Enterprise Software - Southeast Asia

Southeast Asia

In 2024, the projected revenue in the Enterprise Software market in Southeast Asia is estimated to reach US$3.66bn.
Among the different software categories, Customer Relationship Management Software is expected to dominate the market with a projected market volume of US$1.10bn in 2024.
It is anticipated that the revenue will experience an annual growth rate (CAGR 2024-2029) of 8.21%, resulting in a market volume of US$5.43bn by 2029.
Furthermore, the average Spend per Employee in the Enterprise Software market is projected to reach US$10.54 in 2024.
In comparison to other countries, United States is expected to generate the highest revenue, with an estimated amount of US$150.50bn in 2024.
In Southeast Asia, Singapore has emerged as a leading hub for enterprise software, attracting top talent and fostering innovation in the market.

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 Southeast Asia has been rapidly developing in recent years, driven by various factors such as digital transformation initiatives and the increasing adoption of cloud-based solutions.

Customer preferences: Customers in Southeast Asia are increasingly seeking enterprise software solutions that can help them streamline their business processes and improve their overall operational efficiency. Cloud-based solutions are becoming increasingly popular due to their scalability, flexibility, and cost-effectiveness. In addition, customers are also looking for software solutions that can help them improve their customer engagement and experience, as well as enhance their data analytics capabilities.

Trends in the market: One of the key trends in the Enterprise Software market in Southeast Asia is the increasing adoption of cloud-based solutions. Cloud-based software solutions are becoming increasingly popular due to their scalability, flexibility, and cost-effectiveness. This trend is being driven by the increasing demand for digital transformation initiatives, as well as the growing number of small and medium-sized enterprises (SMEs) in the region.Another trend in the market is the growing importance of data analytics capabilities. As companies in Southeast Asia look to improve their operational efficiency and customer engagement, they are increasingly relying on data analytics to gain insights into their business processes and customer behavior. This trend is being driven by the increasing availability of data and the growing importance of data-driven decision-making.

Local special circumstances: One of the key factors driving the development of the Enterprise Software market in Southeast Asia is the region's growing digital economy. The region's digital economy is expected to reach $300 billion by 2025, driven by factors such as the increasing availability of affordable smartphones and the growing number of internet users. This is creating opportunities for companies in the Enterprise Software market, as businesses in the region look to leverage digital technologies to improve their operations and engage with customers.

Underlying macroeconomic factors: The development of the Enterprise Software market in Southeast Asia is also being driven by broader macroeconomic factors such as the region's growing middle class and the increasing urbanization of the population. As more people move into cities and become part of the middle class, they are increasingly demanding higher-quality products and services, including enterprise software solutions. In addition, the region's growing middle class is also creating opportunities for SMEs, which are increasingly adopting enterprise software solutions to improve their operations and compete with larger companies.

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.