Software - Central Africa

Central Africa

In Central Africa, the revenue in the Software market is projected to reach US$634.90m in 2024.
The market is dominated by Enterprise Software , which is expected to have a market volume of US$270.70m in the same year.
Looking ahead, the revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.97%, resulting in a market volume of US$809.10m by 2029.
It is worth noting that in a global comparison, United States is expected to generate the highest revenue, with an estimated amount of US$363.40bn in 2024.
Central Africa is experiencing a surge in demand for software solutions, driven by increasing digitization efforts in sectors such as healthcare and education.

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 Central African region has experienced a significant shift in technology adoption over the last decade, with the software market being a major beneficiary.

Customer preferences: Customers in Central Africa have shown a growing preference for software products that are easy to use and affordable. This has led to an increase in demand for cloud-based software solutions that do not require expensive hardware installations. Additionally, customers are increasingly seeking software products that can be customized to meet their specific needs.

Trends in the market: The software market in Central Africa has experienced significant growth in recent years, with the rise in demand for cloud-based solutions being a major driver. The market has also witnessed an increase in the number of local software developers, who are creating customized software solutions for businesses in the region. Furthermore, the adoption of mobile technology has led to the growth of mobile software applications, which are becoming increasingly popular among consumers.

Local special circumstances: The software market in Central Africa is characterized by a lack of infrastructure, limited access to funding, and low levels of digital literacy. These factors have made it difficult for software companies to penetrate the market, particularly in rural areas. However, the rise of mobile technology has enabled software companies to reach a wider audience, even in remote areas.

Underlying macroeconomic factors: The Central African region has experienced significant economic growth over the last decade, which has led to an increase in disposable income and consumer spending. This has created a favorable environment for software companies, as consumers are increasingly willing to invest in technology products. Additionally, the region has seen an increase in foreign investment, which has provided software companies with access to funding and expertise. However, political instability and corruption remain major challenges for businesses operating in the region.

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.