Software - Australia & Oceania

Australia & Oceania

Revenue in the Software market is projected to reach US$14.21bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$5.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.52%, resulting in a market volume of US$16.96bn 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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Analyst Opinion

The Software market in Australia & Oceania has been developing at a steady pace in recent years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Australia & Oceania have been increasingly demanding software solutions that are user-friendly, efficient, and cost-effective. This has led to the rise of cloud-based software solutions, which offer greater flexibility and scalability compared to traditional on-premise software. Additionally, customers are also looking for software solutions that can integrate with other systems and provide real-time data analytics.

Trends in the market: One of the major trends in the Software market in Australia & Oceania is the increasing adoption of Software as a Service (SaaS) solutions. This is due to the benefits of SaaS, such as lower upfront costs, automatic updates, and easier scalability. Another trend is the growth of mobile applications, as more and more customers are using mobile devices to access software solutions. Additionally, there has been an increase in demand for software solutions that address specific business needs, such as customer relationship management (CRM) and enterprise resource planning (ERP) software.

Local special circumstances: The unique geography of Australia & Oceania, with its widely dispersed population and remote locations, has led to a greater need for software solutions that can facilitate communication and collaboration across distances. This has resulted in the development of software solutions that enable remote work and virtual meetings. Additionally, the region's high reliance on natural resources, such as mining and agriculture, has led to a demand for software solutions that can improve efficiency and productivity in these sectors.

Underlying macroeconomic factors: The Software market in Australia & Oceania is influenced by various macroeconomic factors, such as government policies, economic growth, and technological advancements. For instance, the Australian government has been investing in digital infrastructure and promoting innovation in the technology sector, which has led to the growth of the Software market. Similarly, the rapid economic growth in countries such as New Zealand and Papua New Guinea has created a demand for software solutions that can support this growth.In conclusion, the Software market in Australia & Oceania is driven by various factors, such as customer preferences, local special circumstances, and underlying macroeconomic factors. The trends in the market, such as the adoption of SaaS solutions and the growth of mobile applications, are tailored to meet the specific needs of customers in the region. Additionally, the unique geography and economic conditions of Australia & Oceania have led to the development of software solutions that address specific challenges in the region.

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.