Enterprise Software - Malaysia

Malaysia

Revenue in the Enterprise Software market is projected to reach US$1,065.00m in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$320.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.76%, resulting in a market volume of US$1,490.00m by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$62.80 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 Malaysia has been growing steadily over the past few years, driven by a number of factors.

Customer preferences: One of the key drivers of growth in the Enterprise Software market in Malaysia is the increasing demand for cloud-based solutions. Many businesses in Malaysia are looking to move away from traditional on-premise software solutions and are instead opting for cloud-based solutions that offer greater flexibility and scalability. This is particularly true for small and medium-sized enterprises (SMEs) who are looking for cost-effective solutions that can help them compete with larger players in the market.

Trends in the market: Another trend that is driving growth in the Enterprise Software market in Malaysia is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to improve business processes and drive innovation, particularly in industries such as finance and healthcare. Additionally, there is a growing trend towards the use of mobile devices and applications, which is driving demand for mobile-first enterprise software solutions.

Local special circumstances: One of the unique characteristics of the Enterprise Software market in Malaysia is the dominance of local players. While international software vendors such as Microsoft and SAP are present in the market, they face strong competition from local players who have a deep understanding of the local market and can offer tailored solutions to meet the specific needs of Malaysian businesses. This has led to a highly competitive market, with vendors competing on price, features, and customer service.

Underlying macroeconomic factors: The growth of the Enterprise Software market in Malaysia is also being driven by broader macroeconomic factors. Malaysia has a rapidly growing economy, with a young and tech-savvy population that is driving demand for innovative software solutions. Additionally, the government has been actively promoting the adoption of digital technologies as part of its efforts to drive economic growth and improve competitiveness. This has led to a favorable regulatory environment for software vendors, with initiatives such as the Digital Free Trade Zone (DFTZ) providing incentives for businesses to adopt digital technologies.Overall, the Enterprise Software market in Malaysia is poised for continued growth in the coming years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As businesses in Malaysia continue to embrace digital technologies, the demand for innovative software solutions is likely to continue to grow, providing opportunities for both local and international vendors.

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.