Enterprise Software - Latvia

Latvia

The Enterprise Software market in Latvia is expected to generate a revenue of US$49.34m in 2024.
Among the various segments, Customer Relationship Management Software holds the largest market share with a projected volume of US$14.51m in 2024.
The market is anticipated to grow at an annual rate of 6.08% (CAGR 2024-2029), resulting in a market volume of US$66.29m by 2029.
Furthermore, the average Spend per Employee in the Enterprise Software market is estimated to reach US$50.28 in 2024.
In terms of global comparison, United States is expected to generate the highest revenue, amounting to US$150.50bn in 2024.
Latvia's enterprise software market is thriving, with a focus on innovative solutions that streamline business processes and enhance productivity.

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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Market

Region

Region comparison

Currency

Analyst Opinion

Latvia, a small country located in the Baltic region of Europe, has been experiencing growth in its Enterprise Software market in recent years.

Customer preferences: Latvian businesses are increasingly looking for software solutions that can help them streamline their operations and increase efficiency. Cloud-based software is becoming more popular as it allows for easy access and collaboration from anywhere, while also reducing the need for expensive hardware. Additionally, there is a growing demand for software that can help businesses manage their finances, automate administrative tasks, and improve customer relationship management.

Trends in the market: One trend that has been observed in the Latvian Enterprise Software market is the increasing adoption of Software as a Service (SaaS) solutions. This is due to the many benefits that SaaS offers, such as lower costs, easier implementation, and more flexibility. Another trend is the growing importance of mobile applications, as businesses seek to provide their employees and customers with easy access to their software solutions from anywhere.

Local special circumstances: Latvia has a small but highly skilled workforce, which has led to the development of a vibrant startup ecosystem in recent years. This has created opportunities for local software development firms to compete with larger international players, and has also led to the creation of innovative software solutions tailored to the needs of Latvian businesses.

Underlying macroeconomic factors: Latvia has a strong economy, which has been growing steadily in recent years. This has created a favorable business environment for software companies, as businesses have more resources to invest in software solutions. Additionally, Latvia's strategic location and well-developed infrastructure make it an attractive destination for international companies looking to expand into the Baltic region.

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.