DataCube Research Forecasts the US Banking IT Software and Service Market to Expand at a CAGR of over XX% from 2022 to 2031 to reach US$ XX million by 2031.
US Banking IT Software and Service Market Introduction
The banking sector faces significant regulatory changes and challenges and needs to operate in compliance with regulatory reforms. Major Banks in United States are going digital at both backend and front end business process to manage and monitor regulatory compliances effectively. Transformation of manual process to automated ones is taking place at a rapid pace. Large banks in the country are increasingly inclined towards following inside out approach associated with distribution channels and customer touch points to enhance overall customer experience.
Growing adoption of enterprise infrastructure and application software such as customer relationship management (CRM), business intelligence, middleware and enterprise resource planning (ERP) software to simplify data storage, management and retrieval is fueling growth of the IT software and services in banking sector in the US. Also, banks are investing considerable amount on information technology to increase ROI, enhance business productivity and customer experience. However, small and medium sized banks in the country are reluctant to upgrade legacy IT system as it is highly complex and incurs high cost. This is anticipated to impede growth of the IT software and service market in banking sector in the US.
The US banking IT software and service market is analysed based on major segments such as offering, software and service.
By offering, the US banking IT software and service market has been segmented into software and service. In terms of revenue, the service segment is expected to remain dominant over the forecast period from 2022 to 2031. With growing adoption of IT software and hardware demand for IT services is increasing at a significant pace.
The software segment is bifurcated into enterprise infrastructure, enterprise application and industry specific software. Of these, the enterprise infrastructure software segment constituted over XX of overall segment revenue in 2022, followed by enterprise application software segment.
Services segment includes business process service and IT product support service sub-segments. Among these, business process support was the dominant sub-segment in 2022 and is expected to remain the largest sub-segment from 2023 through 2031. This is mainly attributed to increasing outsourcing of IT processes as banks are emphasizing more on core business activities.
US Banking IT Software and Service Market Competitive Landscape
Strategic partnership and mergers and acquistions have become emerging trend in the market. Major players are entering into partnership with other niche technology providers to develop application specific solutions to gain first mover advantage. Some of the key players identified in the US banking IT software and service market are VMWare, CA Technologies, Symantec, Oracle Corporation, Adobe Systems, Microsoft Corporation, Accenture, IBM Corporation, Fujitsu, and BMC Software.