License Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The License Management Market is segmented by Component (Software, Services), Deployment (On-Premise, Cloud), Application** (Audit Services, Advisory Services, Compliance Management, License Entitlement and Optimization, Operations and Analytics, Others), End-user Vertical (BFSI, Healthcare and Life Sciences, IT & Telecommunication, Media and Entertainment, Other End-user Vertical) and Geography

Market Snapshot

Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 8.56 %

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Market Overview

The license management market was valued at USD 737 million in 2020 and is expected to reach USD 1206.39 million by 2026, at a CAGR of 8.56% over the forecast period 2021-2026.

  • The increasing investment in IT infrastructure development, rapid adoption of digitalization by many businesses, technological advancement in cloud, growing demand for single license managing tool that will optimize software investments, reduce the cost, increase company-wide software usage and ensure compliance with the developer’s software license are some of the major factors driving the growth of the license management market.
  • Growing demand for Digital Age Networking that enables enterprises to move toward digital transformation and generate new business outcomes by leveraging new digital age technologies such as the Internet of Things (IoT), cloud, and Artificial Intelligence (AI) and thus rely on various software is expected to drive the market.
  • For instance, according to the report, 70% of companies either have a digital transformation strategy in place or are working on it, and 21% of companies perceive that they have already completed the digital transformation. Around 40% of all technology spending in 2019 is expected to go towards digital transformation.
  • Further, increasing end-user software license auditing by software vendors to compare the number of software licenses the organization has purchased with the number currently installed on the computers and ensures license compliance is also expected to drive the market. It will continue to rise for two reasons, the first being an attempt to combat software piracy and second fines levied against non-compliant organizations that act as a source of revenue for software vendors.

Scope of the Report

License management is a powerful tool that an organization uses to document and manage their software licenses to ensure compliance with the developer’s software license. It offers full visibility into company-wide software usage, can optimize all the licenses, reduce costs, and protect future software investment. 

By Component
By Deployment
By Application (Qualitative Trend Analysis)
Audit Services
Advisory Services
Compliance Management
License Entitlement and Optimization
Operations and Analytics
By End-User
Healthcare and Life Sciences
IT & Telecommunication
Media and Entertainment
Other End-user Vertical
By Geography
North America
Latin America
Middle East & Africa

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Key Market Trends

BFSI Sector Will Experience Significant Growth and Drive the Market

  • The banking, financial services, and insurance companies (BFSI) demand an IT infrastructure that is available 24X7x365 days and meets rigorous internal and external service level requirements. As the segment majorly deals with end customers, who contribute to companies’ revenue, an enterprise needs to ensure that the end-user applications and business services are in compliance with the guidelines provided by the financial institutions and thus offer better security to their customers.
  • A bank's IT estate often accounts for around 50% of the total enterprise asset base and sometimes as much as 80% of capital expenditure. The license management tools provide real cost savings, by identifying unused software and hardware assets, more-effective lifecycle management, and better IT operations processing through better documentation.
  • Additionally, the BFSI sector faces major cyberattacks, and according to the report, financial firms are 300 times more likely than other institutions to experience cyberattacks and thus require a hypervigilant security software that is continuously being updated to counterfeit any security breach. For instance, in 2019, Mastercard reported over 460,000 intrusion attempts each day, which has increased by 70% compared to the year prior.
  • Further, during the COVID-19 coronavirus pandemic, most of the users are relying on digital banking, and there is a sudden increase in cyberattacks targeting the financial services sector. According to the VMware Carbon Black Threat Analysis Unit, cyberattacks spiked by 38% between February and March 2020. Attackers are using Covid-19 to launch phishing attacks, trojans, backdoors, crypto miners, botnets and ransomware, and so increased vigilance and visibility into enterprise-wide endpoint activity are paramount than ever and so financial institutions are investing heavily to update their networking solutions by using various secure tools which are expected to drive the market.

North America is Expected to Experience Significant Growth

  • Technological changes such as the rapid increase in cloud computing and the virtualization of software are at the root cause of an increase in software licensing disputes. For instance, SAP has settled the software licensing dispute with Anheuser-Busch, the U.S. subsidiary of beverage conglomerate AB InBev as it has breached its software license agreement by directly and indirectly accessing SAP systems and data without appropriate licenses, and of underpaying license fees due. This has fueled the quick adoption of the software licensing solutions which protects organizations from litigation costs associated with software misuse.
  •  License agreements that were user-based, seat-based, or enterprise based do not fit well with the cloud or virtualization model. Due to which now the software vendors are changing their licensing terms to make license terms more onerous for users. For instance, in 2018, Oracle has changed its license so that Oracle JDK is free to individuals for use, development, testing, prototyping, and demonstrations, but requires a commercial license to avoid the GPLv2+CE license. 
  • Moreover, an increasing number of licensing audits conducted by software vendors and is expected that the frequency will grow in the studied period. For instance, Oracle will conduct licensing audits in the cloud more often than the currentnumber.  

Competitive Landscape

The license management market is competitive and is dominated by a few major players like Aspera Technologies Inc., Cherwell Software LLC, DXC Technology Co., Flexera Software LLC, and Reprise Software Inc. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

  • February 2020 - Aspera, a global provider of solutions and services for Software Asset Management (SAM), has signed an agreement with the global SaaS technology provider (The “Customer”) to use Aspera SmartTrack. The Customer will use Aspera solutions to facilitate an automated license management strategy that ensures compliance for significant software vendors Microsoft, Autodesk, and VMware.
  •  February 2020 - Flexera, one of the leaders in software installation, open-source software scanning, and software monetization, has acquired Revulytics, a recognized leader in software usage analytics. Through the acquisition, the company will be expanding its offering to provide software and technology companies with even more insights and enables their product teams to make better, data-driven decisions and gives compliance teams the actionable data they need to generate revenue from unlicensed use.

Table of Contents


    1. 1.1 Study Assumptions​ and Market Definition​

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers​

      1. 4.2.1 Increasing Demand to Optimize Software Investments

      2. 4.2.2 Growing Requirment for Audit-Readiness Among Organisation

    3. 4.3 Market Restraints

      1. 4.3.1 Uncertain Regulatory Standards and Frameworks

    4. 4.4 Market Opportunities

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19


    1. 5.1 By Component

      1. 5.1.1 Software

      2. 5.1.2 Services

    2. 5.2 By Deployment

      1. 5.2.1 On-Premise

      2. 5.2.2 Cloud

    3. 5.3 By Application (Qualitative Trend Analysis)

      1. 5.3.1 Audit Services

      2. 5.3.2 Advisory Services

      3. 5.3.3 Compliance Management

      4. 5.3.4 License Entitlement and Optimization

      5. 5.3.5 Operations and Analytics

      6. 5.3.6 Others

    4. 5.4 By End-User

      1. 5.4.1 BFSI

      2. 5.4.2 Healthcare and Life Sciences

      3. 5.4.3 IT & Telecommunication

      4. 5.4.4 Media and Entertainment

      5. 5.4.5 Other End-user Vertical

    5. 5.5 By Geography

      1. 5.5.1 North America

      2. 5.5.2 Europe

      3. 5.5.3 Asia-Pacific

      4. 5.5.4 Latin America

      5. 5.5.5 Middle East & Africa


    1. 6.1 Company Profiles*

      1. 6.1.1 Aspera Technologies Inc.

      2. 6.1.2 Cherwell Software LLC

      3. 6.1.3 DXC Technology Co

      4. 6.1.4 Flexera Software LLC

      5. 6.1.5 Reprise Software Inc.

      6. 6.1.6 Snow Software AB

      7. 6.1.7 Oracle Corporation

      8. 6.1.8 IBM Corporation

      9. 6.1.9 Gemalto Inc.

      10. 6.1.10 ServiceNow Inc.



**Subject to Availability
**Qualitative Trend Analysis

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Frequently Asked Questions

The License Management Market market is studied from 2018 - 2026.

The License Management Market is growing at a CAGR of 8.56% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Aspera Technologies Inc., Cherwell Software LLC, DXC Technology Co, Flexera Software LLC, Reprise Software Inc. are the major companies operating in License Management Market.

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