Enterprise Software - NAFTA

NAFTA

The Enterprise Software market is expected to generate a revenue of US$161.60bn in 2024.
Among the various software categories, Customer Relationship Management Software is set to dominate the market with a projected market volume of US$48.45bn in the same year.
Looking ahead, the market is anticipated to witness a steady annual growth rate (CAGR 2024-2029) of 5.37%, resulting in a market volume of US$209.90bn by 2029.
When it comes to spending, the average Spend per Employee in the Enterprise Software market is projected to reach US$633.20 in 2024.
In a global perspective, United States is expected to generate the highest revenue, reaching US$150.50bn in 2024.
In the NAFTA region, the adoption of enterprise software is on the rise, with companies in the United States leading the way in implementing advanced solutions for improved efficiency and 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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Analyst Opinion

The Enterprise Software market in NAFTA has been experiencing significant growth in recent years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the NAFTA region have been increasingly demanding enterprise software solutions that are more user-friendly, efficient, and cost-effective. As a result, vendors have been focusing on developing software solutions that are more intuitive, customizable, and scalable. Additionally, customers have been increasingly adopting cloud-based software solutions, which offer greater flexibility, accessibility, and cost savings. This has led to a shift away from traditional on-premise software solutions, which are more expensive and require significant IT resources.

Trends in the market: One of the key trends in the NAFTA enterprise software market has been the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being integrated into various enterprise software solutions, such as customer relationship management (CRM), supply chain management (SCM), and human resource management (HRM) systems. This is enabling organizations to automate various tasks, improve decision-making, and enhance overall efficiency. Another trend has been the growing demand for mobile enterprise software solutions, which enable employees to access critical business information and applications from anywhere, at any time.

Local special circumstances: The NAFTA region comprises three countries, each with its own unique set of local circumstances. For example, the US enterprise software market is characterized by high levels of competition, with numerous vendors competing for market share. In contrast, the Canadian market is relatively small, with fewer vendors and a greater emphasis on cloud-based solutions. The Mexican market is still developing, with significant growth potential in areas such as e-commerce and mobile technology.

Underlying macroeconomic factors: The underlying macroeconomic factors driving the NAFTA enterprise software market include factors such as GDP growth, unemployment rates, and government policies. For example, the US economy has been growing steadily in recent years, with low unemployment rates and favorable government policies such as tax cuts and deregulation. This has created a favorable business environment for enterprise software vendors, as organizations have more resources to invest in technology. In Canada, the economy has been more stable, with moderate growth and low inflation. The Mexican economy has been more volatile, with significant fluctuations in GDP growth and currency exchange rates. However, the government has been implementing various policies to promote economic growth and attract foreign investment, which bodes well for the future of the enterprise software market in Mexico.

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.