Due to the growing competition, businesses are seeking alternatives to enhance profit and reduce costs. The use of productivity software is significant in large scale enterprises to complete a task in less time. The companies can improve their efficiency and effectiveness of its activities. Productivity software reduces the workload and eliminates human errors, in turn, improves effectiveness and consistency.

Of the productivity software, the cloud-based productivity software (also called cloud computing) has been favored by many small companies, since it allows them to approach software and servers placed in a secure data center, maintained by the software provider, and not by any IT staff, hence saving the company’s expenses. The cloud-based productivity software assists to advance integration and connectivity, by creating documents, files and excels sheets online with a better capability to share data in real-time. The files can be downloaded and used from anyplace across the world.

Market leaders are investing in enhancing their cloud capabilities to offer better cloud-based productivity software solutions. For e.g. In July 2019, IBM acquired Red Hat Inc. for USD 34 billion. Such acquisition aims to position IBM as the leading provider of hybrid cloud, accelerating its high-value business model, and boosts open source innovation to a vast range of clients. Combined, the two companies intend to provide a next-generation hybrid, multi-cloud stage.

Based on the end use application, the market includes categories: individual, Small and Medium Enterprises (SMEs), and large enterprises. Small and Medium Enterprises (SMEs) segment led the end user market demand in 2018. SMEs are projected to attain a 68.2% market share by 2025, expanding with a CAGR of 16.7%.

Increasing availability of highly trained and skilled software developers across the world has enhanced affordability of the right talent pool for the software providers. This has, in turn, enhanced the capabilities of smaller players to offer customized productivity software solutions to SME’s, the biggest chunk of the demand market. This trend is projected to continue over the forecast period as more and more software developers join the available talent pool.

The global productivity software market is dominated by the US, followed by Europe and China, respectively. The US was the largest market for productivity software in 2018 and is expected to dominate the market till 2025. Asia Pacific is the fastest-growing market owing to the factors such as the development of the industrial sector, growing investments in enterprise IT, ambition of developing countries to emerge into the forefront of IT revolution, and increasing cloud readiness of Asian countries.

The US is anticipated to dominate the software productivity market with an estimated market share of 60.7% in the year 2025. This is mainly attributable to advance adoption of the technological advancements in the country. The US is the most developed market in terms of adopting cloud computing services, or AI and Internet of Things (IoT) adoption due to a few factors, as many enterprises consists of technical expertise along with availability of advanced IT infrastructure. Furthermore, significant players such as Microsoft (Office 365), (US), Google, etc. operating in the productivity software are based out of this county and hence, there is a cut-throat competition in the US besides raising the value of the US as a market. Moreover, the strong economic position in the US allows it to capitalize massively on innovative solutions and technologies.

The major players of Global Software Productivity Market include Google Inc., Microsoft (Office 365), SoftMaker Software GMBH, Corel Corporation, LibreOffice, IBM, Zoho Corporation, KOffice, and Hancom Inc.