Software rental services allow organizations to access and use external software for a monthly, annual or other periodical fee, rather than purchasing expensive licensed software and deployment costs. The flexible pay-as-you-go pricing model of software rental helps organizations meet business requirement without large upfront cost or CapEx spending. 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 key trends:
The increasing adoption of software as a service (SaaS) delivery model has been a key driver of growth for the software rental service market. In the SaaS model, software is centrally hosted and accessed by users via the internet. SaaS offer significant advantages such as reduced upfront costs, easy deployment and scalability. It has emerged as a popular alternative to traditional on-premise software, as organizations can avoid large capital expenditure and shift to an operational expenditure model. The pay-as-you-go and flexibility of the SaaS model has accelerated the demand for software rental services among organizations globally.
Segment Analysis
The global software rental service market is dominated by the mobile application segment. Mobile applications allow access to various functional software on the go. This has boosted the adoption of rental models for frequently used mobile apps like photo editors, gaming apps, and productivity suites. Rental models have made such apps affordable for casual users who do not require perpetual licenses. The ability to try apps before purchase has increased adoption of paid mobile apps. This drives the mobile application segment in the software rental service market.
Key Takeaways
The global software rental service market is expected to witness high growth over the forecast period. The rising consumption of enterprise and consumer software on a pay-per-use model is fueling demand.
Regional analysis: North America dominates the market currently due to significant adoption by businesses and individuals. However, Asia Pacific is expected to be the fastest-growing region owing to the expanding internet penetration and digital initiatives in countries like China and India.
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:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it