Software - Luxembourg

Luxembourg

Revenue in the Software market is projected to reach US$582.50m in 2024.
Enterprise Software dominates the market with a projected market volume of US$244.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.75%, resulting in a market volume of US$728.50m 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.

For more information on the displayed data, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

Luxembourg, a small landlocked country in Western Europe, is known for its strong economy and favorable business climate. The software market in Luxembourg has been growing steadily in recent years, driven by various factors.

Customer preferences: Customers in Luxembourg, like in many developed countries, are increasingly relying on software for their daily activities. This includes software for personal use, such as social media and entertainment, as well as business use, such as productivity and collaboration tools. Additionally, there is a growing demand for software solutions in areas such as cybersecurity, artificial intelligence, and cloud computing.

Trends in the market: One trend in the software market in Luxembourg is the increasing adoption of cloud-based solutions. This is driven by the need for flexible and scalable software solutions, as well as the desire to reduce infrastructure costs. Another trend is the growing importance of cybersecurity, as both individuals and businesses are becoming more aware of the risks posed by cyber threats. Finally, there is a trend towards the use of open-source software, as it provides a cost-effective and customizable alternative to proprietary software.

Local special circumstances: Luxembourg's strong economy and favorable business climate make it an attractive location for software companies. The country has a highly skilled workforce, with many professionals working in the technology sector. Additionally, Luxembourg's central location in Europe makes it an ideal hub for companies looking to expand their operations across the continent.

Underlying macroeconomic factors: The growth of the software market in Luxembourg is supported by various macroeconomic factors. These include a stable political environment, a highly educated population, and a strong focus on innovation and technology. Additionally, Luxembourg's position as a financial center provides access to capital and investment opportunities. Finally, the country's membership in the European Union allows for free movement of goods, services, and people, creating a favorable environment for businesses operating in the software 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.