Software - Asia

Asia

Revenue in the Software market is projected to reach US$121.40bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$51.04bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.92%, resulting in a market volume of US$164.70bn 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 Asia has been rapidly developing over the past few years, with a variety of factors contributing to its growth.

Customer preferences: One major factor driving the growth of the Software market in Asia is the increasing demand for cloud-based solutions. As more businesses in the region look to digitize their operations, they are turning to cloud-based software as a way to streamline their processes and reduce costs. Additionally, there is a growing preference for Software-as-a-Service (SaaS) models, which offer greater flexibility and scalability than traditional software licensing models.

Trends in the market: The Software market in Asia is seeing significant growth in certain countries, particularly China and India. In China, the government's "Made in China 2025" initiative has been a major driver of growth in the software industry, with a focus on developing high-tech industries such as artificial intelligence and the Internet of Things. In India, the government's "Digital India" campaign has been a key driver of growth, with a focus on expanding broadband connectivity and promoting the use of digital technologies in all aspects of the economy.

Local special circumstances: In addition to government initiatives, there are also a number of local special circumstances driving the growth of the Software market in Asia. For example, in Japan, there is a growing demand for software that can help address the country's aging population and shrinking workforce. In South Korea, there is a focus on developing software for the gaming and entertainment industries, which are major drivers of the country's economy.

Underlying macroeconomic factors: Underlying macroeconomic factors are also contributing to the growth of the Software market in Asia. For example, the region's rapidly expanding middle class is driving demand for software that can help improve productivity and quality of life. Additionally, the region's young and tech-savvy population is creating a fertile ground for the development of new software products and services. Finally, the region's relatively low labor costs and high levels of technological innovation are making it an attractive destination for software development and outsourcing.

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.