Software - North Macedonia

North Macedonia

In 2024, the projected revenue in the Software market in North Macedonia is expected to reach US$56.87m.
The dominant player in this market segment is Enterprise Software , which is projected to have a market volume of US$23.98m in the same year.
Looking ahead, the revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.78%, resulting in a market volume of US$78.95m by 2029.
In a global comparison, it is worth noting that United States is expected to generate the highest revenue, with a projected amount of US$363.40bn in 2024.
North Macedonia is experiencing a surge in software development, with a growing number of local tech companies gaining recognition on the global stage.

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

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Currency

Analyst Opinion

North Macedonia, a small country in the Balkans, has been experiencing a steady growth in the software market in recent years.

Customer preferences: One of the main reasons for the growth in the software market in North Macedonia is the increasing demand for digital solutions from both businesses and individuals. The COVID-19 pandemic has accelerated this trend, as many companies have had to shift to remote work and digital communication. As a result, there has been a growing demand for software solutions that enable remote work, online collaboration, and e-commerce.

Trends in the market: One of the key trends in the software market in North Macedonia is the emergence of startups and small businesses that specialize in software development. These companies are often founded by young entrepreneurs who have studied computer science and engineering, and they are focused on developing innovative software solutions for both local and international markets. Another trend is the growing popularity of open-source software, which is becoming increasingly popular among developers and businesses due to its flexibility and cost-effectiveness.

Local special circumstances: North Macedonia has a relatively small domestic market, which means that many software companies are focused on exporting their products and services to other countries. This has led to a strong emphasis on quality and innovation, as companies need to compete with other international players in the market. Another important factor is the country's location in the Balkans, which gives it a strategic advantage as a gateway to both Western and Eastern Europe.

Underlying macroeconomic factors: The growth in the software market in North Macedonia is also supported by a number of underlying macroeconomic factors. The country has a relatively young and well-educated population, with a high proportion of people working in the technology sector. In addition, the government has been investing in infrastructure and education, which has helped to create a favorable environment for software development. Finally, the country's accession to the European Union is expected to further boost the software market, as it will provide access to a larger market and more funding opportunities for local businesses.

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.