Software Asset Management Market to Reach USD 9.01 Billion by 2030

Software Asset Management Market Summary:

The global software asset management market size was USD 2.00 Billion in 2021 and is expected to register a revenue CAGR of 18.2% over the forecast period, according to the latest report by Reports and Data. Market revenue growth is expected to be driven by the growing need for audit management and meeting regulatory compliance.

Software Asset Management (SAM) ensures compliance with publisher-user software contracts. SAM enables systemic management of IT assets by integrating people, processes, and technology. These standards help firms streamline their IT assets, deploy assets, and plan IT expenses more efficiently. IT asset management tool collects asset details in one place. The information is utilized to produce valuable insights into how assets are used throughout the company and their current life cycle, which increases the demand for software asset management solutions. The revenue growth of the market is expected to be driven by the increasing need for businesses to maximize their investments at every phase of their lifecycle and implement an IT asset management strategy to acquire more for less, harvest unneeded equipment, and dispose of obsolete equipment properly.

Some Key Highlights from the Report

Solutions segment is expected to register a rapid revenue growth rate during the forecast period owing to the increasing need for analyzing, tracking, and maintaining asset requirements in an organization. These solutions enhance software efficiency, maintain software usage records, and identify licensed software by helping organizations track their software usage. Organizations increasingly adopt solutions to enable discovery, metering, and optimizations, enabling compliance and making the right decisions. In addition, manufacturing facilities and healthcare institutions deploy solutions to monitor equipment maintenance and ensure proper equipment operation. These factors are driving revenue growth of the segment.

The cloud segment is expected to lead in terms of revenue contribution to the global market over the forecast period owing to the increasing need for minimizing enterprise costs related to IT infrastructure. Cloud solution enables enterprises to focus on core business competencies providing security and data protection. According to a survey of 2020, 82% of enterprises use hybrid clouds to store sensitive data in a private cloud while running enterprise applications on a public cloud.

The Small and Medium-sized Enterprises (SMEs) segment is expected to account for the largest revenue share over the forecast period. SMEs always face difficulties implementing asset management properly. Consequently, asset management software enables SMEs to remain competitive through transformation, while also adjusting to changes in an organized manner, increasing productivity. These factors are expected to drive revenue growth of the segment during the forecast period.

Manufacturing segment is expected to register a steady revenue growth rate during the forecast period owing to the increasing need for extending lifespan, improving productivity, and streamlining maintenance processes. The industry is labor-intensive and susceptible to expensive errors. The solutions reduce cost and are required to increase industry share. Manufacturing companies use asset management software to manage entire lifecycle of their plant assets, such as equipment, parts, production lines, and buildings.

Market in North America is expected to account for the largest revenue share in global market during the forecast period. Rapid growth rate of the market is attributed to the increasing presence of major market players such as ServiceNow, Microsoft Corporation, Danaher, and IBM, among others which is expected to drive market revenue growth in the region. Growing numbers of corporate companies are utilizing software asset management to optimize value through active control and automation of procurement. According to data, the U.S. had 6.1 million registered corporate companies in 2019.

Companies profiled in the market report are ServiceNow, Microsoft Corporation, Danaher, IBM, SONATA SOFTWARE, Lansweeper, InvGate, License Dashboard, Belarc, Inc., and Xensam AB.

Software Asset Management Market: Notable Innovations

Software Asset Management (SAM) is a critical discipline for organizations to effectively manage their software licenses, reduce costs, maintain compliance, and optimize software usage. Over the years, several innovations have emerged in the field of SAM to address the evolving needs of businesses. Here are some notable innovations in Software Asset Management:

Cloud-based SAM Solutions: As organizations increasingly adopt cloud-based software and services, SAM tools have evolved to manage licenses and usage in the cloud. These solutions provide real-time visibility into software consumption and licensing in cloud environments, helping organizations optimize costs and maintain compliance.

AI and Machine Learning: SAM tools are incorporating artificial intelligence and machine learning to enhance their capabilities. AI-driven SAM solutions can analyze usage patterns, predict future software needs, identify compliance risks, and recommend optimization strategies.

Mobile Device Management (MDM): With the proliferation of mobile devices in the workplace, SAM solutions have expanded to include mobile device management. This allows organizations to track and manage software licenses on smartphones and tablets, ensuring compliance and cost optimization across all endpoints.

Blockchain for Software Licensing: Some innovators are exploring blockchain technology to create transparent, tamper-proof records of software licenses and usage. This can help combat software piracy and simplify license audits.

Self-service Portals: Many SAM solutions now offer self-service portals for end-users to request and manage software licenses and installations. This empowers employees to take an active role in software compliance and reduces the burden on IT and SAM teams.

Integration with IT Service Management (ITSM) Tools: SAM tools are increasingly integrated with ITSM tools like ServiceNow and Jira. This integration streamlines the process of requesting, approving, and provisioning software licenses, ensuring that SAM is seamlessly integrated into the IT workflow.

License Optimization as a Service: Some vendors offer license optimization as a service, where experts analyze an organization’s software estate and recommend cost-saving strategies. This outsourced approach can be especially valuable for organizations lacking in-house SAM expertise.

Vendor-specific SAM Tools: Major software vendors like Microsoft and IBM have developed their own SAM tools (e.g., Microsoft’s SAM Insights) to help customers manage licenses and compliance for their products more effectively.

Containerization and Microservices: As software deployment models shift towards containers and microservices, SAM tools are adapting to manage licenses for these technologies, ensuring that organizations remain compliant in modern application development environments.

Compliance Reporting and Dashboards: Advanced reporting and dashboard features in SAM solutions offer real-time insights into compliance status, usage trends, and potential cost-saving opportunities. These visualizations help SAM teams make informed decisions.

Subscription-Based Licensing Models: SAM tools are adapting to handle the complexities of subscription-based software licensing models, including tracking and managing recurring payments, renewals, and user access.

API Integrations: SAM tools now often provide APIs that allow integration with other systems, such as procurement software, financial systems, and security tools. This enables a more holistic approach to managing software assets.

These innovations reflect the dynamic nature of the SAM field as it evolves to meet the changing demands of modern IT environments. Organizations should stay abreast of these developments to ensure they are effectively managing their software assets, optimizing costs, and staying compliant with licensing agreements.

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