Enterprise Software - South Africa

South Africa

Revenue in the Enterprise Software market is projected to reach US$1,075.00m in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$325.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.45%, resulting in a market volume of US$1,329.00m by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$43.29 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 South Africa has been experiencing significant growth in recent years, driven by a number of factors unique to the region.

Customer preferences: South African businesses have shown a growing preference for cloud-based enterprise software solutions, as they offer greater flexibility and scalability, as well as cost savings compared to traditional on-premise software. Additionally, there has been a trend towards integrated enterprise software suites that offer a range of functionalities, such as customer relationship management, enterprise resource planning, and supply chain management, all in one package.

Trends in the market: One of the key trends in the South African Enterprise Software market has been the increasing adoption of artificial intelligence and machine learning technologies. These technologies are being used to automate processes and improve decision-making capabilities, helping businesses to operate more efficiently and effectively. Another trend has been the growing importance of data analytics and business intelligence, as companies seek to gain deeper insights into customer behavior and market trends.

Local special circumstances: South Africa has a unique business environment, with a large number of small and medium-sized enterprises (SMEs) operating alongside larger corporations. This has created a demand for enterprise software solutions that are tailored to the needs of SMEs, such as affordable pricing and ease of use. Additionally, there has been a growing focus on digital transformation in the region, as businesses seek to modernize their operations and keep up with global competitors.

Underlying macroeconomic factors: The South African Enterprise Software market is being driven by a number of macroeconomic factors, including a growing economy, rising levels of foreign investment, and an increasingly tech-savvy workforce. Additionally, the government has been investing heavily in infrastructure and technology initiatives, such as the rollout of high-speed internet and the development of innovation hubs, which are helping to drive the growth of the tech sector as a whole.

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.