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Q4 2023 insights into Software

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29 January - GP Bullhound publishes qualitative insights into broader Software trends and public and private valuations across the transaction spectrum, and interviews with today’s leaders transforming the sector.

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “Various trends shaped the Software landscape in Q4 2023. Application Performance Management solutions are seeing strong tailwinds due to the need for more observability, with the current market for APM tools looking to reach $19bn in 2030 from $9bn today. Open source software continues to drive innovation, with corporations and VCs developing frameworks to invest in open source platforms. Robotics Process Automation is also experiencing significant growth as businesses seek higher automation, and the RPA market is set to grow from ~$4bn today to $82bn by 2032.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “On the dealmaking side, Q4 volumes picked up, driven by buy-outs of Alteryx, IRIS, EngageSmart and additional capital raising by Visma. Tech stocks posted a strong 2023 coming out of a 2022 slump, and growth in tech stocks is expected to continue in 2024 with optimism driven by a lower interest rate environment. Given pent-up demand, available capital, and assuming a more stable market environment, we expect consistent growth in M&A and buy-out volumes in 2024.”

Application Performance Management solutions gaining significance

  • APM and Artificial Intelligence are increasingly converging to enhance software applications’ monitoring, analysis, and optimisation. This enables automated solutions to be engaged, preventing downtime and performance degradation.
  • The APM market is growing significantly with the support of several tailwinds, primarily observability coupled with digital transformation and the increased reliance on software applications.

Security testing software is safeguarding digital landscapes

  • According to a IBM, the global average cost of a data breach in 2023 was $4.45m, a 15% increase over three years.
  • Polaris Market Research valued the global security testing market at $9.3bn in 2022, which is likely to reach $41.6bn by 2032, growing at a CAGR of 16.2%.

Open source software is increasing commercialisation

  • For-profit corporations are increasingly embracing open source to tap into community expertise to accelerate technology development despite limited commercial opportunities initially.
  • Over 30% of Fortune 100 companies have implemented Open Source Program Offices, while VCs are evaluating investments based on open source metrics like GitHub Stars, contributors, or Slack/Discord community sizes.

Robotic Process Automation is on the rise

  • As hyper-automation continues to be implemented in business operations, Robotic Process Automation has become increasingly used due to its ability to drive operational efficiencies, capture data, and perform routine tasks.
  • The market size for robotic process automation reached $3.7bn in 2022, and it is likely to grow to $81.8bn by 2032, at a CAGR of 36.6%.

For enquiries, please contact Jonathan Cantwell, Partner, at

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 14 offices spanning Europe, the US and Asia.

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