Software - Kuwait

Kuwait

The Software market in Kuwait is expected to witness a significant increase in revenue, reaching a projected amount of US$233.20m in 2024.
Among the various segments in the market, Enterprise Software stands out as the dominant force, with a projected market volume of US$97.90m in the same year.
This indicates the strong demand and adoption of enterprise-level software solutions in Kuwait.
Looking ahead, the Software market is anticipated to experience steady growth, with an estimated annual growth rate (CAGR 2024-2029) of 2.58%.
This growth trajectory is expected to result in a market volume of US$264.90m by 2029.
Such growth prospects underscore the increasing reliance on software-based solutions across various industries in Kuwait.
In comparison to other countries, United States is projected to generate the highest revenue in the Software market, reaching a staggering US$363.40bn in 2024.
This highlights the dominance of the US in the global software industry and its significant contribution to the overall market revenue.
Kuwait's software market is experiencing a surge in demand for cloud-based solutions, driven by the need for scalability and flexibility in the country's rapidly growing digital economy.

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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Currency

Analyst Opinion

Kuwait, a small country in the Middle East, has been experiencing a steady growth in its software market over the past few years.

Customer preferences: Kuwaiti consumers are increasingly interested in software products that cater to their specific needs. They are looking for software that is user-friendly, customizable, and offers good customer support. Additionally, there is a growing demand for cloud-based software solutions that can be accessed from anywhere at any time.

Trends in the market: One of the major trends in the Kuwaiti software market is the growing popularity of enterprise software. Many businesses in Kuwait are investing in software solutions that can help them streamline their operations and improve their overall efficiency. Another trend is the rise of mobile applications, as more and more Kuwaitis are using smartphones and tablets to access the internet.

Local special circumstances: Kuwait is a small country with a high per capita income, which means that there is a significant market for high-end software products. Additionally, the government of Kuwait has been investing heavily in technology infrastructure, which has helped to create a favorable environment for software companies.

Underlying macroeconomic factors: The Kuwaiti economy is heavily dependent on the oil industry, which has been facing significant challenges in recent years due to low oil prices. However, the government has been working to diversify the economy and promote other industries, including the technology sector. This has created opportunities for software companies to expand their operations in Kuwait. Additionally, the country has a young and tech-savvy population, which is driving demand for software products.

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.