North American business software market races towards US$515 billion as AI and cloud reshape enterprise tech

The North American business software and services sector is set for unprecedented growth, driven by accelerated cloud adoption, artificial intelligence integration, and shifting enterprise priorities, with industry giants and startups alike paving the way for a more agile, automated future.

The North American business software and services market is undergoing a remarkable transformation and is forecasted to surge from an estimated value of US$217.39 billion in 2024 to a staggering US$514.7 billion by 2033. This represents a compound annual growth rate (CAGR) of approximately 10.05%, signalling sustained robust expansion driven by multiple technological and operational shifts across industries.

At the heart of this growth is an accelerated digital transformation across enterprises and small-to-medium businesses (SMBs) alike, keen to enhance operational efficiency and agility. Cloud computing adoption emerges as a dominant catalyst, offering scalability, cost savings, and deployment flexibility. Businesses increasingly rely on cloud-delivered platforms such as Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS), which together capture the majority share, estimated between 65 to 70%, of total software deployments. This trend is propelling rapid uptake of cloud-based apps across sectors, particularly as remote and hybrid work models become entrenched, necessitating reliable communication, collaboration, and data access tools.

Complementing cloud adoption, the integration of automation and artificial intelligence (AI) is reshaping business software services. Over 60% of new deployments incorporate AI and machine learning capabilities, driving intelligent automation of routine tasks, enhancing decision-making accuracy, and unlocking predictive analytics. Companies benefit from AI-powered tools such as chatbots and intelligent workflow systems, which improve both productivity and customer experience.

The remote and hybrid work paradigm itself fuels demand for sophisticated, cloud-enabled business solutions designed to facilitate seamless workforce collaboration across locations while maintaining security and compliance. Organizations are prioritizing investments in cybersecurity and regulatory adherence tools to protect sensitive data amid persistent threats and evolving privacy mandates like the CCPA and GDPR. However, these security needs bring challenges in balancing protection with operational efficiency, often requiring hefty investments in encryption, access controls, and ongoing threat monitoring.

Implementation costs present another barrier. Deploying advanced software solutions, including Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and AI-powered platforms, entails significant upfront and ongoing expenses, from infrastructure to training and technical support. This is particularly challenging for SMBs with tighter budgets, occasionally impeding adoption despite the clear strategic advantages.

The United States dominates the North American market with its advanced digital infrastructure and proactive technology adoption, while Canada exhibits strong growth potential fueled by expanding digital initiatives. Enterprise sectors such as BFSI (Banking, Financial Services, and Insurance), healthcare, manufacturing, and government are prominent software and services consumers, reflecting broad cross-industry digitalisation.

Recent corporate maneuvers underline market dynamism: in early 2025, Izzi Software acquired ColeSoft to enhance its enterprise software portfolio; Stem Inc. unveiled an AI-enabled clean energy software platform targeting scalable growth and higher profit margins; and Acumatica launched a Professional Services Edition aimed at improving workflow and operational efficiency in professional services sectors. Such moves exemplify ongoing efforts by key players like SAP, IBM, Microsoft, Oracle, and others to innovate and capture competitive advantage.

Broader IT services patterns in North America align with these trends. The IT services segment, projected to grow by around 3.6% in 2025, hinges on cloud, AI, and cybersecurity investments. Enterprises prefer operating expenditure models over capital-heavy investments by leaning on managed and outsourced IT services. Hybrid and multi-cloud deployments are increasingly widespread, with 62% of organizations adopting hybrid cloud solutions, while the shortage of cloud professionals presents a scaling challenge for service providers.

Industry data forecasts enterprise technology spending to hit approximately US$4.9 trillion in 2025 globally, with North America playing a leading role. The shift to cloud-centric architectures and automation promises enhanced operational agility and cost efficiency, serving as a backbone for future economic activity.

Overall, the North American business software and services market is set for sustained high growth, driven by relentless technology evolution and evolving enterprise needs. Yet, navigating the dual pressures of high implementation costs and cybersecurity risks will require strategic investments and innovative solutions by both providers and users.

📌 Reference Map:

• ^[1] (GlobeNewswire ResearchAndMarkets) – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8
• ^[2] (GlobeNewswire ResearchAndMarkets) – Paragraphs 1, 2, 7
• ^[3] (Market Business Insights) – Paragraphs 2, 3, 4
• ^[4] (Global Growth Insights Cloud Managed Services) – Paragraph 6
• ^[5] (Global Growth Insights Cloud Computing Services) – Paragraph 3, 6
• ^[6] (Computerworld) – Paragraph 6, 7
• ^[7] (Vocal Media) – Paragraphs 2, 6

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
The narrative is based on a press release from Research and Markets, dated November 28, 2025, indicating high freshness. The earliest known publication date of substantially similar content is November 28, 2025. No evidence of earlier versions with different figures, dates, or quotes was found. The report includes updated data and new material, justifying a high freshness score. No recycled content or discrepancies were identified.

Quotes check

Score:
10

Notes:
The narrative does not contain any direct quotes. All information appears to be paraphrased or original, indicating a high level of originality.

Source reliability

Score:
10

Notes:
The narrative originates from a reputable organisation, Research and Markets, which is a leading source for international market research reports and data. This enhances the credibility and reliability of the information presented.

Plausability check

Score:
10

Notes:
The claims made in the narrative are plausible and align with current industry trends, such as the growth of cloud computing, AI integration, and remote work solutions. The information is consistent with other reputable sources and does not contain any surprising or unsupported claims. The language and tone are appropriate for the subject matter, and the structure is focused and relevant.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is fresh, original, and originates from a reputable source. All claims are plausible and supported by current industry trends, with no evidence of disinformation or recycled content.