Software - GCC

Revenue in the Software market is projected to reach US$4.19bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$1.75bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.88%, resulting in a market volume of US$4.88bn by 2028.
In global comparison, most revenue will be generated in the United States (US$353.50bn in 2024).

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the 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 market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change 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 Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Software market in GCC has been witnessing significant growth in recent years, driven by various factors such as the growing adoption of cloud computing, increasing investments in digital transformation, and the rise of mobile devices.

Customer preferences: Customers in the GCC region are increasingly looking for software solutions that can help them streamline their business operations, reduce costs, improve efficiency, and enhance customer experience. They are also looking for software solutions that are user-friendly, scalable, and secure. Moreover, customers in the GCC region are increasingly adopting cloud-based software solutions, as they offer greater flexibility, scalability, and cost-effectiveness compared to on-premise solutions.

Trends in the market: One of the key trends in the Software market in GCC is the growing adoption of cloud computing. Cloud-based software solutions are gaining popularity among businesses in the GCC region, as they offer several benefits such as lower costs, greater flexibility, and improved scalability. Another trend in the market is the increasing investment in digital transformation. Many businesses in the GCC region are investing heavily in digital transformation initiatives to stay competitive and meet the evolving needs of their customers. Additionally, the rise of mobile devices is also driving the growth of the Software market in GCC, as businesses are increasingly adopting mobile-first strategies to engage with their customers and employees.

Local special circumstances: The GCC region has a unique business environment, characterized by a high degree of government involvement and a large number of small and medium-sized enterprises (SMEs). This has created a significant demand for software solutions that can help SMEs automate their business processes, improve their productivity, and enhance their competitiveness. Moreover, the GCC region has a large expatriate population, which has created a demand for software solutions that can help businesses manage their workforce, including payroll, benefits, and performance management.

Underlying macroeconomic factors: The Software market in GCC is also being driven by various macroeconomic factors, such as the growing GDP of the region, the increasing investments in infrastructure development, and the rising demand for digital services. Moreover, the GCC region is home to several large and rapidly growing industries, such as oil and gas, construction, and tourism, which are driving the demand for software solutions that can help them manage their operations more efficiently and effectively. Additionally, the GCC region has a young and tech-savvy population, which is driving the adoption of digital technologies and creating a growing demand for software solutions.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.