Software components are modular parts of a software system that encapsulate specific functionality. They can be independently developed, tested, and maintained, making it easier to manage complex applications. Examples of software components include libraries, frameworks, and services that work together to create a complete software solution. These components interact with each other through well-defined interfaces, allowing for flexibility and reusability. By using software components, developers can build applications more efficiently, as they can leverage existing solutions rather than starting from scratch. This approach is common in modern software development practices, such as Agile and Microservices.