Enterprise Software - Saudi Arabia

Saudi Arabia

Highlights

The projected revenue in the Enterprise Software market in Saudi Arabia is expected to reach US$612.60m by 2024.
Among the various software categories, Customer Relationship Management Software dominates the market with a projected market volume of US$181.80m in 2024.
The revenue in this market segment is anticipated to exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 5.08%, resulting in a market volume of US$784.90m by 2029.
The average Spend per Employee in the Enterprise Software market is projected to reach US$37.03 in 2024.
In a global comparison, United States is expected to generate the highest revenue, amounting to US$150.50bn in 2024.
Saudi Arabia's enterprise software market is experiencing significant growth due to the country's push towards digitalization and the adoption of smart technologies.

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 Saudi Arabia has been experiencing a steady growth in recent years.

Customer preferences: Saudi Arabia's Enterprise Software market is driven by the increasing demand for cloud-based solutions as businesses look to streamline their operations and improve efficiency. The market is also witnessing a shift towards mobile applications, as businesses seek to provide their employees with the flexibility to work remotely.

Trends in the market: One of the key trends in the Enterprise Software market in Saudi Arabia is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to automate repetitive tasks, improve decision-making processes and enhance the overall customer experience. Another trend is the growing popularity of Software-as-a-Service (SaaS) solutions, which offer businesses a cost-effective alternative to traditional on-premise software.

Local special circumstances: Saudi Arabia is home to a large number of small and medium-sized enterprises (SMEs), which are increasingly turning to Enterprise Software solutions to help them compete with larger businesses. The government's Vision 2030 program, which aims to diversify the economy and reduce the country's dependence on oil, has also played a key role in driving the growth of the Enterprise Software market.

Underlying macroeconomic factors: Saudi Arabia's economy has been growing steadily in recent years, thanks in part to the government's efforts to diversify the economy and attract foreign investment. The country's young and tech-savvy population is also driving demand for Enterprise Software solutions, as businesses look to cater to the needs of a new generation of consumers. Additionally, the government's initiatives to improve the country's digital infrastructure and promote the adoption of new technologies are creating a favorable environment for the growth of the Enterprise Software market.

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.