Enterprise Software - G7

The Enterprise Software market is set to achieve a remarkable revenue of US$208.70bn in the year 2024.
Amongst the various software segments, Customer Relationship Management Software stands out as the dominant force, with an estimated market volume of US$62.61bn in 2024.
It is projected that the revenue will witness a steady annual growth rate of 5.40% from 2024 to 2029, resulting in a market volume of US$271.50bn by the year 2029.
An interesting metric to consider is the average Spend per Employee in the Enterprise Software market, which is expected to reach US$518.20 in 2024.
In terms of global comparison, United States, as a member of the G7, is anticipated to generate the highest revenue, amounting to US$150.50bn in the year 2024.
In the G7 country of Japan, there is a growing trend in the enterprise software market towards AI-driven solutions for efficient business processes.

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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Currency

Analyst Opinion

The Enterprise Software market in G7 countries has been experiencing steady growth in recent years, driven by the increasing adoption of cloud-based solutions and the demand for digital transformation across various industries.

Customer preferences: Enterprises in G7 countries are increasingly looking for software solutions that can streamline their operations, increase efficiency, and reduce costs. Cloud-based solutions are becoming more popular due to their flexibility, scalability, and cost-effectiveness. Additionally, there is a growing demand for software that can enable remote work and collaboration, as well as data analytics tools that can provide insights into business operations.

Trends in the market: The Enterprise Software market in the United States is the largest in the G7, driven by the high adoption of cloud-based solutions and the increasing demand for artificial intelligence and machine learning technologies. In Canada, the market is experiencing growth due to the increasing adoption of cloud-based solutions and the demand for software that can support remote work. In the United Kingdom, the market is being driven by the demand for software that can support digital transformation across various industries, as well as the increasing adoption of cloud-based solutions. In France, the market is experiencing growth due to the increasing adoption of cloud-based solutions and the demand for software that can support the digital transformation of the healthcare industry. In Germany, the market is being driven by the demand for software that can support digital transformation across various industries, as well as the increasing adoption of cloud-based solutions. In Italy, the market is experiencing growth due to the increasing adoption of cloud-based solutions and the demand for software that can support the digital transformation of the manufacturing industry. In Japan, the market is being driven by the demand for software that can support digital transformation across various industries, as well as the increasing adoption of cloud-based solutions.

Local special circumstances: In Canada, the Enterprise Software market is heavily influenced by the country's strong tech sector, which is focused on developing innovative software solutions. In the United Kingdom, the market is being shaped by the country's focus on digital transformation and the increasing adoption of cloud-based solutions in the public sector. In France, the market is being driven by the growing demand for software that can support the digital transformation of the healthcare industry. In Germany, the market is being shaped by the country's strong manufacturing sector, which is focused on adopting digital technologies to increase efficiency and competitiveness. In Italy, the market is being driven by the country's focus on the digital transformation of the manufacturing industry. In Japan, the market is being shaped by the country's focus on developing innovative software solutions and the increasing adoption of cloud-based solutions in the public sector.

Underlying macroeconomic factors: The Enterprise Software market in G7 countries is being driven by several macroeconomic factors, including the increasing adoption of digital technologies across various industries, the growing demand for cloud-based solutions, and the need for software that can support remote work and collaboration. Additionally, the market is being shaped by the strong tech sectors in countries like Canada, the United States, and Japan, as well as the focus on digital transformation in countries like the United Kingdom, France, and Germany. Overall, the Enterprise Software market in G7 countries is expected to continue growing in the coming years as more businesses adopt digital technologies and invest in software solutions to support their operations.

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.