Enterprise Software - Worldwide

Worldwide

Revenue in the Enterprise Software market is projected to reach US$292.00bn in 2024.
Customer Relationship Management Software dominates the market with a projected market volume of US$88.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.55%, resulting in a market volume of US$376.40bn by 2028.
The average Spend per Employee in the Enterprise Software market is projected to reach US$83.24 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 is a rapidly growing industry that is constantly evolving to meet the needs of businesses worldwide. With the increasing demand for digital transformation, the market has seen significant growth in recent years.

Customer preferences: Customers are increasingly looking for software solutions that are flexible, scalable, and easy to use. They want software that can be customized to meet their specific needs, and that can integrate with other systems seamlessly. Cloud-based solutions are becoming increasingly popular, as they offer greater flexibility and scalability than traditional on-premise solutions. Customers are also looking for software solutions that can help them streamline their operations, reduce costs, and improve their bottom line.

Trends in the market: In North America, the Enterprise Software market is dominated by the United States, which is home to many of the world's largest software companies. The market in the US is driven by the demand for cloud-based solutions, as well as the increasing adoption of artificial intelligence and machine learning technologies. In Europe, the market is driven by the increasing demand for digital transformation, as well as the need for software solutions that can help businesses comply with the General Data Protection Regulation (GDPR). In Asia-Pacific, the market is driven by the increasing adoption of cloud-based solutions, as well as the growing number of small and medium-sized enterprises (SMEs) in the region.

Local special circumstances: In China, the Enterprise Software market is dominated by domestic companies, due to government restrictions on foreign companies operating in the country. The market is driven by the increasing demand for cloud-based solutions, as well as the growing number of SMEs in the country. In India, the market is driven by the increasing adoption of mobile devices, as well as the growing number of startups in the country. The market in Latin America is driven by the increasing demand for software solutions that can help businesses comply with local regulations, as well as the need for solutions that can help businesses manage their operations more efficiently.

Underlying macroeconomic factors: The Enterprise Software market is driven by a number of underlying macroeconomic factors, including GDP growth, technological innovation, and government regulations. In many countries, the market is driven by the increasing demand for digital transformation, as businesses look to improve their operations and stay competitive in an increasingly digital world. The market is also driven by the increasing adoption of cloud-based solutions, as businesses look to reduce costs and improve their flexibility. Finally, the market is influenced by government regulations, which can impact the adoption of certain types of software solutions, as well as the ability of foreign companies to operate in certain markets.

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.