Software - Nepal

Nepal

The Software market in Nepal is set to witness significant growth, with revenue projected to reach US$110.60m in 2024.
The dominant force in this market segment is Enterprise Software , which is expected to have a market volume of US$46.88m in the same year.
Looking ahead, the revenue is anticipated to experience a steady annual growth rate (CAGR 2024-2029) of 9.66%, resulting in a market volume of US$175.40m by 2029.
In global comparison, it is worth noting that United States is expected to generate the highest revenue, amounting to US$363.40bn in 2024.
Nepal's software market is experiencing a surge in demand for cloud-based solutions, driving innovation and growth in the industry.

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

Nestled in the lap of the Himalayas, Nepal is a country known for its diverse culture, breathtaking landscapes, and now, its growing software market.

Customer preferences: The Nepalese software market is driven by a growing demand for software solutions that cater to the needs of small and medium-sized businesses. These businesses are looking for cost-effective and efficient software solutions that can help them streamline their operations. Additionally, there is an increasing demand for software solutions that cater to the unique needs of the Nepalese market, such as Nepali language support.

Trends in the market: One of the major trends in the Nepalese software market is the growing popularity of cloud-based software solutions. With the increasing availability of high-speed internet in Nepal, more and more businesses are turning to cloud-based solutions as they offer greater flexibility, scalability, and cost-effectiveness. Another trend is the increasing adoption of mobile-based software solutions, as more and more Nepalese consumers are using smartphones to access the internet.

Local special circumstances: Nepal is a unique market with its own set of challenges and opportunities. One of the biggest challenges facing the Nepalese software market is the lack of a robust IT infrastructure. This makes it difficult for software companies to deliver high-quality software solutions to their clients. However, this challenge also presents an opportunity for software companies to develop innovative solutions that can work with limited infrastructure. Additionally, the Nepalese market is highly fragmented, with a large number of small and medium-sized businesses. This presents an opportunity for software companies to develop solutions that cater to the specific needs of these businesses.

Underlying macroeconomic factors: The Nepalese economy is growing at a steady pace, with a projected GDP growth rate of 5.5% in 2021. This growth is being driven by a number of factors, including increasing foreign investment, a growing tourism industry, and a young and educated workforce. These factors are contributing to a growing demand for software solutions that can help businesses become more efficient, productive, and competitive. Additionally, the Nepalese government has been actively promoting the development of the IT sector, which has helped to create a favorable environment for software companies to operate in.

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.