Software - Cyprus

Cyprus

In 2024, the projected revenue in the Software market in Cyprus is expected to reach US$63.12m.
The dominant player in this market segment is Enterprise Software , which is projected to have a market volume of US$25.79m in 2024.
Looking ahead, the revenue is expected to grow at an annual growth rate of 4.69% (CAGR 2024-2029), resulting in a market volume of US$79.38m by 2029.
When compared globally, United States is expected to generate the highest revenue in the Software market, reaching US$363.40bn in 2024.
Cyprus is emerging as a hub for software development due to its skilled workforce and favorable business environment.

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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Currency

Analyst Opinion

The software market in Cyprus has been experiencing steady growth over the past few years.

Customer preferences: Cyprus has a small but growing software market, with a preference for cloud-based software solutions. Customers in Cyprus are looking for software that is easy to use, secure, and cost-effective. The demand for software solutions that can be accessed from anywhere and on any device has been increasing.

Trends in the market: One of the biggest trends in the software market in Cyprus is the increasing adoption of cloud-based software solutions. This is due to the numerous benefits that cloud-based software offers, such as scalability, flexibility, and cost-effectiveness. Another trend is the growing use of artificial intelligence and machine learning in software development. This has led to the development of software that can learn and adapt to user behavior, making it more personalized and efficient.

Local special circumstances: Cyprus has a small market size, which means that software companies have to compete for a limited number of customers. However, the country's strategic location and favorable business environment make it an attractive destination for software companies looking to expand their operations in the region. Additionally, the government has been actively promoting the development of the country's technology sector, which has led to increased investment in the industry.

Underlying macroeconomic factors: Cyprus has a growing economy, which has been recovering from the 2012 financial crisis. The country's strategic location, favorable tax regime, and business-friendly environment have made it an attractive destination for foreign investors. This has led to increased investment in the technology sector, which has contributed to the growth of the software market in the country. Additionally, the government has been actively promoting the development of the country's technology sector, which has led to increased investment in the industry.

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.