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Why Software Demand Is Booming in 2025 – and the Key Industries Leading the Charge
In 2025, the software industry is experiencing unprecedented momentum. As highlighted in Vertical Market Software Trends to Watch in 2025 by Vesta Software Group, the convergence of AI, cloud computing and specialised vertical solutions is driving a new wave of demand across sectors. Businesses are no longer satisfied with generic, off-the-shelf applications. Instead, they seek tailored software that understands their industry’s nuances and delivers real outcomes.
The Key Drivers Behind Software’s Rapid Growth
- The Rise of Agentic AI
While generative AI reshaped productivity in 2023-2024, Agentic AI is now taking centre stage. These systems go beyond content creation – they autonomously make decisions, optimise processes and execute complex workflows without constant human supervision. This evolution is particularly transformative in industries where speed, accuracy, and contextual intelligence are critical. - Cloud Continues to Dominate
Cloud adoption is not new, but its role is more central than ever. Cloud platforms provide scalability and flexibility, enabling businesses to deploy vertical market software quickly and cost-effectively. This is especially important for industries with dynamic workloads or regulatory requirements. - Growing Need for Vertical Solutions
Organisations increasingly require software built for the unique challenges of their industry. Vertical software offers this bespoke capability, helping businesses comply with regulations, integrate into legacy environments, and gain insights relevant to their operations. - Security and Compliance Pressures
With rising cybersecurity threats and evolving regulatory standards, industries like finance and healthcare are demanding software with advanced security features – such as post-quantum cryptography – to future-proof sensitive data and transactions.
The Verticals Leading the Demand Surge
Healthcare
AI is revolutionising healthcare through more accurate diagnostics, personalised treatment plans, and improved patient management systems. These innovations not only improve outcomes but also alleviate administrative burdens.
Financial Services
From AI-powered fraud detection to automated compliance tools, financial institutions are leveraging software to manage risk more effectively while enhancing customer experience.
Manufacturing and Logistics
Predictive maintenance, supply chain optimisation, and real-time analytics are making manufacturing smarter and more efficient. AI-driven software is now a core enabler of Industry 4.0 transformation.
Education
Learning management systems, virtual classrooms, and AI-powered personalisation are transforming how educational content is delivered and consumed – particularly in hybrid and remote learning environments.
Retail and E-commerce
Personalisation engines, inventory optimisation, and AI-driven chatbots are enhancing customer engagement and driving online sales conversion rates.
Final Thoughts
The software market in 2025 reflects a clear shift from one-size-fits-all solutions to industry-specific platforms empowered by AI and the cloud. As Vesta Software Group notes, vertical software is not just a trend – it’s the new norm. Organisations across healthcare, finance, manufacturing, education and retail are rapidly adopting these solutions to stay competitive, agile, and secure in an increasingly digital world.
To see examples of how vertical market software businesses are attracting strategic buyers, explore our recent case studies:
At SCD Advisory, we offer a range of services from deal preparation to transaction execution. Contact us at info@scdadvisory.com to find out more.
Written by: Pierre Briand, Founder & Managing Partner
Pierre brings 25 years of expertise in advising entrepreneurs, with a deep background in management and financial advisory across corporate finance, private banking, and wealth management. His extensive experience includes numerous sell-side and buy-side deals, IPOs, mergers, integrations, and consulting projects for both small businesses and large global corporations. As an established and highly regarded advisor, Pierre is known for his savvy, trusted guidance.
Pierre’s career began in Australia before he moved to France, where he worked with prominent business figures like billionaire François Pinault on M&A deals within the Artemis group. He then founded BC&D, an M&A small-cap firm in Paris, where he managed corporate advisory services across Europe, covering both origination and execution. His work extended beyond transactions, advising entrepreneurs on wealth management strategies to optimise the transition from business ownership.
In Paris, he held advisory roles at the Belgium Family Office (DeGroof) and as a senior private banker and head of the HNW segment for France at JP Morgan. Returning to Australia in 2015, Pierre established the ANZ subsidiary of a UK-headquartered M&A firm, executing 9 M&A transactions across Australia. In 2019, he launched SCD Advisory, where he has since completed 35+ transactions, earning multiple global awards in M&A advisory from 2021 to 2024. Notably, he was named ‘Deal Maker of the Year’ by Finance Monthly in 2022 for his sale of Hypothesis to McKinsey & Co.
Pierre graduated from the Business of Troyes in France and has a postgraduate in Corporate Finance from the University of Caen. He is also a certified Financial Analyst and a Graduate of the Australian Institute of Company Directors (GAICD). Pierre further enhanced his credentials by completing the “Leading Professional Services Firms” program at Harvard Business School. His track record and accolades highlight his dedication to excellence and his exceptional skill in delivering successful outcomes for his clients.
Pierre is French, Australian citizen, Overseas Citizen of India. He is married and has two children. He is passionate about international travel, gastronomy, sailing and golf. As an experienced sailor, his motto in business and life in general is: “We cannot direct the wind, but we can trim the sails”
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