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 Overview:
Software rental services provide access to software applications on a subscription basis for a fixed period of time. This allows users to use the latest versions of the required software without large upfront investments. Key benefits include predictable expenses, easy scalability, automatic updates, and future-proof technologies.
Market key trends:
The rising adoption of subscription-based business models is a key trend in the software rental service market Vendors are shifting from perpetual license models to subscription and rental contracts in order to generate recurring revenue streams. Subscription services provide centralized software licensing and usage monitoring along with improved security and compliance controls. They enable users to utilize the latest features and innovations without needing to continuously purchase new software licenses. This has led to rising popularity of software rental services among SMBs and large enterprises alike.
SWOT Analysis
Strength: The software rental service market allows small and medium-sized businesses to access advanced software solutions without large upfront costs. This flexibility makes software rental an appealing option for companies with limited budgets.
Weakness: Software rental subscriptions require continuous payments, which can be more expensive over the long run compared to one-time software purchases. Additionally, rented software may not have all the features of purchased versions.
Opportunity: The growing adoption of cloud-based technologies and software-as-a-service (SaaS) is driving more customers to opt for software rentals over purchases. This trend is expected to continue and provide opportunities for market expansion.
Threats: Open-source and free software alternatives threaten the software rental market by offering basic functionality at no cost. Additionally, an economic downturn could force some companies to cancel their rental plans and switch to cheaper or free options.
Key Takeaways
The global software rental service market is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period, due to increasing adoption of cloud-based technologies. Migrating software to the cloud makes it easier for companies to access solutions through subscription-based rentals rather than large up-front purchases.
Regional analysis: North America dominated the global market in 2023 and is expected to continue its dominance over the forecast period. However, Asia Pacific is expected to exhibit the highest CAGR during the forecast period owing to rapid digitalization of industries in emerging countries such as 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., HubSpot Inc. Adobe holds the leading market position thanks to its broad portfolio of creative and marketing software available through rental plans. Microsoft and Oracle also have a strong presence with their office productivity and enterprise applications subscribed through monthly fees rather than purchases.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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