The software market will grow by 3.0% in 2020 and we will spend more on almost every product type. I expect the strongest spending growth to be on the Software as a Service (SaaS) area, with an increase of 5.1% over the 2019 rate (nevertheless the increase in SaaS spending will be much less than on IaaS or PaaS). I expect infrastructure software to have another strong year as well, with spending growing by 4.2%. Application software will remain the largest offering in the software market and I expect it to experience a healthy growth of 3.2% over the 2019 level. I expect the poorest software areas will be Operating Systems (virtually flat) and Custom Software (down 2.7% in the year).
Of the four categories Software has the highest profitability, which I expect to improve over 2019 levels to generate a total of $247 billion for its suppliers.