Software - Bulgaria

Bulgaria

Revenue in the Software market is projected to reach US$276.70m in 2024.
Enterprise Software dominates the market with a projected market volume of US$114.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.89%, resulting in a market volume of US$334.90m 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

Bulgaria, a country in Southeast Europe, has been experiencing significant growth in its software market in recent years.

Customer preferences: In Bulgaria, there is a growing demand for software solutions that are efficient, user-friendly, and cost-effective. Customers are looking for software that can help them streamline their business processes, enhance their productivity, and increase their profitability. Additionally, there is a growing trend towards cloud-based software solutions, as they offer greater flexibility, scalability, and accessibility.

Trends in the market: One of the major trends in the Bulgarian software market is the rise of outsourcing. Many companies are outsourcing their software development needs to Bulgaria due to the country's highly skilled workforce, competitive pricing, and favorable business environment. This has led to an increase in the number of software development companies in the country, which has further fueled the growth of the market.Another trend in the Bulgarian software market is the increasing focus on innovation and digital transformation. Companies are investing in new technologies such as artificial intelligence, machine learning, and blockchain to stay competitive and meet the evolving needs of their customers. This has led to the emergence of new software solutions that are more advanced and sophisticated than ever before.

Local special circumstances: Bulgaria has a highly educated and skilled workforce, with a large number of graduates in the fields of computer science, engineering, and mathematics. This has helped to create a favorable environment for the development of the software industry in the country. Additionally, Bulgaria has a low cost of living and a favorable tax regime, which has made it an attractive destination for foreign companies looking to outsource their software development needs.

Underlying macroeconomic factors: The Bulgarian economy has been growing steadily in recent years, with a focus on innovation and technology. The government has been investing in infrastructure, education, and research and development, which has helped to create a favorable environment for the software industry. Additionally, Bulgaria is a member of the European Union, which has provided access to a large market and increased opportunities for trade and investment.

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.