Software - Northern Europe

Northern Europe

In 2024, the projected revenue in the Software market in Northern Europe is set to reach US$16.86bn.
The dominant force in this market segment is Enterprise Software , which is expected to have a projected market volume of US$7.04bn in the same year.
Looking ahead, the revenue is anticipated to display a steady annual growth rate (CAGR 2024-2029) of 3.59%, leading to a market volume of US$20.11bn by 2029.
When compared globally, United States is projected to generate the highest revenue in the Software market, with an estimated amount of US$363.40bn in 2024.
In Northern Europe, the software market is thriving with a strong emphasis on innovation and cutting-edge technologies.

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

The demand for software in Northern Europe has been on the rise in recent years, driven by various factors such as technological advancements, changing customer preferences, and local special circumstances.

Customer preferences: Customers in Northern Europe are increasingly looking for software solutions that are user-friendly, customizable, and scalable. They also prefer software that can be integrated with other systems and platforms seamlessly. This has led to the rise of cloud-based software solutions, which offer greater flexibility and accessibility.

Trends in the market: In Sweden, the software market is dominated by companies specializing in enterprise software solutions, with a particular focus on the healthcare and finance sectors. Meanwhile, in Denmark, there has been a growing demand for software solutions in the e-commerce and logistics industries. Norway has seen a surge in the adoption of cloud-based software, particularly in the areas of project management and collaboration tools.

Local special circumstances: One of the key drivers of the software market in Northern Europe is the region's highly skilled workforce. The presence of numerous tech startups and established companies has created a strong ecosystem for innovation and development. Additionally, the region's robust infrastructure and favorable business environment have attracted significant foreign investment.

Underlying macroeconomic factors: The software market in Northern Europe has been buoyed by the region's strong economic growth and stability. The growth of the digital economy and the increasing adoption of new technologies have also contributed to the expansion of the software market. Moreover, the region's emphasis on sustainability and environmental responsibility has led to the development of software solutions that promote energy efficiency and reduce carbon emissions.

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.