SMB Software Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 72.35 Billion |
| Market Size (2030) | USD 101.38 Billion |
| CAGR (2025 - 2030) | 6.98% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
SMB Software Market Analysis
The SMB Software Market size is estimated at USD 72.35 billion in 2025, and is expected to reach USD 101.38 billion by 2030, at a CAGR of 6.98% during the forecast period (2025-2030).
- Small and medium-sized businesses (SMBs) encounter distinct challenges, necessitating customized software solutions to boost productivity, streamline operations, and effectively manage diverse business functions. SMB software includes a broad spectrum of tools tailored for accounting, customer relationship management (CRM), project management, marketing, and beyond.
- The SMB software index currently averages a trading multiple of 9.7 times, with select companies reaching as high as 31.5 times. This disparity underscores the robust investor confidence in the growth potential of this sector. In a 2024 survey of industry experts, approximately 45% of SMBs disclosed expenditures of up to USD 600,000 on Software as a Service (SaaS), while around 16% invested up to USD 2.4 million. Given that SMBs contribute roughly 44% to the U.S. GDP and account for nearly half of the nation's employment, their influence on the economy and technology spending is undeniable.
- There's a pronounced shift towards cloud-based applications, spurred by advantages like cost savings, scalability, and flexibility. This move is pivotal for SMBs aiming to boost operational efficiency. While about 50% of SMBs still lean towards traditional software subscription models, over 20% are venturing into freemium models, especially among the smaller entities.
- Google Workspace offers a comprehensive suite, including Gmail, Docs, Sheets, Drive, and Calendar, promoting team collaboration and communication. Business accounts are priced starting at USD 10 per user per month. Mirroring Google Workspace, another platform provides tools for document creation, storage, and collaboration, and is renowned for its integration capabilities across diverse business applications.
- Operating on constrained budgets, many SMBs find it challenging to invest in new software solutions. An industry expert survey reveals a significant portion of small businesses plans to reduce technology spending by up to 25% in the coming 12 to 24 months, citing economic uncertainties. Such financial constraints pose challenges for software providers, making it hard to defend premium pricing models and consequently narrowing their market reach.
SMB Software Market Trends
CRM to Hold Significant Market Demand
- For small and medium-sized businesses (SMBs) aiming to streamline operations, enhance customer interactions, and boost sales, Customer Relationship Management (CRM) software is indispensable. A well-chosen CRM centralizes customer data, automates tasks, and fosters better communication across teams.
- Salesforce reports that around 92% of SMB marketing teams are leveraging CRM tools, underscoring the pivotal role these systems play in contemporary marketing strategies. SMBs prioritize crafting personalized customer experiences, with 65% of customers anticipating companies to adapt to their changing needs. Effective CRM systems, which consolidate customer data from diverse channels, facilitate this personalization.
- Webfx notes that roughly 74% of businesses experience improved access to customer data via CRM software, leading to enhanced decision-making and customer interactions. Moreover, these solutions can boost sales forecasting accuracy by up to 42%, underscoring their value in strategic planning and resource allocation.
- Salesforce boasts a comprehensive suite featuring advanced contact management, email integration, and vast customization options, starting at USD 25/month/user for the Lightning Essentials package. It's ideal for businesses desiring a robust system with strong support and scalability. HubSpot specializes in tools for managing customer interactions and sales pipelines, while Zoho CRM excels in sales automation and customer engagement features.
- Choosing the right CRM software can profoundly influence an SMB's efficiency and customer satisfaction. By assessing options like Salesforce, HubSpot, Pipedrive, Zoho, Freshworks, Agile CRM, and Salesmate against specific business needs and budgetary limits, SMBs can bolster their operational capabilities and drive growth effectively.
North America is Expected to Hold a Major Share of the Market
- The Small and Medium Business (SMB) Software Market in North America is a significant and rapidly growing sector, reflecting broader trends in technology adoption among smaller enterprises.
- According to a U.S. government survey, SMBs contribute nearly 44% to the U.S. GDP and account for about half of the nation's employment. These businesses also command a significant portion of tech spending, estimated at around USD 370 billion. The demand for cloud-based solutions is on the rise, primarily due to their flexibility and scalability, advantages that traditional on-premise software lacks.
- SMBs are gravitating towards software that is not only user-friendly but also customizable and easily integrable with their existing systems. This trend underscores a broader shift towards tailored technological solutions. Dominating the SMB software market are tech giants like Microsoft, Salesforce, SAP, and Oracle, leveraging their innovation and comprehensive service offerings.
- In Canada, Microsoft reports that SMBs constitute roughly 98% of all employer businesses. These SMBs employ about two-thirds of the Canadian workforce and contribute over 50% to the business sector's GDP. A recent survey highlighted that 87% of SMB owners are confident in their current performance, with 60% feeling more optimistic than the previous year. Furthermore, nearly half of them anticipate profit growth exceeding 10% year-over-year.
- The vendor ecosystem catering to SMBs is both competitive and fragmented. This landscape compels tech suppliers to tailor their strategies specifically for SMBs, rather than directly applying enterprise-level approaches. There's a pronounced demand for innovative financial tools that address the unique needs of SMBs. Additionally, there's a call for support in integrating advanced technologies, such as AI. Such advancements are poised to drive market growth.
SMB Software Industry Overview
The SMB Software market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Intuit Inc., Salesforce, Inc., Zoho Corporation Pvt. Ltd., and others.
SMB tools can significantly enhance productivity and efficiency in SMBs without incurring costs. By leveraging these resources, small businesses can manage projects, finances, customer relationships, and marketing efforts more effectively while keeping operational expenses low. The landscape of software tools available for SMBs is diverse and continually evolving. By leveraging these technologies, small-to-medium businesses can enhance their operational efficiency, improve customer relationships, and ultimately drive growth in a competitive market.
SMB Software Market Leaders
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Intuit Inc.
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Salesforce, Inc.
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Zoho Corporation Pvt. Ltd.
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Freshworks Inc.
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HubSpot, Inc.
- *Disclaimer: Major Players sorted in no particular order
SMB Software Market News
- September 2024: Finance and human resources suite finally has raised $200 million in new funding. The financing, a USD 50 million Series B from PeakSpan Capital and USD 150 million credit facility from Encina, will help the company bolster its small and medium-sized business (SMB)-focused offering.
- April 2024: Cegid, a European leader in cloud business management solutions for finance (treasury, tax, ERP), human resources (payroll, talent management), CPAs, retail and entrepreneurial sectors, strengthens its position in the fast-growing sector of invoicing and accounting software solutions for the Micro and SMB segments through the potential acquisition of EBP, one of the leading enterprise software providers in this market segment. Following Cegid’s investments in Iberia and Belgium, this major step will allow the new Cegid Group to become the leader in this high-growth market segment ahead of the implementation of mandatory e-invoicing.
SMB Software Industry Segmentation
The SMB (Small and Medium Business) software market encompasses a range of application software solutions, designed to streamline business processes for SMEs (Small and Medium Enterprises).
The SMB software market is segmented by deployment (cloud, on-premises), by enterprises (small enterprises, medium enterprises), by end-user (BFSI, healthcare, retail, manufacturing, IT and telecom, other end-users), by geography (North america, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | Cloud |
| On-Premsies | |
| By Enterprises | Small Enterprises |
| Medium Enterprises | |
| By End-users | BFSI |
| Healthcare | |
| Retail | |
| Manufacturing | |
| IT and Telecom | |
| Other End-users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
SMB Software Market Research Faqs
How big is the SMB Software Market?
The SMB Software Market size is expected to reach USD 72.35 billion in 2025 and grow at a CAGR of 6.98% to reach USD 101.38 billion by 2030.
What is the current SMB Software Market size?
In 2025, the SMB Software Market size is expected to reach USD 72.35 billion.
Who are the key players in SMB Software Market?
Intuit Inc., Salesforce, Inc., Zoho Corporation Pvt. Ltd., Freshworks Inc. and HubSpot, Inc. are the major companies operating in the SMB Software Market.
Which is the fastest growing region in SMB Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in SMB Software Market?
In 2025, the North America accounts for the largest market share in SMB Software Market.
What years does this SMB Software Market cover, and what was the market size in 2024?
In 2024, the SMB Software Market size was estimated at USD 67.30 billion. The report covers the SMB Software Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the SMB Software Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
SMB Software Industry Report
Statistics for the 2025 SMB Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. SMB Software analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
