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47 Software Spending Statistics for 2025

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Martin Lunendonk

Last Update

Jan 10, 2025

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Software spending is at an all-time high as businesses prioritize digital transformation and operational efficiency. Discover the latest software spending statistics to understand where investments are headed and how to stay competitive in 2025.

Global Software Spending Trends

Software spending continues to grow across industries as businesses adapt to technological advancements.

  1. Global software spending is projected to reach $980 billion in 2025. This marks a 14% year-over-year growth driven by increased digitization. (Gartner)
  2. Enterprise software spending accounts for 40% of total IT budgets. Businesses prioritize tools for productivity and collaboration. (IDC)
  3. Cloud-based software spending is growing 18% annually. Organizations are shifting from on-premises to scalable cloud solutions. (Statista)
  4. SMEs account for 30% of global software spending. Small and medium-sized enterprises increasingly adopt affordable SaaS options. (Forbes)
  5. North America leads software investments with 40% of global spending. Europe and Asia-Pacific follow as significant growth regions. (Gartner)

Industry-Specific Software Spending

Different industries allocate software budgets to meet unique needs and challenges.

  1. Healthcare software spending to exceed $60 billion in 2025. Investments focus on telehealth, electronic health records, and patient management. (Statista)
  2. Retail software spending is growing by 20% annually. Solutions for eCommerce, inventory management, and customer experience drive growth. (McKinsey)
  3. Manufacturing software spending to reach $50 billion. Automation, supply chain management, and IoT tools are key investment areas. (Deloitte)
  4. Financial services software investments grow by 15%. Fintech solutions, fraud detection, and digital banking lead spending. (PwC)
  5. Education sector software spending increases by 12%. Learning management systems and virtual classrooms dominate budgets. (EdTech Trends)

Cloud Software Spending Statistics

Cloud adoption remains a major driver of software spending growth.

  1. 75% of enterprise software spending goes to cloud-based solutions. Flexibility and scalability are key advantages. (Forbes)
  2. Hybrid cloud adoption is growing by 20% annually. Businesses balance public and private cloud environments for optimal performance. (Gartner)
  3. Software as a Service (SaaS) market to reach $272 billion by 2025. Subscriptions provide cost-effective and upgradable solutions. (Statista)
  4. Cloud ERP spending is increasing by 23% annually. Organizations seek unified platforms for finance, HR, and operations. (IDC)
  5. Cloud migration costs account for 10% of IT budgets. Moving legacy systems to the cloud requires significant investment. (Deloitte)

Business Functions Driving Software Spending

Key business areas are receiving the majority of software investments.

  1. Collaboration software spending to exceed $30 billion. Tools like Microsoft Teams, Slack, and Zoom remain essential for hybrid workforces. (Statista)
  2. Cybersecurity software spending is growing by 20% annually. Businesses invest heavily to protect data and infrastructure. (Gartner)
  3. CRM software spending to reach $70 billion by 2025. Customer relationship management tools are central to sales and marketing strategies. (IDC)
  4. HR software spending increases by 18%. Recruitment, employee engagement, and payroll solutions see strong demand. (SHRM)
  5. AI and analytics software spending grows by 25%. Predictive analytics and AI-driven insights drive smarter decision-making. (Forbes)

Small Business Software Spending

Small businesses are rapidly adopting software to stay competitive.

  1. SMBs spend an average of $10,000 annually on software. Cost-effective SaaS solutions make technology accessible. (Statista)
  2. 80% of small businesses use at least one cloud-based application. Cloud solutions dominate SMB software investments. (Forbes)
  3. Accounting software spending by SMBs grows by 15%. Tools like QuickBooks and Xero simplify financial management. (Deloitte)
  4. 50% of small businesses prioritize marketing software. Email marketing, social media management, and SEO tools lead spending. (HubSpot)
  5. Small businesses save 30% on operational costs using software automation. Efficiency gains offset initial investment costs. (TechRadar)

Software Spending in Emerging Technologies

Emerging technologies are reshaping software spending priorities.

  1. AI software market to reach $126 billion by 2025. Machine learning, natural language processing, and automation tools see rapid growth. (Gartner)
  2. IoT software spending grows by 24% annually. Connected devices require robust software for data management and analytics. (Statista)
  3. Blockchain software spending to exceed $20 billion. Industries like finance and supply chain leverage decentralized technologies. (PwC)
  4. AR/VR software investments increase by 30%. Immersive technologies transform training, marketing, and customer experiences. (IDC)
  5. Edge computing software spending grows by 18%. Decentralized processing needs drive investments in edge platforms. (Forbes)

Trends in Software Spending for 2025

Emerging trends highlight where businesses are focusing their software budgets.

  1. Sustainability-focused software spending grows by 22%. Tools for energy management and carbon tracking are on the rise. (Deloitte)
  2. Subscription-based software models dominate 90% of investments. SaaS provides affordability and scalability for all business sizes. (Statista)
  3. Low-code and no-code platforms grow by 40%. Simplified development tools empower non-technical teams. (Gartner)
  4. Cybersecurity insurance software spending increases by 25%. Managing risks in digital environments is a priority. (Forbes)
  5. Vertical-specific software sees a 15% growth. Tailored solutions cater to unique industry requirements. (IDC)
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Author

Martin Lunendonk

Martin Lunendonk is a senior tech writer specializing in website builders, web hosting, and ecommerce platforms. With a background in finance, accounting, and philosophy, he has founded multiple tech startups and worked in medium to large tech companies and investment banking, bringing deep expertise and reliable insights to his software reviews.