Independent Software Vendors Market Report 2025

This Independent Software Vendors market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The independent software vendors market size has grown rapidly in recent years. It will grow from $3.09 billion in 2024 to $3.61 billion in 2025 at a compound annual growth rate (CAGR) of 16.7%. The growth in the historic period can be attributed to increasing adoption of cloud solutions, the growing integration of digital solutions, rising product demand in developing countries, increasing demand for multi-cloud and hybrid cloud, and increasing volume of independent software vendor products.

The independent software vendors market size is expected to see rapid growth in the next few years. It will grow to $6.59 billion in 2029 at a compound annual growth rate (CAGR) of 16.3%. The growth in the forecast period can be attributed to rising software as a service (SaaS) adoption, rise in global information technology (IT) spending, regulatory compliance requirement, increased demand for customization, and growing integration of digital solutions. Major trends in the forecast period include innovations in intelligent software platforms, developing software for internet of things (IoT) devices, technological innovations, integrating artificial intelligence, and incorporating machine learning (ML).

The increasing demand for cloud-based solutions is expected to drive the growth of the independent software vendor (ISV) market moving forward. Cloud-based solutions refer to services, applications, or resources that are delivered and accessed online. This growing demand is driven by factors such as enhanced security and compliance, remote access to applications, a highly resilient infrastructure, and the prioritization of security measures. Cloud-based solutions offer scalability and flexibility that on-premises systems often struggle to provide. Independent software vendors are capitalizing on this trend by offering software that can easily scale with customer needs, whether it's for expanded data storage, increased computational power, or larger user capacity. For example, in December 2023, Eurostat, a statistical office of the European Union, reported that around 45.2% of EU enterprises utilized cloud computing services in 2023, primarily for tasks such as email hosting, file storage, and operational processes, reflecting a notable increase of 4.2 percentage points since 2021. Additionally, the most widely used cloud services in 2023 were email services (82.7%), file storage (68%), and office software (66.3%). As a result, the rising demand for cloud-based solutions is a key factor driving the ISV market.

Major companies in the independent software vendors (ISV) market are focusing on providing advanced services, such as ISV as a Service, to accelerate software-as-a-service (SaaS) opportunities and drive business growth. ISV as a Service refers to a model where ISVs deliver software products and related services in a service-oriented manner, typically using cloud technologies. For example, in July 2022, TD SYNNEX, a US-based software publishing company, launched its Independent Software Vendor (ISV) experience. This offering is designed to accelerate SaaS opportunities by utilizing the TD SYNNEX partner ecosystem to enhance IT operations, automate complex processes, and deploy new functionalities that drive sales, improve go-to-market strategies, and ensure successful business outcomes. Key features of this service include streamlined billing and provisioning through cloud marketplaces, support for multi-cloud billing and pricing models, access to a broad ecosystem of IT solutions providers, accelerated solution deployment with next-gen technologies, professional services requiring minimal investment, on-demand marketing programs, and personalized support from technology experts. These innovations help ISVs develop effective channel strategies and promote business expansion.

In November 2023, Ideagen, a UK-based software company, acquired Op Central for an undisclosed amount. This acquisition allows Ideagen to leverage Op Central's AI technology to enhance its clients' productivity and compliance management. Op Central, an Australia-based independent software vendor, provides multi-site businesses with solutions to manage operations, compliance, training, and quality control.

Major companies operating in the independent software vendors market are Alphabet Inc., Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Development LP, Salesforce.com Inc., Adobe Inc., ADP LLC, VMware Inc., Intuit Inc., Wipro Limited, ServiceNow Inc., Autodesk Inc., Twilio Inc., DocuSign Inc., Allscripts Healthcare Solutions Inc., CrowdStrike Holdings Inc., Virtusa Corporation, Magic Software Enterprises, ASG Technologies, Kellton Tech.

North America was the largest region in the independent software vendors market in 2024. Asia-Pacific is expected to be the fastest growing region in the market going forward. The regions covered in the independent software vendors market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the independent software vendors market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An independent software vendor (ISV) is a company that specializes in creating, marketing, and selling software products that function independently of hardware manufacturers. They develop software for various platforms, including operating systems and cloud environments, catering to both mass and niche markets.

The main types of independent software vendors are those offering cloud solutions and those providing on-premise solutions. ISVs that deliver cloud-based software offer scalable, cost-effective solutions over the internet. These solutions are used by enterprises of all sizes, including small and medium-sized enterprises (SMEs) and large corporations, across various end-user industries such as healthcare, financial services, manufacturing, retail, information technology, government, education, and more.

The independent software vendor market research report is one of a series of new reports that provides independent software vendor market statistics, including independent software vendor industry global market size, regional shares, competitors with an independent software vendor market share, detailed independent software vendor market segments, market trends, and opportunities, and any further data you may need to thrive in the independent software vendor industry. This independent software vendor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The independent software vendors market consists of revenues earned by entities by providing software development services, implementation services, and consulting services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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