Enterprise Software - South Korea

South Korea

Highlights

In 2024, the revenue in the Enterprise Software market in South Korea is projected to reach US$4.28bn.
The market is dominated by Customer Relationship Management Software, which is expected to have a market volume of US$1.32bn in 2024.
Looking ahead, the revenue is anticipated to show an annual growth rate of 6.14% from 2024 to 2029 (CAGR 2024-2029), resulting in a market volume of US$5.76bn by 2029.
Furthermore, the average Spend per Employee in the Enterprise Software market is projected to reach US$143.10 in 2024.
In terms of global comparison, United States is expected to generate the highest revenue, totaling US$150.50bn in 2024.
South Korea is experiencing a surge in demand for cloud-based enterprise software solutions to enhance productivity and drive digital transformation in businesses.

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

South Korea, a country known for its technological advancements and innovations, has a rapidly growing Enterprise Software market.

Customer preferences: South Korean businesses have shown a strong preference for cloud-based Enterprise Software solutions. This is due to the convenience and cost-effectiveness of cloud-based solutions, as they eliminate the need for expensive hardware and maintenance costs. Additionally, South Korean businesses have shown a preference for Enterprise Software solutions that are tailored to their specific needs and requirements.

Trends in the market: One of the major trends in the South Korean Enterprise Software market is the increasing adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies. These technologies are being used to improve the efficiency and accuracy of various business processes such as customer service, supply chain management, and financial management. Another trend in the market is the growing popularity of Enterprise Resource Planning (ERP) solutions, which are being used to integrate various business functions such as finance, HR, and operations into a single system.

Local special circumstances: South Korea has a highly competitive business environment, with a large number of small and medium-sized enterprises (SMEs) competing for market share. This has led to a high demand for Enterprise Software solutions that can help these businesses streamline their operations and improve their efficiency. Additionally, South Korea has a large and growing e-commerce market, which has created a need for Enterprise Software solutions that can help businesses manage their online sales and marketing activities.

Underlying macroeconomic factors: South Korea has a highly developed and technologically advanced economy, with a strong focus on innovation and research and development. This has created a favorable environment for the growth of the Enterprise Software market, as businesses are constantly looking for ways to improve their operations and gain a competitive edge. Additionally, South Korea has a highly educated and skilled workforce, which has helped to drive the development and adoption of new technologies in the country.

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.