Software Asset Management Market By Component (Solutions, Services), By deployment (Cloud, On-Premises), By organization size (Large Enterprises, SMEs), By vertical (Retail, BFSI,and Others)By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Software Asset Management Market size is expected to be worth around USD 6.0 Bn by 2032 from USD 1.6 Bn in 2022, growing at a CAGR of 14.2% during the forecast period from 2023 to 2032.

The software asset management market, which is a dynamic industry, develops a wide variety of innovative technologies and services. Software asset management involves carefully managing software licensing and usage to maximize the value of software assets. The software asset management industry offers cutting-edge software license management technologies, complete consulting services, and continuous support.

Software asset management (SAM) is a complex web of strategies and processes that helps firms manage and improve their software assets. SAM aims to optimally leverage software assets while reducing costs and hazards. This holistic discipline combines license management, resource allocation, and utilization data to help firms track software assets, inventory, and usage patterns.

An effective software asset management approach may save companies money, reduce risk, and enhance productivity. Organizations can avoid financial penalties for license misuse, non-compliance, and unnecessary software purchases by optimizing software assets.

SAM also protects organizations from security breaches, data loss, and other IT issues. Finally, SAM ensures that employees have free access to the necessary software arsenal, eliminating productivity barriers and decreasing software-related downtime.

The software asset management market continues to grow. Cloud-based solutions and disruptive technologies like AI and machine learning are driving this growth. The market thrives on the increasing complexity of software licensing and compliance, which drives sophisticated solutions to maximize software assets and ensure compliance.

Healthcare, banking, retail, and government sectors participate in software asset management. These sectors actively streamline their software assets to cut licensing and compliance expenses and protect their finances.

Driving factors

An increase in the use of software solutions hosted in the cloud.

In the years to come, it is anticipated that the software asset management market will expand dramatically. One of the primary elements that has contributed to this expansion is the rising popularity of software solutions that are hosted in the cloud. Cloud-based software solutions offer a more cost-effective and flexible approach to the management of software, allowing organizations to effectively manage their software licenses and maintain compliance. Cloud-based software solutions are also known as SaaS (software as a service).

management of software licensing and compliance that is both efficient and compliant

The increasing demand for software management solutions that are also cost-effective is another factor that is boosting the market. Software asset management solutions offer a cost-effective way to manage software licenses and reduce the risk of non-compliance, which is beneficial for businesses in this day and age when they are under pressure to cut costs and improve their operations.

An ever-increasing level of complication within software license agreements

Another element that contributes to this phenomenon is the growing complexity of software license agreements. Businesses want software asset management solutions to assist them in navigating the complexities of software licensing agreements and avoiding costly fines. This is because software licensing agreements are becoming more difficult to maintain and more complex overall.

Restraining Factors

High Initial Investment Cost for Software Asset Management Market Implementation

When it comes to investing in the software asset management (SAM) Market, the high initial investment cost is a major concern for small and medium-sized businesses. The majority of stand-alone SAM Markets necessitate a sizeable up-front investment, which can be a significant burden on SMBs, particularly those in their early phases of development. These businesses may lack the financial resources necessary to implement SAM software, or they may not prioritize its implementation over other business aspects.

Lack of understanding among small and medium-sized businesses

The lack of awareness among SMBs regarding the significance of SAM has been a significant factor in retarding the market's expansion. Numerous business proprietors and decision-makers are unaware of the advantages that SAM Market can provide their companies. This lack of understanding can result in insufficient funding for SAM initiatives, as well as organizations missing out on the increased productivity and efficiency that SAM tools provide.

Limited compatibility of the market for software asset management with legacy systems

In certain circumstances, it may not be possible to replace legacy software systems with SAM Market, resulting in limited interoperability. Incompatibility between legacy systems and the new SAM Market can be problematic, resulting in a burdensome integration procedure that may not be worthwhile. This can be a substantial setback for SMBs, as the required effort to implement the new system can be burdensome.

Component Analysis

Software Asset Management (SAM) is an essential organizational procedure for managing and optimizing the acquisition, deployment, maintenance, utilization, and disposal of software assets. In recent years, the SAM market has experienced significant growth globally, with the Software Asset Management Services segment dominating the market. This segment comprises Suites, Services, and Managed Services for Software Asset Management.

Economic Development in Emerging Economies drives Software Asset Management Services Segment Adoption. In emerging economies, the demand for Software Asset Management Services is driven by the increasing adoption of cutting-edge technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and Big Data Analytics. In addition, government initiatives aimed at improving the IT infrastructure, increasing digitization, and promoting the use of software in a variety of industries are propelling the expansion of this market segment.

Deployment Analysis

In recent years, Cloud-based Software Asset Management Services have dominated the SAM market. The Cloud Segment comprises cloud-deployed Software Asset Management Suites, Software Asset Management Services, and Software Asset Management Managed Services. Increased security, flexibility, scalability, decreased maintenance costs, and accessibility from anywhere are just a few of the benefits of Cloud-based Software Asset Management Services.

With the expansion of the SAM market in emerging economies, Economic Development in Emerging Economies drives the Cloud Segment's adoption. Software Asset Management Services are not exempt from the necessity for businesses in emerging economies to implement cloud-based technologies to remain competitive. The increasing demand for flexible and scalable solutions is driving favorable consumer trends and Cloud segment behavior. Organizations are adopting cloud-based Software Asset Management Services to adapt to modern technological requirements and obtain a competitive advantage.

Organization Size Analysis

The Large Enterprises Segment dominates the SAM market, accounting for a substantial proportion of market revenue. Software Asset Management is necessary for large enterprises to monitor software usage, reduce costs, avoid license non-compliance risks, and optimize license utilization. In addition, Large Enterprises anticipate vendors to deliver Software Asset Management solutions with enhanced scalability, flexibility, and reporting capabilities.

Economic Growth in Emerging Economies drives the adoption of the Large Enterprises Segment in the software asset management market. With the rapid expansion of businesses in emergent economies, there is a growing demand for Software Asset Management solutions to efficiently manage software licenses and optimize software utilization. Organizations are progressively adopting Software Asset Management solutions to improve performance, maintain compliance, and cut costs.

In the coming years, the Large Enterprises segment of the software asset management market is anticipated to record the highest growth rate, primarily due to the rising demand for Software Asset Management solutions in emerging economies.

Vertical Analysis

The IT and Telecom Segment dominates the SAM market, accounting for the largest market revenue share. IT and Telecom companies are the largest consumers of software licenses and require Software Asset Management solutions to manage software installations, reduce costs, and ensure license compliance.

Economic Development in Emerging Economies drives the IT and Telecom Segment of the software asset management market. The expansion of the IT and Telecom industries in developing nations has increased the need for Software Asset Management Solutions to effectively manage software licenses.

The adoption of advanced technologies such as AI, IoT, and Big Data Analytics is on the rise, which is altering consumer trends and behaviors in the IT and Telecom market. Consequently, Software Asset Management solutions are indispensable for optimizing license utilization, vendor management, and license compliance.

Key Market Segments

By Component

• Solutions
• Services

ByDeploymentt

• Cloud
• On-Premises

By organization size

• Large Enterprises
• SMEs

By Vertical

• Retail
• BFSI
• IT & Telecom
• Healthcare
• Government Sector
• Energy and Power
• Manufacturing
• Others

Growth Opportunity

The ever-increasing need for cloud-based software asset management Market

One of the main drivers behind the development potential in this market is the increasing demand for cloud-based software asset management Market. This need is one of the driving forces. Cloud computing is becoming increasingly popular among corporations as a method for storing data and administering software assets. Scalability, accessibility, and cost efficiency are just some of the advantages offered by cloud-based markets.

The ever increasing demand for efficient software license management and compliance

The rising importance of efficient software licensing management and regulatory compliance is another element that is contributing to the market for software asset management's expansionary potential. Because there are so many software programs available, it can be difficult for organizations to monitor their license agreements and ensure that they are in compliance with the terms of those agreements. Businesses can improve their efficiency in managing their licenses and stay in line with industry laws by implementing effective software asset management Market.

An increasing number of small and medium-sized businesses are utilizing the software asset management market.

The increasing popularity of the software asset management Market among small and medium-sized businesses (SMEs), on the other hand, is another factor that is adding to the growth potential of this market. As more small and medium-sized enterprises (SMEs) become aware of the significance of properly managing their software assets, more of them are looking to the software asset management Market for assistance in maintaining compliance and organization.

Latest Trends

Adoption of Subscription-Based Licensing Models on the Rise

Over the years, subscription-based licensing models have gained popularity. This trend has been fuelled by several factors, including the model's adaptability and cost-effectiveness. With a subscription-based license, businesses can pay for their software license on a monthly or annual basis, as opposed to making a substantial up-front investment for perpetual licenses. This model also facilitates scalability, as companies can easily increase or decrease their license requirements based on their current requirements. Additionally, it allows them to upgrade or downgrade to various software versions without making additional purchases.

The Software Asset Management as a Service (SaaS) delivery model is gaining popularity.

Due to its adaptability and affordability, the software asset management as a service (SaaS) delivery model is gaining popularity. The SaaS delivery model enables businesses to access software via a web-based interface, removing the need for on-premises installations.T his model has several advantages, including lower up-front costs, fewer hardware and infrastructure needs, and automatic updates and maintenance. It also allows companies to access the software from anywhere, which is crucial in today's remote work environment.

Increasing Demand for Software License Optimization Instruments

Software license optimization tools are gaining popularity as businesses seek to reduce software licensing expenses. These tools analyze software usage data to identify inactive or underutilized licenses, which can then be repurposed or decommissioned to save money. This trend is fueled by the fact that many businesses overspend on software licensing because they cannot keep track of all the licenses they have purchased. With software license optimization tools, businesses can gain greater visibility and control over their licenses, thereby reducing their software licensing expenses.

Regional Analysis

North America leads the software asset management market for numerous reasons. The market and demand for software asset management systems have risen rapidly. This article discusses how North America became a leading software asset management market.

North America has several multinationals and huge firms. These companies use software to manage a large workforce. These firms require an effective software asset management system. This demand has made the North American software asset management market attractive to businesses.

North America has advanced technology that helps the software asset management market. Data centers, cloud service providers, and internet service providers in the region enable software asset management solutions. North America's stronNorthndustry helps drive the software asset management market.

The region's IT-savvy workforce is highly qualified. Due to their software asset management skills, these individuals are in high demand, helping the market develop.

North America strictly regulates software asset management. Companies must follow software licensing, usage, and reporting rules to comply. These restrictions level the software asset management market and promote fair business practices.Many North American companies optimize their software assets proactively due to a greater knowledge of software asset management. This has increased demand for software asset management systems, fueling market expansion.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Software Asset Management (SAM) is a fast-growing technological market. Technology advances daily, bringing new software solutions to market. Thus, software asset management has become increasingly important for IT management in all sizes of businesses.M any SAM market players have unique expertise and approaches.

IBM, Oracle, HPE, BMC, and ServiceNow are major participants.IBM Corporation leads the SAM market with its IBM License Metric Tool (ILMT), which helps enterprises manage and report software consumption and license compliance. Oracle License Management Services (LMS) helps enterprises optimize software spending and comply with licensing agreements.

HPE Asset Manager helps firms manage software and hardware assets.BMC Software's BMC Helix ITSM solution automates asset discovery and management for software licenses, hardware, and other IT assets.

ServiceNow's IT Asset Management (ITAM) software delivers real-time visibility over software and hardware assets, helping firms comply with licensing agreements and save software expenses. These SAM market leaders help companies optimize software spending, comply with licensing agreements, and manage IT assets. Their dedication to the SAM business ensures market growth.

Top Key Players in Software Asset Management Market

• Microsoft Corporation
• CA Technologies
• BMC Software Inc.
• Symantec Corporation
• Aspera Technologies
• IBM Corporation
• Ivanti
• Micro Focus International plc
• Snow Software AB

Recent Development

• Starting with an August 2022 announcement, Microsoft disclosed its acquisition of License Dashboard, a software asset management company. Microsoft improved its cloud-based software asset management capabilities, making it a more attractive option for businesses attempting to effectively manage their software assets.
• With the launch of its software asset management platform in June 2022, ServiceNow also made ripples in the market. The platform offers real-time visibility into software assets and licenses, granting businesses greater control and visibility into their software inventory.
• Flexera introduced its new cloud-based software asset management solution in March 2022. The offering is intended to assist businesses in optimizing their software usage and reducing costs, highlighting the increasing significance of effective software management in the current business environment.
• Not wanting to be left behind, Ivanti acquired Cherwell Software in January 2022 in a significant move. Ivanti acquired a provider of IT service management and software asset management solutions to expand its software asset management capabilities and strengthen its position as a market leader.
• Snow Software introduced its new software asset management solution, Snow Commander, in November 2021. The solution provides a unified view of software assets across an organization's IT estate, thereby streamlining inventory management and decreasing the risk of noncompliance.

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