Software

Software - G7

Highlights

The Software market in the G7 countries is expected to experience significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach a staggering US$502.00bn by 2024.
Among the various segments within this market, Enterprise Software is expected to dominate with a projected market volume of US$208.70bn in the same year.
Furthermore, the Software market is anticipated to exhibit a steady annual growth rate of 4.17% between 2024 and 2029.
This growth is expected to result in a market volume of US$615.60bn by 2029.
In terms of global comparison, United States is projected to generate the highest revenue in the Software market.
In 2024 alone, United States is expected to generate a revenue of US$363.40bn, solidifying its position as a global leader in this industry.
In the United States, the software market is experiencing a surge in demand for cybersecurity solutions due to increasing cyber threats.

Key regions:

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the 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 market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change 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 consumers (B2C), 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 Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The global software market is constantly evolving and the G7 countries are no exception. The G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) are known for their strong economies and technological advancements. Here are some insights into the software market in these countries.

Customer preferences: Customers in G7 countries have high expectations when it comes to software. They prefer software that is easy to use, efficient, and secure. They also value software that can be customized to their specific needs. In addition, customers in these countries are increasingly concerned about data privacy and are willing to pay a premium for software that offers strong security features.

Trends in the market: In Canada, the software market is experiencing steady growth due to the increasing demand for cloud-based software and the adoption of artificial intelligence (AI) and machine learning (ML) technologies. In France, the software market is driven by the growing demand for enterprise software and mobile applications. Germany is known for its strong software industry, and the market is dominated by small and medium-sized enterprises (SMEs) that specialize in niche areas. In Italy, the software market is growing due to the increasing adoption of cloud-based software and the demand for software solutions in the healthcare industry. In Japan, the software market is driven by the growing demand for enterprise software and the adoption of AI and ML technologies. The United Kingdom has a mature software market, and the demand is mainly driven by the financial services sector. Finally, in the United States, the software market is dominated by large companies that specialize in enterprise software, cloud computing, and AI.

Local special circumstances: Each G7 country has its own unique set of circumstances that affect the software market. For example, in Canada, the government is investing heavily in AI research, which is expected to drive growth in the software industry. In France, there is a strong focus on developing software solutions for the healthcare industry. In Germany, the software industry is dominated by SMEs that specialize in niche areas, such as automotive software. In Italy, the government is investing in digital infrastructure, which is expected to boost growth in the software industry. In Japan, there is a strong focus on developing software solutions for the manufacturing industry. In the United Kingdom, the software industry is heavily influenced by the financial services sector. Finally, in the United States, the software industry is dominated by large companies that have significant resources to invest in research and development.

Underlying macroeconomic factors: The software market in G7 countries is influenced by a range of macroeconomic factors, such as GDP growth, inflation, and interest rates. In addition, the availability of skilled labor, access to capital, and government policies also play a role in shaping the software market. For example, countries with high GDP growth rates and low inflation rates are likely to experience higher demand for software solutions. Similarly, countries with favorable government policies, such as tax incentives for software companies, are likely to attract more investment in the software industry.

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.