Productivity Software - G7

The revenue in the Productivity Software market is forecasted to reach US$56.50bn in 2024.
The market is dominated by Office Software, which is projected to have a market volume of US$20.92bn in the same year.
It is expected that the revenue will experience an annual growth rate (CAGR 2024-2029) of 1.67%, leading to a market volume of US$61.38bn by 2029.
When comparing globally, United States is projected to generate the highest revenue, amounting to US$40,870.00m in 2024.
In the G7 country of Japan, the current trend in the productivity software market is the increasing adoption of cloud-based solutions for remote work.

Key regions: Japan, Germany, China, Australia, Netherlands

Definition:

The Productivity Software market covers software applications that are designed to support individuals and organizations in increasing their efficiency and effectiveness in carrying out their tasks. This market includes applications ranging from common office software to complex creative software applications that are used for both personal and business purposes.

Products in the Productivity 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 Productivity Software market contains five markets that are based on the functionality of the software:

Administrative Software refers to software applications that are used to manage various administrative tasks and processes within an organization.
Collaboration Software refers to software applications that are used to facilitate communication and collaboration among teams and individuals within an organization.
Office Software refers to software applications that are used for productivity and work-related tasks in an office environment.
Creative Software refers to software applications designed to support tasks such as graphic design, video editing, 3D modeling, music composition, and photo editing.
Construction and Design Software refers to software applications in the areas such as Computer-Aided Design (CAD), Manufacturing (CAM), and Product Lifecycle Management (PLM).

Additional Information:

The Productivity Software market comprises revenue and revenue growth 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, Zoom, Adobe, SAP, and Dassault Systems.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Productivity Software market in G7 countries has been witnessing steady growth in recent years, driven by increasing demand for efficient work processes and rising adoption of cloud-based solutions.

Customer preferences: Customers in G7 countries are increasingly looking for productivity software that can help them streamline their work processes and improve efficiency. They prefer software that is easy to use, customizable, and can integrate with other tools they use on a daily basis. Cloud-based solutions are also becoming more popular, as they offer greater flexibility and accessibility.

Trends in the market: In the United States, the Productivity Software market is dominated by Microsoft Office, which has been the go-to productivity suite for businesses and individuals for decades. However, there has been a growing trend towards cloud-based solutions, with Google Workspace gaining popularity as a more affordable and collaborative alternative. In Japan, there has been an increasing demand for productivity software that can help businesses adapt to remote work, with tools like Slack and Asana becoming more widely used. In Germany, there has been a focus on data privacy and security, with businesses preferring locally hosted solutions like OpenOffice and LibreOffice.

Local special circumstances: Each G7 country has its own unique set of circumstances that influence the Productivity Software market. For example, in Canada, there is a strong emphasis on bilingualism, with many businesses requiring software that can support both English and French. In France, there is a cultural preference for open-source software, with tools like LibreOffice and GIMP gaining popularity. In Italy, there is a strong tradition of small and medium-sized businesses, which has led to a demand for productivity software that is affordable and easy to use.

Underlying macroeconomic factors: The Productivity Software market in G7 countries is influenced by a range of macroeconomic factors, including GDP growth, technological innovation, and government policies. For example, in the United States, the rapid growth of the tech industry has led to a thriving productivity software market, with companies like Microsoft and Google investing heavily in research and development. In Japan, the government has been promoting remote work as a way to address the country's aging population and shrinking workforce, which has led to an increased demand for productivity software that can support remote collaboration. In Canada, the government has been investing in digital infrastructure and innovation, which has helped to drive the growth of the productivity software market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. 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.