Software - Algeria

Algeria

In Algeria, the projected revenue in the Software market is expected to reach US$739.70m in 2024.
The market is predominantly dominated by Enterprise Software , with a projected market volume of US$296.70m in the same year.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 4.32%, resulting in a market volume of US$914.00m by 2029.
When compared globally, United States is expected to generate the highest revenue, amounting to US$363.40bn in 2024.
Algeria is experiencing a growing demand for software solutions as businesses embrace digital transformation to drive efficiency and productivity.

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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Analyst Opinion

The Software market in Algeria is experiencing growth due to various factors.

Customer preferences: Algerian customers are increasingly adopting software solutions to improve their business processes. The demand for software solutions is driven by the need for automation, digitization, and optimization of business operations. Companies are looking for software solutions that can help them streamline their operations, reduce costs, and increase efficiency. Additionally, the government's push for digital transformation is also driving the demand for software solutions.

Trends in the market: One of the major trends in the software market in Algeria is the adoption of cloud-based solutions. Cloud-based solutions offer several benefits such as scalability, flexibility, and cost-effectiveness. Companies are increasingly moving towards cloud-based solutions to reduce their IT infrastructure costs and improve their agility. Another trend in the market is the adoption of mobile applications. With the increasing use of smartphones, companies are developing mobile applications to reach their customers and improve their engagement.

Local special circumstances: The software market in Algeria is characterized by the dominance of local players. Algerian companies prefer to work with local software providers who have a better understanding of the local market and can provide customized solutions. Additionally, the lack of IT infrastructure and the limited availability of skilled IT professionals are also driving the demand for software solutions.

Underlying macroeconomic factors: The Algerian economy is heavily dependent on the oil and gas sector, which accounts for a significant portion of the country's GDP. However, the government is looking to diversify the economy and reduce its dependence on the oil and gas sector. One of the key areas of focus is the development of the IT sector. The government has launched several initiatives to promote the development of the IT sector, such as tax incentives for IT companies and the establishment of technology parks. These initiatives are expected to drive the growth of the software market in Algeria.

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.