Software composition analysis market Size, Share, Growth, And Industry Analysis, By Type (Cloud Based, On-Premise), By Application (BFSI, Government & Defense, IT & Telecom, Healthcare, Retail & E-Commerce, Automotive, Manufacturing, Others), And By Regional Insights and Forecast to 2031

Updated On: 29 April 2024

SOFTWARE COMPOSITION ANALYSIS MARKET REPORT OVERVIEW

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The global software composition analysis market size was USD 167.6 million in 2019 and will touch USD 370.3 million by 2026, exhibiting a CAGR of 11.9% during the forecast period.

The market of software composition analysis is seeing high growth rates since the putting of security vulnerabilities by the rising complexity of software supply chains is a critical issue. SCA solutions pave the way for businesses to address the challenge of effective management and secure transmissions of open-source components and third-party libraries which they use to customize their software applications. The OSS usage pattern is rising fast, and business owners are becoming more aware of the need for comprehensive SCA solutions that search for, monitor, and remediate associated security vulnerabilities from the software development lifecycle. It is apparent that top brands in market are improving their products by incorporating new features, such as live monitoring, interdependency mapping, and automatic vulnerability discovery, which are the primary drivers of the Scan Configuration Automation market growth.

COVID19 Impact: Market Growth Restrained by Pandemic Due to Project Delays and Cancellations

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic that pushed software composition analysis market growth forwards in a mixed fashion, instead. On the one hand, the sudden need for teleworking and newfound resilience of supply chains makes the industry more vulnerable for software security issues which has led to the rise in demand for software development kits (SDKs). Currently, economic uncertainties and budget constraints force some companies among them to rethink the allocation of funds by giving low priority or pulling them out from the SCA tools. Besides, there are slowdowns in software development undertakings and recession in expenditures on IT, as well as that of the specific industries, for a while, that has also contributed to the slow adoption of SCA solutions. In this regard, although the industry does face some of these difficulties, the long-term forecast appears to be favorable as more individuals become aware about the risks of cybersecurity and there is a more serious regulatory pressure.

LATEST TRENDS

"Integration of Machine Learning for Enhanced Vulnerability Detection"

The contribution of machine learning to enhancement of the machine learning techniques to better vulnerability detection. Extensive SCA tool datasets relying on consistent rules and signatures can only be used in search for known vulnerabilities, whereas the applications of machine learning algorithms that process large datasets of new items can uncover hidden relationships and oddities that signal potential security issues of open-source components and third-party libraries. With machine learning inherited in SCA systems, these will be powerful in more precise and punctual detection of vulnerabilities hence the organizations remain one step ahead against changing threats while working in a dynamic software environment.

SOFTWARE COMPOSITION ANALYSIS MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into cloud based, on-premise

• Cloud-based: Solutions are hosted on remote servers and accessed via the internet, offering scalability and flexibility.

• On-premise: Solutions are installed and operated from the organization's own infrastructure, providing full control and customization over the software environment.

By Application

Based on application the global market can be categorized as BFSI, government & defense, IT & telecom, healthcare, retail & e-commerce, automotive, manufacturing, others

• BFSI (Banking, Financial Services, and Insurance): Industries dealing with banking, financial transactions, and insurance services.

• Government & defense: Government agencies and defense organizations responsible for national security and public services.

• IT & telecom: Companies involved in information technology and telecommunications services.

• Healthcare: Organizations within the healthcare sector, including hospitals, clinics, and pharmaceutical companies.

• Retail & e-commerce: Businesses engaged in retail sales and online commerce activities.

• Automotive: Companies manufacturing vehicles and automotive components.

• Manufacturing: Industries involved in the production of goods and materials.

• Others: Additional sectors not specifically categorized within the aforementioned segments.

DRIVING FACTORS

"Increasing Adoption of Open-Source Software Drives the Market"

The utilization of open-source parts in programming projects is raising the prominence of SCA frameworks soon. Security issues, for example, weaknesses that can arise in light of the utilization of shared libraries and bundles by the association to speed up the improvement cycle and minimize the costs, become basic as these networks become more dependent on open-source parts. SCA tools deliver the desired result by giving you an opportunity to respond to these risks through the provision of visibility into open-source dependencies and maintenance of a proactive vulnerability management process.

"Stringent Regulatory Requirements Drives the Market"

Numerous regulatory bodies from different industries are toughening requirements concerning program security, and regulation of data privacy needs. Such as those regulation, GDPR, HIPAA, and PCI DSS, that allows the software application security and sensitive data protection from intrusions. A solution based on SCA (Software Composition Analysis) really makes the difference with the help of which the companies comprehend the security weaknesses in software supply chain and take the appropriate actions in order to diminish the chances of being charged compliant violation fines and tarnish the reputation of the company.

RESTRAINING FACTORS

"Complexity of Integration and Implementation Restrains the Market Growth"

Introducing SCA platforms into software development processes that are already established may prove to be a difficult and the process may take time. The organizations frequently face integrating the SCA tools an effectively with their development environment where the tools started may not work well with other tools or workflow. Above that, too, the success implementing SCA depends on the organization’s readiness and eagerness, possessing of sufficient resources for configuration and customization, and devoting to the team for the training. The integration and implementation of SCA can be allegedly centered on the adopting factor where many employees with small organizations may have confined resources and skills, they require in software security.

SOFTWARE COMPOSITION ANALYSIS MARKET REGIONAL INSIGHTS

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"North America Emerges as the Pivotal Driver in the Market Due to Technological Prowess"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America is poised to dominate the software composition analysis market share due to its technological prowess, stringent regulatory environment, high adoption of open-source software, and robust economic growth. These companies, research centers, and startups are a technology hotspot where creativity is reigning, and they focus on creating the most advanced solutions for air pollution. Furthermore, regulators such as NIST impose a plethora of cybersecurity standard which helps business know more about potential cyber-attack vulnerability. North American companies, which have a skilled workforce and good economic structure as well as iPhone time-limited offers, make spending on SCA tools the first priority to stop cyber-attacks. These components in sum-total create an impression that North America is the region that will be directing the future of the SCA industry.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The important industry players are doing the research and development activities and also leading the market expansion based on SCA technology. Such firms as Synopsys, Sonatype, WhiteSource, Snyk, and Veracode are making major strides in SCA technology. Se makes provision of solutions that are comprehensive and they come with vulnerability detection functionalities, dependency mapping and real-time monitoring abilities. Providers in this sphere continuously innovate by finding new ways to counter existing and emerging security threats and set new legal standards. In this way, they position themselves on the global market. With the help of their well-managed partnership program, this company is creating new paths in the cyber-security industry, and they're filling the void that exists for advanced and feature-rich products in the market.

List of Market Players Profile

• WhiteSource Software (Israel)
• Synopsys (U.S.)
• Broadcom (U.S.)
• Sonatype (U.S.)
• 7. Flexera (U.S.)
• 8. NexB (France)

INDUSTRIAL DEVELOPMENT

October 2022: An industrial development in the software composition analytics (SCA) market is the advent of cloud-based SCA apps. The Water Cloud-based SCA platform ensures various advantages over trendy in-house solutions, including elasticity, adaptability, and ease of deployment. Enterprises can get help from cloud-based SCA tools which can be used to see software components and their degrees of connection across multiple technologies and environments owned by the distributed development team. In addition to that, using condition-based response to handle attacks in the cloud, a lot of the cloud-based SCA solutions are making use of machine learning for improved vulnerability detection. This significant change is a result of the industry attempting to deploy up-to-date, cloud‑native technologies that can be effective in dealing with the ever-changing problems of software security in the new era of software development where app development is distributed to remote places.

REPORT COVERAGE

The Software composition analysis market is growing and evolving because of four strong drivers. These drivers are the growing adoption of open-source software, strict regulatory requirements, and tech advance. Noteworthy industry players have demonstrated relentless innovation to provide SCA with the identical best solutions. So, software security and compliance in this digital age is not a challenge anymore. In addition to traditional rises that continue to cause instabilities (political, economic, and environmental), new trends such as the integration of machine learning as well as the growth of cloud-based security capabilities are restructuring the market space in favour of organizations being able to use more powerful software supply chain management and security tools. Since ever-growing demand of the SCA presentation attracts more and more attention to this market, the future of the market seems to be bright with many chances for introducing more innovation and expansion.