PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 2144073
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 2144073
The knowledge management software market was worth USD 21.7 billion in 2025, and it is set to grow by 13.8% between 2026 and 2032 to reach USD 53.5 billion by 2032.
Cloud-native platforms, generative AI-enabled search, and collaborative content repositories are behind the expansion. Distributed workforces need to capture, organize, and retrieve institutional knowledge without hunting through scattered systems, and enterprises in information technology, banking and financial services, and healthcare are folding document management and knowledge discovery straight into core workflows. Intelligent chatbots are moving into those same workflows, cutting duplicated effort and shortening decision cycles.
Two data points frame how quickly the ground is shifting. Eurostat recorded AI adoption among EU enterprises rising to 20.0% in 2025 from 13.5% in 2024, a marker of the wider digitalization reshaping how organizations handle internal knowledge assets. The U.S. Bureau of Labor Statistics put telework among workers aged 25 and older at 24.9% in the first quarter of 2024, up from 21.5% a year earlier. More remote work means more pressure on centralized, cloud-accessible platforms that keep dispersed teams working from a single source of institutional knowledge.
Key Insights
Software takes the larger component share at 75% in 2025, as enterprises fund document management, search, and AI-powered platforms ahead of services. The OECD found cloud computing in use at 49% of enterprises with 10 or more employees across member countries in 2023. Services grow faster at roughly 14.4%, spanning implementation, content migration, AI integration, and training.
Document management holds the largest functionality share at 35% in 2025, built on decades of investment in structured repositories and recordkeeping rules, with NARA reporting federal agencies still shifting to fully electronic records.
Intelligent chatbots and virtual agents grow fastest, helped by language models that turn retrieval conversational. Salesforce released Agentforce 360 in October 2025, adding Enterprise Search and a Channel Expert agent reaching across Slack, Google Drive, GitHub, and Jira. Microsoft launched Knowledge Agent in SharePoint that September to improve Microsoft 365 Copilot retrieval, and Zoho added Zia LLM and an expanded Zia Agent Studio in July 2025.
Cloud is the largest deployment category at 60% in 2025 and the fastest-growing at roughly 14.2%. Eurostat put paid cloud use at 52.74% of EU enterprises in 2025, up 7.42 percentage points on 2023, and at 84.67% among large firms.
Large enterprises hold the larger share by organization size, given governance needs and deeper budgets. SMEs grow faster at roughly 14.1%, and the OECD found generative AI already in use at 31% of them. The gap is still wide: Eurostat recorded AI adoption at 55.03% among large enterprises in 2025, against 30.36% for medium and 17.0% for small ones.
IT and telecom is the biggest end-user segment at 25% in 2025, on the strength of technical documentation, development workflows, and service management. Healthcare and life sciences grow fastest at roughly 14.5%. The ONC reported more than 99% of non-federal acute care hospitals and 91% of office-based physicians using certified electronic health records as of 2024.
North America holds the largest regional share at 40% in 2025. Census Bureau data put AI usage among U.S. businesses between 17% and 20% from December 2025 to May 2026, with higher rates at large enterprises and information firms. Canada grows fastest in the region, and Statistics Canada put AI use at 12.2% of Canadian businesses in 2025, up from 6.1% in 2024.
Asia-Pacific posts the highest regional CAGR at roughly 14.7%. India grows fastest on global capability center expansion, with MeitY projecting the digital economy's share of national income at 13.42% in FY 2024 to 25, from 11.74% in FY 2022 to 23. China leads the region, with the National Bureau of Statistics valuing core digital economy industries at CNY 14.0891 trillion in 2024, or 10.5% of GDP versus 9.9% in 2023.
The market is fragmented. Microsoft, IBM, SAP, Oracle, Salesforce, ServiceNow, and Atlassian build knowledge management into wider productivity, ERP, CRM, and IT service suites, while OpenText, M-Files, Bloomfire, Zoho, Freshworks, and eGain focus on content governance, search, and vertical applications. Entry barriers are low, but switching costs tied to content migration and compliance keep customers put.