software composition analysis market report size, share, growth drivers, trends, opportunities & forecast 2025–2030
Description
Software Composition Analysis Market Overview
The Software Composition Analysis market is valued at USD 330 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of open-source software, the rising need for compliance with software licensing, and the growing awareness of security vulnerabilities in software components. Recent trends include the integration of artificial intelligence and automation in SCA tools, a heightened focus on software supply chain security, and the adoption of real-time threat intelligence and CI/CD pipeline integration. Organizations are increasingly investing in SCA tools to manage risks associated with third-party software components, with demand further fueled by the proliferation of cloud solutions and digital transformation initiatives across industries .
Key players in this market include the United States, Germany, and the United Kingdom. The dominance of these countries can be attributed to their advanced technological infrastructure, high levels of investment in cybersecurity, and a strong presence of software development companies. North America, particularly the United States, holds the largest market share due to the concentration of major vendors and stringent regulatory requirements. Additionally, the regulatory environment in these regions encourages the adoption of SCA tools to ensure compliance and security, with frameworks such as GDPR, HIPAA, and ISO 27001 shaping industry practices .
In 2023, the European Union implemented the Digital Services Act, which mandates that software providers ensure the security and compliance of their software components. The Digital Services Act (Regulation (EU) 2022/2065, issued by the European Parliament and the Council) establishes operational requirements for digital service providers, including obligations to mitigate risks associated with software vulnerabilities and to maintain compliance with licensing and consumer protection standards. This regulation aims to enhance consumer protection and promote a safer digital environment, thereby driving the demand for Software Composition Analysis tools across the region .
Software Composition Analysis Market Segmentation
By Type:
The market is segmented into three main types: Open-source SCA tools, Commercial SCA tools, and Hy
id SCA solutions. Open-source SCA tools are gaining traction due to their cost-effectiveness, flexibility, and strong community support. Commercial SCA tools are preferred for their comprehensive support, advanced vulnerability detection, integration with enterprise workflows, and regulatory compliance features. Hy
id solutions combine the benefits of both, offering customizable deployment models and balancing cost with functionality to meet diverse organizational needs .
By End-User:
The end-user segmentation includes IT & Telecom, Financial Services (BFSI), Healthcare & Life Sciences, Government, Retail & E-commerce, Manufacturing, Automotive, and Energy & Utilities. The IT & Telecom sector is the largest consumer of SCA tools due to the high volume of software development, rapid adoption of open-source components, and the critical need for robust security in applications. The Financial Services (BFSI) segment also represents a significant share, driven by stringent regulatory requirements and the need to protect sensitive financial data. Healthcare & Life Sciences are rapidly increasing adoption due to the rise in digital health platforms and regulatory compliance demands .
Software Composition Analysis Market Competitive Landscape
The Software Composition Analysis Market is characterized by a dynamic mix of regional and international players. Leading participants such as Synopsys, Inc., Veracode, Inc., Mend.io (formerly WhiteSource Software Ltd.), Snyk Ltd., Black Duck Software, Inc. (now part of Synopsys), Sonatype, Inc., Checkmarx Ltd., Aqua Security Software Ltd., Contrast Security, Inc., FOSSA, Inc., GitHub, Inc., JFrog Ltd., OWASP Foundation, Rapid7, Inc., Tidelift, Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Synopsys, Inc.
1986
Mountain View, California, USA
Veracode, Inc.
2006
Burlington, Massachusetts, USA
Mend.io
2011
Tel Aviv, Israel
Snyk Ltd.
2015
London, United Kingdom
Black Duck Software, Inc.
2003
Burlington, Massachusetts, USA
Company
Establishment Year
Headquarters
Company Size (Large, Medium, Small as per industry convention)
Annual SCA Revenue
Revenue Growth Rate (SCA segment)
Number of Enterprise Customers
Customer Retention Rate
Market Share (SCA segment)
Software Composition Analysis Market Industry Analysis
Growth Drivers
Increasing Demand for Open-Source Software:
The global open-source software market is projected to reach $32 billion in future, driven by the growing adoption of open-source solutions across various industries. This trend is fueled by the need for cost-effective software solutions, with 78% of organizations reporting increased use of open-source components. As businesses seek flexibility and innovation, the demand for Software Composition Analysis (SCA) tools to manage these components is expected to rise significantly, enhancing security and compliance.
Rising Concerns Over Software Security Vulnerabilities:
Cybersecurity incidents are projected to cost businesses $10.5 trillion annually in future, highlighting the urgent need for robust security measures. With 60% of organizations experiencing at least one security
each in the past year, the demand for SCA tools to identify and mitigate vulnerabilities in software components is increasing. This heightened awareness drives investment in SCA solutions, as organizations prioritize securing their software supply chains against potential threats.
Regulatory Compliance Requirements:
The global regulatory landscape is becoming increasingly stringent, with compliance costs expected to reach $1 trillion in future. Regulations such as GDPR and NIST cybersecurity frameworks mandate organizations to ensure software security and data protection. As companies face hefty fines for non-compliance, the adoption of SCA tools to ensure adherence to these regulations is becoming essential, driving market growth as organizations seek to avoid legal repercussions and enhance their security posture.
Market Challenges
Complexity of Software Dependencies:
The average software application comprises over 100 open-source components, leading to intricate dependency management challenges. This complexity can result in significant security risks, as organizations struggle to track and manage vulnerabilities across multiple components. The lack of visibility into these dependencies complicates the implementation of effective SCA solutions, hindering organizations' ability to maintain secure software environments and increasing the likelihood of security
eaches.
Lack of Awareness Among Organizations:
Despite the growing importance of SCA, a significant knowledge gap persists, with 45% of organizations unaware of the risks associated with open-source software. This lack of awareness leads to underinvestment in SCA tools, leaving many organizations vulnerable to security threats. As businesses continue to adopt open-source solutions, the need for education and awareness initiatives becomes critical to drive the adoption of SCA tools and improve overall software security.
Software Composition Analysis Market Future Outlook
The Software Composition Analysis market is poised for significant evolution, driven by technological advancements and increasing cybersecurity threats. As organizations increasingly adopt DevOps and Agile methodologies, the integration of SCA tools into CI/CD pipelines will become standard practice. Furthermore, the growing emphasis on software supply chain security will prompt businesses to invest in automated solutions, ensuring compliance and risk management. This proactive approach will shape the future landscape of software security, fostering innovation and resilience in the industry.
Market Opportunities
Expansion into Emerging Markets:
Emerging markets, particularly in Asia-Pacific and Latin America, are witnessing rapid digital transformation, with IT spending projected to reach $1.5 trillion in future. This growth presents a significant opportunity for SCA providers to penetrate these markets, offering tailored solutions that address local security challenges and compliance needs, thereby enhancing their market presence and driving revenue growth.
Development of AI-Driven Analysis Tools:
The integration of artificial intelligence in SCA tools is expected to enhance vulnerability detection and remediation processes. With AI-driven solutions projected to reduce analysis time by 50%, organizations can achieve faster compliance and security assessments. This technological advancement presents a lucrative opportunity for SCA vendors to innovate and differentiate their offerings, catering to the increasing demand for efficient security solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Software Composition Analysis market is valued at USD 330 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of open-source software, the rising need for compliance with software licensing, and the growing awareness of security vulnerabilities in software components. Recent trends include the integration of artificial intelligence and automation in SCA tools, a heightened focus on software supply chain security, and the adoption of real-time threat intelligence and CI/CD pipeline integration. Organizations are increasingly investing in SCA tools to manage risks associated with third-party software components, with demand further fueled by the proliferation of cloud solutions and digital transformation initiatives across industries .
Key players in this market include the United States, Germany, and the United Kingdom. The dominance of these countries can be attributed to their advanced technological infrastructure, high levels of investment in cybersecurity, and a strong presence of software development companies. North America, particularly the United States, holds the largest market share due to the concentration of major vendors and stringent regulatory requirements. Additionally, the regulatory environment in these regions encourages the adoption of SCA tools to ensure compliance and security, with frameworks such as GDPR, HIPAA, and ISO 27001 shaping industry practices .
In 2023, the European Union implemented the Digital Services Act, which mandates that software providers ensure the security and compliance of their software components. The Digital Services Act (Regulation (EU) 2022/2065, issued by the European Parliament and the Council) establishes operational requirements for digital service providers, including obligations to mitigate risks associated with software vulnerabilities and to maintain compliance with licensing and consumer protection standards. This regulation aims to enhance consumer protection and promote a safer digital environment, thereby driving the demand for Software Composition Analysis tools across the region .
Software Composition Analysis Market Segmentation
By Type:
The market is segmented into three main types: Open-source SCA tools, Commercial SCA tools, and Hy
id SCA solutions. Open-source SCA tools are gaining traction due to their cost-effectiveness, flexibility, and strong community support. Commercial SCA tools are preferred for their comprehensive support, advanced vulnerability detection, integration with enterprise workflows, and regulatory compliance features. Hy
id solutions combine the benefits of both, offering customizable deployment models and balancing cost with functionality to meet diverse organizational needs .
By End-User:
The end-user segmentation includes IT & Telecom, Financial Services (BFSI), Healthcare & Life Sciences, Government, Retail & E-commerce, Manufacturing, Automotive, and Energy & Utilities. The IT & Telecom sector is the largest consumer of SCA tools due to the high volume of software development, rapid adoption of open-source components, and the critical need for robust security in applications. The Financial Services (BFSI) segment also represents a significant share, driven by stringent regulatory requirements and the need to protect sensitive financial data. Healthcare & Life Sciences are rapidly increasing adoption due to the rise in digital health platforms and regulatory compliance demands .
Software Composition Analysis Market Competitive Landscape
The Software Composition Analysis Market is characterized by a dynamic mix of regional and international players. Leading participants such as Synopsys, Inc., Veracode, Inc., Mend.io (formerly WhiteSource Software Ltd.), Snyk Ltd., Black Duck Software, Inc. (now part of Synopsys), Sonatype, Inc., Checkmarx Ltd., Aqua Security Software Ltd., Contrast Security, Inc., FOSSA, Inc., GitHub, Inc., JFrog Ltd., OWASP Foundation, Rapid7, Inc., Tidelift, Inc. contribute to innovation, geographic expansion, and service delivery in this space.
Synopsys, Inc.
1986
Mountain View, California, USA
Veracode, Inc.
2006
Burlington, Massachusetts, USA
Mend.io
2011
Tel Aviv, Israel
Snyk Ltd.
2015
London, United Kingdom
Black Duck Software, Inc.
2003
Burlington, Massachusetts, USA
Company
Establishment Year
Headquarters
Company Size (Large, Medium, Small as per industry convention)
Annual SCA Revenue
Revenue Growth Rate (SCA segment)
Number of Enterprise Customers
Customer Retention Rate
Market Share (SCA segment)
Software Composition Analysis Market Industry Analysis
Growth Drivers
Increasing Demand for Open-Source Software:
The global open-source software market is projected to reach $32 billion in future, driven by the growing adoption of open-source solutions across various industries. This trend is fueled by the need for cost-effective software solutions, with 78% of organizations reporting increased use of open-source components. As businesses seek flexibility and innovation, the demand for Software Composition Analysis (SCA) tools to manage these components is expected to rise significantly, enhancing security and compliance.
Rising Concerns Over Software Security Vulnerabilities:
Cybersecurity incidents are projected to cost businesses $10.5 trillion annually in future, highlighting the urgent need for robust security measures. With 60% of organizations experiencing at least one security
each in the past year, the demand for SCA tools to identify and mitigate vulnerabilities in software components is increasing. This heightened awareness drives investment in SCA solutions, as organizations prioritize securing their software supply chains against potential threats.
Regulatory Compliance Requirements:
The global regulatory landscape is becoming increasingly stringent, with compliance costs expected to reach $1 trillion in future. Regulations such as GDPR and NIST cybersecurity frameworks mandate organizations to ensure software security and data protection. As companies face hefty fines for non-compliance, the adoption of SCA tools to ensure adherence to these regulations is becoming essential, driving market growth as organizations seek to avoid legal repercussions and enhance their security posture.
Market Challenges
Complexity of Software Dependencies:
The average software application comprises over 100 open-source components, leading to intricate dependency management challenges. This complexity can result in significant security risks, as organizations struggle to track and manage vulnerabilities across multiple components. The lack of visibility into these dependencies complicates the implementation of effective SCA solutions, hindering organizations' ability to maintain secure software environments and increasing the likelihood of security
eaches.
Lack of Awareness Among Organizations:
Despite the growing importance of SCA, a significant knowledge gap persists, with 45% of organizations unaware of the risks associated with open-source software. This lack of awareness leads to underinvestment in SCA tools, leaving many organizations vulnerable to security threats. As businesses continue to adopt open-source solutions, the need for education and awareness initiatives becomes critical to drive the adoption of SCA tools and improve overall software security.
Software Composition Analysis Market Future Outlook
The Software Composition Analysis market is poised for significant evolution, driven by technological advancements and increasing cybersecurity threats. As organizations increasingly adopt DevOps and Agile methodologies, the integration of SCA tools into CI/CD pipelines will become standard practice. Furthermore, the growing emphasis on software supply chain security will prompt businesses to invest in automated solutions, ensuring compliance and risk management. This proactive approach will shape the future landscape of software security, fostering innovation and resilience in the industry.
Market Opportunities
Expansion into Emerging Markets:
Emerging markets, particularly in Asia-Pacific and Latin America, are witnessing rapid digital transformation, with IT spending projected to reach $1.5 trillion in future. This growth presents a significant opportunity for SCA providers to penetrate these markets, offering tailored solutions that address local security challenges and compliance needs, thereby enhancing their market presence and driving revenue growth.
Development of AI-Driven Analysis Tools:
The integration of artificial intelligence in SCA tools is expected to enhance vulnerability detection and remediation processes. With AI-driven solutions projected to reduce analysis time by 50%, organizations can achieve faster compliance and security assessments. This technological advancement presents a lucrative opportunity for SCA vendors to innovate and differentiate their offerings, catering to the increasing demand for efficient security solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
98 Pages
- 1. software composition analysis size, share, growth drivers, trends, opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. software composition analysis size, share, growth drivers, trends, opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. software composition analysis size, share, growth drivers, trends, opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing demand for open-source software
- 3.1.2. Rising concerns over software security vulnerabilities
- 3.1.3. Regulatory compliance requirements
- 3.1.4. Growth in DevOps and Agile methodologies
- 3.2. Restraints
- 3.2.1. Complexity of software dependencies
- 3.2.2. Lack of awareness among organizations
- 3.2.3. High costs of implementation
- 3.2.4. Rapidly evolving technology landscape
- 3.3. Opportunities
- 3.3.1. Expansion into emerging markets
- 3.3.2. Development of AI-driven analysis tools
- 3.3.3. Partnerships with cloud service providers
- 3.3.4. Increasing investment in cybersecurity
- 3.4. Trends
- 3.4.1. Shift towards automated security solutions
- 3.4.2. Integration of SCA tools in CI/CD pipelines
- 3.4.3. Growing focus on software supply chain security
- 3.4.4. Adoption of open-source governance frameworks
- 3.5. Government Regulation
- 3.5.1. GDPR compliance requirements
- 3.5.2. NIST cybersecurity framework
- 3.5.3. Software liability laws
- 3.5.4. Open-source software licensing regulations
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. software composition analysis size, share, growth drivers, trends, opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Open-source SCA tools
- 4.1.2. Commercial SCA tools
- 4.1.3. Hybrid SCA solutions
- 4.1.4. Others
- 4.2. By End-User (in Value %)
- 4.2.1. IT & Telecom
- 4.2.2. Financial Services (BFSI)
- 4.2.3. Healthcare & Life Sciences
- 4.2.4. Government
- 4.2.5. Retail & E-commerce
- 4.2.6. Manufacturing
- 4.2.7. Automotive
- 4.2.8. Energy & Utilities
- 4.3. By Deployment Model (in Value %)
- 4.3.1. On-premises
- 4.3.2. Cloud-based
- 4.3.3. Hybrid
- 4.4. By Application (in Value %)
- 4.4.1. Web applications
- 4.4.2. Mobile applications
- 4.4.3. Enterprise applications
- 4.4.4. DevOps/CI-CD Pipelines
- 4.5. By Organization Size (in Value %)
- 4.5.1. Small Enterprises
- 4.5.2. Medium Enterprises
- 4.5.3. Large Enterprises
- 4.6. By Region (in Value %)
- 4.6.1. North India
- 4.6.2. South India
- 4.6.3. East India
- 4.6.4. West India
- 4.6.5. Central India
- 4.6.6. Northeast India
- 4.6.7. Union Territories
- 5. software composition analysis size, share, growth drivers, trends, opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Synopsys, Inc.
- 5.1.2. Veracode, Inc.
- 5.1.3. Mend.io (formerly WhiteSource Software Ltd.)
- 5.1.4. Snyk Ltd.
- 5.1.5. Black Duck Software, Inc. (now part of Synopsys)
- 5.2. Cross Comparison Parameters
- 5.2.1. Annual SCA Revenue
- 5.2.2. Revenue Growth Rate (SCA segment)
- 5.2.3. Number of Enterprise Customers
- 5.2.4. Customer Retention Rate
- 5.2.5. Market Share (SCA segment)
- 6. software composition analysis size, share, growth drivers, trends, opportunities & – Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. software composition analysis size, share, growth drivers, trends, opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. software composition analysis size, share, growth drivers, trends, opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Deployment Model (in Value %)
- 8.4. By Application (in Value %)
- 8.5. By Organization Size (in Value %)
- 8.6. By Region (in Value %)
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