G2’s State of Software Report Reveals AI Is Powering the Rapid Growth of Software Globally

G2 released The State of Software, Q4 2023, a new report series which examines trends from its B2B software and services marketplace, based on proprietary data across 2 million+ trusted reviews, 150,000+ products and services, 2,000+ categories, and 80 million annual visitors.

According to the inaugural report, B2B software is growing at an average rate of 7%, based on the number of software listings on the G2 marketplace over the past five years. In exploring the trends within this growth, G2 observed the five fastest-growing software markets over the past year as:

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• 1) Artificial Intelligence (39% year-over-year growth)
• 2) Design (17% year-over-year growth)
• 3) HR (14% year-over-year growth)
• 4) Marketing (14% year-over-year growth)
• 5) Security (14% year-over-year growth)

“The B2B software landscape is constantly evolving. As the world’s largest software marketplace, we have a direct lens into what’s happening in real-time – from real user reviews, website traffic, product and category insights, and more,” said Chris Voce, VP of Market Research at G2. “Based on our Market Research analysts’ expertise of G2 marketplace data and taxonomy, we’re proud to introduce the inaugural State of Software report and share these insights with vendors, investors, and buyers as a window into where innovation is happening and where key software markets are headed.”

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Beyond identifying the fastest-growing software markets, The State of Software explores what’s driving that growth – outlining the fastest-growing categories and top visited new products within each of those markets. Key takeaways from these insights reveal:

• AI-powered features and capabilities are fueling growth across the B2B software landscape as more and more vendors add true AI capabilities to their products.
• The growing demand for high-quality and engaging content has increased the need for AI-enabled design tools.
• The dynamics of the human resources industry have shifted towards quality-driven job growth, which is enabled by AI-facilitated platforms for talent marketplace and intelligence.
• The marketing landscape has evolved, with a trend towards ‘one-stop shop’ solutions that allow marketers to efficiently focus on multiple segments and channels.
• Indiscriminately cutting security technology budgets carries risk, so businesses should look to optimize their resources and apply market insights to channel their resources effectively.

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“The software industry has witnessed exponential growth in the past five years due to elevated digital reliance, wider adoption of cloud computing and SaaS, and significant advancements in Artificial Intelligence and Machine Learning,” Voce added. “While AI ranked as the fastest-growing software market over the past year, it’s disrupting the entire software landscape as AI functionality and features drive innovation and growth in other categories like Design and Sales software. It’s clear that AI is powering the rapid growth of software, with new categories and products emerging to meet buyers’ needs to remain competitive while driving efficiency and innovation.”

Download G2’s complete State of Software report and stay tuned for future quarterly editions of this report, which will serve as a guide on what’s trending: the software categories emerging, growing fastest, as well as the trends with vendors and products within those markets.

[To share your insights with us, please write to sghosh@martechseries.com]