Enterprise Software - China

China

Revenue in the Enterprise Software market is projected to reach US$16.98bn in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$5.36bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 13.21%, resulting in a market volume of US$27.89bn by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$21.45 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 China has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Chinese customers are increasingly demanding sophisticated enterprise software solutions that can help them manage their businesses more efficiently. This has led to a surge in demand for cloud-based software solutions, which offer greater flexibility and scalability than traditional on-premise software.

Trends in the market: One of the key trends in the Chinese Enterprise Software market is the growing popularity of Software-as-a-Service (SaaS) solutions. These cloud-based solutions offer a range of benefits, including lower costs, greater flexibility, and easier scalability. As a result, many businesses in China are now adopting SaaS solutions to manage their operations.Another trend in the market is the increasing use of artificial intelligence (AI) and machine learning (ML) technologies in enterprise software. These technologies can help businesses automate routine tasks, improve decision-making, and enhance overall productivity. As a result, many software vendors in China are now incorporating AI and ML capabilities into their products.

Local special circumstances: One of the unique challenges facing the Enterprise Software market in China is the country's complex regulatory environment. Foreign software vendors must navigate a range of regulatory hurdles in order to operate in China, including strict data localization requirements and restrictions on the use of certain technologies.

Underlying macroeconomic factors: The growth of the Enterprise Software market in China is being driven by several underlying macroeconomic factors. These include the country's rapidly expanding middle class, which is driving demand for more sophisticated software solutions, as well as the government's ongoing efforts to promote digital transformation and innovation in the business sector. Additionally, the rise of China's tech giants, such as Alibaba and Tencent, has helped to drive innovation and investment in the Enterprise Software market.

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.