A Lens into the State of Software on G2

As the lead of G2's Market Research team, I had the privilege of speaking at the much-anticipated G2 Reach 2023 event.

In this session, I had the opportunity to share how G2’s software marketplace is a true reflection of customer insights and market trends and can serve as an invaluable resource for go-to-market (GTM) strategies.

Before I dive in to summarize some of my session highlights, I’d like to acknowledge our Market Research team and the differentiated approach we embrace. At G2, we pride ourselves on being the authoritative destination for in-market buyers, presenting the voices and perspectives of real customers with real-time information.

G2 reviews (all 2.4+ million of them!) don't just document experiences; they serve as definitive signposts that guide businesses towards value in their software and services investments. 

Given our access to this information, G2 Market Research has its pulse on the state of what’s really happening in software — in real time. In my presentation, I dove into a few of our latest insights from G2’s inaugural State of Software, as well as how we push the visualization of the evolving AI landscape. 

The top 5 markets fueling software growth

The first edition of our State of Software report offers insights into the fastest-growing software markets and current trends over the past year, acting as an essential source for anyone who strives to stay informed and relevant. As you can find in the full report, the five fastest-growing software markets according to G2, in descending order, are: 

• #5 Fastest Growing Software Market: Security. The demand for robust security solutions is ever-increasing in today’s digital era. Acceleration of threat mitigation, management of misconfigurations and unpatched vulnerabilities, and integrated security in the burgeoning IoT device market are but a few of the critical capabilities in security today.
• #4 Fastest Growing Software Market: Marketing.  Marketing practices have revolutionized over the past few years. Emerging technologies have facilitated the creation of innovative marketing platforms that prioritize personalized outreach and robust analytics.
• #3 Fastest Growing Software Market: HR. The transformation in the HR software market demonstrates the shift towards employee-focused workplaces. As organizations embrace remote and hybrid formats, HR software is becoming a critical element in fostering employee satisfaction and productivity.
• #2 Fastest Growing Software Market: Design. The surge in consultation practices and digital content production has fueled the growth in design software. Ubiquitous digital presence has only propelled this growth.
• #1 Fastest Growing Software Market: AI.  AI is arguably the most exciting field driving untapped possibilities. Its diverse utilities have contributed to an explosive rise in the adoption of AI-powered software.

Visualizing AI through G2's taxonomy

The #1-fastest growing software market – perhaps unsurprising given all the hype it has experienced over the past year – deserves some additional reflection. On G2, AI witnessed the fastest growth across all 26 high-level software markets  – more than 2x the growth of the second-fastest growing market (Design)! In total, AI categories gained 643 new products between Sept. 1, 2022 and Sept. 1, 2023.

Given this rapid growth, the AI landscape's complex and ever-evolving nature can be quite challenging to understand. To combat this, we’ve introduced the concept of the 'AI city’ – a visual representation of G2's taxonomy of AI categories to foster a more engaging and interactive learning experience.

We trace the hottest areas in AI through an AI heat map, which reveals that generative AIs, particularly AI chatbots and content generation, are the prevailing trends. Stay tuned for more on this and future iterations of our visualized taxonomy.

Shaping the future of G2’s software marketplace

And while AI is rapidly evolving, so are other markets and categories. At G2, we understand the importance of staying aligned with changing market trends. That’s why we continuously update our categories by tracking new additions and changes to existing categories.

Our research process includes diversely sourced insights, including vendor inputs, to ensure our understanding of the software market is well-rounded and up-to-date. Look out for our regular insights into these evolving software landscapes.

G2 is not just a platform that adds value to businesses; it is a community that furthers the software industry's dialogue. The G2 Marketplace is a forum for users and vendors alike to contribute their unique perspectives about newer or existing categories for a more comprehensive understanding of the market.

On behalf of our Market Research team, I extend gratitude to all of you who have contributed to our marketplace through reviews, feedback on categories, and new product submissions. Keep the feedback and ideas coming - we’re all ears! 

Please feel free to connect with me on LinkedIn, check out our Q4 2023 State of Software report, and catch my recorded G2 Reach 2023 session if you missed us live.