Software

Croatia

Highlights

The Software market in Croatia is expected to reach a projected revenue of US$315.20m in 2024.
Among the various segments, Enterprise Software dominates with a projected market volume of US$130.60m in the same year.
The market is anticipated to grow at an annual growth rate of 4.63% (CAGR 2024-2029), resulting in a market volume of US$395.20m by 2029.
It is worth noting that in global comparison, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
Croatia is emerging as a hotbed for software development, attracting international talent and fostering a thriving tech startup ecosystem.

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

Croatia, a country in Southeast Europe, has been experiencing a steady growth in its software market in recent years.

Customer preferences: Croatia's software market has been driven by the growing demand for cloud-based software solutions. Businesses are increasingly adopting cloud-based software solutions due to their scalability, flexibility, and cost-effectiveness. Additionally, the increasing adoption of mobile devices has led to a rise in demand for mobile applications. Croatian consumers are increasingly relying on mobile applications for various services such as food delivery, ride-hailing, and online shopping.

Trends in the market: One of the key trends in Croatia's software market is the growth of the cybersecurity software segment. With the increasing number of cyber threats, businesses are investing more in cybersecurity software to protect their networks and systems. Another trend is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Croatian businesses are using AI and ML to improve their operations, enhance customer experiences, and gain a competitive advantage.

Local special circumstances: Croatia's software market is relatively small compared to other European countries. However, the country has a highly skilled workforce in the IT sector. The Croatian government has also been implementing policies to support the growth of the software industry. For example, the government has introduced tax incentives for software development companies and has invested in the development of IT infrastructure.

Underlying macroeconomic factors: Croatia's software market growth can be attributed to its improving macroeconomic conditions. In recent years, the country has experienced a stable economic growth rate, low inflation, and decreasing unemployment rates. Additionally, Croatia's accession to the European Union has opened up new opportunities for businesses in the country. The country has also been investing in digital infrastructure, which has created a favorable environment for the growth of the software industry.

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.