Software - Iran

Iran

The revenue in the Software market in Iran is projected to reach US$7.01bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$3.37bn in 2024.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.53%, resulting in a market volume of US$8.75bn by 2029.
In global comparison, United States is expected to generate the most revenue with US$363.40bn in 2024.
Iran's software market is experiencing a surge in demand for local language-based software solutions to cater to the specific needs of its population.

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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Market

Region

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Analyst Opinion

Iran, a country in the Middle East, has been experiencing a steady growth in its software market in recent years.

Customer preferences: The Iranian market is dominated by a young and tech-savvy population who are increasingly relying on software solutions to meet their daily needs. The demand for software products is driven by the need for convenience and efficiency in various sectors such as healthcare, education, and finance. Additionally, the government's push towards digitization is also contributing to the growth of the software market in Iran.

Trends in the market: One of the major trends in the Iranian software market is the growing popularity of open-source software. This trend is driven by the need for affordable software solutions and the desire for more control over the software they use. Another trend is the increasing use of cloud-based software solutions, which offer greater flexibility and scalability for businesses. The rise of e-commerce and digital payments is also driving the demand for software solutions that can support these activities.

Local special circumstances: Iran's software market is still in its early stages of development, with a relatively small number of local software companies. However, the market is expected to grow rapidly in the coming years, as the government continues to invest in infrastructure and technology. One of the challenges facing the Iranian software market is the lack of access to international markets, due to sanctions and other restrictions.

Underlying macroeconomic factors: Iran's software market is benefiting from the country's young and tech-savvy population, as well as the government's push towards digitization. The country's relatively low labor costs and strong engineering talent pool are also contributing to the growth of the software market. However, the market is still facing challenges due to the country's economic and political situation, including international sanctions and restrictions on access to international markets. Despite these challenges, the Iranian software market is expected to continue to grow in the coming years, as the country's economy and technology infrastructure continue to develop.

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.