The Software Takeover: Why Market Research's Future Isn't Research

Here's a contrarian take that will get you sideways looks in the boardroom: the future of the insights industry isn't research. It's software. The numbers are unambiguous, and the trend is accelerating. If you're a traditional market research firm, your growth engine is already sputtering. The question isn't whether to pivot—it's how fast you can do it.

Let's define the problem. The global insights industry—the umbrella term covering market research, research software, and reporting—hit US$150 billion in 2024, with projections to surpass US$160 billion by end of 2025 (ESOMAR via Research World). But look inside that number and you'll see a stark divergence. The market research sector—the classic survey, focus group, and consulting work—grew a measly 4.8% in 2024. Meanwhile, research software—the platforms, analytics tools, and automation—grew at 11.5%, more than double. The reporting sector grew 8% (ESOMAR via Research World). The growth isn't in asking questions; it's in the tools that answer them.

What's Actually Growing? Software, Not Surveys

Data from ESOMAR's Global Market Research 2024 report splits the industry into three buckets: market research (~US$56 billion), research software (~US$62 billion), and reporting (~US$35 billion) in 2024 (ESOMAR via Research World). That's right—software already overtakes traditional research in revenue. And the gap is widening. In 2023, software grew 12.4% while research grew 4.6% (ESOMAR via Research World). The writing is on the wall, but most players aren't reading it.

The same story plays out in AI adoption. About 47% of researchers globally use AI regularly, and 83% plan to invest in AI in 2025 (Similarweb / Research and Markets). That's a massive shift toward technology-driven research. If you're still selling bespoke, manual research reports, you're fighting a losing battle against AI-powered dashboards that deliver insights in minutes, not months.

Why the Traditional Model Is Failing

Porter's Five Forces explains why traditional market research is becoming less profitable. The threat of substitutes is high—software platforms that automate data collection and analysis are direct substitutes for many manual research tasks. Buyer power is rising: clients have more options and lower switching costs when they can plug into a SaaS dashboard instead of commissioning a custom study. And rivalry among incumbents is brutal, with numerous firms of similar size competing on price. The stronger these forces, the lower the industry's profit potential (CFA Institute).

Now consider the software sector. Network effects—where a buyer's willingness to pay increases with the number of other users—are a powerful barrier to entry (Harvard Business Review). A platform with more users gets better data, more integrations, and higher switching costs. That's a moat traditional research firms can't build.

Where the Money Is: Client Sectors and Geography

Let's get specific. In 2023, 68% of global market research turnover came from three client sectors: information & communication (media/broadcasting), manufacturing of consumer non-durables, and other manufacturing (ESOMAR via Research World). Media and broadcasting was the largest, with the US accounting for 75% of that spending. These are data-hungry, fast-moving sectors that need real-time insights—exactly what software platforms deliver best.

Geographically, the US holds 53% of the market research market (Similarweb / Research and Markets). But the fastest growth is in Asia Pacific, which grew 9.5% in 2023 versus 8.0% globally (ESOMAR via Research World). Emerging markets like Kazakhstan (24% growth), Vietnam (17.2%), and India (14.8%) are exploding (ESOMAR via Research World). These markets are leapfrogging straight to digital, mobile-first research methods, bypassing traditional surveys entirely.

What This Means for Practitioners

If you're a market research analyst, your job is still safe—the Bureau of Labor Statistics projects 7% growth in market research analyst employment from 2024 to 2034, with about 87,200 openings each year (BLS). But the nature of the job is changing. You'll be less likely to design surveys and more likely to run automated analyses, validate AI outputs, and interpret data streams. The median wage is $76,950, but the analysts who command premiums are those who can wield software tools, not just clip questionnaires.

For firms, the strategic recommendation is clear: shift your investment from survey infrastructure to research software and AI. The data shows that's where the growth is. Firms that can't make this shift risk being 'stuck in the middle'—offering neither the unique, high-touch consulting that commands premium prices nor the efficient, automated service that competes on cost (University of Central Florida Pressbooks).

The Bottom Line

Stop thinking of yourself as a market research firm. Start thinking of yourself as an insights technology company. The evidence is overwhelming: software grows more than twice as fast as traditional research, clients are shifting toward automated solutions, and AI is already entrenched. The single best move you can make is to reprioritize your budget and talent toward building or buying research software capabilities. If you don't, you'll be watching your market share erode while the software players—and their network effects—run away with the industry.

Sources

• ESOMAR via Research World (GMR 2025) - https://researchworld.com/articles/inside-the-153bn-insights-industry
• ESOMAR via Research World (client trends) - https://researchworld.com/articles/shifting-client-trends-in-global-market-research
• Similarweb / Research and Markets - https://www.similarweb.com/blog/research/market-research/market-research-stats/
• Harvard Business Review (Porter 2008) - https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
• Bureau of Labor Statistics (OOH) - https://www.bls.gov/ooh/business-and-financial/market-research-analysts.htm
• ESOMAR via Research World (Asia Pacific) - https://researchworld.com/articles/the-remarkable-ascent-of-asia-pacific-in-global-insights