Enterprise Software - Eastern Africa

Eastern Africa

In 2024, the revenue in the Enterprise Software market in Eastern Africa is projected to reach US$614.70m.
The market is dominated by Customer Relationship Management Software, which is expected to have a market volume of US$182.10m in the same year.
Looking ahead, the revenue is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 10.53%, resulting in a market volume of US$1,014.00m by 2029.
Furthermore, it is estimated that the average Spend per Employee in the Enterprise Software market will reach US$2.74 in 2024.
When compared globally, United States is projected to generate the highest revenue, amounting to US$150.50bn in 2024.
"Eastern Africa's enterprise software market is experiencing a rapid growth fueled by the region's increasing focus on digital transformation and technology adoption."

Key regions: France, United Kingdom, Australia, Canada, South Korea

Definition:

The Enterprise Software market covers software applications designed to support essential business activities by large organizations such as enterprise resource planning, customer relationship management, business intelligence, and supply chain management.

Products in the Enterprise 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 Enterprise Software market contains eight markets that are based on the functionality of the software:

Business Intelligence Software refers to software applications that support organizations to analyze, visualize, and report data.
Content Management Software refers to a wide range of software applications that support organizations to manage their digital content such as documents, images, and videos.
Customer Relationship Management Software refers to software applications that support organizations to manage their interactions with customers, clients, and prospects.
eCommerce Software refers to a wide range of software applications that support organizations to manage their online sales channels.
Enterprise Performance Management Software refers to software solutions that help organizations to manage and improve their performance across various areas, such as finance, operations, and strategy.
Enterprise Resource Planning Software refers to software applications that support organizations to manage, integrate and optimize important business activities related to resources such as people, finance, capital, materials, and orders.
Supply Chain Management Software refers to software applications that support organizations to manage their supply chain activities such as inventory optimization, supplier and vendor management, and logistic operations.
AI Development Tool Software refers to a specialized category of software designed to facilitate the creation, testing, deployment, and management of artificial intelligence (AI) models and applications.
Other Enterprise Software refers to aggregated revenues for the types of enterprise software that are not specifically mentioned in the other Enterprise Software markets, such as Project Management Software, Product Life Cycle Management Software, and Production and Operation Software.

Additional Information:

The Enterprise Software market comprises revenue and revenue growth 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 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 SAP, Salesforce, Adobe, and Oracle.

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Analyst Opinion

The Enterprise Software market in Eastern Africa is experiencing significant growth in recent years.

Customer preferences: Customers in Eastern Africa are increasingly seeking enterprise software solutions that can help them enhance their business operations and improve their overall productivity. They are looking for software solutions that can help them streamline their processes, automate their workflows, and improve their decision-making capabilities. Additionally, customers are also looking for software solutions that are easy to use, scalable, and cost-effective.

Trends in the market: The Enterprise Software market in Eastern Africa is witnessing a number of key trends. Firstly, there is a growing demand for cloud-based software solutions, as businesses in the region look to move away from traditional on-premise software solutions. This is due to the numerous benefits that cloud-based solutions offer, including lower upfront costs, greater scalability, and increased flexibility. Secondly, there is a growing trend towards the adoption of mobile enterprise software solutions, as businesses in the region look to enable their employees to work remotely and be more productive on-the-go. Finally, there is a growing trend towards the adoption of artificial intelligence (AI) and machine learning (ML) technologies, as businesses in the region look to leverage these technologies to improve their decision-making capabilities and enhance their overall productivity.

Local special circumstances: Eastern Africa is a diverse region, with each country having its own unique set of circumstances and challenges. For example, countries such as Kenya and Rwanda have a highly developed technology sector, with a number of successful tech startups and a growing pool of skilled tech workers. This has led to a thriving enterprise software market in these countries, with a number of local and international software vendors competing for market share. On the other hand, countries such as Somalia and South Sudan are still recovering from years of conflict and instability, and as such, the enterprise software market in these countries is still in its infancy.

Underlying macroeconomic factors: There are a number of underlying macroeconomic factors that are driving the growth of the enterprise software market in Eastern Africa. Firstly, the region has a young and growing population, with a large proportion of the population under the age of 25. This has led to a growing demand for technology and digital solutions, as younger generations are more tech-savvy and are increasingly looking for ways to leverage technology to improve their lives. Secondly, the region has experienced significant economic growth in recent years, with many countries in the region experiencing GDP growth rates of over 5%. This has led to a growing middle class, which has in turn led to increased demand for enterprise software solutions. Finally, the region has seen significant investment in its technology sector in recent years, with a number of local and international investors backing tech startups and established tech companies in the region. This has led to a thriving technology ecosystem, which has helped to drive the growth of the enterprise software market in Eastern Africa.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. 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.