Enterprise Software - Europe

Europe

Revenue in the Enterprise Software market is projected to reach US$65.38bn in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$19.45bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.84%, resulting in a market volume of US$85.18bn by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$162.60 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 Europe has been on a steady rise in the past few years, driven by a number of factors including increased adoption of cloud-based solutions, digital transformation initiatives, and the growing need for automation and efficiency in business processes.

Customer preferences: Customers in Europe are increasingly demanding software solutions that are easy to use, flexible, and scalable. Cloud-based solutions are particularly popular as they offer greater flexibility, lower costs, and easier access to data. Additionally, there is a growing demand for software solutions that can integrate with other systems and applications, allowing for greater automation and efficiency.

Trends in the market: In Germany, the Enterprise Software market is being driven by the country's strong manufacturing sector, which is adopting Industry 4.0 technologies to increase automation and efficiency. In the UK, Brexit uncertainty is leading to a slowdown in IT spending, but businesses are still investing in cloud-based solutions to reduce costs and increase flexibility. France is seeing a growing demand for software solutions that can help businesses comply with new data privacy regulations, such as GDPR. In Eastern Europe, there is a growing startup ecosystem that is driving innovation in the Enterprise Software market.

Local special circumstances: One of the unique challenges facing the Enterprise Software market in Europe is the patchwork of data privacy regulations across the continent. The EU's General Data Protection Regulation (GDPR) has set a high bar for data protection, but individual countries still have their own regulations that must be followed. Additionally, Brexit is creating uncertainty for businesses in the UK and Europe, which may lead to a slowdown in IT spending in the short term.

Underlying macroeconomic factors: The European economy is generally stable, with low unemployment and moderate GDP growth. However, there are some concerns about the impact of Brexit on the overall economy, and the ongoing trade tensions between the US and China could also have an impact on European businesses. Despite these challenges, the Enterprise Software market in Europe is expected to continue growing as businesses look for ways to increase efficiency and stay competitive in a rapidly changing digital landscape.

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.