Software - Iceland

Iceland

In 2024, the projected revenue in the Software market in Iceland is expected to reach US$139.70m.
The market is predominantly dominated by Enterprise Software , which is projected to have a market volume of US$58.31m in the same year.
Looking ahead, the revenue is expected to grow at an annual growth rate of 7.54% (CAGR 2024-2029), resulting in a market volume of US$200.90m by 2029.
In comparison to the global market, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
Iceland's software market is seeing a surge in demand for cloud-based solutions, as companies seek to enhance their digital infrastructure and improve remote collaboration.

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

Iceland, a country with a population of just over 360,000, has a unique software market that is developing in interesting ways.

Customer preferences: Icelandic customers are known for their preference for high-quality and innovative software products. They are willing to pay a premium for software that provides a seamless user experience and solves a real problem. This has led to a focus on developing niche software products that cater to specific industries and needs.

Trends in the market: One of the major trends in the Icelandic software market is the rise of cloud-based software solutions. With the increasing availability of high-speed internet, more and more businesses are opting for cloud-based software products that offer greater flexibility and scalability. Another trend is the increasing focus on software security and data privacy, which is driven by the growing number of cyber threats and regulations.

Local special circumstances: Iceland's location and climate have played a significant role in the development of its software market. Its isolation has led to a focus on developing software products that cater to local needs, such as geothermal energy management and fisheries management. The country's harsh climate has also driven innovation in areas such as renewable energy and climate change mitigation, leading to the development of software products that support these industries.

Underlying macroeconomic factors: Iceland's economy has been growing steadily in recent years, driven by a boom in the tourism industry and a thriving tech startup ecosystem. The government has been investing heavily in infrastructure and education, which has helped create a skilled workforce that is able to develop and support innovative software products. Additionally, Iceland's membership in the European Economic Area has provided access to a larger market and helped attract foreign investment.

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.