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 allow users to access and use software applications without purchasing licenses. It offers flexibility, helps reduce upfront costs, and enables businesses to access latest versions and advanced features. The software rental model helps organizations efficiently manage costs related to software licenses and upgrades.
Market key trends:
One of the major trends in the software rental service market is the growing adoption of online Software-as-a-Service (SaaS) solutions. SaaS has emerged as a popular alternative to on-premise software due to advantages such as low upfront cost, automatic software updates, scalability, accessibility from any internet-enabled device, and reduced IT management costs. The SaaS-based rental service allows users to pay for only what they use, enabling organizations to optimize costs. It has facilitated the adoption of advanced cloud-based applications across industries. The cost-effective and flexible rental model of SaaS is fueling demand, especially from small and medium enterprises.
Segment Analysis
The global software rental service market is segmented on the basis of deployment, organization size, and end use. Based on deployment, the software rental service market is segmented into on-premises and cloud. The cloud segment is expected to dominate the market over the forecast period as cloud-based solutions offer various advantages such as scalability, ease of deployment, no upfront infrastructure cost, reduced maintenance cost, and pay-per-use model.
Based on organization size, the software rental service market is segmented into large enterprises and small & medium enterprises. The large enterprises segment dominated the market in 2022 due to large adoption of software rental services to reduce capital expenditure and optimize operational costs.
Based on end use, the software rental service market is segmented into IT & telecom, education, manufacturing, hospitality, healthcare, and others. The IT & telecom segment is expected to dominate the market over the forecast period due to high adoption of cloud-based and AI/ML-powered software rental services for various functions including network management, security, CRM, web conferencing, and more.
Key Takeaways
The global software rental service market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand for non-ownership-based subscription models.
Regional analysis – North America dominated the global software rental service market in 2022 and is expected to continue its dominance over the forecast period. This is attributed to early adoption of cloud technologies and presence of major software rental service players in the region. Asia Pacific is expected to witness fastest growth rate over the forecast period owing to increasing digitization initiatives and growth of the e-commerce industry in emerging countries such as China and India.
Key players analysis – 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., HubSpot Inc. Major players are focusing on developing AI/ML-powered rental platforms and expanding their presence through strategic partnerships and acquisitions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
