Software - D-A-CH

D-A-CH

Revenue in the Software market is projected to reach US$41.07bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$17.07bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.85%, resulting in a market volume of US$47.77bn 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

The software market in D-A-CH, which includes Germany, Austria, and Switzerland, is a rapidly growing industry that is constantly evolving to meet the needs of its consumers.

Customer preferences: Customers in D-A-CH are highly tech-savvy and demand software solutions that are innovative, user-friendly, and efficient. They expect software to be customizable and adaptable to their unique needs, and are willing to pay a premium for high-quality products. Additionally, customers in this region prioritize data privacy and security, and are more likely to choose software providers that adhere to strict data protection regulations.

Trends in the market: One of the major trends in the software market in Germany is the growing demand for cloud-based solutions. As more businesses move their operations online, there is a need for software that can be accessed from anywhere and at any time. This has led to an increase in the adoption of software-as-a-service (SaaS) models, which allow companies to pay for software on a subscription basis rather than investing in expensive on-premise solutions.In Switzerland, there has been a shift towards open-source software solutions, particularly in the public sector. This is due in part to the government's focus on transparency and cost-effectiveness, as well as the country's strong tradition of innovation and collaboration.In Austria, the software market is heavily influenced by the country's thriving startup scene. There is a growing demand for software solutions that can help startups streamline their operations and scale their businesses quickly. This has led to an increase in the adoption of agile development methodologies and a focus on rapid prototyping and iteration.

Local special circumstances: In Germany, the software market is heavily influenced by the country's strong manufacturing industry. There is a high demand for software solutions that can help automate production processes and improve supply chain management. Additionally, the country's strict data protection laws have led to the development of innovative cybersecurity solutions.Switzerland's software market is heavily influenced by the country's finance and banking industries. There is a growing need for software solutions that can help manage complex financial transactions and ensure compliance with strict regulations. Additionally, the country's focus on sustainability has led to the development of software solutions that can help companies reduce their environmental impact.In Austria, the software market is heavily influenced by the country's tourism industry. There is a growing demand for software solutions that can help hotels and restaurants manage their operations more efficiently and provide better customer experiences. Additionally, the country's focus on renewable energy has led to the development of software solutions that can help companies transition to more sustainable business practices.

Underlying macroeconomic factors: The software market in D-A-CH is heavily influenced by macroeconomic factors such as GDP growth, inflation rates, and unemployment rates. As the region continues to experience steady economic growth, there is a growing demand for software solutions that can help businesses stay competitive and adapt to changing market conditions.Additionally, the region's focus on innovation and collaboration has led to the development of a thriving startup ecosystem. This has created opportunities for software developers and entrepreneurs to create new products and services that can meet the evolving needs of consumers in D-A-CH and beyond.

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.