SMB Software Market Size

Global SMB Software Market size was valued at USD 63.22 Billion in 2023 and is poised to grow from USD 67.63 Billion in 2024 to USD 116.03 Billion by 2032, growing at a CAGR of 6.98% in the forecast period (2025-2032).

The SMB software sector is rising rapidly as there is increased use of cloud-based software. Digital transformation is the key SMB software industry trend with businesses seeking to streamline operations and render them efficient using advanced software. Payroll processing, ERP software, logistics, and cyber security are prime applications. More mergers & acquisitions, collaborations, and partnerships are taking place in the industry, as companies want to broaden their offerings and access new markets. Moreover, the market has a wide range of application solutions that are designed to automate business processes for small and medium enterprises (SMBs). Accounting transactions, among others, include modules like accounts payable, payroll, and accounts receivable.

• For instance, Workday launched Global Payroll Connect, which is a next-generation integration platform, in August 2024. It enables multinational companies to efficiently automate payroll procedures in multiple countries. One of the early adopters, a global retail chain with 15,000+ workers in Europe and North America, attained a 40% reduction in payroll processing time and improved compliance across jurisdictions. This is among the capabilities of Workday's attempt to roll up payroll, HR, and finance information into a single source, enhancing visibility and operational efficiency.

Moreover, the SMB software sector is currently worth an average trading multiple of 9.7 times, with some excellent companies up to 31.5 times, reflecting strong investor confidence in the growth potential of the industry. In a 2024 survey, almost 45% of SMBs invested up to USD 600,000 in Software as a Service (SaaS), and 16% invested up to USD 2.4 million. This market growth is driven by the increasing requirement for SMBs to deploy cloud-based solutions for cost reduction and scalability. SMBs contribute to about 44% of U.S. GDP and employ nearly half of the country, making them a driving force in shaping technology spending and economic growth.

Why are More SMBs Turning to AI for Growth and Efficiency?

In the SMB software market, artificial intelligence (AI) has been a game-changer, driving both productivity and innovation. AI-based technologies are being adopted by small and medium-sized enterprises (SMBs) in the domains of customer care, marketing, and operations, which is resulting in higher productivity and revenue growth. Based on a survey conducted by Salesforce, for example, 78% of Indian SMBs used AI to create chatbots, market optimization, and content creation, and they have seen their income grow. AI is facilitating the levelling of the playing field to enable small and medium-sized enterprises (SMBs) to compete equally with big organizations through automating processes, delivering customized customer experiences, and data-driven decisions. Such a broad implementation is proof of how AI is levelling the playing field.

• For instance, with the launch of an AI-powered phone solution for small and medium enterprises (SMBs) in November 2024, Dialzara transformed customer support by receiving calls, booking appointments, and making quick responses. By leveraging Dialzara's technology, organizations have achieved up to 90% savings in the cost of offering customer support without compromising the quality of their services. This technology is one example of how artificial intelligence can help small and medium-sized enterprises make the customer experience better at the same time that they can make their operations more efficient.