7%

Base Year Market Size (2024)

USD 3.41 billion

Forecast Year Market Size (2037)

USD 18.1 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Software License Management Segmentation

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 2024.  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
  • On-Premises
  •  Cloud-based

          End-User
  • Healthcare
  •  IT & Telecommunications
  • Manufacturing
  •  Retail
  •  BFSI
  •  Government & Défense

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Software License Management Industry - Regional Synopsis

North American Market Forecast

North America industry is poised to account for largest revenue share of 35% by 2037. 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 2023. 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.

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Companies Dominating the Software License Management Landscape

    • Flexera
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis

     

    • Snow Software
    • IBM Corporation 
    • Microsoft
    •  Oracle
    • ASPERA technology s.r.o.
    • ServiceNow, Inc.
    • Broadcom.
    • BMC Software, Inc

In the News

  • March, 2022- In order to assist businesses in using automation to simplify IT asset management, IBM introduced new solutions with IT management software provider Flexera and IBM Turbonomic Application Resource Management (ARM). The new approaches are intended to assist companies in reducing expenses and automating the increasingly difficult processes of software license compliance and optimization.
  • March 2019- Ivanti, a company that unifies IT to more effectively manage and secure the digital workplace, has now released Ivanti® Optimizer for SAP, a software license optimization solution that offers complete license visibility, optimization, and management for SAP settings.

Author Credits:  Abhishek Verma


  • Report ID: 5204
  • Published Date: Nov 15, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of software license management is assessed at USD 3.78 billion.

The software license management market size was valued at USD 3.41 billion in 2024 and is expected to reach USD 18.1 billion by 2037, registering around 13.7% CAGR during the forecast period i.e., between 2025-2037. The proliferation of software applications across industries, the rise of cloud & and SaaS, globalization of businesses will boost the market growth.

North America industry is poised to account for largest revenue share of 35% by 2037, backed by presence of major software vendors and the strict licensing rules in the region.

The major players in the market are Flexera, Snow Software, IBM Corporation, Microsoft, Oracle, ASPERA technology s.r.o., ServiceNow, Inc., Broadcom., BMC Software, Inc
Software License Management Market Report Scope

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