2020 Enterprise Software Spending Takes a Dip – Here’s What Happened
Grab your coffee, because the numbers just dropped like a bad stock: the global spend on enterprise software is projected to hit $426 billion in 2020. That’s the first decline in a decade, ending a bullish run that kicked off in 2009.
A Quick Look at the Numbers
- 2020: $426 billion (≈ –7 % from 2019)
- 2019 (peak): $458 billion
- 2018: $419 billion – a solid 13.5 % jump over 2017
- 2014‑15: flat at $310 billion, then nudged up to $316 billion in 2016
- 2009 (low point): $225.5 billion, the start of this long‑term climb
Between 2009 and the 2020 estimate, the sector spent a total of $3.94 trillion on enterprise software. Even at its foothold, 2009 wasn’t a bottom‑day; the market has raised the bar ever since.
Why the Sudden Drop?
According to research from Buyshares.co.uk, the culprit is none other than the Coronavirus pandemic. Companies have been forced to re‑order priorities – the thing that feels useful today might be something you can wait on. The survey explains:
“The coronavirus crisis has nudged many sectors to focus on essential operations, explaining the dip in enterprise software budgets. Businesses in IT are rolling out measures to keep their operations running during this pandemic, a strategy mirrored across the board for 2020.”
Essentially, the thrill of buying transformative tech has been shelved for a while, as firms save for the sobering reality of an economy hit hard by lockdowns.
US Software Publishers: Still Cashing In
While global spending is sliding, the U.S. software market is riding a different wave:
- 2005: $116.64 billion
- 2019: a sky‑high $284.66 billion (up 144 % from 2005)
- Total revenue from 2005–2019: $2.6 trillion
- 2009: $138.98 billion – a slight 2.6 % dip from 2008 but still part of growth
The surge mirrors increased IT investment and the boom of mobile gadgets, even as the global software spend slows.
What This Means for Your Business
Don’t panic – it’s not a clifffall. It’s a temporary dip amid a 10‑year rise. If you’re planning a new software rollout, now might be the time to lock in a deal before prices climb again.
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