Enterprise Software - Canada

Canada

Revenue in the Enterprise Software market is projected to reach US$9.28bn in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$2.79bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.76%, resulting in a market volume of US$11.61bn by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$439.90 in 2024.
In global comparison, most revenue will be generated in the United States (US$147.60bn in 2024).

Key regions: Germany, United States, Canada, Netherlands, France

Definition:

The Enterprise Software market covers software applications designed to support essential business activities by large organizations such as enterprise resource planning, customer relationship management, business intelligence, and supply chain management.

Products in the Enterprise 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 Enterprise Software market contains eight markets that are based on the functionality of the software:

Business Intelligence Software refers to software applications that support organizations to analyze, visualize, and report data.
Content Management Software refers to a wide range of software applications that support organizations to manage their digital content such as documents, images, and videos.
Customer Relationship Management Software refers to software applications that support organizations to manage their interactions with customers, clients, and prospects.
eCommerce Software refers to a wide range of software applications that support organizations to manage their online sales channels.
Enterprise Performance Management Software refers to software solutions that help organizations to manage and improve their performance across various areas, such as finance, operations, and strategy.
Enterprise Resource Planning Software refers to software applications that support organizations to manage, integrate and optimize important business activities related to resources such as people, finance, capital, materials, and orders.
Supply Chain Management Software refers to software applications that support organizations to manage their supply chain activities such as inventory optimization, supplier and vendor management, and logistic operations.
Other Enterprise Software refers to aggregated revenues for the types of enterprise software that are not specifically mentioned in the other Enterprise Software markets, such as Project Management Software, Product Life Cycle Management Software, and Production and Operation Software.

Additional Information:

The Enterprise Software market comprises revenue and revenue growth 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 SAP, Salesforce, Adobe, and Oracle.

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Analyst Opinion

The Enterprise Software market in Canada is experiencing significant growth and development.

Customer preferences: Canadian businesses are increasingly adopting enterprise software solutions to streamline their operations and improve efficiency. This is driven by a growing demand for cloud-based solutions that offer flexibility and scalability, as well as a need for data analytics tools to support decision-making processes. Additionally, Canadian businesses are placing a greater emphasis on cybersecurity, leading to an increased adoption of security-focused enterprise software solutions.

Trends in the market: One major trend in the Canadian Enterprise Software market is the growth of the Software as a Service (SaaS) model. This is due to the flexibility and scalability offered by cloud-based solutions, which allow businesses to easily adjust their software usage based on changing needs. Another trend is the increasing use of artificial intelligence (AI) and machine learning (ML) in enterprise software solutions. This allows for more advanced data analytics and automation capabilities, improving efficiency and accuracy.

Local special circumstances: Canada has a highly skilled workforce and a strong technology sector, which has contributed to the growth of the Enterprise Software market. Additionally, the Canadian government has implemented various initiatives to support the growth of the technology industry, such as the Strategic Innovation Fund and the Digital Technology Supercluster. These initiatives provide funding for research and development, as well as support for collaboration between businesses and academic institutions.

Underlying macroeconomic factors: The Canadian economy has remained relatively stable in recent years, with a low unemployment rate and steady GDP growth. This has created a favorable environment for businesses to invest in enterprise software solutions. Additionally, the COVID-19 pandemic has accelerated the shift towards remote work and digitalization, further driving the demand for cloud-based enterprise software solutions.In conclusion, the Enterprise Software market in Canada is experiencing significant growth and development due to customer preferences for cloud-based and security-focused solutions, as well as the adoption of AI and ML capabilities. Canada's skilled workforce, strong technology sector, and government initiatives to support the industry have also contributed to this growth. The stable macroeconomic environment and the acceleration of digitalization due to the pandemic have further driven the demand for enterprise software solutions in Canada.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. 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.