Software Consulting Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Software Consulting Market is Segmented by Service Type (Application Development and Modernization and Enterprise Solution Integration and More), Deployment Model (Cloud and On-Premise), End-User Enterprise Size (Large Enterprises and Small and Medium Enterprises (SMEs)), End-User Vertical (BFSI, Telecom and Media and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Software Consulting Market Size and Share

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Software Consulting Market Analysis by Mordor Intelligence

The software consulting market size stands at USD 327.59 billion in 2025 and is forecast to reach USD 701.90 billion by 2030, registering a 16.3% CAGR. Enterprises have shifted from cost-containment toward revenue-growth goals, driving large-scale modernization programs anchored in cloud-native platforms, AI-enabled business processes, and data-centric operations. The looming retirement of SAP ECC is adding urgency as more than two-thirds of installed customers still need to move to S/4HANA. At the same time, public-sector digitalization and sector-specific regulations, especially in healthcare and financial services, are broadening consulting opportunities. Competitive intensity centers on AI partnerships, with leading firms earmarking multi-billion-dollar budgets for generative AI tooling and domain models.

Key Report Takeaways

  • By service type, application development and modernization led with 38.2% of software consulting market share in 2024, while data and AI/ML consulting is projected to expand at a 17.5% CAGR to 2030. 
  • By deployment model, public cloud solutions accounted for 46.5% share of the software consulting market size in 2024 and hybrid/multi-cloud architectures are advancing at a 19.7% CAGR through 2030. 
  • By enterprise size, large enterprises held 63.3% share of the software consulting market size in 2024, whereas the SME segment records the fastest 17.2% CAGR to 2030. 
  • By end-user industry, the BFSI sector commanded 24.5% share of the software consulting market size in 2024; healthcare and life sciences is set to grow at a 16.8% CAGR through 2030. 
  • By geography, North America captured 27.9% software consulting market share in 2024; Asia-Pacific is forecast to post the strongest 18.5% CAGR between 2025-2030.

Segment Analysis

By Service Type: AI Consulting Drives Premium Growth

Application development and modernization retained 38.2% software consulting market share in 2024, reflecting the urgency to re-platform legacy applications on cloud-native, API-centric stacks. Enterprises depend on these services to unlock continuous deployment, improve system resilience, and reduce ownership costs. The segment remains anchored in large-scale refactoring and containerization projects that support omnichannel and real-time use cases across verticals.

Data and AI/ML consulting posts the fastest 17.5% CAGR toward 2030. Clients view machine learning models, predictive analytics, and generative AI frameworks as differentiators rather than efficiency levers. Advisory scope is expanding from algorithm selection to data-fabric design, ethical guardrails, and value-tracking dashboards. As model risks attract regulatory scrutiny, demand is shifting toward explainability assessments and governance protocols embedded into end-to-end AI pipelines.

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Note: Segment shares of all individual segments available upon report purchase

By Deployment Model: Hybrid Architectures Gain Momentum

On Premises retained 53.5% share of the software consulting market size in 2024, propelled by scalability and pay-as-you-go economics that appeal to both greenfield and modernization programs. Offerings now span platform refactoring, DevSecOps automation, and cloud FinOps advisory that helps enterprises rein in rising consumption costs.

Also the cloud architectures record the highest 19.7% CAGR. Clients favor workload portability for data sovereignty and vendor risk mitigation. Consulting demand concentrates on cloud center-of-excellence design, unified observability stacks, and secure connectivity between on-premise, edge, and public cloud nodes. Edge computing adds complexity as 75% of enterprise data is processed closer to its source, generating new opportunities for architects versed in distributed data governance.

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By Enterprise Size: SME Adoption Accelerates

Large enterprises continued to command 63.3% of the software consulting market size in 2024, leveraging deep budgets and global footprints that require multifaceted transformation programs. Engagements range from strategic road-mapping to full-stack implementation, often spanning finance, supply chain, and customer-experience revamps delivered across multiple continents.

SMEs show the briskest 17.2% CAGR, fueled by lower entry barriers from cloud-delivered consulting models and the democratization of low-code development. “Citizen developer” programs are proliferating, yet governance gaps remain, opening advisory niches in platform oversight, security, and skills enablement. Fixed-price, outcome-based packages are gaining favor among SMEs seeking predictable costs.

Software Consulting Market
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By End-User Industry: Healthcare Leads Growth Trajectory

BFSI accounted for 24.5% share of the software consulting market size in 2024. Regulatory reporting automation, open-banking API strategies, and AI-driven fraud detection dominate project pipelines. Consultancies with sector-specific accelerators and compliance frameworks command premium rates.

Healthcare and life sciences expand to 16.8% CAGR. Telemedicine platforms, IoMT ecosystems, and AI-powered diagnostics drive complex integrations with electronic health records. Data-privacy mandates such as HIPAA intensify the need for specialized domain knowledge. Supporting services now include algorithm-bias audits, clinical-workflow redesign, and secure cloud migration for sensitive patient data.

Geography Analysis

North America led with 27.9% market share in 2024, backed by strong enterprise IT budgets and a dense ecosystem of technology vendors and hyperscale clouds. US consulting expenditure approaches USD 400 billion annually, with advanced analytics outlays expected to rise 11% in 2025. Canada contributes meaningful growth through public-sector modernization and energy-sector digitization projects.

Asia-Pacific is the fastest-growing region, advancing at an 18.5% CAGR. India’s technology spending will reach USD 59 billion in 2025, driven by government digital initiatives and manufacturing modernization.[4]Ministry of Electronics and Information Technology, “Digital India Budget 2025 Highlights,” meity.gov.in China’s enterprises invest heavily in AI-enabled supply chains and smart factories, while Southeast Asian governments ramp up e-services and cybersecurity frameworks that require external advisory capabilities. Japan and South Korea sustain momentum through advanced manufacturing and 5G-driven applications.

Europe demonstrates steady expansion anchored by Germany, which holds roughly one-quarter of regional software value. SMEs are upgrading ERP and customer-experience platforms to compete globally. The EU AI Act introduces stringent governance obligations, boosting consulting demand for compliance assessments and audit-ready AI architectures. Nordic countries maintain outsized influence thanks to export-oriented software ecosystems and early adoption of cloud-first policies.

Software Consulting Market
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Competitive Landscape

The software consulting market features moderate fragmentation. Accenture leads with USD 67.2 billion FY24 revenue, propelled by a USD 3 billion investment commitment in generative AI partnerships and talent.[5]Julie Sweet, “Accenture Reports Fourth-Quarter and Full-Year 2024 Results,” accenture.comThe firm’s Copilot collaboration with Microsoft underpins end-to-end productivity solutions across finance, supply chain, and customer service.

Indian majors strengthen share based on cost-effective global delivery. TCS posted USD 30.18 billion FY25 revenue and is scaling AI services through its proprietary cognitive suite. Infosys earned USD 4.94 billion during its most recent quarter and focuses on AI-first transformation, cloud modernization, and ESG reporting solutions.

Strategic acquisitions shape competitive dynamics. IBM added Hakkoda to deepen Snowflake and data-engineering expertise, complementing earlier purchases of Accelalpha and Applications Software Technology for Oracle-cloud consulting. Cognizant’s proposed USD 1.3 billion Belcan deal extends engineering R&D capabilities. Big Four professional-services firms collectively invested more than USD 4 billion in AI tooling to defend share against IT-services incumbents.

White-space prospects lie in quantum-safe cryptography advisory, AI governance frameworks, and verticalized large-language-model offerings. Boutique firms with niche IP and accelerator assets remain attractive targets as large players seek differentiation through specialized capability bundles.

Software Consulting Industry Leaders

  1. Capgemini

  2. Accenture PLC

  3. Cognizant

  4. Deloitte

  5. IBM Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Software Consulting Market Concentration
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Recent Industry Developments

  • May 2025: Accenture and Yumemi announced a strategic partnership to enhance digital product development capabilities, leveraging combined expertise to deliver innovative solutions.
  • April 2025: IBM acquired Hakkoda to expand its data analytics and AI consulting offerings within a broader AI-first strategy.
  • April 2025: Capgemini entered talks to acquire India’s WNS Holdings, potentially broadening its BPO and consulting reach.
  • January 2025: Intel and Softtek partnered to drive digital transformation in Latin America and the United States with AI solutions built on Intel Gaudi accelerators and the openVINO toolkit.

Table of Contents for Software Consulting Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Enterprise cloud-migration acceleration
    • 4.2.2 Digital-transformation mandates post-COVID
    • 4.2.3 Need for operational efficiency and cost optimisation
    • 4.2.4 Growing data-analytics and AI adoption
    • 4.2.5 Looming SAP ECC sunset fuelling S/4HANA consulting demand
    • 4.2.6 Emerging AI-governance and compliance mandates
  • 4.3 Market Restraints
    • 4.3.1 Heightened cybersecurity and data-privacy concerns
    • 4.3.2 Talent shortage and rising consulting rates
    • 4.3.3 Rapid low-code / no-code adoption reducing custom dev work
    • 4.3.4 Gen-AI automating basic advisory tasks, eroding billable hours
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Investment Analysis

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Service Type
    • 5.1.1 Application development and modernisation
    • 5.1.2 Enterprise solution integration
    • 5.1.3 Cloud migration and managed services
    • 5.1.4 Software security consulting
    • 5.1.5 Data and AI/ML consulting
    • 5.1.6 Others
  • 5.2 By Deployment Model
    • 5.2.1 On-premise
    • 5.2.2 Cloud
  • 5.3 By End-user Enterprise Size
    • 5.3.1 Large enterprises
    • 5.3.2 Small and medium enterprises (SMEs)
  • 5.4 By End-user Industry
    • 5.4.1 BFSI
    • 5.4.2 Healthcare and life-sciences
    • 5.4.3 Manufacturing and industrial
    • 5.4.4 Retail and e-commerce
    • 5.4.5 Government and public sector
    • 5.4.6 Telecom and media
    • 5.4.7 Others
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Russia
    • 5.5.3.6 Spain
    • 5.5.3.7 Switzerland
    • 5.5.3.8 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 India
    • 5.5.4.3 Japan
    • 5.5.4.4 South Korea
    • 5.5.4.5 Malaysia
    • 5.5.4.6 Singapore
    • 5.5.4.7 Vietnam
    • 5.5.4.8 Indonesia
    • 5.5.4.9 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 Nigeria
    • 5.5.5.2.2 South Africa
    • 5.5.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Accenture
    • 6.4.2 IBM
    • 6.4.3 Capgemini
    • 6.4.4 Cognizant
    • 6.4.5 Deloitte
    • 6.4.6 Infosys
    • 6.4.7 Tata Consultancy Services (TCS)
    • 6.4.8 Wipro
    • 6.4.9 HCLTech
    • 6.4.10 CGI
    • 6.4.11 Atos SE
    • 6.4.12 SAP Services
    • 6.4.13 Oracle Consulting
    • 6.4.14 EPAM Systems
    • 6.4.15 ThoughtWorks
    • 6.4.16 Booz Allen Hamilton
    • 6.4.17 NTT DATA
    • 6.4.18 DXC Technology
    • 6.4.19 Slalom
    • 6.4.20 Persistent Systems
    • 6.4.21 Globant
    • 6.4.22 KPMG
    • 6.4.23 PwC
    • 6.4.24 EY
    • 6.4.25 Bain and Co. (Digital practice)

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Software Consulting Market Report Scope

Software consulting analyzes a company's software needs and creates technology to help it perform its operations successfully.

Software Consulting Market is segmented by geography (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa). 

The market sizes and forecasts are in value (USD million) for all the above segments. 

By Service Type Application development and modernisation
Enterprise solution integration
Cloud migration and managed services
Software security consulting
Data and AI/ML consulting
Others
By Deployment Model On-premise
Cloud
By End-user Enterprise Size Large enterprises
Small and medium enterprises (SMEs)
By End-user Industry BFSI
Healthcare and life-sciences
Manufacturing and industrial
Retail and e-commerce
Government and public sector
Telecom and media
Others
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Spain
Switzerland
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Singapore
Vietnam
Indonesia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa Nigeria
South Africa
Rest of Africa
By Service Type
Application development and modernisation
Enterprise solution integration
Cloud migration and managed services
Software security consulting
Data and AI/ML consulting
Others
By Deployment Model
On-premise
Cloud
By End-user Enterprise Size
Large enterprises
Small and medium enterprises (SMEs)
By End-user Industry
BFSI
Healthcare and life-sciences
Manufacturing and industrial
Retail and e-commerce
Government and public sector
Telecom and media
Others
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Spain
Switzerland
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Malaysia
Singapore
Vietnam
Indonesia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa Nigeria
South Africa
Rest of Africa
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Key Questions Answered in the Report

What is the software consulting market size in 2025?

The software consulting market size is USD 327.59 billion in 2025.

What compound annual growth rate (CAGR) is expected for the market through 2030?

The market is projected to expand at a 16.3% CAGR between 2025 and 2030.

Which service line is growing the fastest?

Data and AI/ML consulting services post the highest 17.5% CAGR as enterprises prioritize intelligent automation and predictive analytics.

Which geography shows the strongest growth outlook?

Asia–Pacific leads regional growth with an 18.5% CAGR driven by India’s rising tech outlays and China’s enterprise-modernization programs.

Why does the SAP ECC sunset matter for consulting demand?

SAP will end mainstream maintenance for Business Suite 7 on 31 December 2027, and 70% of customers have yet to migrate, creating a surge in S/4HANA consulting projects .

Software Consulting Market Report Snapshots