Software - CIS

In 2024, the revenue in the Software market is projected to reach US$6.13bn.
The dominant player in this market segment is Enterprise Software , with a projected market volume of US$2.60bn in 2024.
Looking ahead, the revenue is expected to grow at an annual rate of 4.37% from 2024 to 2029, resulting in a market volume of US$7.59bn by 2029.
When comparing the global market, it is worth noting that United States will generate the most revenue, reaching US$363.40bn in 2024.
The software market in the CIS region is experiencing significant growth due to increased government support and investment in digital infrastructure.

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 demand for software in the Commonwealth of Independent States (CIS) has been increasing steadily over the past few years, with many countries in the region experiencing significant growth in the sector.

Customer preferences: One of the main reasons for this growth is the increasing demand for digital solutions in various industries. Businesses are looking to optimize their operations and improve efficiency through the use of software. Additionally, the rise of e-commerce and digital payments has also contributed to the growth of the software market in CIS.

Trends in the market: One of the key trends in the software market in CIS is the increasing adoption of cloud-based solutions. This is due to the many benefits that cloud-based software offers, such as scalability, flexibility, and cost-effectiveness. Many businesses in the region are now opting for cloud-based solutions over traditional on-premise software.Another trend in the market is the growing popularity of mobile applications. With the increasing use of smartphones and tablets, businesses are looking to develop mobile applications to reach a wider audience and provide better customer experiences.

Local special circumstances: One of the unique characteristics of the software market in CIS is the dominance of local players. Many businesses in the region prefer to work with local software providers, who have a better understanding of the local market and can provide more tailored solutions. This has created a thriving ecosystem of local software companies, which are competing with international players in the region.

Underlying macroeconomic factors: The growth of the software market in CIS is also driven by the region's economic development. Many countries in the region are experiencing significant economic growth, which has led to increased investment in technology and digital infrastructure. Additionally, the region's large population and growing middle class are creating a growing demand for digital solutions.In conclusion, the software market in CIS is experiencing significant growth, driven by increasing demand for digital solutions, the adoption of cloud-based software, and the growing popularity of mobile applications. The dominance of local players and the region's economic development are also contributing to the growth of the sector.

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.