Software - Nordics

Nordics

The Software market in the Nordics is anticipated to witness a significant growth in revenue, with projections indicating that it will reach US$16.45bn by 2024.
Among the various segments within the market, Enterprise Software is expected to dominate, with a projected market volume of US$6.87bn in the same year.
This indicates the strong presence of Enterprise Software solutions in the Nordics.
Furthermore, the Software market is expected to experience a steady growth rate, with an annual growth rate (CAGR 2024-2029) of 3.57%.
This growth trajectory is predicted to result in a market volume of US$19.60bn by 2029.
These numbers demonstrate the positive outlook for the Software market in the Nordics in the upcoming years.
In terms of global comparison, United States is expected to generate the highest revenue in the Software market, reaching a staggering US$363.40bn in 2024.
This showcases the dominance of the United States in the global Software market and highlights its position as a major player in the industry.
The Nordic countries have a strong focus on sustainable software development practices, prioritizing ethical considerations and environmental impact.

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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Market

Region

Region comparison

Currency

Analyst Opinion

The demand for software solutions in the Nordic region has been increasing in recent years, driven by a combination of factors such as the growing adoption of digital technologies, increasing need for automation, and the rising popularity of cloud computing.

Customer preferences: In the Nordic region, customers are increasingly looking for software solutions that are scalable, flexible, and can be easily integrated with their existing systems. They also value solutions that offer high levels of security and data privacy, as well as those that are user-friendly and provide a seamless experience.

Trends in the market: One of the major trends in the Nordic software market is the increasing adoption of cloud-based solutions. This is driven by the need for scalability and flexibility, as well as the desire to reduce costs associated with maintaining on-premise systems. Another trend is the growing popularity of open-source software, which is seen as a more cost-effective and customizable alternative to proprietary software solutions. Additionally, there is a growing demand for software solutions that can help organizations automate their processes, improve their efficiency, and reduce the risk of errors.

Local special circumstances: The Nordic region is known for its strong focus on sustainability and social responsibility, and this is reflected in the software market as well. There is a growing demand for software solutions that can help organizations reduce their environmental impact, as well as those that promote diversity and inclusion. Additionally, the Nordic countries have a highly skilled workforce, which has helped to drive innovation and the development of cutting-edge software solutions.

Underlying macroeconomic factors: The Nordic region has a strong and stable economy, which has helped to fuel the growth of the software market. Additionally, the region is home to a large number of innovative startups and tech companies, which has helped to create a vibrant and dynamic software ecosystem. The Nordic countries also have a highly educated population, which has helped to drive the adoption of digital technologies and the development of new software solutions. Finally, the region has a strong culture of collaboration and knowledge-sharing, which has helped to foster innovation and the development of new 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.