Industrial software market to reach USD $355 billion by 2030

The industrial software market is forecast to grow significantly, reaching USD $355 billion by the end of this decade.

According to IoT Analytics' Industrial Software Landscape Report 2024-2030, the global industrial software market was valued at USD $146 billion in 2023. The report indicates a compound annual growth rate (CAGR) of 13.5%, projecting significant expansion by the end of the decade.

Cloud infrastructure and services are identified as the fastest-growing segment within the industrial software market. Additionally, companies like Microsoft have achieved significant market share gains throughout 2023. In the core industrial value chain software segment, Oracle, Synopsys, and Cadence Design Systems have shown notable progress.

The Software-as-a-Service (SaaS) model has become a primary business focus for vendors, with artificial intelligence (AI) and generative AI gaining attention as pivotal areas of innovation.

Knud Lasse Lueth, CEO at IoT Analytics, commented on the market dynamics, saying, "As manufacturers digitize their R&D, production, service operations, and supply chains, the industrial software market is projected to grow from USD $146 billion in 2023 to USD $355 billion by the end of the decade. At the same time, competitive dynamics are evolving. Categories such as Product Lifecycle Management (PLM) and Electronic Design Automation (EDA) are gaining importance. Market leaders are those enabling thoughtful transitions to cloud and SaaS solutions and delivering compelling end-to-end industrial value chain offerings. With 88% of industrial software vendors already integrating AI and generative AI features, the race is on to develop value-adding capabilities that will shape customer decisions in the years ahead."