Software - Australia

Australia

The projected revenue in the Software market in Australia is estimated to reach US$11.86bn in 2024.
The dominant player in this market segment is Enterprise Software , with a projected market volume of US$5.00bn in 2024.
It is expected that the revenue will show an annual growth rate (CAGR 2024-2029) of 4.39%, resulting in a market volume of US$14.70bn by 2029.
In comparison to other countries, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
Australia's software market is experiencing a surge in demand for cloud-based solutions, driven by the country's tech-savvy population and increasing emphasis on remote work.

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 Australia has been experiencing steady growth in recent years.

Customer preferences: Australian customers have shown a preference for software products that are user-friendly, efficient, and provide a high level of security. This has led to an increase in demand for cloud-based software solutions that can be accessed from anywhere and on any device. Additionally, there has been a shift towards software that can be customized to meet individual business needs.

Trends in the market: One of the key trends in the Australian software market is the rise of artificial intelligence (AI) and machine learning (ML) technologies. Many businesses are adopting these technologies to improve their operations and gain a competitive edge. Another trend is the increasing use of software in the healthcare sector, with a focus on telehealth and remote patient monitoring.

Local special circumstances: Australia has a relatively small population compared to other developed countries, which has led to a highly concentrated software market. This has created opportunities for niche software providers to cater to specific industries and customer segments. Additionally, the country's geographic isolation has resulted in a greater reliance on technology for communication and collaboration, further driving demand for software solutions.

Underlying macroeconomic factors: Australia's strong economy and stable political environment have contributed to the growth of the software market. The country has a highly skilled workforce and a favorable business environment, which has attracted many software companies to establish a presence in the country. The government has also been supportive of the industry, providing funding and incentives for research and development. However, the COVID-19 pandemic has had a significant impact on the market, with many businesses accelerating their digital transformation efforts and increasing their reliance on 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.