Software - Colombia

Colombia

Revenue in the Software market is projected to reach US$1.57bn 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 5.57%, resulting in a market volume of US$1.95bn 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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Region

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Analyst Opinion

The Colombian software market has been growing steadily over the past few years, driven by various factors such as increasing demand for cloud-based solutions, the rise of e-commerce, and the government's focus on digital transformation.

Customer preferences: Colombian customers are increasingly looking for software solutions that are flexible, scalable, and cost-effective. They prefer cloud-based software that can be accessed from anywhere and on any device. Additionally, there is a growing demand for software that can help businesses automate their processes and increase productivity.

Trends in the market: One of the key trends in the Colombian software market is the increasing adoption of cloud-based solutions. This is driven by the need for businesses to be more agile and responsive to changing market conditions. Another trend is the rise of e-commerce, which has led to an increased demand for software solutions that can help businesses manage their online stores and transactions. There is also a growing interest in software that can help businesses manage their finances and accounting processes.

Local special circumstances: Colombia is a country with a large number of small and medium-sized businesses, which make up the bulk of the demand for software solutions. These businesses are often looking for affordable and easy-to-use software that can help them streamline their operations and increase efficiency. Additionally, the government has been actively promoting digital transformation, which has led to an increased demand for software solutions across various sectors.

Underlying macroeconomic factors: Colombia has a growing economy and a young population that is increasingly tech-savvy. The government has been investing heavily in infrastructure and technology, which has created a favorable environment for software companies to thrive. Additionally, the country's strategic location and favorable trade agreements with other countries in the region make it an attractive destination for foreign software companies looking to expand into Latin America.

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.