Software - Benelux

Benelux

In the year 2024, the projected revenue in the Software market of Benelux is set to reach an impressive US$14.34bn.
It is worth noting that within this market segment, Enterprise Software holds a dominant position, with a projected market volume of US$5.95bn in the same year.
Looking ahead, the revenue is expected to display a steady annual growth rate, specifically a Compound Annual Growth Rate (CAGR) of 3.55% between 2024 and 2029.
This growth will ultimately result in a market volume of US$17.07bn by the year 2029.
When comparing the global landscape, it is interesting to observe that United States is projected to generate the highest revenue.
In 2024 alone, United States is expected to generate a substantial revenue of US$363.40bn.
The demand for software development services in the Benelux region is steadily increasing, driven by a thriving tech startup ecosystem.

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 Benelux has been experiencing significant growth over the past few years.

Customer preferences: Customers in Benelux are increasingly looking for software solutions that are easy to use, customizable, and can be integrated with other systems. They also prefer software that is cloud-based and can be accessed from anywhere, anytime. Additionally, there is a growing demand for software that can help businesses improve their productivity and efficiency, such as project management software and collaboration tools.

Trends in the market: One of the major trends in the Software market in Benelux is the increasing adoption of Software as a Service (SaaS) model. Businesses are shifting towards cloud-based software solutions, as it provides them with flexibility and scalability. Another trend is the growing popularity of open-source software, which is free to use and can be customized according to the user's needs. Furthermore, there is a rising demand for artificial intelligence (AI) and machine learning (ML) software, which can help businesses automate their processes and make data-driven decisions.

Local special circumstances: The Software market in Benelux is unique in that it consists of three countries - Belgium, Netherlands, and Luxembourg - each with its own language and culture. This means that software providers need to tailor their products to suit the local market. Additionally, the region has a high concentration of small and medium-sized enterprises (SMEs), which make up a significant portion of the market. These SMEs have specific needs and budgets, which software providers need to take into consideration.

Underlying macroeconomic factors: The Software market in Benelux is being driven by several macroeconomic factors. Firstly, the region has a highly developed IT infrastructure, which provides a conducive environment for software providers. Secondly, there is a high level of digitalization in the region, with businesses and consumers increasingly using digital platforms for their activities. Thirdly, the region has a highly skilled workforce, which is well-equipped to handle complex software solutions. Finally, the region has a stable political and economic environment, which provides a secure and predictable market for software providers.

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.