Software - Central Asia

Central Asia

Revenue in the Software market is projected to reach US$1.49bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$0.62bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.57%, resulting in a market volume of US$2.07bn 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

Central Asia, a region comprising five countries, namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, has been witnessing significant growth in the software market.

Customer preferences: The software market in Central Asia is driven by the increasing demand for enterprise software solutions, such as ERP, CRM, and SCM systems, among businesses of all sizes. Small and medium-sized enterprises are increasingly adopting software solutions to streamline their operations, improve efficiency, and reduce costs. Additionally, the demand for software solutions in the education sector has been increasing, with educational institutions adopting e-learning software and other educational software solutions.

Trends in the market: Kazakhstan, the largest economy in Central Asia, has been witnessing significant growth in the software market, with the country's software exports growing by more than 50% in recent years. The country's government has been actively promoting the development of the software industry, with initiatives such as the "Digital Kazakhstan" program, which aims to transform the country into a digital economy. In Kyrgyzstan, the software market has been growing steadily, with the country's software exports increasing by more than 30% in recent years. The country's government has been promoting the development of the software industry through initiatives such as the "Digital Kyrgyzstan" program. Tajikistan, Turkmenistan, and Uzbekistan have also been witnessing growth in the software market, with the demand for software solutions increasing across various sectors.

Local special circumstances: Central Asia's software market is characterized by the presence of both local and international players. Local software companies have been focusing on developing software solutions tailored to the specific needs of businesses in the region, while international companies have been expanding their presence in the region through partnerships and acquisitions. The region's software market is also characterized by the availability of low-cost software solutions, which has been driving the adoption of software solutions among small and medium-sized enterprises.

Underlying macroeconomic factors: The growth of the software market in Central Asia can be attributed to various underlying macroeconomic factors, such as the region's growing economy, increasing investments in the IT sector, and the availability of a young and educated workforce. Additionally, the region's strategic location between Europe and Asia has been attracting investments from multinational companies looking to expand their presence in the region. The region's governments have also been actively promoting the development of the software industry through various initiatives and policies, such as tax incentives and subsidies. In conclusion, the software market in Central Asia has been witnessing significant growth, driven by the increasing demand for software solutions among businesses of all sizes and the availability of low-cost software solutions. The region's governments have been promoting the development of the software industry through various initiatives and policies, and the region's strategic location and growing economy have been attracting investments from multinational companies.

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.