The Global Software Rental Service Market is estimated to be valued at US$ 42.92 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Software rental services involve renting various types of software applications to customers on a subscription basis for a fixed period. Customers can rent popular business software such as CRM, ERP, office suites, graphics software, and other specialty applications through software rental services. The rental model provides customers flexible access to advanced software tools without significant upfront costs. It is a cost-effective alternative to purchasing expensive software licenses. The rising adoption of cloud-based technologies is a major factor propelling the demand for software rental services.
Market key trends:
One of the key trends in the software rental service market is the rise of cloud technology. The deployment of applications through the cloud eliminates the need for installing and maintaining software locally. It allows organizations, especially SMEs, to access advanced analytical and productivity tools at lower costs. With cloud-based software rental services, users can access applications from any device with an internet connection. This has increased the popularity of cloud-based software rental models. Many vendors in the market are offering specialized cloud platforms and solutions to rent their software through the cloud. This rising preference for cloud-based delivery is expected to drive significant growth in the global software rental service market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the Software Rental Service Market needs high initial investments and established distribution networks. There are also high switching costs for customers.
Bargaining power of buyers: The bargaining power of buyers is high as there are many established players providing software rental services. Buyers can switch between vendors easily.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many software vendors and developers. Switching between suppliers is easy for the rental service providers.
Threat of new substitutes: The threat of new substitutes is medium as open-source and free software can pose a threat to certain paid software rental services.
Competitive rivalry: High due to many established players competing for market share.
Key Takeaways
The Global Software Rental Service Market Trend is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period 2023 to 2030, due to increasing adoption of rental-based software models by SMBs and large enterprises for better cost management.
Regional analysis
North America dominates the global Software Rental Service Market currently owing to high IT spending and presence of major players in the region. Asia Pacific is expected to exhibit the fastest growth during the forecast period with China, India, and Japan emerging as lucrative markets for software rental services.
Key players
Key players operating in the Software Rental Service Market are Adobe Inc., Microsoft Corporation, Salesforce.com Inc., Oracle Corporation, Intuit Inc., SAP SE, Autodesk Inc., IBM Corporation, Dropbox Inc., Slack Technologies Inc., Google LLC, Zoom Video Communications Inc., Atlassian Corporation Plc, ServiceNow Inc., and HubSpot Inc.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
