Enterprise Software - D-A-CH

D-A-CH

Revenue in the Enterprise Software market is projected to reach US$17.07bn in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$5.06bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.90%, resulting in a market volume of US$20.67bn by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$323.30 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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Region

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Currency

Analyst Opinion

The Enterprise Software market in D-A-CH is one of the most mature and developed markets in Europe, with a high level of digitalization and technological advancement.

Customer preferences: Customers in D-A-CH have a strong preference for high-quality, reliable and secure enterprise software solutions. They are willing to pay a premium for software that is tailored to their specific needs and provides a high level of functionality and integration with other systems. Cloud-based solutions are becoming increasingly popular, as they offer greater flexibility, scalability and cost-effectiveness. However, data security and privacy concerns remain a key consideration for many customers.

Trends in the market: The Enterprise Software market in Germany is characterized by a strong focus on Industry 4.0 and the Internet of Things (IoT), with a particular emphasis on automation, robotics and artificial intelligence. This is driven by the country's strong manufacturing base and a desire to maintain a competitive edge in the global market. In Switzerland, the focus is on financial technology (fintech) and blockchain solutions, reflecting the country's position as a global financial center. Austria has a strong tradition in software development and is home to a number of innovative start-ups, with a particular focus on cloud-based solutions and software-as-a-service (SaaS) models.

Local special circumstances: One of the key challenges facing the Enterprise Software market in D-A-CH is the shortage of skilled IT professionals, particularly in areas such as cybersecurity, data analytics and software development. This is driving up the cost of talent and making it more difficult for companies to recruit and retain the best people. Another challenge is the complex regulatory environment, which varies from country to country and can make it difficult for companies to navigate the market.

Underlying macroeconomic factors: The Enterprise Software market in D-A-CH is closely linked to the broader macroeconomic environment, which is characterized by a strong focus on innovation, digitalization and technological advancement. The region has a highly skilled workforce, a strong tradition of engineering and innovation, and a stable political and economic environment. This has helped to create a favorable climate for investment and growth in the Enterprise Software market, with many companies choosing to establish a presence in the region to take advantage of these factors. However, the ongoing impact of the COVID-19 pandemic and the uncertainty surrounding Brexit are creating some headwinds for the market, particularly in terms of supply chain disruptions and changes to regulatory frameworks.

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.