“Software is eating the world,” said Marc Andreessen in a 2011 interview with The Wall Street Journal, commenting on the escalating expansion of software across industries and geographies. Over a decade later, is software full yet? The simple answer: not even close. Companies have only begun to scratch the surface on the capabilities and productivity gains that software has to offer, and the software industry is likely to only increase its ascent as nearly every company indirectly becomes a software company.
The MGI Research forecasting team recently assembled a bottom-up estimate of the software industry by aggregating revenues of all software companies globally. MGI Research forecasts that the software industry will grow from $893 billion in 2022 to $1.36 trillion in 2026, representing a 5-year CAGR of 11.17% (see report for annual breakdown). Software companies in the United States will dominate the industry, with their revenues more than double the combined revenues of all other software companies globally. Software vendors in China and Germany will take second and third place, respectively. Although current prevailing headwinds may create a bumpy path, the software industry’s growth will be strong enough to withstand the turbulence.
Get the full report to see which factors are likely to accelerate and impede growth in the software industry. You can also download our companion note, How Big is the Global Tech Market – Bigger Than You Think for information about the size and growth trajectory of the technology industry.