Software - Pakistan

Pakistan

The Software market in Pakistan is forecasted to achieve a revenue of US$874.80m in 2024.
Among the various segments in the market, Enterprise Software is expected to dominate with a projected market volume of US$394.30m in the same year.
The revenue is anticipated to display a compound annual growth rate (CAGR 2024-2029) of 13.97%, leading to a market volume of US$1,682.00m by 2029.
When compared globally, United States is expected to generate the highest revenue of US$363.40bn in 2024.
Pakistan is experiencing a surge in demand for software solutions, driven by its growing population, increasing digitalization, and a focus on technology as a key driver of economic growth.

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

Pakistan, a country in South Asia, has been experiencing a significant growth in its software market in recent years.

Customer preferences: Customers in Pakistan have shown a strong preference for software solutions that cater to their specific needs. This has led to an increase in demand for customized software development services. Additionally, there has been a growing demand for cloud-based software solutions due to their cost-effectiveness and ease of use.

Trends in the market: One of the major trends in the software market in Pakistan is the increasing adoption of mobile applications. With a large population of tech-savvy youth, the demand for mobile applications has been on the rise. This trend is expected to continue in the coming years, with more businesses investing in mobile app development to cater to this growing market.Another trend in the software market in Pakistan is the rise of e-commerce platforms. With the increasing availability of high-speed internet and the growing popularity of online shopping, e-commerce platforms have become an important part of the Pakistani market. This has led to an increase in demand for software solutions that enable businesses to set up and manage their online stores.

Local special circumstances: Pakistan has a large pool of young and talented software developers who are driving innovation in the industry. This has led to the emergence of a thriving startup ecosystem in the country, with many young entrepreneurs launching innovative software solutions to address local challenges. The government has also been supportive of this trend, providing incentives and support to startups in the software industry.

Underlying macroeconomic factors: Pakistan's growing software industry can be attributed to several underlying macroeconomic factors. The government's focus on digitization and the increasing availability of high-speed internet have created an enabling environment for the growth of the software industry. Additionally, the country's large population of tech-savvy youth has provided a strong market for software solutions. The government's efforts to attract foreign investment in the software industry have also contributed to its growth. Overall, the software market in Pakistan is expected to continue to grow in the coming years, driven by the country's young and talented workforce and its supportive policy environment.

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.