Software - Chile

Chile

Revenue in the Software market is projected to reach US$1.56bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$0.65bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.50%, resulting in a market volume of US$1.86bn 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

Chile is a country that has been experiencing a steady growth in its software market, which has been fueled by a number of factors.

Customer preferences: Chilean customers have been increasingly demanding software solutions that are easy to use, efficient, and customizable. This has led to a rise in the popularity of cloud-based software solutions that offer flexibility and scalability. Additionally, customers are now more concerned about the security of their data, which has led to an increased demand for software solutions that offer robust security features.

Trends in the market: One of the major trends in the Chilean software market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Businesses are leveraging these technologies to gain insights from large volumes of data, automate their processes, and improve their decision-making capabilities. Another trend is the rise of software solutions that are tailored to specific industries, such as healthcare, finance, and retail. These solutions offer industry-specific features that help businesses streamline their operations and improve their bottom line.

Local special circumstances: Chile has a thriving startup ecosystem, which has been instrumental in the growth of the software market. The government has implemented policies that support entrepreneurship and innovation, which has led to the emergence of a number of successful startups in the software space. Additionally, Chile has a highly skilled workforce, which has made it an attractive destination for multinational companies looking to set up their operations in the region.

Underlying macroeconomic factors: The Chilean economy has been growing steadily over the past few years, which has led to an increase in disposable income and consumer spending. This has created a favorable environment for businesses in the software market, as customers are now more willing to invest in software solutions that can help them improve their operations and increase their profitability. Additionally, the government has been investing heavily in infrastructure and technology, which has created opportunities for businesses in the software market to expand their operations and reach new customers.

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.