Software - Mongolia

Mongolia

In 2024, the projected revenue in the Software market in Mongolia is expected to reach US$214.20m.
The market is primarily dominated by Enterprise Software , which is projected to have a market volume of US$88.24m in the same year.
Looking ahead, the revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 8.62%, resulting in a market volume of US$323.80m by 2029.
When compared globally, United States is anticipated to generate the highest revenue, amounting to US$363.40bn in 2024.
"Mongolia's software market is rapidly expanding, driven by increasing demand for technology solutions in sectors such as mining and agriculture."

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

The Software market in Mongolia has been developing at a steady pace in recent years, driven by a growing demand for digital solutions in various industries.

Customer preferences: Mongolian customers are increasingly looking for software solutions that can help them streamline their business processes, improve efficiency and reduce costs. This has led to a growing demand for software products that can automate tasks, manage data and provide real-time insights into business operations. Cloud-based software solutions have also become popular among businesses in Mongolia, as they offer flexibility, scalability and cost-effectiveness.

Trends in the market: One of the key trends in the Mongolian software market is the growing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Businesses are using these technologies to automate tasks, analyze data and gain insights into customer behavior. Another trend is the increasing use of mobile applications, as more and more people in Mongolia are using smartphones and tablets to access information and services.

Local special circumstances: The software market in Mongolia is still relatively small compared to other countries in the region, but it is growing rapidly. One of the challenges facing software companies in Mongolia is the lack of skilled professionals in the industry. Many companies struggle to find qualified software developers, which can slow down the pace of innovation and product development. Another challenge is the relatively low level of digital literacy among the population, which can limit the adoption of new technologies.

Underlying macroeconomic factors: Mongolia's economy has been growing steadily in recent years, driven by a boom in the mining sector and increased investment in infrastructure. This has created new opportunities for businesses in various industries, including software development. The government has also been promoting the development of the digital economy, with initiatives aimed at improving internet connectivity, promoting e-commerce and supporting the growth of the IT industry. These factors are likely to continue driving the growth of the software market in Mongolia in the coming years.

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.