Enterprise Software - Ethiopia

Ethiopia

In 2024, the projected revenue for the Enterprise Software market in Ethiopia is expected to reach US$208.80m.
Among the various software segments within this market, Customer Relationship Management Software stands out with a projected market volume of US$57.59m in the same year.
Looking ahead, the revenue is anticipated to demonstrate a compound annual growth rate (CAGR 2024-2029) of 12.33%, resulting in a market volume of US$373.50m by 2029.
When it comes to the average Spend per Employee in the Ethiopian Enterprise Software market, it is projected to reach US$3.32 in 2024.
In a global comparison, United States is expected to generate the highest revenue, reaching US$150.50bn in 2024.
Ethiopia's Enterprise Software market is rapidly expanding, driven by the government's focus on digital transformation and the growing demand for technology solutions in the country's emerging business sector.

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

Ethiopia, a country located in the Horn of Africa, is experiencing a rise in the demand for enterprise software.

Customer preferences: The Ethiopian market for enterprise software is characterized by a growing demand for cloud-based solutions. This is due to the increasing number of small and medium-sized enterprises (SMEs) that are looking for cost-effective solutions to manage their operations. Additionally, there is a preference for software that can be easily integrated with existing systems, as well as software that is user-friendly and requires minimal training.

Trends in the market: One of the major trends in the Ethiopian market for enterprise software is the adoption of mobile applications. With the increasing use of smartphones and tablets, businesses are looking for software that can be accessed from anywhere, at any time. This has led to the development of mobile applications that allow users to manage their operations on-the-go. Another trend is the rise of artificial intelligence (AI) and machine learning (ML) in enterprise software. Businesses are looking for software that can help them automate their processes and make data-driven decisions.

Local special circumstances: One of the challenges facing the Ethiopian market for enterprise software is the lack of infrastructure. While there has been significant investment in the country's telecommunications sector in recent years, there is still a need for better internet connectivity and more reliable power sources. Additionally, there is a shortage of skilled IT professionals, which has led to a reliance on foreign talent.

Underlying macroeconomic factors: Ethiopia is one of the fastest-growing economies in Africa, with a GDP growth rate of over 8% in 2019. This growth is being driven by a number of factors, including a growing population, increased investment in infrastructure, and a push to diversify the economy. Additionally, the government has implemented a number of policies aimed at promoting the growth of SMEs, which has led to an increase in demand for enterprise software.

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.