Considering the urgent demand for industrial software by the iron and steel industry during its transformation, we viewed the current status, analyzed the bottlenecks, and proposed the development strategies of the industrial software for iron and steel industry. Compared with similar products abroad, the four categories of industrial software in China develop in an imbalanced manner. Specifically, the research and development design software is the weakest among the four, the production control and operation management software are strong enough for market competition, and the service support software currently faces an opportunity for catching up with and even outpacing its international counterparts. Hence, targeted development strategies are required for each category of the industrial software. Market operation should be combined with government guidance to mobilize various resources and implement targeted policies. The unique advantages of large scale, rich knowledge, and numerous scenarios of China’s iron and steel industry should be maximized to provide more practical scenarios and iterative optimization opportunities for domestic industrial software, thereby promoting the high-quality development of China’s iron and steel industry.