What Is Vertical Market Software?

Date First Published: 19th March 2024

Topic: Computer Systems

Subtopic: Computer Software

Article Type: Computer Terms & Definitions

Difficulty Level: 5/10

Learn about what vertical market software in this article.

Vertical market software is a type of software that is developed for a specific industry. It is a niche-market type of software developed for and customised to the needs of a specific industry and is not generally useful in a wide range of industries.

Vertical market software has a smaller audience and faces less competition than horizontal market software. It helps to address industry-specific processes and functionalities. This means that faster growth is possible and higher market penetration is also achievable. However, it can be a risky industry because developers are reliant on specific clients to buy their products. In addition, developing a high-quality vertical market software application requires a good understanding of the target industry.

Vertical market software is the opposite of horizontal market software, which is generally useful in a wide range of industries and not developed for specific industries.

Examples Of Vertical Market Software

Examples of vertical market software include investment, real estate, point-of-sale, banking programs, and applications for scientific analysis, medical needs, and manufacturing. These are vertical market software applications because they are only used by a specific group of people, not the general public.

What Is Vertical SaaS?

Vertical software as a service (SaaS) is a type of vertical software. However, vertical SaaS is provided by the cloud or over the internet instead of being downloaded and installed on user devices. Like vertical market software, vertical SaaS is created for a specific industry and the target market is narrower than the market for horizontal SaaS. Examples of vertical SaaS are financial services and healthcare.

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