Software - GCC

The Software market in GCC is expected to witness a significant revenue growth in the coming years.
By 2025, the projected revenue is estimated to reach US$4.43bn.
Among the various segments in the market, Enterprise Software is poised to dominate with a projected market volume of US$1.86bn by 2025.
This indicates the strong presence and demand for enterprise software solutions in the GCC region.
Looking ahead, the Software market is anticipated to maintain a steady growth rate.
The annual growth rate, also known as the Compound Annual Growth Rate (CAGR), is projected to be 4.63% for the period 2025-2029.
This growth trajectory is expected to result in a market volume of US$5.31bn by 2029.
This indicates the potential for further expansion and development of the Software market in GCC.
In terms of global comparison, United States is expected to generate the highest revenue in the Software market.
By 2025, the projected revenue for the United States is estimated to be US$379.30bn.
This highlights the strong position of the United States in the global Software market and its significance in driving overall market growth.
The Software market in GCC is poised for substantial growth, with Enterprise Software leading the way.
With the projected revenue figures and growth rates, it is evident that the GCC region holds significant potential in the Software market.
"The software market in the GCC is experiencing rapid growth, with a focus on developing innovative solutions to meet the unique needs of the region's diverse industries."

Key regions: United States, Canada, Germany, China, Japan

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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Analyst Opinion

The Software market in GCC has been witnessing significant growth in recent years, driven by various factors such as the growing adoption of cloud computing, increasing investments in digital transformation, and the rise of mobile devices.

Customer preferences: Customers in the GCC region are increasingly looking for software solutions that can help them streamline their business operations, reduce costs, improve efficiency, and enhance customer experience. They are also looking for software solutions that are user-friendly, scalable, and secure. Moreover, customers in the GCC region are increasingly adopting cloud-based software solutions, as they offer greater flexibility, scalability, and cost-effectiveness compared to on-premise solutions.

Trends in the market: One of the key trends in the Software market in GCC is the growing adoption of cloud computing. Cloud-based software solutions are gaining popularity among businesses in the GCC region, as they offer several benefits such as lower costs, greater flexibility, and improved scalability. Another trend in the market is the increasing investment in digital transformation. Many businesses in the GCC region are investing heavily in digital transformation initiatives to stay competitive and meet the evolving needs of their customers. Additionally, the rise of mobile devices is also driving the growth of the Software market in GCC, as businesses are increasingly adopting mobile-first strategies to engage with their customers and employees.

Local special circumstances: The GCC region has a unique business environment, characterized by a high degree of government involvement and a large number of small and medium-sized enterprises (SMEs). This has created a significant demand for software solutions that can help SMEs automate their business processes, improve their productivity, and enhance their competitiveness. Moreover, the GCC region has a large expatriate population, which has created a demand for software solutions that can help businesses manage their workforce, including payroll, benefits, and performance management.

Underlying macroeconomic factors: The Software market in GCC is also being driven by various macroeconomic factors, such as the growing GDP of the region, the increasing investments in infrastructure development, and the rising demand for digital services. Moreover, the GCC region is home to several large and rapidly growing industries, such as oil and gas, construction, and tourism, which are driving the demand for software solutions that can help them manage their operations more efficiently and effectively. Additionally, the GCC region has a young and tech-savvy population, which is driving the adoption of digital technologies and creating a growing demand for software solutions.

Methodology

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.