According to Forester’s Global Software Industry Forecast 2022, the enterprise software market will grow by 12% by the end of 2023. The report indicates that spending on commercial infrastructure and application software, the two categories that make up enterprise software, will exceed $400 billion by 2023.<\/p>\n
The report found that software vendors are raising prices and enjoying robust margins, with average gross margins of 70%. Robust margins allow software vendors to protect margins in difficult economic times and increase them when things turn around.<\/p>\n
Front-office apps such as CRM and custom industry-specific applications are forecast to grow fastest. Cloud-based back-office software such as financial management applications and HCM for human resources management are also experiencing robust growth as companies replace legacy apps.<\/p>\n
While infrastructure revenue is expected to grow by 12.6% in 2022 and 2023, security software is expected to grow fastest in this segment at 15.4%, followed by technology management software at 13.1%. Database management software comes in third place at 12.8% CAGR, as real-time analytics “are revolutionizing database management software,” according to the report.<\/p>\n