Independent Software Vendors (ISV) Market to Reach USD 5.5 Billion by 2030, Driven by Cloud-First Adoption and AI-Powered Development Tools

Independent Software Vendors (ISV) Market Outlook

The Independent Software Vendors (ISV) market is experiencing rapid growth, driven by the increasing adoption of cloud-based solutions and the integration of AI-powered development tools. Valued at USD 2.35 billion in 2025, the market is forecast to reach USD 5.5 billion by 2030, reflecting a robust CAGR of 18.56%. Enterprises are modernizing legacy systems to leverage cloud-native architectures, reduce costs, and accelerate software delivery. The market landscape is further shaped by vertical SaaS solutions that address industry-specific needs in healthcare, financial services, and field management. 

Key Trends in the Independent Software Vendors Market:

1. Cloud and SaaS as the Default Enterprise Architecture 

Software-as-a-Service has become the standard for enterprise applications, enabling subscription pricing, automated updates, and faster adoption. Public-sector programs like the UK’s G-Cloud further accelerate cloud-first ISV solutions. 

2. Rising Demand for Industry-specific “Vertical SaaS” 

Enterprises increasingly adopt applications tailored to their regulatory and workflow requirements. Healthcare, field services, and other sectors are driving strong recurring revenue and higher customer retention. 

3. Hyperscaler Marketplace Co-sell and Credit Programs 

AWS, Microsoft Azure, and Google Cloud marketplaces provide ISVs with ready distribution channels, shortening proof-of-concept cycles and supporting predictable revenue streams. 

4. Generative AI Toolkits Reducing Product Launch Costs 

Pre-trained AI models, code-assist engines, and ML frameworks allow ISVs to quickly prototype and launch features, lowering development costs and expanding innovation opportunities. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/independent-software-vendors-market?utm_source=Industrytoday.co.uk    

ISV Market Segmentation: 

By Deployment: 

• Cloud 
• On-Premise 

By End-User Enterprise Size: 

• Large Enterprises 
• Small and Medium Enterprises (SMEs) 

By End-Use Industry: 

• IT and Telecommunication 
• BFSI (Banking, Financial Services, and Insurance) 
• Healthcare and Life Sciences 
• Retail and E-Commerce 
• Manufacturing 
• Government and Public Sector 
• Education 

By Geography: 

• North America: United States, Canada, Mexico 
• South America: Brazil, Rest of South America 
• Europe: Germany, United Kingdom, France, Russia, Rest of Europe 
• Asia-Pacific: China, Japan, India, South Korea, Australia and New Zealand, Rest of Asia-Pacific 
• Middle East and Africa: United Arab Emirates, Saudi Arabia, Turkey, Rest of Middle East, South Africa, Nigeria, Rest of Africa 

Independent Software Vendors (ISV) Market Companies 

• Intuit 
• SAP SE 
• Salesforce Inc. 
• Oracle 
• Microsoft 

Dominating Country 

North America is the largest market for ISVs, driven by strong cloud infrastructure, a high concentration of large enterprises, and established hyperscaler partnerships. The region also benefits from early adoption of AI development tools and advanced SaaS platforms, providing a favorable environment for ISVs to expand their customer base and deliver specialized solutions efficiently. 

Conclusion 

The Independent Software Vendors (ISV) market is poised for steady growth as enterprises increasingly adopt cloud-based and industry-specific software solutions. Cloud-first architectures, vertical SaaS offerings, hyperscale marketplaces, and AI-driven development tools are shaping the competitive landscape. 

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