Skip to main content
  1. Market Insights
  2. Technology

Software - Nigeria

Nigeria
  • In 2024, the projected revenue in the Software market for Nigeria is expected to reach US$867.80m.
  • The dominant segment in this market is Enterprise Software , which is projected to have a market volume of US$400.80m in 2024.
  • Looking ahead, the revenue is expected to grow at an annual rate of 11.32% (CAGR 2024-2029), resulting in a market volume of US$1.48bn by 2029.
  • Comparatively, United States is projected to generate the highest revenue in the global market, with US$363.40bn in 2024.
  • Nigeria's software market is experiencing a surge in demand due to the country's rapid digital transformation and increasing focus on technology-driven solutions.

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.

For more information on the displayed data, use the info button right next to the boxes.

In-Scope

  • Productivity software, such as Microsoft, Adobe, and Zoom
  • Enterprise software, such as Oracle, SAP, and ServiceNow
  • Application development software, such as Amazon Web Services (AWS), Squarespace, and Visual Studio
  • System Infrastructure Software, such as Cisco, Gen Digital, and McAfee

Out-Of-Scope

  • PC and gaming software, such as NVIDIA Corporation, Improbable, and Plug In Digital
  • Social networking, such as Facebook, Yammer, Twitter, and Zimbra
  • Free of charge software, such as Airtable, Anaplan, and BlackLine
  • Custom made applications, such as Sphinx Solutions, CHI Software, and Intellectsoft
Software: market data & analysis  - Cover

Market Insights report

Software: market data & analysis

Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Jul 2024

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Key Players

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Analyst Opinion

    Software is one of the fastest-growing industries in Nigeria, with a rapidly increasing demand for software products and services. The country's software market is developing at a rapid pace, driven by a range of factors that include customer preferences, local special circumstances, and underlying macroeconomic factors.

    Customer preferences:
    Nigerian customers are increasingly adopting technology and digital solutions to meet their daily needs. This shift in preference has led to an increase in demand for software products and services, including mobile applications, enterprise software, and cloud-based solutions. With a young and tech-savvy population, Nigeria's software market is expected to continue growing in the coming years.

    Trends in the market:
    The Nigerian software market is witnessing a surge in demand for cloud-based solutions, as more businesses and individuals seek to store and access their data remotely. The rise of e-commerce platforms and online marketplaces has also led to an increase in the demand for software solutions that can help businesses manage their operations more efficiently. Additionally, the adoption of artificial intelligence and machine learning technologies is growing in Nigeria, with businesses seeking to leverage these tools to improve their processes and gain a competitive edge.

    Local special circumstances:
    Nigeria's software market is characterized by a highly entrepreneurial culture, with many startups and small businesses operating in the sector. However, the lack of adequate infrastructure and funding has posed a challenge for many of these businesses, limiting their ability to scale and compete with larger players. Additionally, the country's regulatory environment can be challenging, with complex tax laws and bureaucratic hurdles making it difficult for businesses to operate.

    Underlying macroeconomic factors:
    Nigeria's software market is heavily influenced by the country's broader macroeconomic conditions. The country's GDP growth has been relatively low in recent years, which has limited the growth of the software industry. Additionally, the country's currency has been volatile, which can make it difficult for businesses to plan and invest for the long term. However, the government has taken steps to support the growth of the industry, including launching initiatives to support startups and investing in infrastructure improvements.In conclusion, Nigeria's software market is a rapidly growing industry that is being driven by a range of factors, including customer preferences, local special circumstances, and underlying macroeconomic factors. While the industry faces challenges, such as a lack of infrastructure and funding, the government's support and the entrepreneurial spirit of the sector are likely to continue driving growth in the coming years.

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    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.

    Technology

    Access more Market Insights on Technology topics with our featured report

    Software: market data & analysis  - BackgroundSoftware: market data & analysis  - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Software development - statistics & facts

    Imagine a world without the apps you use daily, the games you enjoy, or the websites you rely on. Software development is the invisible hand behind this digital magic, transforming ideas into the tools that shape our lives. Software development is the process of creating, designing, deploying, and supporting software. It includes all the computer activities between the software's conception and final manifestation.

    These activities are planned and put into stages in a logical order, a process known as the software development life cycle (SDLC) or software development. The SDLC often includes six stages: requirement analysis, design, development, testing, implementation, documentation, and evolution. Programming languages such as JavaScript and C++ are used to create software, with JavaScript being the most popular programming language in 2023 and used by roughly 65 percent of software developers.

    More data on the topic

    Contact

    Get in touch with us. We are happy to help.