Enterprise Software - North America

North America

The revenue in the Enterprise Software market in North America is projected to reach US$161.60bn in 2024.
Customer Relationship Management Software dominates this market segment, with a projected market volume of US$48.45bn in the same year.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.37%, resulting in a market volume of US$209.90bn by 2029.
Furthermore, in 2024, the average spend per employee in the Enterprise Software market is projected to reach US$633.20.
In a global comparison, United States is expected to generate the highest revenue, amounting to US$150.50bn in 2024.
In North America, the Enterprise Software market is booming with innovative solutions driving digital transformation 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

Enterprise Software market in North America has been experiencing steady growth over the years. The market is characterized by a high level of competition, innovation, and technological advancement.

Customer preferences: North American customers are known for their high demand for software that is tailored to their specific needs. They prefer software that is easy to use, customizable, and can be easily integrated with other business systems. Additionally, customers are increasingly demanding cloud-based software solutions as they offer more flexibility and scalability.

Trends in the market: One of the major trends in the Enterprise Software market in North America is the increasing adoption of Artificial Intelligence (AI) and Machine Learning (ML) in software development. These technologies are being used to develop software that is more intelligent, efficient, and can automate repetitive tasks. Another trend is the increasing use of Software-as-a-Service (SaaS) as a delivery model for enterprise software. This model is gaining popularity due to its low cost, flexibility, and ease of deployment.

Local special circumstances: The Enterprise Software market in North America is characterized by a high level of competition, with many software vendors offering similar products. This has led to intense price competition, forcing vendors to innovate and differentiate their products. Additionally, the market is highly regulated, with strict data privacy and security laws that vendors must comply with.

Underlying macroeconomic factors: The Enterprise Software market in North America is driven by several macroeconomic factors, including the increasing adoption of digital technologies by businesses, the growing need for automation and process optimization, and the increasing demand for cloud-based solutions. Additionally, the region has a highly skilled workforce and a strong culture of innovation, which has led to the development of many innovative software products. The region also has a large number of small and medium-sized businesses that are increasingly adopting enterprise software to improve their operations and remain competitive.

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.