U.S. B2B Indirect Software Market Growth is Outpacing Hardware

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Cloud infrastructure and platform as a service led software market growth in 2017, according to NPD

In the 12 months ending February 2018, the U.S. B2B indirect software market grew 11 percent year over year, outpacing B2B indirect hardware growth by five percentage points, according to global information company, The NPD Group. The segment experiencing the strongest growth during this time period, cloud infrastructure and platform as a service software, increased 26 percent, according NPD’s new U.S. B2B Software and Cloud Tracking Service.

The security software and IT operations and networking software segments followed with 15 percent and 14 percent dollar sales growth, respectively. The categories in the security software segment with the highest year-over-year revenue growth were data loss protection and endpoint protection (+18 percent), gateways and firewalls (+17 percent), and identity and access management (+13 percent).

IT operations and networking software makes up the largest dollar share of all B2B software and cloud services sales. Within this segment, the monitoring and management software category saw dollar sales increase 23 percent, as businesses look for greater management oversight.

“Growth of software within the cloud infrastructure and platform as a service segment can, in part, be attributed to the SMB market embracing the enterprise-grade solutions that were once out of reach for smaller businesses,” said Michael Diamond, Director, Industry Analysis, B2B Technology for The NPD Group. “More and more businesses are pursuing digital transformation, creating more sales and ongoing service opportunities for channel partners and providers around cloud infrastructure and applications.”

About The NPD Group, Inc.
NPD is the leading global provider of market information and business solutions covering brick-and-mortar, e-commerce, and emerging channels in more than 20 industries. We combine our unique data assets with analytic solutions to help our clients measure performance, predict trends, and improve results, advising them to help drive successful growth. Practice areas include apparel, appliances, automotive, beauty, books, consumer electronics, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, mobile, office supplies, retail, sports, technology, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup.

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Megan Scott
The NPD Group
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