Software

Bahrain

Highlights

The Software market in Bahrain is estimated to achieve a revenue of US$118.50m in 2024.
Among the various segments, Enterprise Software holds the dominant position, with a projected market volume of US$49.65m in the same year.
Looking ahead, the market is anticipated to experience a steady annual growth rate (CAGR 2024-2029) of 4.66%, resulting in a market volume of US$148.80m by 2029.
In terms of global comparison, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
Bahrain's software market is experiencing a surge in demand for cloud-based solutions, driving innovation and digital transformation across industries.

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Bahrain, a small island nation in the Persian Gulf, has been experiencing a steady growth in its Software market over the past few years.

Customer preferences: The customer preferences in Bahrain are similar to those of other countries in the Gulf region. Bahraini customers prioritize user-friendly software with a strong emphasis on security and data privacy. Furthermore, there is a growing demand for cloud-based software solutions that can be accessed remotely, as well as mobile applications that can be used on-the-go.

Trends in the market: One of the key trends in the Bahraini Software market is the growing adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies. Many businesses in Bahrain are looking to leverage these technologies to improve their operations and gain a competitive edge. Additionally, there is an increasing demand for Software-as-a-Service (SaaS) solutions, which offer a more cost-effective and flexible alternative to traditional software licensing models.

Local special circumstances: Bahrain is home to a number of technology-focused initiatives, such as the Bahrain FinTech Bay and the Bahrain Economic Development Board. These initiatives are aimed at promoting innovation and entrepreneurship in the technology sector, and have helped to create a supportive environment for software companies to thrive. Furthermore, Bahrain's location at the crossroads of the Gulf region has made it a hub for trade and commerce, which has helped to attract foreign investment and stimulate the growth of the local software market.

Underlying macroeconomic factors: Bahrain's economy is heavily reliant on the oil and gas industry, which has been facing challenges in recent years due to fluctuations in global oil prices. As a result, the government has been looking to diversify the economy and promote the growth of non-oil sectors, such as technology. This has led to increased investment in the technology sector and the development of a supportive regulatory environment for software companies. Additionally, Bahrain's young and tech-savvy population has helped to drive demand for software solutions, particularly in areas such as e-commerce and digital payments.

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.