Software - Lebanon

Lebanon

The Software market in Lebanon is anticipated to achieve a revenue of US$471.70m by the year 2024.
Among the various segments, Enterprise Software holds the largest share, with a projected market volume of US$218.50m in the same year.
Looking ahead, the industry is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 16.95%, resulting in a market volume of US$1,032.00m by 2029.
In a global context, United States is forecasted to generate the highest revenue, amounting to US$363.40bn in 2024.
Lebanon's software market is experiencing a surge in demand for cloud-based solutions, as businesses seek flexible and scalable software solutions.

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

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

Customer preferences: Lebanese customers have shown a growing interest in software products that help them simplify their daily tasks and increase their productivity. This has led to an increase in demand for software solutions in areas such as project management, accounting, and customer relationship management. Additionally, there has been a rise in demand for software products that provide cybersecurity measures to protect against online threats.

Trends in the market: One of the major trends in the software market in Lebanon is the shift towards cloud-based solutions. This is due to the increasing availability of high-speed internet and the need for remote work capabilities. Another trend is the rise of mobile applications, as more and more Lebanese customers are using smartphones as their primary device for accessing the internet.

Local special circumstances: The political and economic instability in Lebanon has had an impact on the software market. The devaluation of the Lebanese pound has made it difficult for local software developers to compete with foreign companies. Additionally, the ongoing protests and political turmoil have led to a decrease in consumer spending, which has affected the overall growth of the market.

Underlying macroeconomic factors: Lebanon's economy has been struggling in recent years, with high levels of debt and a lack of foreign investment. The COVID-19 pandemic has only exacerbated these issues, leading to a decline in GDP and an increase in unemployment. However, the government has recently announced plans to invest in the technology sector, which could provide a boost to the software market in the future.

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.