Software - Kazakhstan

Kazakhstan

Revenue in the Software market is projected to reach US$693.00m in 2024.
Enterprise Software dominates the market with a projected market volume of US$289.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.08%, resulting in a market volume of US$813.30m 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

Kazakhstan, the world's largest landlocked country, has been experiencing a steady growth in its software market in recent years.

Customer preferences: Kazakhstan's software market is driven by the increasing demand for software solutions across various industries. In particular, the government's digitalization efforts have led to a surge in demand for software solutions in the public sector. Additionally, the country's growing e-commerce sector has also contributed to the demand for software solutions, including e-commerce platforms, payment gateways, and logistics management systems.

Trends in the market: One of the key trends in the software market in Kazakhstan is the increasing adoption of cloud-based solutions. This trend is driven by the need for cost-effective and scalable software solutions, as well as the growing awareness of the benefits of cloud computing. Another trend is the growing importance of cybersecurity, as businesses and organizations seek to protect their data from cyber threats.

Local special circumstances: Kazakhstan's software market is characterized by a relatively small number of local software vendors. As a result, many businesses and organizations rely on foreign software vendors to meet their software needs. This presents an opportunity for local software vendors to develop and offer software solutions that cater to the unique needs of the Kazakh market.

Underlying macroeconomic factors: Kazakhstan's software market is influenced by several macroeconomic factors, including the country's GDP growth, foreign investment, and government policies. The government's efforts to promote digitalization and innovation have created a favorable environment for the growth of the software market. Additionally, the country's strategic location at the crossroads of Europe and Asia, as well as its abundant natural resources, have attracted foreign investment and contributed to its economic growth.In conclusion, Kazakhstan's software market is poised for further growth in the coming years, driven by the increasing demand for software solutions across various industries, the adoption of cloud-based solutions, and the growing importance of cybersecurity. The country's relatively small number of local software vendors presents an opportunity for local players to develop and offer software solutions that cater to the unique needs of the Kazakh market.

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.