The software license management market generated US$ 2,200 million in 2022. The SLM market is projected to grow to US$ 6,004 million by 2033, growing at a CAGR of 14.6% for 2023 to 2033. In the 21st century, businesses of all sizes, from small start-ups to large global corporations, use software licensing management solutions to track and optimize their software usage policies. Automating time-consuming, manual tasks with an SLM system ensures companies comply fully with their EULAs, and eliminates human error, and automate time-consuming, manual tasks.
By managing software licenses, companies can ensure that their license agreements are being adhered to and met. Increasingly, large organizations use a wide range of software applications. To ensure that these programs are utilized efficiently and to their full potential, it is important to ensure that they comply with the vendor's requirements and that they can perform as expected. As a result of these audits, companies can be protected from legal issues, fines, and threats that could result from non-compliance with the software.
Depending on the country, the laws and regulations that govern the licensing of software can be quite different. Federal Acquisition Regulations (FAR) are the regulations that govern how federal agencies are allowed to use the software in their daily activities. In order to comply with the law, agencies are using the software only in accordance with the license agreement, verifying that the software has been licensed appropriately, and following all licensing requirements. As part of the FAR, agencies are required to have a system in place for tracking and monitoring software usage and ensuring that the license is not violated. Software users in the European Union are required to abide by the Software Directive, which provides that users must comply with their license terms and that users must not make or distribute copies of software without their consent.
Countries in the Asia Pacific region have varying approaches to software license management. A Software Protection Law is used in some countries to regulate software license management. A number of contractual agreements between software vendors and their customers are used in countries such as China and India to manage software license management.
Software license management has recently seen some advancements, such as automated software license management systems, software license management platforms based in the cloud, and tools for managing license audits. Organizations can manage their software licenses remotely with automated software license management systems and cloud-based license management platforms. The new license auditing capabilities will also enable organizations to better identify potential license violations quickly and efficiently, allowing organizations to be proactive rather than reactive. It is crucial that organizations ensure that their compliance with software licensing laws and regulations is maintained in order to maintain their competitive edge in the marketplace.
Organizations are considering implementing software license management solutions to help manage and control software used within their businesses. In addition to tracking and monitoring software usage, these solutions can help organizations produce detailed reports that provide a comprehensive analysis of software usage and licensing cost implications. As an additional measure for organizations to take into consideration, it may also be possible to work with software vendors who have clear and consistent terms and conditions for software licenses that are applicable across all platforms. Complying with laws and regulations and maximizing software investments will help organizations ensure compliance with laws and regulations.
As software companies continue to develop more sophisticated and complicated software products, licensing will become increasingly important as these products become more sophisticated and complicated. Managing software licenses and tracking usage will likely become easier with more advanced and automated software license management systems. The future will likely see more integration between software license management systems and other business systems. Thus, organizations will be able to manage the software licenses and utilize them across multiple platforms more easily, thereby facilitating better management of their software licenses. Furthermore, businesses can gain a better understanding of their software usage and licensing strategies by leveraging data from their license management systems.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | US$ 2,200 million |
| Expected Market Value (2023) | US$ 2,464 million |
| Anticipated Forecast Value (2033) | US$ 9,623 million |
| Projected Growth Rate (2023 to 2033) | 14.6% CAGR |
Software License Management (SLM) is a critical element of what is known as software asset management (SAM). SLM is arguably one of the most critical functions performed by IT teams. SLM software is used by organizations to document and manage their software licenses in an effort to ensure compliance with the developer’s software license.
The software involves software license tracking, documenting, and controlling how and where the software is used in the organization. The software assists organizations in complying with license agreements, i.e., End-User License Agreements (EULA).
SLM software facilitates organizations to maximize the expenditure on software and to automate software license entitlement and its delivery. The growing demand to optimize software investments by organizations would drive the growth of the SLM market.
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
If an organization is using software for any of their business operations, they will must have a software license audit. Day by day frequency of software audits is up, and the true-up costs due to noncompliance are increasing dramatically. Many organizations are paying for software that is either unused or underused, sometimes just to avoid the consequences of noncompliance.
Unfortunately, the software audits can also be conducted virtually. At any point of time, a software vendor will ask to prove that all the software that are currently in use is properly licensed or not. Here, the SLM software plays a critical role, by implementing SLM software minimizes the risk of noncompliance and expedites audits so you can get back to business as soon as possible.
The best way to prepare for a software license audit is by actually having an SLM software in place to add visibility to what’s going on within the organization’s technology infrastructure.
Since the beginning of the industrial revolution, businesses have embraced new technologies enthusiastically that helped them to improved processes, lower costs and reduced workforces. The accelerated adoption of digital technology is transforming the industries and creating a highly competitive market.
The intervening decades have seen exponential growth in system complexity in the adoption of technologies like cloud computing, virtualization, mobility and an array of trends — including Bring-Your-Own-Device (BYOD) and new software licensing models, which has transformed the way organizations use and manage applications.
Fortunately, organizations of all sizes are recognizing the value of effectively managing software assets and the licenses related to those assets and adopting SLM software’s to effectively manage their software licensing.
Principal Consultant
Key players in the SLM market are focusing on product innovation and strategic partnerships with the technology vendors to collaborate for offering advanced SLM software and services to effectively manage the software licensing. The major players offering SLM solutions includes
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain of the global SLM market. The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with SLM market attractiveness as per segments.
The report on SLM market also maps the qualitative impact of various factors on SLM market segments and geographies.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Explore Technology Insights
View Reports
Software License Management (SLM) Market
