Software - Northern Africa

Northern Africa

The Software market in Northern Africa is expected to generate a revenue of US$1.87bn by 2024.
The dominant segment in this market is Enterprise Software , which is projected to reach a market volume of US$0.78bn in the same year.
With an annual growth rate of 5.81% (CAGR 2024-2029), the revenue is anticipated to increase, resulting in a market volume of US$2.48bn by 2029.
In comparison to other countries, United States is expected to generate the highest revenue, reaching US$363.40bn in 2024.
In Northern Africa, the software market is experiencing a surge in demand for cloud-based solutions, driven by the need for scalability and cost-efficiency.

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

Northern Africa, a region known for its diverse culture and rich history, has also been experiencing a significant growth in the software market.

Customer preferences: The demand for software products and services in Northern Africa has been increasing due to the growing number of tech-savvy customers. The region has a young population that is increasingly interested in technology and the convenience it offers. Additionally, the need for digitalization and automation in various industries has also contributed to the growth of the software market.

Trends in the market: One of the notable trends in the software market in Northern Africa is the increasing use of cloud-based software. This trend is driven by the need for businesses to access their data from anywhere and at any time. Another trend in the market is the growing popularity of mobile applications. As the use of smartphones continues to rise in the region, businesses are leveraging this trend to reach their customers and improve their services.

Local special circumstances: The software market in Northern Africa is unique due to the diverse cultural and linguistic differences in the region. This has led to the development of software products and services that cater to specific languages and cultures. Additionally, the region has a large informal economy, which has created opportunities for software developers to create products that target this sector.

Underlying macroeconomic factors: The growth of the software market in Northern Africa can be attributed to several macroeconomic factors. The region has experienced a significant increase in foreign investment, which has led to the development of infrastructure and the growth of various industries. Additionally, the governments in the region have been implementing policies that support the growth of the technology sector, such as tax incentives and the establishment of technology parks. The increasing use of mobile devices and the growth of e-commerce in the region have also contributed to the growth of the software market.

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.