Software - Malawi

Malawi

In 2024, the projected revenue in the Software market for Malawi is estimated to reach US$25.31m.
The market is primarily dominated by Enterprise Software , which is expected to have a market volume of US$10.64m in the same year.
Looking ahead, the revenue is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 4.50%, resulting in a market volume of US$31.54m by 2029.
In comparison to other countries around Worldwide, United States is projected to generate the highest revenue of US$363.40bn in 2024.
Despite being a developing country, Malawi has shown significant growth in its software market, with a focus on custom software development for agricultural and healthcare sectors.

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

Malawi, a country located in Southeast Africa, has been experiencing a steady growth in its software market in recent years. This growth can be attributed to various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Malawi's software market has been influenced by the increasing demand for cloud-based software solutions. This is because cloud-based software is more flexible and cost-effective compared to traditional software. Additionally, customers in Malawi prefer software solutions that are easy to use and require minimal training.

Trends in the market: One of the major trends in Malawi's software market is the adoption of mobile applications. This is because mobile devices are becoming more affordable and accessible to the general population. As a result, businesses are leveraging mobile applications to reach a wider audience and improve customer engagement. Another trend in the market is the increasing demand for software solutions that are tailor-made for specific industries such as agriculture and healthcare.

Local special circumstances: Malawi's software market is characterized by a high level of informality. This is because most businesses in the country are small and medium-sized enterprises (SMEs) that operate in the informal sector. As a result, software vendors have to tailor their solutions to meet the unique needs of these businesses. Additionally, the country's limited IT infrastructure and unreliable power supply pose a challenge to the growth of the software market.

Underlying macroeconomic factors: Malawi's software market is influenced by various macroeconomic factors such as government policies, foreign investment, and economic growth. The government has been implementing policies aimed at promoting the growth of the ICT sector, which has had a positive impact on the software market. Additionally, foreign investment in the country's ICT sector has been increasing, which has led to the development of new software solutions. Finally, the country's steady economic growth has resulted in an increase in the number of businesses, which has created a demand for software solutions.

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.