Enterprise Software - Kenya

Kenya

Kenya is projected to experience significant growth in the Enterprise Software market.
By 2024, revenue in this market is expected to reach US$130.90m.
It is interesting to note that Customer Relationship Management Software dominates the market, with a projected market volume of US$41.03m in 2024.
This indicates a strong demand for software solutions that aid in managing customer relationships.
Looking ahead, the market is anticipated to grow at an annual growth rate of 8.22% from 2024 to 2029, resulting in a market volume of US$194.30m by 2029.
This highlights the potential for sustained growth and development in the Enterprise Software market sector in Kenya.
Another important metric to consider is the average Spend per Employee in the Enterprise Software market.
In 2024, it is projected to reach US$4.93.
This indicates the investment companies are making in software solutions to enhance their operations and improve efficiency.
In a global comparison, it is noteworthy that United States is expected to generate the highest revenue in the Enterprise Software market, with US$150.50bn in 2024.
This emphasizes the dominant position of the US in the global software industry.
Overall, the Enterprise Software market in Kenya shows promising growth potential, with significant revenue projections and a strong focus on Customer Relationship Management Software.
As the demand for software solutions continues to rise, companies in Kenya have the opportunity to leverage these trends and drive innovation in the market.
Kenya's enterprise software market is experiencing rapid growth due to increasing digitalization efforts across industries.

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 Kenya has been experiencing significant growth in recent years.

Customer preferences: Kenyan businesses are increasingly adopting cloud-based enterprise software solutions due to their scalability and flexibility. Additionally, there is a growing demand for enterprise software solutions that offer mobile accessibility and integration with other business applications.

Trends in the market: One of the major trends in the Enterprise Software market in Kenya is the shift towards Software-as-a-Service (SaaS) solutions. This trend is driven by the need for cost-effective and scalable solutions that can be easily accessed from anywhere. Another trend is the adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies in enterprise software solutions to improve efficiency and productivity.

Local special circumstances: The Kenyan government has been implementing policies to promote the growth of the technology sector, including the establishment of a dedicated government agency to oversee the development of the sector. Additionally, the country has a large and growing population of tech-savvy youth who are driving the adoption of new technologies.

Underlying macroeconomic factors: Kenya has a rapidly growing economy, with a GDP growth rate of over 5% in recent years. This growth has been driven by a number of factors, including increased investment in infrastructure, a growing middle class, and a young and dynamic workforce. These factors have created a favorable environment for the growth of the Enterprise Software market in Kenya.

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.