System Infrastructure Software Market Size, Share, and Trends 2024 to 2034

System Infrastructure Software Market Size and Forecast 2024 to 2034

The global system infrastructure software market size is calculated at USD 180.95 billion in 2024 and is projected to surpass around USD 425.64 billion by 2034, growing at a CAGR of 8.93% from 2024 to 2034.

System Infrastructure Software Market Key Takeaways

• North America dominated the market with the highest market share of 36% in 2023.
• Asia Pacific is expected to expand at the fastest CAGR of 10.54% between 2024 and 2034.
• By type, the network and system management held the highest market share of 46% in 2023.
• By type, the security segments is predicted to grow at a CAGR of 9.38% from 2024 to 2034.
• By application, the data center infrastructure dominated the market and generated more than 31% of the revenue share in 2023.
• By application, the cloud integration segment is expected to expand at the fastest CAGR of 9.92% between 2024 and 2034.
• By end-user, the IT and telecom segment held the largest market revenue share of 21% in 2023.
• By end-user, the BFSI segment is expected to grow at a significant CAGR of 7.40% from 2024 to 2034.

U.S. System Infrastructure Software Market Size and Growth 2024 to 2034

The U.S. system infrastructure software market size is exhibited at USD 45.60 billion in 2024 and is projected to be worth around USD 109.53 billion by 2034, growing at a CAGR of 9.16% from 2024 to 2034.

North America dominated the market with the largest market share in 2023. The growth of the market in the region is attributed due to the increasing adoption of advanced technologies in multiple organizations across the region that promotes the higher demand of system infrastructure software services. The increasing number of startups in the nation like the United States, Canada, etc. anticipates an increase in the growth of the market.

On the other hand, Asia-Pacific is expected to hold a significant market share in the forecast period. The growth is attributed to the increase in the infrastructure of the data center across the region expected to boost the demand of the system infrastructure software market. Rising investment in digitization and evolving startups across the region investment for the development of new products accelerate the demand of the market. The rapid adoption of the technology as well as innovations in storage management software along with the presence of potential key players offer significant opportunities for the region to grow during the forecast period.

Market Overview

The global system infrastructure software market offers software programs, specially developed for organizations in order to support their workforce, business transactions, and other internal procedures. System infrastructure software infrastructure is an essential part of modern business. Technology, when set up correctly and networked, may enhance back-office processes, boost efficiency, and facilitate communication. IT infrastructure, also known as information technology infrastructure, refers to the elements needed to run and maintain company IT infrastructures. IT infrastructure may be used for both the internal delivery of services and resources within an organization as well as outward delivery to clients of the company. Businesses may achieve their goals and even boost their profits with the aid of carefully built IT infrastructure.

Technology may be adjusted to boost production, increase efficiency, and improve communication when it is correctly networked. An organization can achieve its goals and gain a competitive edge in the market if its IT infrastructure is dependable, adaptable, and secure. However, if an IT infrastructure isn't deployed correctly, firms may experience connection, productivity, and security problems, such as downtime and attacks. Overall, the success of a firm might depend on how well its infrastructure is executed.

System Infrastructure Software Market Growth Factors

With the rapid adoption of technology, organizations are now heavily dependent on technological solutions for operations, services, and almost every procedure. Considering the rising dependency on technology, the system infrastructure software market will continue to sustain its growth during the forecast period.

Furthermore, the utilization of digital tools is fueling the market’s growth, the utilization of digital tools, systems, hardware, and software is expanding; cybersecurity concerns are growing; data governance is being improved to prevent data loss; and the need for hybrid computing is rising. With the integration of cutting-edge digital technologies, system infrastructure software helps businesses automate their business processes, fostering the expansion of their respective industries.

Positive market momentum is being generated by consumers' shifting preferences for cloud-based technologies and solutions as well as the growing demand for an effective digital framework to handle more complicated data. The industry is anticipated to grow as a result of developments in virtualization and cloud technologies. Additionally, it is projected that an increased need for automation and an integrated approach to company processes would boost the market.

Market Scope

Market Dynamics

Drivers

Rising deployment of cloud-based solutions by organizations

The increasing adoption of cloud services for better organizational workflow and the growing requirement for digital frameworks to handle data storage drive the growth of the system infrastructure software market. Increasing cloud technologies in the organizations such as automation, healthcare, telecom, BFSI, etc., positively impacted the market growth. Many organizations are diverting towards cloud solutions for operating their business efficiently, remote working management, and accessing their data from anywhere. Cloud solutions enable the internal data flow of business. Additionally, cloud technologies are affordable in terms of installation cost and are used for business scalability. All these advantages are driving the demand for cloud-based solutions, which apparently fuels the growth of the system infrastructure software market.

Restraints

Data storage, purchase, and management limitations

There are many benefits involved in the process of system infrastructure software but still, there are some of the major limitations in the growth of the market. In this technologically advanced world data acquisition and collection of data is much easier but managing that large amount of data is one of the main challenges in the market.  Due to insufficient storage, the loss of data has been seen in several organizations. The loss of data can be extremely costly for businesses. Scalability is another impacting factor in the growth of the system infrastructure software market.

Opportunities

Smart building and data centers become the future opportunities for the market

The rising infrastructure of smart buildings and data centers would drive the demand of the market in the predicted time period. The increasing infrastructure in the urban area positively impacted the market. Rising smart buildings create a higher demand for IoT devices and optimize data flow with strong internet connectivity and security. Additionally, the combination of machine learning, artificial intelligence, and robotics process automation increases the effectiveness of the system infrastructure software process in the business. The advancement in technology in several businesses results in future opportunities in the system infrastructure software market.

Type Insights

The network and system management segment held the largest market share in 2023. The growth of the segment is attributed to the increasing end-user for automating their business minimizing the cost of the workforce and increasing the productivity of the business. A network management system that gathers real-time information from network devices and provides administrators with a centralized point of control from which they may manage network security procedures, distribute network resources, and other tasks.

The security segment is expected to increase its market share during the forecast period. The growth of the segment is due to the increasing concern about data security, internet usage, and transfer to digital infrastructure. Businesses must sustain operations reliant on their technological assets, therefore safeguarding the infrastructure involves safeguarding the company as a whole. Many businesses rely heavily on proprietary data and intellectual property (IP) to provide them with a competitive edge in the marketplace, and any loss or disruption of access to this data can have severe adverse effects on a business's profitability.

Application Insights

The data center infrastructure dominated the market with the highest market share in 2023. The segment is predicted to show a significant increase during the forecast period due to the rising infrastructure of smart buildings in the urban areas of the world. The increasing requirement for infrastructure software tends to the growth in the demand of the market. This data center approach hosts all of the IT infrastructure and data on-premises. Many businesses decide to have their own on-site data centers because they believe they have more control over information security and can more easily abide by laws like the U.S. Health Insurance Portability and Accountability Act (HIPAA) or the General Data Protection Regulation (GDPR) of the European Union.

Cloud integration is expected to dominate the market with the largest market size in the forecast period. The growth of the segment is attributed to the increasing use of cloud integration in various end-user organizations to smooth workflow and data storage requirements. Integrated resources are desired by certain enterprises to provide real-time applications and services, while improved automation capabilities are desired by others for back-office and customer-facing platforms. Along with faster deployment and scaling choices, integrated clouds also offer improved support for mobile apps.

End-user Insights

The IT and telecom segment dominated the market with the largest revenue share of the market in 2023. The growth of the segment is attributed to the increasing telecom sector across the world and the increase in the adoption of Information Technology over the business results in higher demand for the segment. System infrastructure software is a component of the business models used by IT firms to automate their core operations, manage their workforces, and make the most use of both physical and virtual resources. Organizations may save expenses, become more effective, and have greater flexibility by expanding infrastructure automation.

The BFSI segment registered significant growth in the market in 2023. The increasing use of technologies in the banking sector, rising fintech companies' startups, and increasing consumer preferences toward digital banking expected growth in the market in the predicted time period. As consumer demands change, a number of BFSI companies are increasingly using digital infrastructure models.

System Infrastructure Software Market Companies

• Amazon Web Services, Inc.
• BMC Software, Inc.
• Broadcom Inc. (CA Technologies)
• Cisco Systems, Inc.
• Dell Inc.
• Hewlett Packard Enterprise
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• TIBCO Software Inc.

Recent Development

• In May 2023, in order to provide revenue-generating features and digital services for both its consumer and business clients, GM plans to bring software development in-house and partner with Abbott. Since firms are attempting to entice customers with so-called "software-defined vehicles" that have speech, navigation, and even third-party apps, the software has grown in importance within the automotive sector.
• In May 2023, financial institutions like Deloitte, S&P Global, and Moody's announced that they are working together to promote the introduction of the Canton Network, a blockchain that uses Web3 technology to clarify financial markets.
• In May 2023, Loft Labs, a leading provider of software solutions for platform engineers launched the DevPod, an open-source project that enables developers to establish repeatable development environments for any infrastructure.
• In May 2023, Nozomi Networks launched the Vantage IQ release, an AI-based analysis and reaction engine that aims to solve security gaps and resource gaps in critical operational infrastructure.
• In May 2023, The Canton Network, a blockchain that simplifies financial markets, teamed up with Deloitte, Moody's S&P Global to support its launch with the use of Web3 technology. By connecting financial systems and enabling them to function together, the network attempts to give businesses a decentralized infrastructure that could improve transaction efficiency.

Segments Covered in the Report

By Type

• Storage
• Network and System Management
• Security

By Application

• Building Management
• Integrated Communications
• Data Center Infrastructure
• Cloud Integrations

By End-use

• Manufacturing
• IT & Telecom
• BFSI
• Transportation & Logistics
• Retail
• Healthcare
• Others (Food & Beverages, Hospitality, Aerospace & Defense, and Government, among others)

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa