2025 Software Industry Report

Analyze key software market trends & data insights

Software firms drive innovation, create long-lasting customer relationships, and offer resilient economic models. With a projected annual growth rate of 11% through 2029, the industry is thriving, fueled by trends like generative AI, cloud adoption, and automation.

How Is Generative AI Transforming the Software Market?

Generative AI is already reshaping customer service and software development processes, creating efficiencies and opening paths to significant value. Over the next five years, these technologies are expected to maintain a 75% CAGR (compound annual growth rate), with the software industry pivoting to adapt hybrid pricing models for AI-driven solutions.

• Switching Costs are Key Moat Drivers: Software vendors benefit from high client retention, with typical gross retention rates near 93%.

• Attractive Business Economics: High upfront costs for R&D and customer acquisition are offset by annuity-like revenue streams from loyal, long-term customers.

• Broader Portfolios Widen Moats: Companies with diversified solutions reduce client switching and see greater long-term returns.

Download the report now to learn how to apply these market dynamics to identify opportunities in cloud platforms, AI-driven tools, and enterprise software leaders.