System Infrastructure Software Market size was USD 166.1 billion in 2023 and is predicted to cross USD 461.9 billion by the end of 2036, expanding at a CAGR of 8.9% during the forecast period, i.e., 2024-2036. In 2024, the industry size of system infrastructure software is evaluated at USD 180.8 billion.
The growing demand for improved customer care has boosted the requirement for system infrastructure software. The core infrastructure of commercial and IT services determines their quality, as the well-known components in customer services are raising user and customer satisfaction using faster provisioning and improved IT infrastructure performance. A report in 2024 estimated that more than 80% of companies use customer scores to analyze and improve their services, while improvement in customer services has increased by 19% since 2019. Additionally, this impact is anticipated by the boosted usage of digital tools, software, hardware, and systems along with social media. Our World Data published a report in 2023 estimating that the social media usage of US adults grew from 5% in the early 20s to 79% by 2020.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
8.9% |
|
Base Year Market Size (2023) |
USD 166.1 billion |
|
Forecast Year Market Size (2036) |
USD 461.9 billion |
|
Regional Scope |
|
Technology (Storage, Network & System Management, Security)
Network & system management segment is poised to account for around 46.1% system infrastructure software market share by 2036. Significant growth in the revenue share is anticipated as a result of the growing desire among users to automate their operations to reduce labor costs while boosting their corporate productivity. A report based on workflow automation in 2024 projected that about 94% of the companies perform time-consuming and repetitive tasks, additionally, after adopting automation productivity and jobs have been improved for 66% and 90% of the workers respectively.
Growth in this sector will boost the workflow automation value in the near future. Furthermore, a network management system that collects data in real-time from network devices and gives administrators a single point of control over the network from which they can manage resource allocation, security protocols, and other activities.
Application (Building Management, Integrated Communications, Data Center Infrastructure, Data Center Infrastructure, Cloud Integration)
The data center infrastructure segment in the system infrastructure software market is poised to register a significant growth rate, with a size of about USD 63.3 billion in 2023. This tremendous gain is credited to the growing infrastructure of smart buildings in urban areas across the globe. A report done by Research Nester in 2023 predicted that by 2025, about 57% of homes will have a smart home device in the U.S.
Furthermore, there is an increasing demand for infrastructure software for the IT and data that are hosted on-site using this data center strategy as users feel that they have more control over information security and can easily adhere to regulations like the General Data Protection Regulation (GDPR) of the European Union or the Health Insurance Portability and Accountability Act (HIPAA) of the United States, which is why many businesses choose to establish their own on-site data centers.
End use (Manufacturing, IT & Telecom, BFSI, Transportation & Logistics, Retail, Healthcare)
In system infrastructure software market, IT & telecom segment is poised to grow at over 23.2% CAGR through 2036 and is likely to remain a booming segment in the end user category of the system infrastructure software sector. This is attributed to the growing demand for 5G connectivity, coupled with the increasing number of internet users, edge computing, and IoT services. Research published in 2024 estimated that by 2029 about 51% of the population will be able to access 5G connection, and by the end of this decade, this growth rate might cross 56%.
In addition, telecommunications companies are modernizing their network infrastructure to enhance coverage and connectivity and draw in new business clients. Moreover, system infrastructure software is being integrated by IT companies into their business models to automate their core functions, manage their workforce, and optimize the use of both virtual and physical resources.
Our in-depth analysis of the system infrastructure software market includes the following segments:
|
Type |
|
|
Application |
|
|
End use |
|
North America Market Statistics
The system infrastructure software market in North America is set to hold the largest size during the forecast period. The surge in data centers for data storage and processing is expected to boost the revenue share. A report published by Research Nester in 2024 concluded that out of 11 countries, North America is considered the top 3 in terms of data centers, which represents about 40% of the global landscape.
In the U.S., there is a tremendous boost in the emergence of startups, which will act as a growth factor for the system infrastructure software industry. The Center for American Progress in 2024 estimated an influence in the growth rate of about 16% between 2019 and 2023 in the number of startups and firms.
Digitization in Canada has been increasing and the Bank of Canada published a report in 2023 stating that digital products make up about 5.5% of Canadian GDP in 2019. The gain in this sector will augment the data center construction value in the near future.
Asia Pacific Market Analysis
Asia Pacific will also encounter huge growth in the system infrastructure software market value during the forecast period with a CAGR of 10%. This region will account for the second position in this landscape owing to the surge in the data infrastructure market in this region. A report published by the Asia Development Bank estimated that the data and statistics showed substantial growth in developing Asia at 5% in 2023.
In China, investments from private and government sectors in digital infrastructure. According to a report by Research Nester in 2024, the spending on cloud infrastructure in China surpassed USD 9.2 billion in 2023, which is about 12% of worldwide cloud spending.
Japan is predicted to have a high rise in technology along with several advancements and innovations in storage management software. A report in 2023 concluded that in Japan there were about 92 million social media users in 2023 which was poised to be about 74.5% of the total population of Japan.
System infrastructure software market expansion is expected to witness a lucrative share during the forecast period. The competitive environment is attributed to the increasing usage of graphical user interfaces (GUIs). More companies are entering this sector owing to the potential growth opportunities. In the forecast period, the market will observe emerging competitors and a growing demand for gift cards around the world.
Some of the key players include:
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?