Software - Americas

Americas

Revenue in the Software market is projected to reach US$397.30bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$166.00bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.15%, resulting in a market volume of US$467.50bn by 2028.
In global comparison, most revenue will be generated in the United States (US$353.50bn in 2024).

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Software market in Americas is a thriving industry that is constantly evolving to meet the needs of consumers. With the rise of technology and the increasing demand for digital solutions, the Software market has become an essential component of the economy.

Customer preferences: Consumers in the Americas have shown a strong preference for Software products that are user-friendly and efficient. With the increasing use of smartphones and tablets, there has been a growing demand for Software that is compatible with these devices. Additionally, customers have shown a preference for Software that is customizable to meet their specific needs.

Trends in the market: The Software market in the United States has seen significant growth over the past few years, with a particular focus on cloud-based solutions. This trend is driven by the need for increased flexibility and scalability, as well as the desire for enhanced security and data protection. Additionally, there has been a growing trend towards Software as a Service (SaaS) models, which offer a more cost-effective and scalable solution for businesses.In Canada, the Software market has seen a strong focus on Artificial Intelligence (AI) and Machine Learning (ML) solutions. This trend is driven by the need for businesses to leverage data to gain insights and improve decision-making. Additionally, there has been a growing focus on Software solutions that improve customer experience and engagement.In Latin America, the Software market has seen significant growth in the gaming industry. This trend is driven by the increasing popularity of mobile gaming and the growing number of gamers in the region. Additionally, there has been a growing demand for Software solutions that support e-commerce and digital payments.Local Special circumstances: In Brazil, the Software market has been impacted by the country's economic instability and political uncertainty. Despite these challenges, the market has continued to grow, particularly in the areas of e-commerce and mobile applications.In Mexico, the Software market has been impacted by the country's high levels of piracy. This has led to a focus on Software solutions that offer enhanced security and protection against piracy.In the United States, the Software market has been impacted by the ongoing trade war with China. This has led to increased tariffs on imported Software products, which has impacted the profitability of some companies.

Underlying macroeconomic factors: The Software market in the Americas is primarily driven by the region's strong economic growth and increasing technological advancements. Additionally, the growing demand for digital solutions and the increasing use of mobile devices have contributed to the market's growth. However, the market is also impacted by factors such as political instability, piracy, and trade wars. Overall, the Software market in the Americas is expected to continue to grow in the coming years, driven by the increasing demand for digital solutions and the region's strong economic growth.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.