Software - Eastern Asia

Eastern Asia

Revenue in the Software market is projected to reach US$40.38bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$16.88bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.29%, resulting in a market volume of US$47.76bn 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 demand for software in Eastern Asia has been on the rise in recent years, driven by a growing tech-savvy population and increasing digitalization across industries.

Customer preferences: Customers in Eastern Asia are increasingly looking for software solutions that are user-friendly, efficient, and offer seamless integration with other technologies. In addition, there is a growing demand for software that can be accessed via mobile devices, as the use of smartphones and tablets continues to rise in the region.

Trends in the market: In China, the software market is dominated by domestic players such as Tencent and Alibaba, who have been able to leverage their large user base to offer a range of software solutions from social media to e-commerce. In Japan, there has been a shift towards cloud-based software solutions, as companies look to reduce costs and increase flexibility. South Korea has emerged as a hub for gaming software, with companies such as Nexon and NCSoft leading the way in the development of online games.

Local special circumstances: One of the key drivers of the software market in Eastern Asia is the region's large and growing middle class, who are increasingly looking to adopt new technologies and services. In addition, the region's highly competitive business environment has led to a focus on innovation and efficiency, with companies looking to gain a competitive edge through the use of software solutions.

Underlying macroeconomic factors: The growth of the software market in Eastern Asia is also being supported by favorable macroeconomic conditions, including strong economic growth, rising disposable incomes, and increasing investment in technology infrastructure. In addition, government initiatives aimed at promoting digitalization and innovation are helping to drive the development of the software market in the region.

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.