Business Software Market Outlook Report 2026-2031: ERP Solutions Contributed 25.74% ($169.8M) Of Total Revenue In 2025

(MENAFN- GlobeNewsWire - Nasdaq) Regional focuses vary, with North America emphasizing AI integration, Asia-Pacific driving cloud-first adoption, and Europe targeting data sovereignty

Dublin, Jan. 23, 2026 (GLOBE NEWSWIRE) -- The "Business Software - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets's offering.

The global business software market is poised for significant growth, with projections estimating its size at USD 737.3 billion by 2026, escalating from USD 660 billion in 2025, and further reaching USD 1.28 trillion by 2031, reflecting a robust CAGR of 11.71% over 2026-2031. This growth is propelled by enterprises' strategic shift toward AI-enabled workflow automation, cloud-native deployment, and data-centric architectures that integrate analytics directly into operational processes.

Key factors contributing to market expansion include the growing demand for ESG reporting, the reconstruction of resilient regional supply chains, and the adoption of low-code development platforms. As AI-native challengers and open-source suites offer lower total cost of ownership, incumbent platform vendors face increased competitive pressure. Furthermore, the shift to subscription pricing models enhances recurring revenue while elevating customer acquisition costs, necessitating value-based packaging and cloud cost-optimization services.

Geographically, the market shows divergent trajectories: North American enterprises prioritize AI integration; Asia-Pacific organizations are focused on cloud-first adoption; and European firms seek sovereignty-compliant solutions to adhere to GDPR and data-localization mandates.

Global Business Software Market Trends and Insights

• AI-powered workflow automation adoption: AI agents are orchestrating tasks across suites like ERP, CRM, and collaboration platforms beyond traditional rule-based bots. For instance, Microsoft's Copilot agents in Office and Dynamics have transformed workflows. Cross-industry studies indicate productivity enhancements of 30-55%, as automation drives decision quality.
• Shift to subscription/SaaS revenue models: By 2025, over half of U.S. enterprises will operate core software through SaaS, unlocking a USD 100 billion B2B opportunity. Despite facilitating vendor income alignment with customer value, it's raising churn management stakes. AI implementation in billing systems personalizes tiers and unveils consumption insights, while enterprises employ FinOps practices to reduce redundant expenses.
• Escalating cloud spend optimization pressure: Amid economic uncertainty, enterprises increasingly utilize AI-powered cost-governance tools for right-sizing and automating resource de-allocation. Case studies, like Intel's, cite 34% savings post-implementation. Software providers must now quantify efficiency gains to maintain their market presence.

Other drivers and restraints analyzed include:

• Demand for unified data fabrics
• Low-code/no-code platforms in citizen development
• Growing open-source alternatives

Segment Analysis

ERP solutions contributed 25.74% of revenue in 2025, establishing their critical role in maintaining process discipline. Self-service BI suites are on the rise, offering advanced visualization and predictive modeling capabilities. Vendors are embedding real-time dashboards into ERP systems, although niche providers focusing on vertical KPIs are scaling faster.

Cloud deployments comprised 59.12% of the market in 2025, and are projected to grow at a CAGR of 13.45%. Microsoft and Oracle's extended multi-cloud interconnect provides operational flexibility without re-architecture. In regulated industries, sovereignty and latency concerns are addressed with containerized solutions and sovereign-cloud services, merging compliance with efficiency.

Geography Analysis

North America held 25.05% of the market in 2025, supported by a mature cloud infrastructure. Intensive capital expenditures by firms like Microsoft illustrate the commitment to meeting AI demand. Meanwhile, Asia-Pacific is the fastest-growing region, driven by digital-economy initiatives and SME software adoption.

Key companies covered include:

• Microsoft Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Cisco Systems Inc.
• Salesforce Inc.

Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
4.8 Assessment of Macroeconomic Factors on the Market
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Software Type
5.2 By Deployment
5.3 By End-User Industry
5.4 By Organization Size
5.5 By Geography
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-Need Assessment
A selection of companies mentioned in this report includes, but is not limited to:

• Microsoft Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Cisco Systems Inc.
• Salesforce Inc.
• Adobe Inc.
• Intuit Inc.
• Sage Group plc
• Workday Inc.
• ServiceNow Inc.
• Epicor Software Corporation
• Infor
• Oracle NetSuite
• Accenture plc
• Deltek Inc.
• Zoho Corporation
• Atlassian Corporation
• Freshworks Inc.
• HubSpot Inc.
• Odoo S.A.

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