Software - Lithuania

Lithuania

In Lithuania, the revenue in the Software market is projected to reach US$178.90m in 2024.
The market is dominated by Enterprise Software , which is expected to have a market volume of US$74.26m in the same year.
The revenue is projected to grow at an annual rate of 4.70%, resulting in a market volume of US$225.10m by 2029.
When compared globally, United States is expected to generate the highest revenue of US$363.40bn in 2024.
Lithuania is becoming a hub for software development, attracting international companies with its skilled workforce and competitive costs.

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

The software market in Lithuania has been steadily growing over the years, with an increasing number of businesses and individuals relying on software solutions for their daily operations.

Customer preferences: Lithuanian customers are increasingly looking for software solutions that are user-friendly, efficient, and cost-effective. They are also interested in software that can be customized to their specific needs and preferences. As a result, software providers are focusing on developing solutions that are easy to use and can be tailored to meet the needs of individual customers.

Trends in the market: One of the major trends in the software market in Lithuania is the growing demand for cloud-based software solutions. This is due to the increasing need for remote work and the need for businesses to access their data and applications from any location. Another trend is the increasing popularity of software solutions that are designed for mobile devices, as more people are using smartphones and tablets for their daily activities.

Local special circumstances: Lithuania has a highly skilled workforce in the field of IT, with a large number of software developers and engineers. This has led to the development of a thriving software industry in the country. Additionally, Lithuania has a favorable business environment, with low taxes and a business-friendly government. This has attracted many software providers to set up operations in the country.

Underlying macroeconomic factors: The growth of the software market in Lithuania is also influenced by macroeconomic factors such as the country's GDP growth, its level of economic development, and the overall state of the global economy. As the Lithuanian economy continues to grow, more businesses and individuals will have the resources to invest in software solutions. Additionally, as the global economy continues to recover from the COVID-19 pandemic, there is likely to be increased demand for software solutions that can help businesses operate more efficiently and effectively.

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.