Software - Portugal

Portugal

In Portugal, the revenue in the Software market is estimated to reach US$838.80m in 2024.
The market is primarily dominated by Enterprise Software , which is projected to have a market volume of US$346.50m in the same year.
Looking ahead, the revenue is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 3.93%, leading to a market volume of US$1,017.00m by 2029.
When compared globally, United States is anticipated to generate the highest revenue in the Software market, with an estimated amount of US$363.40bn in 2024.
The software market in Portugal has experienced significant growth in recent years, with a focus on innovative solutions for the tourism and hospitality industry.

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 Portuguese Software market has been growing at a steady pace over the last few years.

Customer preferences: The Portuguese market is largely driven by the demand for enterprise software solutions. The country is home to a large number of small and medium-sized enterprises (SMEs), which are increasingly adopting software solutions to streamline their operations and increase efficiency. Additionally, there is a growing demand for cloud-based software solutions, which offer greater flexibility and scalability.

Trends in the market: One of the key trends in the Portuguese software market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. This is particularly evident in the financial services sector, where banks and other financial institutions are using these technologies to improve risk management and fraud detection. Another trend is the growing popularity of open-source software, which is being increasingly adopted by both businesses and individuals.

Local special circumstances: One of the unique aspects of the Portuguese software market is the strong focus on innovation and entrepreneurship. The country has a vibrant startup ecosystem, with a number of successful software companies emerging in recent years. Additionally, the Portuguese government has been actively promoting the development of the country's technology sector, with a range of initiatives designed to support startups and encourage innovation.

Underlying macroeconomic factors: The growth of the Portuguese software market can be attributed to a number of underlying macroeconomic factors. One of the most important is the country's strong economic growth, which has created a favorable business environment for software companies. Additionally, Portugal has a highly skilled workforce, with a large number of graduates in science, technology, engineering, and mathematics (STEM) fields. This has helped to fuel innovation and support the development of the country's technology sector. Finally, the country's membership in the European Union has provided access to a large market and a range of funding opportunities for software companies.

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.