{"id":636594,"date":"2023-11-20T05:42:00","date_gmt":"2023-11-20T05:42:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=636594"},"modified":"2025-03-10T09:10:24","modified_gmt":"2025-03-10T09:10:24","slug":"organisations-software-based-revenues-are-expected-to-quadruple-by-2030","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/organisations-software-based-revenues-are-expected-to-quadruple-by-2030\/","title":{"rendered":"Organisations\u2019 software-based revenues are expected to quadruple by 2030"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tOrganiSations\u2019 software-based revenues are expected to quadruple by 2030\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p>Generative AI is accelerating transformation towards a new software-led era: 72% of organisations plan to use it to assist with software engineering[1] in the next year.<\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Nov 20, 2023<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"hero-press-release-downloads\">\n\t\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md-6 col-lg-3\">\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"download-item\" type=\"download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/11\/2023_11_20_-The-Art-of-Software_Capgemini-Report_Press_Release.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-icon\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-details\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-title\">Download press release<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-props\">168 KB  pdf<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md-6 col-lg-3\">\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"download-item\" type=\"download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/11\/Infographic_Capgemini-Report_-The-Art-of-Software_Nov2023.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-icon\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-details\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-title\">Download infographic<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-props\">1 MB  pdf<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<p><strong>Paris, November 20, 2023 \u2013 Software is re-defining the next era of business and will make an outsized contribution to revenues by 2030, according to Capgemini Research Institute\u2019s latest report<em> \u201c<\/em><a href=\"https:\/\/bit.ly\/3QQnPcW\"><em>The Art of Software: the new route to value creation across industries<\/em><\/a><em>\u201d<\/em>. Organisations expect their software-based revenue<a id=\"_ftnref2\" href=\"#_ftn2\">[2]<\/a> to grow to 29% by 2030, up from 7% in 2022. Across industries, software and software-enabled technologies such as cloud, Internet of Things (IoT), high performance networks (including 5G), and AI\/ML<a id=\"_ftnref3\" href=\"#_ftn3\">[3]<\/a> are accelerating innovation and research &amp; development (R&amp;D) for products and services, crafting personalised customer experiences, introducing new revenue streams and business models, and reducing costs. &nbsp;<\/strong><\/p>\n\n\n\n<p>According to the research, organisations across all industries are re-defining themselves as software companies, transitioning away from traditional hardware-centric business. Currently, a quarter of businesses already identify as \u2018software\u2019 companies<a id=\"_ftnref4\" href=\"#_ftn4\">[4]<\/a> and an additional 32% anticipate transitioning to software company status within the next 3\u20125 years. Nearly 60% of organisations agree that software-driven transformation is now a boardroom topic with the majority recognising it as a strategic capability to stay ahead of the competition, transform business models, and unlock new value for their customers, rather than a tool or an add-on.<\/p>\n\n\n\n<p>Successful software-driven transformation is expected to deliver significant financial gains for organisations across all industries by 2030 cites the report. The telecom sector leads this trend with a predicted revenue increase of 39%, followed by automotive and banking and insurance (32% for each), and life sciences (31%).<\/p>\n\n\n\n<p><strong>Organisations invest one-fifth of their R&amp;D budgets in software-driven initiatives<\/strong><\/p>\n\n\n\n<p>According to the report, nearly 18% of total R&amp;D budgets are currently being spent on software-driven initiatives. More so, investment in software-driven transformation is expected to accelerate, with 60% of organisations across sectors planning to increase their investments in software initiatives by 9% over the next two years. Of this investment, more than one-third is focused on product or services engineering.<\/p>\n\n\n\n<p><strong>Generative AI: a key co-pilot to accelerate the software-led transformation<\/strong><\/p>\n\n\n\n<p>As demand for connected, intelligent products and services grows, organisations are turning to technologies like generative AI to assist engineers throughout the software development lifecycle and accelerate the delivery of the software code. <a>According to the report, generative AI tools are expected to increase the time saved for software engineering from 15% to 43% over the next three years.<\/a><\/p>\n\n\n\n<p>The research study shows that seven in 10 organisations plan to use generative AI to complement and augment existing software engineering over the next year and expect these tools to assist in the creation of 37% of code in the coming three years. Only 28% of organisations surveyed have stated that they don\u2019t intend to use generative AI to aid software engineering in the next 12 months.<\/p>\n\n\n\n<p><strong>Challenges remain to fully embrace the software-led transformation<\/strong><\/p>\n\n\n\n<p>Despite the significant benefits, 68% of organisations remain at the early experimentation stages of their software-driven transformation. Only 29% of organisations have started to scale and utilise software to drive transformation, while just 5% have implemented fully scaled initiatives.<\/p>\n\n\n\n<p>To realise the full potential of software, organisations will need to ensure interoperability and flexibility across various platforms. However, less than half (48%) of organisations have a highly scalable architecture. The report highlights that nearly 40% of organisational software investment currently focusses on maintaining legacy products. Managing long-term operating cost and performance levels becomes a critical challenge to transition from legacy to future-proofing architectures.<\/p>\n\n\n\n<p><strong>Talent is key to realising success<\/strong><\/p>\n\n\n\n<p>Fostering talent is also key to realising software-driven success. While organisations expect 39% of their employees to work on software solutions in the next three years, critical skills are in short supply, notably in areas such as cybersecurity and compliance (61%), AI, machine learning (ML), and deep learning (DL)<a id=\"_ftnref5\" href=\"#_ftn5\">[5]<\/a> (60% each), and data and cloud (57%).<\/p>\n\n\n\n<p><em>\u201cWe have entered a new era of software-led business,\u201d <\/em>says William Roz\u00e9, CEO of Capgemini Engineering and Member of Capgemini\u2019s Group Executive Board<em>. \u201cOrganisations require a mindset shift if they\u2019re to differentiate, innovate and remain competitive. Thinking must move away from using digital technologies as an add-on, or tool to fix crinkles and smooth edges. Instead, leaders must view software as a key strategic asset which can unlock a myriad of benefits and establish competitive differentiation. But to achieve software excellence and the gains that it has to offer \u2013 organisations will need to think holistically: from striking up strategic partnerships where necessary, to defining a clear transformational roadmap to ensure the architecture that underpins it is robust, sustainable, and scalable. Generative AI poses significant potential here \u2013 with the ability to vastly accelerate all endeavors.\u201d<\/em><\/p>\n\n\n\n<p>For more information or to download the report, visit: <a href=\"https:\/\/bit.ly\/3QQnPcW\">Link<\/a><\/p>\n\n\n\n<p><strong>Methodology<\/strong><\/p>\n\n\n\n<p>The Capgemini Research Institute surveyed 1,500 senior executives (director level and above) from organisations with an annual revenue of over USD 1 billion. The organisations came from a range of sectors, including automotive, consumer products, retail, aerospace and defense, life sciences, banking and insurance, telecom, energy and utilities, high-technology, industrial and capital goods, and manufacturing. They are based in 13 countries across North America, Europe, and APAC.<\/p>\n\n\n\n<p>In addition, 20 in-depth interviews were conducted with industry executives from various organisations. All interviewed participants are involved in the development of software-driven transformation initiatives working across all functional areas, such as general management\/strategy, innovation, software engineering, research and development, IT and data management, marketing and sales, product\/service development, and customer management.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a id=\"_ftn1\" href=\"#_ftnref1\">[1]<\/a> Software engineers are using generative AI throughout the software development lifecycle, from business-needs analysis and writing agile user stories to assistance in writing software code, optimisation, completion, testing and debugging, and monitoring.<\/p>\n\n\n\n<p><a href=\"#_ftnref2\" id=\"_ftn2\">[2]<\/a> Software-based revenue as a share of total revenue.<\/p>\n\n\n\n<p><a id=\"_ftn3\" href=\"#_ftnref3\">[3]<\/a> Machine Learning (ML) is a&nbsp;field of study&nbsp;in&nbsp;artificial intelligence&nbsp;concerned with the development and study of&nbsp;statistical algorithms&nbsp;that can effectively&nbsp;generalise&nbsp;and thus perform tasks without explicit instructions.<\/p>\n\n\n\n<p><a id=\"_ftn4\" href=\"#_ftnref4\"><sup>[4]<\/sup><\/a> By \u201cbeing a software company\u201d organisations mean that they are reconstructing their business models around software and, in doing so, transforming their business processes, organisational structures, and revenue models.<\/p>\n\n\n\n<p><a href=\"#_ftnref5\" id=\"_ftn5\">[5]<\/a> Deep learning (DL)&nbsp;is the subset of&nbsp;machine learning&nbsp;methods which are based on&nbsp;artificial neural networks&nbsp;with&nbsp;representation learning.&nbsp;<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related news<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Reindustrialisation moves into a more selective, strategic phase in Europe and the US\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/reindustrialisation-moves-into-a-more-selective-strategic-phase-in-europe-and-the-us\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Reports<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">Reindustrialisation moves into a more selective, strategic phase in Europe and the US<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Apr 20, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t\t&lt;a class=&quot;link-download&quot; href=&quot;https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/04\/2026_04_20_Capgemini_Reindustrialization-of-Europe-and-the-US-report_3e-edition_press-release.pdf&quot; aria-label=&quot;Download Press Release&quot; target=&quot;_blank&quot;  type=&quot;download&quot; title=&quot;Opens in a new window&quot;&gt;\n\t\t\t\t\t\t\t&lt;span&gt;Download press release&lt;\/span&gt;\n\t\t\t\t\t\t\t&lt;span&gt;152 KB PDF&lt;\/span&gt;\n\t\t\t\t\t\t&lt;\/a&gt;\n\t\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Reindustrialisation moves into a more selective, strategic phase in Europe and the US\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/reindustrialisation-moves-into-a-more-selective-strategic-phase-in-europe-and-the-us\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Two-thirds of organisations rate physical AI as a high priority for the next three to five years\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/two-thirds-of-organisations-rate-physical-ai-as-a-high-priority-for-the-next-three-to-five-years\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Reports<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">Two-thirds of organisations rate physical AI as a high priority for the next three to five years<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Apr 16, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t\t&lt;a class=&quot;link-download&quot; href=&quot;https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/04\/04_16_Physical-AI-CRI-report-press-release-ENG.pdf&quot; aria-label=&quot;Download Press Release&quot; target=&quot;_blank&quot;  type=&quot;download&quot; title=&quot;Opens in a new window&quot;&gt;\n\t\t\t\t\t\t\t&lt;span&gt;Download press release&lt;\/span&gt;\n\t\t\t\t\t\t\t&lt;span&gt;173 KB PDF&lt;\/span&gt;\n\t\t\t\t\t\t&lt;\/a&gt;\n\t\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Two-thirds of organisations rate physical AI as a high priority for the next three to five years\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/two-thirds-of-organisations-rate-physical-ai-as-a-high-priority-for-the-next-three-to-five-years\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about 85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/85-of-banks-corporate-clients-plan-to-engage-with-a-non-bank-financial-institution-within-the-next-year-as-competition-with-private-capital-intensifies\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Reports<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Mar 16, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t\t&lt;a class=&quot;link-download&quot; href=&quot;https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/03\/03_16_Capgemini_WCIBR-Press-Release.pdf&quot; aria-label=&quot;Download Press Release&quot; target=&quot;_blank&quot;  type=&quot;download&quot; title=&quot;Opens in a new window&quot;&gt;\n\t\t\t\t\t\t\t&lt;span&gt;Download press release&lt;\/span&gt;\n\t\t\t\t\t\t\t&lt;span&gt;181 KB PDF&lt;\/span&gt;\n\t\t\t\t\t\t&lt;\/a&gt;\n\t\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about 85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/85-of-banks-corporate-clients-plan-to-engage-with-a-non-bank-financial-institution-within-the-next-year-as-competition-with-private-capital-intensifies\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><\/div><\/div><\/section><\/div>","protected":false},"excerpt":{"rendered":"<p>Software is re-defining the next era of business and will make an outsized contribution to revenues by 2030, according to Capgemini Research Institute\u2019s latest report \u201cThe Art of Software: the new route to value creation across industries\u201d. Organisations expect their software-based revenue to grow to 29% by 2030, up from 7% in 2022. Across industries, software and software-enabled technologies such as cloud, Internet of Things (IoT), high performance networks (including 5G), and AI\/ML are accelerating innovation and research &#038; development (R&#038;D) for products and services, crafting personalised customer experiences, introducing new revenue streams and business models, and reducing costs.<\/p>\n","protected":false},"author":238,"featured_media":0,"template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"53c808ec-c369-4ea3-a976-b263af909f8c\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":true,"cg_dt_link_disabled":false,"footnotes":"","related_resource_url":"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/11\/2023_11_20_-The-Art-of-Software_Capgemini-Report_Press_Release.pdf","related_resource_id":973084,"related_resource_size":"168 KB","related_resource_type":"pdf","cg_author":0,"featured_focal_points":""},"tags":[],"press-release-type":[87],"brand":[],"class_list":["post-636594","press-release","type-press-release","status-publish","hentry","press-release-type-reports"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - 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