Enterprise Software - Philippines

Philippines

Highlights

The Enterprise Software market in the Philippines is expected to generate a revenue of US$391.10m by 2024.
Among the various segments, Customer Relationship Management Software holds the dominant position, with a projected market volume of US$117.90m in the same year.
Looking ahead, the market is anticipated to exhibit a steady annual growth rate of 9.47% (CAGR 2024-2029), resulting in a market volume of US$614.90m by 2029.
In terms of average spend per employee, the Enterprise Software market is projected to reach US$8.14 in 2024.
When compared globally, United States is expected to generate the highest revenue, amounting to US$150.50bn in 2024.
The Philippines is experiencing a growing demand for cloud-based enterprise software solutions to enhance operational efficiency and digital transformation.

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Enterprise Software market in Philippines has been experiencing significant growth in recent years, driven by several factors that have contributed to the development of the market.

Customer preferences: Customers in the Philippines have shown a growing preference for cloud-based enterprise software solutions, which offer greater flexibility and scalability than traditional on-premise solutions. This trend is driven by the increasing adoption of mobile devices and the need for remote access to business applications. Additionally, customers are looking for software solutions that are easy to use and require minimal training.

Trends in the market: One of the key trends in the Enterprise Software market in Philippines is the increasing demand for software solutions that can help businesses improve their operations and increase efficiency. This includes solutions for enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM). Another trend is the growing adoption of artificial intelligence (AI) and machine learning (ML) technologies, which are being used to improve decision-making and automate routine tasks.

Local special circumstances: The Philippines has a large and growing business process outsourcing (BPO) industry, which has been a key driver of the Enterprise Software market in the country. BPO companies require software solutions that can help them manage their operations and provide services to their clients. Additionally, the government has been promoting the development of the country's IT industry, which has led to the growth of local software companies.

Underlying macroeconomic factors: The Philippines has a rapidly growing economy, with a young and tech-savvy population that is driving demand for enterprise software solutions. The country's GDP has been growing at a steady rate, and the government has been investing in infrastructure and technology to support the growth of the IT industry. Additionally, the country has a large and highly skilled workforce, which has made it an attractive destination for foreign companies looking to outsource their IT operations.

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.