Independent Software Vendors (ISVs) Market Growth & Forecast

Market Insights

The independent software vendors (ISVs) market is estimated to grow from USD 2.65 billion in 2022 and is likely to grow at a CAGR of 11.2% during 2023-2028 to reach USD 5.01 billion by 2028.

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What is an independent software vendor(ISVs)?

Independent Software Vendors (ISVs) are companies or individuals who develop and sell software products that can be used by other businesses or individuals. These software products can range from standalone applications to web-based services and are designed to solve specific business problems or meet specific needs. ISVs typically create software products for a specific market segment or vertical, such as healthcare, finance, or education.

They may develop their software using different programming languages, platforms, and technologies. ISVs may also provide additional services such as technical support, training, and customization to their customers.

Key Players

The following are the key players in the ISVs market:

• Cisco Systems, Inc. (US)
• Autodesk, Inc. (US)
• Fundamental Software, Inc. (US)
• Google LLC (US)
• H&W Computer Systems, Inc. (US)
• The Hewlett Packard Enterprise Company (US)
• HostBridge Technology (US)
• International Business Machines Corporation (US)
• Kellton Tech Solutions Ltd (India)
• Lee Technologies Inc. (US).

Market Dynamics

The ISVs market is driven by a host of factors, some of which are noted below:

• Increasing adoption of cloud solutions by the end-use industries to improve their operational efficiency and reduce costs.
• The growing integration of digital solutions in the healthcare industry.
• Rising product demand in developing countries is expected to create lucrative growth opportunities for the players operating in the global market. 
• The ability of software to adapt to user needs drives market development.
• Fear of data and privacy theft along with the high cost of software are factors hampering the development of the market.
• The advent of cloud-based business agility services.

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Challenges:

• The rise of cloud computing: Cloud computing is making it easier for businesses to deploy and manage software, which is reducing the demand for on-premises software. This is a major challenge for ISVs that rely on on-premises sales.
• The increasing competition from large technology companies: Large technology companies, such as Microsoft, Google, and Amazon, are increasingly developing their own software products. This is making it more difficult for ISVs to compete, as they are no longer the only source of software for businesses.
• The need to constantly innovate: The software industry is constantly evolving, which means that ISVs need to constantly innovate in order to stay ahead of the competition. This can be a challenge, as it requires ISVs to invest in research and development.
• The need to build a strong brand: In order to be successful, ISVs need to build a strong brand that is recognizable and trusted by businesses. This can be a challenge, as it requires ISVs to invest in marketing and sales.

Opportunities:

• The growth of the cloud computing market: The cloud computing market is expected to grow significantly in the coming years, which will create new opportunities for ISVs to develop cloud-based software products and services.
• The increasing demand for mobile apps: The demand for mobile apps is also expected to grow in the coming years, which will create new opportunities for ISVs to develop mobile apps.
• The growth of the Internet of Things (IoT) market: The IoT market is also expected to grow significantly in the coming years, which will create new opportunities for ISVs to develop software for IoT devices.

ISVs that are able to overcome the challenges and take advantage of the opportunities in the market will be well-positioned for success in the coming years.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories:

By Type 

• Cloud
• On-Premise

By Application Type

• e-Commerce
• Logistics
• Retail
• Healthcare
• Financial
• Education

By Region

• North America (Country Analysis: The USA, Canada, and Mexico),
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe),
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific),
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others).

Segment Analysis

Application Trends

The market has been segmented into e-commerce, logistics, retail, healthcare, financial, education, and others. Among these, the financial segment accounted for the largest market share in 2022 and is expected to propel market growth at a significant rate during the review period. The segment growth can be attributed to the presence of a large amount of unstructured data in the sector.

Regional Analysis

North America accounted for the largest market share in 2022 and is expected to grow at a healthy CAGR during the review period. The regional market growth can be attributed to the early adoption of cloud solutions across verticals.

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The market growth in the Asia-Pacific region is likely to be driven by increased adoption of digital solutions in enterprises across verticals particularly in developing countries including China and India.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. 

What Deliverables Will You Get in this Report?

Target Audience

The target audience of the market includes-

• ISVs distributors
• ISVs suppliers
• ISVs manufacturers
• Logistics organizations
• Government bodies

COVID-19 Impact Analysis

The outbreak of the COVID-19 virus has impacted the growth of independent software vendors (ISVs) positively as the adoption of digital solutions in the end-use industries increased significantly. It has opened up opportunities to use the latest technologies to run business functions smoothly and cost-effectively. Third-party software is widely used because it can be customized and designed according to users' needs.

The move to cloud-based solutions gives users more flexibility, allowing them to quickly scale capacity up and down as needed. The increasing adoption of the latest technologies is expected to increase the demand for software in a pandemic situation.

Critical Questions Answered in the Report

• What are the key trends in the market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
• What is the impact of COVID-19 on the market?
• What are the key strategies adopted by the major vendors to lead in the market?
• What is the market share of the top vendors?

Research Methodology

This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the qualitative and quantitative insights.

Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Developments

On April 2023, companies including AMD, Baffle, and OX Security joined the Amazon Web Services (AWS) Independent Software Vendor (ISV). The program assists business partners in driving new business by directly connecting participating ISVs with the AWS Sales organization. Businesses will also receive focused co-selling support from AWS, such as access to additional sales enablement resources, lower AWS Marketplace listing fees, and incentives for AWS Sales teams. Participating ISVs will also have access to millions of active AWS customers worldwide through the program.

On March 2023, Mendix, a Siemens subsidiary, and global pioneer in contemporary corporate application development announced that Socotra, a supplier of end-to-end insurance IT solutions, is now a Mendix independent software vendor (ISV). The program offers an optimal collection of advantages to help organizations effectively build, promote, sell, and deploy software solutions built on the Mendix low-code platform.